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HomeMy WebLinkAboutLAFCO: SOI Bermuda Dunes File 2cm CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT TO: Honorable Mayor and City Council FROM: Philip Drell, Director of Community Development DATE: August 23, 2001 SUBJECT: Review of Bermuda Dunes Fiscal Impact Study BACKGROUND: In a letter to the Mayor, Ernie Dunlevie requested a reexamination of the fiscal impact of a Bermuda Dunes Annexation based on recent roadwork and commercial development. II. DISCUSSION: Our 1996 study indicated an annual shortfall of $977,050 in the year 1998-99 based on total expenditures of $1,865,656 of which $1,271,1 14 was for police and fire services. Street maintenance was only $212,180. In 1999 La Quinta did a study which indicated a $523,563 shortfall increasing to $2,961,496 at build out. Their initial smaller shortfall was due to La Quinta's lack of a special fire services contract which would cost Palm Desert an additional $384,418 for the annexed area. 1999 revenues were shown to be $160,000/year more than was projected in 1996. The La Quinta report assumed build out of all commercial property and still projected a rising overall shortfall. III. RECOMMENDATION: Although we can do an updated study, it still appears likely that there will be a shortfall between $800,000 and $1,000,000. �a PHILIP DRELL DIRECTOR OF COMMUNITY DEVELOPMENT Am I 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346—o6i I FAX: 760 340-0574 info@palm-desert.org February 8, 2000 Mr. Wayne S. Guralnick Guralnick & Gilliland Attorneys at Law 74-399 Highway 111, Suite M Palm Desert, California 92260 Dear Mr. Guralnick: Subject: Consideration of Adding Bermuda Dunes to Palm Desert's Sphere of Influence At its regular meeting of January 27, 2000, the Palm Desert City Council considered the subject matter and took the following action: By Minute Motion, approved the addition of Bermuda Dunes to Palm Desert's Sphere of Influence conditioned upon Bermuda Dunes being the initiator of the application process through the Local Agency Formation Commission (LAFCo), with Palm Desert providing its full cooperation in that process, and that the potential annexation was proven to be an action that would have a financially neutral effect on Palm Desert. As promised, enclosed is a copy of the March 1996 Bermuda Dunes Annexation Fiscal Feasibility Report, accepted at the March 28, 1996, Regular Palm Desert City Council Meeting. For your reference, I have also included a copy of the Minutes from that meeting. Minutes of the January 27, 2000, meeting will be available once they are approved at the Council's meeting of February 10. If you have any questions or need for further assistance from our office, please do not hesitate to contact me. Sincerely, RACHELLE D. KLASSEN ACTING CITY CLERK rdk Enclosures (as noted) . cc: Ramon A. Diaz, City Manager Philip Drell, Director of Community Development �$ ��J* veixr[DON x¢rum vevre 1VIINUTES ®..r kEGULAR PALM DESERT CITY COUNCIL MEETING * * * * * * * * * * * * * * * * * * * * * * X. OLD BUSINESS EM MARCH 28, 1996 * * * * * * * * * * * * * * * * A. REQUEST FOR CONSIDERATION OF BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT. Mr. Drell noted the report in the packets indicating a relatively low level of revenue that would be generated compared to the cost of services which would result in a $1 million annual deficit. MR. FRANK GOODMAN addressed Council and stated that while he did not wish to dispute the report itself, there were several things he did not feel were totally addressed in the report. He said there were several streets within Bermuda Dunes Country Club that were taken care of by those residents. In addition, the area had a security patrol which would cut down on the need for Sheriff Department coverage. He noted the report did not include the Bermuda Dunes Airport which generated funds from sales tax and gasoline tax. He stated that there was a tremendous amount of property along Washington Street which was zoned residential and which he felt should be rezoned commercial. This would then bring in revenue when developed. He said he felt if the City of Palm Desert took in Bermuda Dunes, it would add prestige to the City. Councilmember Benson moved to, by Minute Motion, direct staff to inform the Bermuda Dunes Community Council and LAFCO of the conclusion that the City not encourage or support annexation of Bermuda Dunes at this time based on the significant service cost/revenue shortfall revealed by the report. Councilman Spiegel seconded the motion and stated that he and Councilman Kelly were the two Councilmembers involved in this process and that he felt Bermuda Dunes was a lovely city which would be nice to have in Palm Desert but only if it was financial feasible. Councilman Crites stated that while there may be land along Washington that might be zoned commercial, Palm Desert traditionally takes in land as it currently is. He said he was not one to go in and change residential to commercial. Councilman Kelly stated that the Council's responsibility is to look to the welfare of the existing citizens. He added that he felt badly that this did not work out. Mayor Snyder called for the vote. The motion carried by unanimous vote. Mr. Goodman asked what steps should be taken for Bermuda Dunes to be included in the City of Palm Desert's sphere of influence. Mr. Drell responded that there was an application, and the City would have to consent to that. Upon question by Councilman Spiegel as to whether or not there was a time frame for the sphere of influence, Mr. Drell stated that the Local Agency Formation Commission regulations indicated that the City would still control the timing and could forestall any annexations until they make sense. 7 BERMU DA DUNES ANNEXATION FISCAL FEASIBILITY REPORT March, 1996 Prepared for: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 (619) 340-5776 Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541-4585 on COM BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT 1. BACKGROUND The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the Bermuda Dunes community. This Report will focus on what City services will be provided within the Bermuda Dunes area, the forecasted cost of those services, and what revenues could reasonably be expected to be available to fund those services. This Report will focus on a compilation of the forecasted revenges and expendituresothould be the sannexation understoodprojected the�eiwill year 1998-99 using a range of potential fiscal imp usually be differences between the forecasts and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. The Bermuda Dunes area 1995 population is estimated at 5,362. The subject area is comprised of approximately 3.2 square miles of territory. The estimated popul elatins based including ac9tua01 census information and enhanced by various trends and modeling g techq es population growth in the surrounding communities. A population estimate of 6,000 was shown in a past application as submitted by a Bermuda Dunes community organization to the Local Agency Formation Commission. A national research bureau has estimated the 1995 population of Bermuda Dunes at 6,266. This population projection was derived using generalized assumptions based upon age specific fertility rates, life expectancy, and net immigration. However, we believe, based on actual population growth in the area, the population estimates are too high. Even if these higher population figures were used, the forecasted expenditures would still far exceed forecasted revenues. The higher population figure would lower the fiscal deficits by approximately $75,000 or 8%. At the present time, the number of structures or dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a 27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Dunes is located in the central region of Riverside County. The boundaries of the Bermuda Dunes community is generally the area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the east boundary Indio city limits, Fred Waring Drive and the La Quints city limits to the south, and along Washington Street up to the Interstate 10 Freeway to the west. Most of the area is still of a rural nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential and rugged terrain (refer to Exhibit 4). Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 1 Fiscal Feasibility Report Marcb, 1996 '*4"01 *001, The major public agencies currently providing services in the Bermuda Dunes community are the County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District. The County of Riverside is currently responsible for policymaking and administration, .law enforcement, animal control, planning and land use regulation, building inspection, flood control, and the maintenance and improvement of roads. Street lighting services within the Bermuda Dunes area are currently provided through County Service Area No. 121. The landscaped median located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon annexation, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the services is currently in place. Sewer service is currently, and will continue to be, provided by Septic Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive, Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection services to the Bermuda Dunes community.and Currently, service � aefire threesm le nradius.Riverside he County Fire of Station No. 31, is located at 42nd Avenue Riverside is currently responsible for providing police services within the Bermuda Dunes area. The law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio substations. Upon annexation, no change in fire or police protection services are anticipated because police and fire protection services are provided by the same Riverside County organization. The roads within the Bermuda Dunes area are currently maintained by the County of Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing roads. Many of the General Fund and Road Fund revenues and expenditures were either calculated on a per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a case study methodology. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report March, 1996 2 En 11. REVENUES A. GENERAL FUND The primary sources of General Fund revenues are noted below and shown on Exhibit 1: 1. Taxes: a. Property and Parcel Taxes: The City's property tax revenue is based on the historical property tax ratio of 250/o/75% between the City and the County respectively as set forth in Resolution No. 81-133 adopted September 24, 1981. Upon annexation, the City would receive approximately 25% of the total General Fund property tax revenue and the County would retain the remaining 75% of General Fund property tax revenue. In addition, the City would also assume service responsibilities of County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the community of Bermuda Dunes and provides funding for street lighting. Upon annexation, CSA No. 121 would be dissolved. One hundred percent (100%) of this special district's levies would be transferred to the City (refer to Exhibit 2). b. Property Transfer Taxes: The amount of Property Transfer Tax received will depend upon the level of resale activity within Bermuda Dunes. These revenues have been estimated using an average of previous three (3) year property transfer activity within Bermuda Dunes at the rate of .55¢ per $1,000 of assessed values. C. Homeowners Property Tax Relief: Revenue estimates generated from the Homeowner's Property Tax Relief were not specifically projected because this analysis bases the Property Tax Apportionment on assessed valuation gross of the Homeowners Exemption. Therefore, revenue from the Homeowner's Property Tax Relief is included in the Property Tax Apportionment. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 3 Fiscal Feasibility Report March, 1996 Nowo Nwo# d. Sales Taxes: Upon annexation, the City will be eligible to receive a percentage of the sales tax charged on qualifying retail sales from businesses within Bermuda Dunes. The State Board of Equalization estimated that the commercial areas within Bermuda Dunes are generating approximately $114,500 in sales tax revenues annually. RSG has assumed a modest 3% increase on these sales tax revenues for Bermuda Dunes (refer to Exhibit 3). e. Transient Occupancy Taxes: Upon annexation, the City will receive the Transient Occupancy Tax. The City's Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging establishment, the New Inn located within the Bermuda Dunes Country Club, which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax based on an occupancy factor and average room rate. 2. State Subventions (Motor Vehicle Fees): Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These taxes are collected by the State's Department of Motor Vehicles and allocated to cities on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a per capita basis. Both subventions are based on 5,362 which is the estimated population for Bermuda Dunes. The per capita figures used in the revenue summary have been provided by the State Controller's office for the 1995-96 fiscal year. 3. Franchise Fees: Upon annexation, the City will receive the franchise fees currently paid to the County by Continental Cable Television, the Southern California Gas Company, Waste Management, and Western Waste. These fees have been estimated on a per capita basis using budget figures from the City of Palm Desert. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 4 Fiscal Feasibility Report March, 1996 on on 4. Development Related Fees: 5. The fees described below are not included in Exhibit 1 because these fees specially offset costs of development related services, only the "net" cost of these services are indicated under "Expenditures". a. Land Use Planning and Regulation Fees: The City is authorized to charge fees for all land use planning and regulation services. The City would utilize the City's existing fee schedule. These fees should off -set most of the City's cost in providing these services. b. Building Inspection and Permit Fees: The fees collected for these building and permit inspection services should, in most cases, totally offset the cost of these services. C. Engineering Fees: The City is also authorized to charge fees for plan checking, public works inspection, permit issuance and review and other engineering services. The fees collected for these services should, in most cases, offset the cost of these services. d. Development Fees: Under the provisions of State law, the City may collect development fees for the purpose of construction or improving capital facilities. Fees received must be segregated from the General Fund in order to avoid commingling. Certain fees must be spent or committed within five years from the time they are collected. Other Revenues: a. Fines and Forfeitures: This represents both Motor Vehicle Code fines, Municipal Code fines, and other miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from Bermuda Dunes were estimated on a per capita basis using current budget data from the City of Palm Desert. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report March, 1996 5 b. Business License Tax: Upon annexation, the City will be eligible to impose the City's current Business License Tax. The Business License fee for the City of Palm Desert is calculated based upon gross sales. Based on discussions with City staff, RSG has estimated the amount of Business License Tax using an average Business License fee for the local sales tax generators identified within the Bermuda Dunes annexation area (refer to Exhibit 3). C. Proposition A Fire Tax: The Proposition A Fire Tax is calculated using a per parcel cost. This figure is estimated using an estimated 700 apartments and 300 condominiums at a per parcel cost of $36 per unit, and an estimated 1,200 single family residential units at $48.per unit. d. County RDA: Currently there exists along Washington Street and 42nd Avenue a County redevelopment project area. A small portion of the County Redevelopment Project Area is located within the City of Palm Desert, and the remaining portion exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This County Redevelopment Project Area consists of commercial and multifamily residential use and is located along Washington Street between Mountain View to the south and just north of 42nd Avenue. In this analysis, it is assumed the City would not take over the County Redevelopment Project Area and continued to be maintained as a County Redevelopment Project Area. Because the County Redevelopment Project Area would not be taken over by the City, no revenues have been forecasted in this analysis. e. Interest: Because expenditures exceeded revenues resulting in no excess cash, RSG did not include interest in this analysis. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 6 Fiscal Feasibility Report March, 1996 *✓ lJ B. ROAD FUND All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the cities based upon total population size. Because the annexation of Bermuda Dunes is only adding 5,362 population to the existing 37,573 of Palm Desert, the added population will not put the City's population above the next threshold. As such, no revenue is reflected relative to Section 2107.5. Similar to other state subventions, road fund revenues initially would be based at the estimated population of 5,362. Other Road Fund revenues include the voter - approved Measure "A" sales tax distributed by the County Transportation Commission. Revenues attributed to these gasoline taxes are restricted for use on road related maintenance expenditures. 111. EXPENDITURES A. GENERAL FUND EXPENDITURES Expenditures have been categorized by departments within the City's organizational structure and are estimated as follows: 1. General Government: a. Administration: The analysis assumed no new positions, equipment or major operating costs would be incurred because of the annexation. Minimal expenditures including legal costs, advertising, postage, and other selected services and supplies were estimated. Costs associated with the 1997-98 election are shown. Costs were estimated based on a case by case analysis or a per capita rate using City budget data. b. Insurance: Upon annexation of Bermuda Dunes, it is probable that the cost of the City's insurance policy will be impacted. RSG has estimated these costs based on existing infrastructure and other public facilities within Bermuda Dunes in relationship to the City's budgeted expenditure forecasts. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation March, 1996 7 Fiscal Feasibility Report *ftwl s.✓ C. Animal Control: Upon annexation of Bermuda Dunes, the current City animal control contractor, California Animal Care, will assume animal control services for this area. Costs were estimated assuming additional personnel and equipment as required by California Animal Care. These costs are net of any animal license fee revenues. d. County Property Tax Collection Charges: Beginning in 1992-93, the County Auditor -Controller's Office charged cities and local districts receiving property tax revenue for incidental administrative costs. These charges are estimated at 2% of all property tax revenues. 2. Public Safety: a. Sheriffs Contract: The Riverside County Sheriff's Department estimates service costs on a per capita basis. The City has indicated a desire to maintain a patrol beat to population ratio of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG believes this estimated service level appears excessive in this particular community due to the existing calls for service and the open space character of Bermuda Dunes. Thus, RSG has assumed based on discussions with City and County staff that only 5 beats will be needed to provide sufficient police services to the merchants and residents of Bermuda Dunes. b. Jail Booking Fee: Riverside County collects from its Cities a flat fee for jail bookings. Currently, the present jail booking fee is approximately $110. Bermuda Dunes jail booking fees were estimated based on jail bookings for the County incorporated areas in this area and for the City of Palm Desert. C. Fire Protection: The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a joint Powers Agreement forming the Cove Communities Public Safety Commission in order to provide fire and paramedic services. These costs are net of the property tax levy of the County Fire District. Fire Protection expenditures were estimated using Riverside County Fire budget costs. This expenditure reflects a percentage of the assessed valuation based upon the 1995-96 total cost. The estimated budget figure includes fire services staff costs, a one-time $110,000 for new equipment and $12,000 for training and other maintenance services. This Rosenou Spevacek Group, Inc. Bermuda Dunes Annexation March, 1996 8 Fiscal Feasibility Report ®*,, *41W estimated budget figure does not include optional paramedic services, which would be an additional $330,486. This total was reduced to reflect the net cost of services (less the 1 % of the total assessed valuation of the Bermuda Dunes area multiplied by the Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and services a 3-mile radius. 3. Community Development: Upon the annexation of Bermuda Dunes, the Community Development Department will assume the processing of all land use related services. These services will, in most cases, be offset by fees. However, the City will be responsible for the preparation of a Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps, and other miscellaneous costs associated with the in-house preparation of the Specific Plan. a. Code Compliance Officer: Upon annexation, it is anticipated that an additional Code Compliance Officer will be required to provide code enforcement services within the area of Bermuda Dunes. This expenditure is calculated using the first step in the City's payroll salary range for Code Compliance Officer at $2,604 per month. RSG has included an additional 35% of the annual salary to reflect benefits and an additional 10% for supplies, minor equipment, and other overhead costs. 4. Public Works: For purposes of this Report, it is assumed that the current level of service of maintenance programs is sufficient to the community's needs. Upon annexation, CSA No. 121 and other County responsibilities will be assumed by the City. The Public Works cost estimates also include an allowance for contract services to administer these programs. a. Administration: A minimal administrative cost impact based on a per capita factor using City budget data is reflected. This cost represents supplies, meeting and travel costs, equipment, and other services. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation March, 1996 9 Fiscal Feasibility Report b. Street Sweeping: Upon annexation of the Bermuda Dunes area, the City will provide street sweeping services to this area. This expenditure was based on discussion with City staff using a curb mile estimate cost based on City budget data. Street sweeping services are performed bi-weekly by the City of Palm Desert. C. Street Lighting: Street lighting services within the Bermuda Dunes area are currently provided through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds will be transferred to the City. The forecasted expenditure is based on current CSA No. 121 budget data (refer to Exhibit 2). 5. Parks and Recreation: There is no anticipated financial impact relative to existing landscape maintenance services. The landscaped median located along 42nd Street between Limb Hall and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the annexation of Bermuda Dunes, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Thus, the median would continue to be maintained by the assessment district. Currently the Bermuda Dunes area has no public park or open space areas. Additional costs associated with the City's exiting recreation program is not anticipated. 6. Contingency: A 10% contingency factor has been added to the General Fund expenditure estimate to meet unforeseen programs or emergency needs. 7. Roads: a. Capital Improvements: Upon annexation, the City of Palm Desert will be required to pay for the 25% local share for the proposed improvements at the interchange of Washington Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the 1997-98 fiscal year, is the City's share of the estimated construction cost plus a 10% contingency. No outside revenue source has been identified to fund this capital improvement expenditure. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation March, 1996 10 Fiscal Feasibility Report 14W "*W0' Upon annexation, it is the City's policy to upgrade existing infrastructure systems within the annexation area to meet or exceed current City standards. The funding sources for capital improvements within the Bermuda Dunes annexation area were not identified because a capital improvement program (CIP) was not developed nor required as part of this analysis. Therefore, in order to prepare a CIP plan for the Bermuda Dunes annexation area, it would require the preparation of an extensive and detailed infrastructure assessment analysis. 8. Road Maintenance: a. Street Maintenance: The street maintenance expenditure was estimated based upon estimated curb miles and area size using budget data from the City of Palm Desert. This cost reflects a 3% increase which includes general street maintenance; City-wide street slurry sealing, overlaying and resurfacing, new and replaced curbs and gutters, centerline striping, and safety and sign painting. b. Traffic Signal Maintenance: Upon annexation, the City of Palm Desert will be required to maintain additional traffic signals. The City of Palm Desert currently maintains 50% of the traffic signals located along Washington Street at 42nd Street, Country Club Drive, and Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will be required to maintain 100% of these three (3) traffic signals and 25% of the traffic signal located at Fred Waring Drive and Jefferson Street. IV. SUMMARY OF FINDINGS Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and road funds exceed the estimated total revenues. Forecasted expenditures and revenues have been calculated using conservative methodologies and modest escalation factors. The forecasted expenditures exceed the estimated revenues for fiscal year 1996-97 by $982,549, $1,400,980 for fiscal year 1997-98, and $977,050 for fiscal year 1998-99. Because of the residential character and rural nature of Bermuda Dunes, the estimated amount of local sales tax generated annually was minimal. For Bermuda Dunes area, there were only 22 retail establishments identified with taxable sales amounts as provided by the State Board of Equalization (refer to Exhibit 3). The Bermuda Dunes community has very little commercial activity with only one lodging establishment. Therefore, the City's forecasted business license tax and transient occupancy tax amounts are significantly low. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation March, 1996 11 Fiscal Feasibility Report 14W "Wow Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes area with only a population of 5,362 will receive minimal motor vehicle and off -highway fees. Based upon discussions with the City and County staff, RSG has assumed that only five patrol units would be required to provide sufficient police services to the Bermuda Dunes area. The forecasted expenditure was calculated based upon per capita costs utilizing the existing supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is nearly 96% of the total general fund revenue estimate. The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers Agreement in order to provide fire and paramedic services. The expenditures reflected in this analysis are commensurate with the City's desire to maintain a high level of service in terms of structural fire protection and suppression. The forecasted expenditure for structural fire protection services in fiscal year 1996-97 is approximately 60% of the grand total general fund revenue estimate. Thus, the expenditures for public safety services alone exceed the general fund available by 88%. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 12 Fiscal Feasibility Report March, 1996 O (s7 00 O� O� T n O� ON D1 ON C� Cl 00 a, O� 00 a C'. 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K .0 W 0 �cc C 0 F e Y Y W C e E Y U C7 0 fry to O IM N N O � V N O N u C cm In t- N \O vl 00 ,*, Q• N O� L G M O 00 ON C: — G9 69 C �D DD U'1 O O O m 000 Q > � F Q � y NrN O M N 00 � Q a ae r O 00 R v, O O y, ` (� •- � tQ 00 O Q O z O O T xz- � a o z Z c G7 € aEn z = c L Q 3 ;IN Q v � O 3 �:. 0 •- ^ • rr^^ V cc •R � � z U O UOU O E- rA w 0 c d 0 P V ' V T n z M 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. EXHIBIT 3 LIST OF LOCAL SALES TAX GENERATORS WITHIN THE BERMUDA DUNES ANNEXATION AREA Subway Lizett's Hair Design Ernst & Ernst Foods So Much More Wallpaper Carmen's Mexican Food Clam's Up Wonder Cuts Armond's Wholesale Merchandise Teddy's Donuts 2 Lilli's Chinese Cuisine Circle K Food Stores Carl's Jr. Unocal 76-Chemic Inc. Goodyear Jack Sauter Murph's Gaslight/Murphy's Original Pan Fried Chicken Bermuda Dunes Country Club Darby West Care Larry Shaw Wholesale Plants California Desert Nursery Vintage Nursery, Inc. Cameron Nursery and Turf Products Desert Cities Nurseries Source: State Board of Equalization 4100 Washington Avenue #101 4100 Washington Avenue #103 4100 Washington Avenue 4100 Washington Avenue #119 4100 Washington Avenue #123 4100 Washington Avenue #125 4100 Washington Avenue #129 4100 Washington Street #133 4100 Washington Avenue #139 4100 Washington Avenue #141 4100 Washington Avenue #142 4050 Washington Avenue 4010 Washington Avenue 78105 Country Club Drive 79860 42nd Avenue 42360 Adams Street 78260 Darby Road 78400 Darby Road 78600 Darby Road 78755 Darby Road 78850 Darby Road 41555 Yucca Lane fir„ a:0en3 EM --- Sun City _ry C'/ub Palm Desert — __. _ _ e — -- 42ND Avenue rate I 0 -_- -- — --- -- —------� — Bumuda� Ar -`� Bermuda Dunes ! Indio = i h - La Quinta Fred Waring Drive Indian -Wells Source: Urban Decision Systems Inc. North Exhibit 4 Bermuda Dunes Annexation Area k 1Z No City of Palm Desert Avenue of the States �R JI II II Mountain View a� JI o: II � 3 42ND Avenue Darby Road r • ■yF ■C L Boman IN Mpg l■■— :1 �■ NMI No Sol or; �� Project Area Boundary �lII Commercial Multi -Family Residential (8-18 OU/AC) Exhibit 5 County Redevelopment Project Area i cm CM i CITY OF LA QUINTA BERMUDA DUNES AREA PRELIMINARY ANNEXATION ANALYSIS December 15, 1999 PREPARED BY: ROSENOW SPEVACEK GROUP, INC. 540 NORTH GOLDEN CIRCLE, SUITE 305 SANTA ANA, CALIFORNIA 92705 On CM PRELIMINARY ANNEXATION ANALYSIS BERMUDA DUNES AREA TABLE OF CONTENTS Introduction......................................................................................................................................1 Executive Summary and Recommendations...................................................................................1 OperatirtgFiscal r................................................................................................................1 Capital bnprvu3noa Fiscal bnpacrs................................................................................................ 2 ExistingSetting.................................................................................................................................3 Pre -Annexation Services....................................................................................................................4 GeneralServices...........................................................................................................................4 Cavityof Rhin-ide General Fund ................................................................................................... 4 OtherService Providers................................................................................................................4 Cavity Rsakdopnmt Agency - Desert C.awnu z6n Rakdjmmt Prp*........................................ 4 Landscape and LigbtingAssessrraaztDistrut No. 89-1-CffMdidatsj................................................... 4 CavityServal? Arnas 121 and 152................................................................................................. 4 AnticipatedPost -Annexation Services and Impacts on City...............................................................6 GeneralFund............................................................................................................................... 6 Reraures...................................................................................................................................... 6 Expendittm................................................................................................................................ 7 GasTax Fund.............................................................................................................................. 7 CapitalImprovements.................................................................................................................. 7 NextSteps and Annexation Process..................................................................................................9 F:\RSG\LAQUINTA\ANNEXATION\REPORT3.DOC PRELIMINARY ANNEXATION ANALYSIS BERMUDA DUNES AREA INTRODUCTION The City of La Quinta ("City") is contemplating annexation of the Bermuda Dunes vicinity ("Study Area"). The Study Area is located within unincorporated Riverside County ("County"), as depicted on Exhibit 1. If an annexation effort is pursued, the City must submit an application to the Riverside County Local Agency Formation Commission ("LAFCO"), which would include an analysis of the annexation proposal's fiscal impacts. This report presents a preliminary analysis of the fiscal impacts of annexation. Rosenow Spevacek Group, Inc. ("RSG") has developed this report to assist the City in assessing the effects of annexation and to outline a course of action to pursue the effort. The Study Area is bound by the City of Palm Desert city limits along Washington Street to the west, Interstate 10 to the north, the City of Indio city limits near Jefferson Street to the east, and the City of La Quinta city limits along Fred Waring Drive to the south. RSG estimates that the total size of the Study Area is approximately 2,020 acres. EXECUTIVE SUMMARY AND RECOMMENDATIONS RSG's analysis concludes that, because of the City's significantly higher levels of municipal services, annexation of the Study Area would provide widespread service enhancements to Study Area residents and businesses. Areas of acute service enhancements include police, code enforcement, and public works maintenance. However, funding the City's higher service levels would necessitate development of substantially more revenue -generating resort, hospitality, commercial, and industrial uses than has been historically proposed for the Study Area. The fiscal impacts of annexation of the Study Area are summarized below: OPERATING FISCAL IMPACTS ISSUE: Both today and at buildout, the Study Area is, and will be, primarily a residential community. Because residential uses generally do not generate General Fund revenues, annexation of the Study Area is anticipated to have a detrimental impact on the City's General Fund. Consequently, the City would be required to: (1) absorb these impacts, (2) pursue voter approval for a tax increase to offset revenue shortfalls, or (3) modify the land use plan to permit development of more revenue -generating uses. FISCAL IMPACT: RSG projects a first year General Fund shortfall of $523,563, increasing to $2,961,496 upon buildout. ■ POTENTIAL SOLUTIONS: The City could absorb the revenue shortfall with existing surplus General Fund revenues. While this may be a simple short-term alternative, long-term absorption of these costs may not be feasible as other City service costs increase. ROSENOW SPEVACEK GROUP, INC. 1 PRELIMINARY ANNEXATION ANALYSIS DECEMBER 15, 1999 CITY OF LA QUINTA ,W N4wr Encourage development of additional revenue generating uses, such as resort, commercial uses along the Interstate 10 Corridor. With an apparent trend towards locating regional retailers along the Interstate 10 Corridor, the City could alter the land use plan for the Study Area and designate more property for retail commercial use. Under the County General Plan, only 11 of the 2,020 acres in the Study Area are currently planned for retail commercial use. RSG estimates another 61 acres of retail commercial uses would be needed to generate enough sales tax revenue to offset the $2,961,496 General Fund shortfall projected at buildout. Some of the manufacturing use properties along Country Club Drive could be rezoned to commercial uses. Further investigation of the viability of retail versus manufacturing uses would be needed. The City could also consider rezoning vacant, residentially designated property to commercial. This would have a dual benefit: increase sales taxes and reduce service costs by lowering the number of dwellings and households in the Study Area. CAPITAL IMPROVEMENT FISCAL IMPACTS ■ ISSUE: The Study Area requires substantial capital improvements to elevate roadways to the City's higher standards, as well as additional improvements to meet ultimate (buildout) demands. ■ FISCAL IMPACT: Based on projections from the City Public Works Department, interim improvements to the City's standards could entail an $8 million expenditure. Ultimate improvement costs could reach nearly $11 million, for a total capital improvement need of $19 million. ■ POTENTIAL SOLUTIONS: Adjust City's Development Impact Fee program to fund $19 million of ultimate improvements caused by future development. ■ Consider levying special assessments to meet capital improvement needs in developed areas, where Development Impact Fees cannot be exacted. ROSENOW SPEVACER GROUP, INC. 2 PRELIMINARY ANNEXATION ANALYSIS DECEMBER 15, 1999 CITY OF LA QUINTA *4100� *moor EXISTING SETTING The Study Area is approximately 2,020 acres in size, and contains an estimated 6,433 residents according to a December 1999 study by National Decision Systems. Major land uses in the Study Area are residential, resort, industrial, commercial vacant, and aviation uses. Approximately one half of the Study Area (1,175 acres) is developed; the remaining 845 acres of undeveloped land includes 780 acres of future residential uses, 54 acres of future industrial uses, and 11 acres of future commercial uses. Breakdown of Existing Land Uses ® Developed ■ Undeveloped - Future Res. ❑ Undeveloped - Future Ind/Comm As the Study Area builds out under the County General Plan, the number of residential units will increase from the 3,446 existing today, to 6,726 permitted. As a result, the Study Area's population will increase by 96%, to 12,600. The County General Plan does not envision the same level of development for commercial and industrial uses; RSG's research indicates that only another 65 acres of commercial and industrial uses are proposed for the Study Area, representing an increase of less than 19% over the 356 acres of existing commercial and industrial uses today. The imbalance of future residential and nonresidential uses planned for the Study Area impairs the ability of the area to independently generate sufficient tax revenues to support service costs, because residential uses typically generate most of the municipal expenditures, while commercial and industrial use typically generate the majority of tax revenues. ROSENOW SPEVACEK GROUP, INC. 3 PRELIMINARY ANNEXATION ANALYSIS DECEMBER 15, 1999 CITY OF LA QUINTA *40r 1.r PRE -ANNEXATION SERVICES Several agencies provide the municipal services to the Study Area, as described below: GENERAL SERVICES COUNTY OF RIVERSIDE GENERAL FUND The County's General Fund provides most essential operational services in the Study Area. These services include basic law enforcement, planning/building, public works, and general government. There are no park or recreational facilities currently in the Study Area. Upon annexation, the City would be responsible for all municipal services provided by the County General Fund. Revenues would be shifted to the City pursuant to the Master Property Tax Agreement (City Council Resolution 83-28). The Master Property Tax Agreement provides that 25% of the County's property tax levy (outside the Redevelopment Project Area boundaries) is to be shifted to the City of La Quinta, all other tax revenues (sales, property transfer, etc.) are transferred to the City in their entirety. OTHER SERVICE PROVIDERS COUNTY REDEVELOPMENT AGENCY - DESERT COMMUNITIES REDEVELOPMENT PROJECT On December 22, 1986, the County Board of Supervisors adopted the Redevelopment Plan for Desert Communities Redevelopment Project, thereby entitling the County's Redevelopment Agency to collect all future property tax revenue growth in the Project Area. The Project Area, which includes the merged Redevelopment Project Area No. 4 and the Airports-1998 Project Area, is comprised of numerous noncontiguous areas located throughout the County, totaling 26,809 acres. Less than 1.5% of the Study Area lies within the Project Area, including commercial properties along Washington Street, immediately north and south of 42-d Avenue. The County's Redevelopment Agency retains all property tax revenues in excess of amounts received in 1986-87. Upon annexation, tax increment revenue from any new development, increases in property values, or property sales within the Project Area would not be paid to the City. LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT NO. 89-1-CONSOLIDATED The County currently operates a Landscaping and Lighting Assessment District (89-1-Consolidated) that maintains the median on 42nd Avenue between Lima Hall Road and Glass Drive. Median maintenance is funded by property owner assessments that are currently $178.58 per acre per year. A total of 113 property owners are assessed. Upon annexation, RSG has assumed that the City and County would jointly administer this Landscaping and Lighting Assessment District to continue maintenance of this median in the Study Area. COUNTY SERVICE AREAS 121 AND 152 There are two County services areas (CSA) that provide municipal services to the Study Area. CSA 121 provides street lighting to portions of the Study Area, as well as other unincorporated areas north of Interstate 10. The County currently collects approximately $20,000 in property taxes each year to fund street lighting operation costs. Upon annexation, the City may detach the Bermuda Dunes portion of CSA 121 and collect these property taxes directly through the City's general property tax levy. A second County service ROSENOW SPEVACEK GROUP, INC. 4 PRELIMINARY ANNEXATION ANALYSIS DECEMBER 15, 1999 CITY OF LA QUINTA M cm area in the Study Area is CSA 152 that funds street sweeping costs throughout the County and in the Study Area. Upon annexation, the City would receive this property tax revenue that would offset approximately 25% of the street sweeping costs in the Study Area. ROSENOW SPEVACEK GROUP, INC. DECEMBER 15, 1999 PRELIMINARY ANNEXATION ANALYSIS CITY OF LA QUINTA w► 05 ANTICIPATED POST -ANNEXATION SERVICES AND IMPACTS ON CITY Upon annexation, the City of La Quinta would be responsible for providing all municipal services to the annexed area. This report analyzes the forecasted marginal or incremental cost of City services, as well as the revenues that could be reasonably expected to fund such services. The funds impacted by annexation include the General Fund, Gas Tax and Capital Improvements Funds. A summary of these revenue and expenditure impacts projected in the first, fifth, tenth and twenty-fifth (assumed buildout) years of annexation is presented in Table 1. GENERAL FUND With the exception of road maintenance, most operational services would be provided through the City's General Fund. Revenues and expenditures projected for the Study Area are enumerated below. REVENUES Table 2 projects impacts to General Fund revenues. The primary sources of General Fund operating revenues would be property taxes, motor vehicle license fees and sales taxes. Other sources of General Fund revenues include franchise taxes, document transfer taxes, AB 939 recycling fees, Proposition 172 supplemental sales taxes, fines and forfeitures, sales of publications and maps, and property transfer taxes. Other revenues not specifically identified in Table 2 (such as fees and licenses) are offset by service costs and excluded from this analysis. The County currently operates a Landscaping and Lighting Assessment District (89-1-Consolidated) that maintains the median on 42nd Avenue between Lima Hall Road and Glass Drive. Median maintenance is funded by property owner assessments that are currently $178.58 per acre per year. A total of 113 property owners are assessed. Upon annexation, RSG has assumed that the City and County would jointly administer this Landscaping and Lighting Assessment District to continue maintenance of this median. There are two County services areas (CSA) that provide municipal services to the Study Area. CSA 121 provides street lighting to portions of the Study Area, as well as other unincorporated areas north of Interstate 10. The County currently collects approximately $20,000 in property taxes each year to fund street lighting operation costs. Upon annexation, the City may detach the Bermuda Dunes portion of CSA 121 and collect these property taxes directly through the City's general property tax levy. A second County service area in Bermuda Dunes is CSA 152 that funds street sweeping costs throughout the County and in Bermuda Dunes. Upon annexation, the City would receive this property tax revenue that would offset approximately 25% of the street sweeping costs in Bermuda Dunes. The revenue forecast assumes some increases in revenues to account for inflationary factors over the 25- year duration of this analysis. These assumptions are briefly summarized below: ■ 3.5% annual increase in property assessed values to account for Proposition 13 adjustments and resales; ■ 2.5% annual increase in taxable sales and transient occupancy taxes; and 2% annual increase in franchise taxes, sales of maps and publications, fines and forfeitures, and AB 939 recycling fees. ROSENOW SPEVACER GROUP, INC. 6 PRELIMINARY ANNEXATION ANALYSIS DECEMBER 15, 1999 CITY OF LA QUINTA CM EXPENDITURES Estimated annual General Fund expenditures are itemized in Table 3. The largest General Fund expenditures relate to public safety services. Public safety cost estimates were compiled by RSG, based on discussions with the Riverside County Sheriff's Department. According to the Sheriff's Department, annexation of the Study Area to La Quinta would result in a higher level of service than Bermuda Dunes residents currently enjoy; this would result from an increased physical presence of patrol cars and increased patrol resources available to meet peak levels of service. Annexation would provide Bermuda Dunes residents with a dedicated patrol beat (5 deputies year round), a community services officer, and an additional member of the investigation support team. Currently, Sheriff deputies patrol areas outside Bermuda Dunes, including Sun City, and other unincorporated areas as much as 35 miles away. Also the Sheriff does not provide a community services officer or additional investigation support to Bermuda Dunes. Other General Fund operating expenditures relate to City Clerk, Finance, Community Services, Building and Safety, Community Development, and Public Works maintenance functions. RSG's assumed service enhancements for these areas include incremental staffing and supply increases to absorb the impact of the increased service demands from the annexed area. The projections of City costs incorporate the following assumptions to account for cost inflation: ■ 3.5% annual increase in public safety contract costs, with some economies of scale benefits realized as the area builds out; 2.5% annual increase in City Clerk supply costs, fiscal personnel costs, code compliance costs, animal control program expenditures, planning personnel costs, and street maintenance costs; and A contingency factor equal to 10% of the total annual expenditures. GAS TAX FUND Upon annexation, the City's Gas Tax Fund would be entitled to State subventions pursuant to Sections 2105, 2106, 2107, and 2017.5 of the Streets and Highways Code. These revenues are apportioned to the City by the state on a per capita basis, except for Section 2107.5 subventions, which are determined by population thresholds. These funds could be employed by the City to underwrite road maintenance projects either in the annexed area, or elsewhere in the City. Table 4 summarizes annual Gas Tax Fund revenues. CAPITAL IMPROVEMENTS The City Public Works department conducted an analysis of Study Area roadway needs in September 1999. This analysis characterized public street improvement needs into two categories. The first is referred to as the "Interim Condition" which would result in improvements that elevate the condition of existing traffic lanes to the City's higher standards. Interim Condition improvements do not involve increasing of roadway capacity. The second category is the "Ultimate Condition" which involves improvements to increase capacity to accommodate future buildout. Together, the Interim Condition and Ultimate Condition improvements result in the total cost of roadway improvements in the Study Area. Currently, the City does not have a funding mechanism to construct these improvements. In general, RSG understands that the City may fund some of these costs through development exactions pursuant to the ROSENOW SPEVACEK GROUP, INC. 7 PRELIMINARY ANNEXATION ANALYSIS DECEMBER 15, 1999 CITY OF LA QUINTA cm CM City's Development Fee Program. The extent that the Development Fee can accommodate these costs is not known at this time. Any shortfalls in Development Fees would either need to be deferred, or made up by the City, through other resources (such as state and federal grants and road fund revenues) used to fund capital improvements throughout the City. Indeed, the Study Area does not generate surplus operating revenues that can be pledged to meet infrastructure program needs in the Study Area. ROSENOW SPEVACER GROUP, INC. DECEMBER 15, 1999 PRELIMINARY ANNEXATION ANALYSIS CITY OF LA QUINTA on Cn NEXT STEPS AND ANNEXATION PROCESS If the City desires to pursue annexation of the Study Area, RSG recommends that the City first consider the market viability of revenue generating uses in the Study Area, such as hotels, regional -serving retail space, wholesalers, and industrial space. These uses will be necessary to ensure that the City's General Fund collects sufficient revenues to offset service costs. Otherwise, development of service -demanding residential uses will significantly curtail the ability of the City to meet service needs, and the City could be forced to consider a reduction in services in the Study Area. If the City desires to proceed with an annexation application, the City would need to do the following: 1) Amend the City's Sphere of Influence to include the proposed annexed area. 2) Enter into a pre -annexation agreement with the County of Riverside to provide the City the ability to review future development proposals, and facilitate future annexations of the Study Area as the area builds out. 3) Prepare a plan for services that assesses current service providers, current City service levels, and the City services to be extended. 4) Prepare and submit a fiscal impact analysis that assesses the annexation's effects on both the City and the County. 5) Conduct at least one public workshop to discuss the annexation proposal with affected residents. ROSENOW SPEVACEK GROUP, INC. 9 PRELIMINARY ANNEXATION ANALYSIS DECEMBER 15, 1999 CITY OF LA QUINTA cm cm EXHIBIT 1 STUDY AREA MAP cm on BERMUDA DUNES ANNEXATION AREA B ftf)," Iftow *sow TABLE 1 - FUND SUMMARY Year 1. Year 5 Year 10 Buildout KEY ASSUMPTIONS Residential Units 3,446 4,102 4,758 6,726 Residential Population (Permanent 6,433 7,700 8,900 12,600 New Retail Development (sq ft) - - - 105,902 New Industrial Development (sq ft) - - 100,000 1,058,312 GENERALFUND Revenues $ 992,961 $ 1,290,405 $ 1,540,145 $ 2,950,988 Expenditures 1,516,524 1,889,352 2,475,207 5,912,484 Revenues Less Expenditures $ (523,563) $ (598,947) $ (935,062) $ (2,961,496) GAS TAX FUND Revenues $ 115,022 $ 137,676 $ 159,132 $ 226,288 Expenditures n/a n/a n/a n/a Revenues Less Expenditures n/a n/a n/a n/a CAPITAL IMPROVEMENT FUND (Cumulative Costs) Interim Improvement Cost $ - $ 8,341,344 $ 8,341,344 $ 8,341,344 Ultimate Improvement Cost - - 11,055,161 11,055,161 Total Cost $ $ 8,341,344 $19,396,505 $19,396,505 Irk TABLE 2 - GENERAL FUND REVENUES Year 1 Year 5 Year 10 Buildout Taxes Property Tax General Fund $ 302,946 $ 424,555 $ 594,473 $ 1,708,027 CSA 121 (street lighting) 20,000 20,000 20,000 20,000 CSA 152 (street sweeping) 4,500 4,500 4,500 4,500 Assessment 89-1 -C 14,700 14,700 14,700 14,700 Document Transfer Tax 29,393 41,168 41,168 57,477 Sales Tax 126,387 201,597 201,597 228,088 Proposition 172 Sales Tax 3,160 5,040 5,040 5,702 Transient Occupancy Tax 53,136 58,652 58,652 66,360 Franchise Tax 103,965 122,001 141,015 199,639 Subtotal $ 658,186 $ 892,213 $ 1,081,144 $ 2,304,492 Licenses and Fees Business License Fees $ 8,000 $ 8,000 $ 8,000 $ 8,000 Other Licenses & Fees Cost Offset Cost Offset Cost Offset Cost Offset Sale of Maps and Publications 1,385 1,625 1,878 2,659 Subtotal $ 9,385 $ 9,625 $ 9,878 $ 10,659 Intergovernmental Motor Vehicle License $ 286,654 $ 343,112 $ 396,584 $ 561,456 Fines & Forfeitures 12,178 14,290 16,517 23,384 AB 939 (Recycling Fees) 26,558 31,165 36,022 50,997 Subtotal $ 325,390 $ 388,567 $ 449,123 $ 635,837 Total $ 992,961 $ 1,290,405 $ 1,540,145 $ 2,950,988 TABLE 3 • GENERAL FUND EXPENDITURES Year 1 Year 5 Year 10 Buildout Public Safety Sheriffs Contract $ 895,292 $ 1,248,806 $ 1,703,481 $ 4,670,855 General Government Legislative $ _ $ - $ _ $ _ City Manager Econ. Dev. Contract Services Econ. Dev. All Other Subtotal $ _ $ _ $ _ $ _ City Clerk Services and Supplies $ 17,830 $ 20,924 $ 24,185 $ 34,239 All Other Subtotal $ 17,830 $ 20,924 $ 24,185 $ 34,239 Finance Fiscal Personnel $ 39,658 $ 43,775 $ 54,669 $ 71,730 Fiscal Services and Supplies 5,000 5,000 5,000 5,000 Fiscal Capital Equipment - _ _ _ Central Services -Svc & Sppls 50,000 50,000 50,000 50,000 Central Services -All Other - _ - _ Subtotal $ 94,658 $ 98,775 $ 109,669 $ 126,730 Community Services Administration $ $ _ $ $ _ Recreation 10,000 10,000 10,000 10,000 Senior Center 33,627 33,627 33,627 33,627 Subtotal $ 43,627 $ 43,627 $ 43,627 $ 43,627 Building & Safety Administration $ - $ $ _ $ _ Code Compliance 58,211 64,254 80,245 105,288 Animal Control 15,934 18,698 21,612 30,597 Building & Safety -All Other - _ _ _ Subtotal $ 74,145 $ 82,952 $ 101,856 $ 135,884 Community Development Admin.-Contract Services - _ _ _ Admin.-All Other _ _ _ _ Planning 136,906 151,119 188,726 247,625 SCAQMD _ _ _ _ General Plan Amendment 50,000 - . Subtotal $ 186,906 $ 151,119 $ 188,726 $ 247,625 Public Works Administration $ 1,500 $ 1,500 $ 1,500 $ 1,500 Development & Traffic - - _ _ Street Maintenance 50,000 55,191 62,443 99,825 Landscape & Lighting Maintenance 14,700 14,700 14,700 14,700 Subtotal $ 66,200 $ 71,391 $ 78,643 $ 116,025 Subtotal 1,378,658 1,717,593 2,250,188 5,374,986 Contingency (10%) 137,866 171,759 225,019 537,499 Total $ 1,516,524 $ 1,889,352 $ 2,475,207 $ 5,912,484 ON TABLE 4 • GAS TAX FUND REVENUES Year 1 Year 5 Year 10 Buildout Gas Tax Subventions Section 2105 $ 38,791 $ 46,431 $ 53,667 $ 75,978 Section 2106 21,937 26,257 30,349 42,966 Section 2107 54,295 64,988 75,116 106,344 Section 2107.5 - - - 1,000 Total $ 115,022 $ 137,676 $ 159,132 $ 226,288 Im on TABLE 5 - CAPITAL IMPROVEMENT FUND PROJECT COSTS (Cumulative Costs) Year 1 Year 5 Year 10 Buildout Interim Condition 1/ Local Street $ - $ 2,553,351 $ 2,553,351 $ 2,553,351 Secondary Arterial - 930,513 930,513 930,513 Primary Arterial - 3,893,018 3,893,018 3,893,018 Major Arterail - 964,462 964,462 964,462 Subtotal $ - $ 8,341,344 $ 8,341,344 $ 8,341,344 Ultimate Condition 2/ Local Street $ - $ - $ 2,492,588 $ 2,492,588 Secondary Arterial - - 1,305,016 1,305,016 Primary Arterial - - 6,049,097 6,049,097 Major Arterail - - 1,208,460 1,208,460 Subtotal $ - $ - $ 11,055,161 $11,055,161 Total $ - $ 8,341,344 $19,396,505 $19,396,505 1 / Assumes buildout to City's higher improvement standards. Assumed to be constructed by the fifth year of annexation 2/ Assumes buildout to ultimate improvement standards. Assumed to be constructed by the tenth ye ofannexation RSG, INC ID:714-836-1748 OCT 07'98 15:11 No.022 P.05 EXHIBIT 2 v DEL W BB'S SUN CITY & JACK IVEY RANCH ANNEXATION FEASIBILITY STUDY(Assumes 250,000 sq. ft. camm.) 1996-99 2000-91 1-0-64 100445 2005-06 .07 (Full Year WWI Year) (Full Year) (Full Year) (Full Year) (Full Ycar) (Full Year) (Dull Year) (Bulldout) r]?NI: AI: (iUVERNMENT Ad inislration 2.467 11.718 3,509 15,703 4,669 19,976 5,953 24.485 7,350 in rancc 21,nnn 22,050 23,153 2.4,310 25,526'', 26.802 28,142 29,549 31.027 An al C:nntrul 10,762 12,596 14,430 16,264 18.097 19,931 21,752 23,532 25,312 C411 my TAX Collection Charge 6.984 8,478 10,036 11,673 13.344 15,0AS 16.877 18,716 21,121 Sut oral 41,213 34,843 51,129 (i7,95d 61,636 91,794 72.724 96,282....- -84,810 PUBLI SAFETY Sho riffComract 733,924 770,515 809,041 849,49.1 891,969 9.16,566 983.394 1,032,564 1,084,192 Jail Hooking Feei, 4,400 4,532 4,668 4.809 4,952 5.101 5.254 5,411 3,574 Fin Prokwtion 769.677 511.961 $56.723 904,314 913,274 1,005,839 1,060,723 1,119,441 1,195.283 Sill Joel 1,507.90) 1,567.008 1,670,432 1,758,615 1,950,194 1,947,506 2,049,372 2,156,416 2,2RS,049 COM NITY UEVTI.AI�MI;NT Nc uslr 5,000 51150 5,305 5,464 5,628 5.796 5.970 6,149 6.334 C4► Compliance Oil i --- _t. 52.703 54.28.4 5.5,912 57,590 59,317 61.097 62,930 64.818 66,762 Su lid 57.703 59.434 61,217 63,053 64,)45 66.893 68,900 70,967------73,096 PUBM WORKS Ad inivtralion 7,626 9,104 10.637 12,229 13,98o 15,592 17,337 19.153 21,914 St I.ighlin; 8.281 R,530 8,786 9,049 91321 9.600 9,888 10.185 10,490 Su oral 15,907 17,633 19,423 21,278 23.261 25,192 27,241 29,338 31,504 PARK &RI:C:RrA'f'IUN No caping/Median b fain enep • • Assumcd to he Paid by Mnstcr Homeowners-' ANsocialion • su total - _ 0 0 0 0 ..0.... 0 0 0 0 C:ONTI 4GENCY 162,272 171,892 180.220 191,090 199.998 212,139 221,924 2-15.300 247,446 TOTAI-G -,NERAI.IIfEND 1,784.995 1,490.810 1;)82,420 2.101.986 2,199,973 2,333.524 2.440,064 2,589,304 2.721'►05 ROADS Ca ta11111pruvcmcnla 0 0 0 0 0 0 0 0 p Str K Maintenance 14,772 77.015 79,325 81,701 94.156 86,681 89,251 91,960 94,719 st Sweeping 6,142 6,327 6,516 6,712 6.913 7,121 7,334 7.554 7,781 Tra is signal Operalk /Maintenam, 1 14.832 15,277 15,735 16,207 16,694 17,194 17,710 18.241 18.784 Ca iI pwy 9,575 9.862 10.158 10,462 10,776 11.100 11,433- 11,776 12.129 '1'(►'1'Al, R AD FUND 105.321 109,490 111,735 115.087 118,539 122.0% 125.758 129,531 133.417 TOTAL I.EXPEND1T1J ES i1,990,316 1,999,290 2,094,134 2,217,073 2,3111,513 12,455,620 2.565.823 2,717,835 2,8SS,322 kl,'V.FN1l1k 8URPLI18/(81fn TFALL) I(197,931) 4,990 174,595 399,952 596,488 779.714 985.145 1,425.367 1,950,533 Cl_1MULA VIi.91JRP1,IJ.C/(r 'F1C'1'I') (197,931) (192,941) (18,345) "'- 381,606---978,094 1,757.828 2,742,0-1 4,168,110 G,1I8,8T3 Genera i Fund Surplps/($ ortfall) (352,566) (197.562) (77,732) 95,911 238.710 366.10-4 513,825 R95,204 i,359,186 Comula ivc Goncral Fund (352.566) (SSO,IZB) (627,860 531,949 ( ) (293,239) 72,964 586,689 1,481,893 2,R41,079 Road F and 8urplur/(Sho all) 154,634 202,553 7.52,327 304,040 357.778 413.631 471,320 530,163 591,347 Colnulm ivoRundhund 154,634 357.187 609,514 913,555 1.271.333 1.684.964 2,156,2114 2,686.447 3,277,794 m MG. lNc, rm wftw.M% auapa-um aomm ' • 1%w owe BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT March, 1996 Prepared for: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 (619) 340-5776 Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541-4585 BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT 1. BACKGROUND The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the Bermuda Dunes community. This Report will focus on what City services will be provided within the Bermuda Dunes area, the forecasted cost of those services, and what revenues could reasonably be expected to be available to fund those services. This Report will focus on a compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal year 1998-99 using a range of potential fiscal impacts. It should be understood that there will usually be differences between the forecasts and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. The Bermuda Dunes area 1995 population is estimated at 5,362. The subject area is comprised of approximately 3.2 square miles of territory. The estimated population figure is based on 1990 census information and enhanced by various trends and modeling techniques, including actual population growth in the surrounding communities. A population estimate of 6,000 was shown in a past application as submitted by a Bermuda Dunes community organization to the Local Agency Formation Commission. A national research bureau has estimated the 1995 population of Bermuda Dunes at 6,266. This population projection was derived using generalized assumptions based upon age specific fertility rates, life expectancy, and net immigration. However, we believe, based on actual population growth in the area, the population estimates are too high. Even if these higher population figures were used, the forecasted expenditures would still far exceed forecasted revenues. The higher population figure would lower the fiscal deficits by approximately $75,000 or 8%. At the present time, the number of structures or dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a 27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Dunes is located in the central region of Riverside County. The boundaries of the Bermuda Dunes community is generally the area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the east boundary Indio city limits, Fred Waring Drive and the La Quints city limits to the south, and along Washington Street up to the Interstate 10 Freeway to the west. Most of the area is still of a rural nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential and rugged terrain (refer to Exhibit 4). Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report March,1996 1 The major public agencies currently providing services in the Bermuda Dunes community are the County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District. The County of Riverside is currently responsible for policymaking and administration, .law enforcement, animal control, planning and land use regulation, building inspection, flood control, and the maintenance and improvement of roads. Street lighting services within the Bermuda Dunes area are currently provided through County Service Area No. 121. The landscaped median located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon annexation, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the services is currently in place. Sewer service is currently, and will continue to be, provided by Septic Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive, Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection services to the Bermuda Dunes community. Currently, one fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and services a three-mile radius. The County of Riverside is currently responsible for providing police services within the Bermuda Dunes area. The law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio substations. Upon annexation, no change in fire or police protection services are anticipated because police and fire protection services are provided by the same Riverside County organization. The roads within the Bermuda Dunes area are currently maintained by the County of Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing roads. Many of the General Fund and Road Fund revenues and expenditures were either calculated on a per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a case study methodology. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report March. 1996 2 cm CM /_� REVENUES GENERAL FUND The primary sources of General Fund revenues are noted below and shown on Exhibit 1: 1. Taxes: a. Property and Parcel Taxes: The City's property tax revenue is based on the historical property tax ratio of 25%/75% between the City and the County respectively as set forth in Resolution No. 81-133 adopted September 24, 1981. Upon annexation, the City would receive approximately 25% of the total General Fund property tax revenue and the County would retain the remaining 75% of General Fund property tax revenue. In addition, the City would also assume service responsibilities of County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the community of Bermuda Dunes and provides funding for street lighting. Upon annexation, CSA No. 121 would be dissolved. One hundred percent (100%) of this special district's levies would be transferred to the City (refer to Exhibit 2). b. Property Transfer Taxes: The amount of Property Transfer Tax received will depend upon the level of resale activity within Bermuda Dunes. These revenues have been estimated using an average of previous three (3) year property transfer activity within Bermuda Dunes at the rate of .55C per $1,000 of assessed values. C. Homeowners Property Tax Relief. Revenue estimates generated from the Homeowner's Property Tax Relief were not specifically projected because this analysis bases the Property Tax Apportionment on assessed valuation gross of the Homeowners Exemption. Therefore, revenue from the Homeowner's Property Tax Relief is included in the Property Tax Apportionment. Rosenow Spevacek Group, Inc. March, 1996 N A xcition Bermuda Dunes nne Fiscal Feasibility Report vilow ;,0, d. Sales Taxes: Upon annexation, the City will be eligible to receive a percentage of the sales tax charged on qualifying retail sales from businesses within Bermuda Dunes. The State Board of Equalization estimated that the commercial areas within Bermuda Dunes are generating approximately $114,500 in sales tax revenues annually. RSG has assumed a modest 3% increase on these sales tax revenues for Bermuda Dunes (refer to Exhibit 3). e. Transient Occupancy Taxes: Upon annexation, the City will receive the Transient Occupancy Tax. The City's Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging establishment, the New Inn located within the Bermuda Dunes Country Club, which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax based on an occupancy factor and average room rate. 2. State Subventions (Motor Vehicle Fees): Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These taxes are collected by the State's Department of Motor Vehicles and allocated to cities on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a per capita basis. Both subventions are based on 5,362 which is the estimated population for Bermuda Dunes. The per capita figures used in the revenue summary have been provided by the State Controller's office for the 1995-96 fiscal year. 3. Franchise Fees: Upon annexation, the City will receive the franchise fees currently paid to the County by Continental Cable Television, the Southern California Gas Company, Waste Management, and Western Waste. These fees have been estimated on a per capita basis using budget figures from the City of Palm Desert. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 4 Fiscal Feasibility Report March, 1996 vw 4. Development Related Fees: The fees described below are not included in Exhibit 1 because these fees specially offset costs of development related services, only the "net" cost of these services are indicated under "Expenditures". a. Land Use Planning and Regulation Fees: The City is authorized to charge fees for all land use planning and regulation services. The City would utilize the City's existing fee schedule. These fees should off -set most of the City's cost in providing these services. b. Building Inspection and Permit Fees: The fees collected for these building and permit inspection services should, in most cases, totally offset the cost of these services. C. Engineering Fees: The City is also authorized to charge fees for plan checking, public works inspection, permit issuance and review and other engineering services. The fees collected for these services should, in most cases, offset the cost of these services. d. Development Fees: Under the provisions of State law, the City may collect development fees for the purpose of construction or improving capital facilities. Fees received must be segregated from the General Fund in order to avoid commingling. Certain fees must be spent or committed within five years from the time they are collected. 5. Other Revenues: a. Fines and Forfeitures: This represents both Motor Vehicle Code fines, Municipal Code fines, and other miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from Bermuda Dunes were estimated on a per capita basis using current budget data from the City of Palm Desert. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation March, 1996 5 Fiscal Feasibility Report b. Business License Tax: Upon annexation, the City will be eligible to impose the City's current Business License Tax. The Business License fee for the City of Palm Desert is calculated based upon gross sales. Based on discussions with City staff, RSG has estimated the amount of Business License Tax using an average Business License fee for the local sales tax generators identified within the Bermuda Dunes annexation area (refer to Exhibit 3). c. Proposition A Fire Tax: The Proposition A Fire Tax is calculated using a per parcel cost. This figure is estimated using an estimated 700 apartments and 300 condominiums at a per parcel cost of $36 per unit, and an estimated 1,200 single family residential units at $48 per unit. d. County RDA: Currently there exists along Washington Street and 42nd Avenue a County redevelopment project area. A small portion of the County Redevelopment Project Area is located within the City of Palm Desert, and the remaining portion exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This County Redevelopment Project Area consists of commercial and multifamily residential use and is located along Washington Street between Mountain View to the south and just north of 42nd Avenue. In this analysis, it is assumed the City would not take over the County Redevelopment Project Area and continued to be maintained as a County Redevelopment Project Area. Because the County Redevelopment Project Area would not be taken over by the City, no revenues have been forecasted in this analysis. e. Interest: Because expenditures exceeded revenues resulting in no excess cash, RSG did not include interest in this analysis. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 6 Fiscal Feasibility Report March, 1996 cm En B. ROAD FUND All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the cities based upon total population size. Because the annexation of Bermuda Dunes is only adding 5,362 population to the existing 37,573 of Palm Desert, the added population will not put the City's population above the next threshold. As such, no revenue is reflected relative to Section 2107.5. Similar to other state subventions, road fund revenues initially would be based at the estimated population of 5,362. Other Road Fund revenues include the voter - approved Measure A sales tax distributed by the County Transportation Commission. Revenues attributed to these gasoline taxes are restricted for use on road related maintenance expenditures. lll. EXPENDITURES A. GENERAL FUND EXPENDITURES Expenditures have been categorized by departments within the City's organizational structure and are estimated as follows: 1. General Government: a. Administration: The analysis assumed no new positions, equipment or major operating costs would be incurred because of the annexation. Minimal expenditures including legal costs, advertising, postage, and other selected services and supplies were estimated. Costs associated with the 1997-98 election are shown. Costs were estimated based on a case by case analysis or a per capita rate using City budget data. b. Insurance: Upon annexation of Bermuda Dunes, it is probable that the cost of the City's insurance policy will be impacted. RSG has estimated these costs based on existing infrastructure and other public facilities within Bermuda Dunes in relationship to the City's budgeted expenditure forecasts. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report March, 1996 7 *4w 840W C. Animal Control: Upon annexation of Bermuda Dunes, the current City animal control contractor, California Animal Care, will assume animal control services for this area. Costs were estimated assuming additional personnel and equipment as required by California Animal Care. These costs are net of any animal license fee revenues. d. County Property Tax Collection Charges: Beginning in 1992-93, the County Auditor -Controller's Office charged cities and local districts receiving property tax revenue for incidental administrative costs. These charges are estimated at 2% of all property tax revenues. 2. Public Safety: a. Sheriffs Contract: The Riverside County Sheriff's Department estimates service costs on a per capita basis. The City has indicated a desire to maintain a patrol beat to population ratio of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG believes this estimated service level appears excessive in this particular community due to the existing calls for service and the open space character of Bermuda Dunes. Thus, RSG has assumed based on discussions with City and County staff that only 5 beats will be needed to provide sufficient police services to the merchants and residents of Bermuda Dunes. b. Jail Booking Fee: Riverside County collects from its Cities a flat fee for jail bookings. Currently, the present jail booking fee is approximately $110. Bermuda Dunes jail booking fees were estimated based on jail bookings for the County incorporated areas in this area and for the City of Palm Desert. C. Fire Protection: The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a joint Powers Agreement forming the Cove Communities Public Safety Commission in order to provide fire and paramedic services. These costs are net of the property tax levy of the County Fire District. Fire Protection expenditures were estimated using Riverside County Fire budget costs. This expenditure reflects a percentage of the assessed valuation based upon the 1995-96 total cost. The estimated budget figure includes fire services staff costs, a one-time $110,000 for new equipment and $12,000 for training and other maintenance services. This Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 8 Fiscal Feasibility Report March, 1996 *"W estimated budget figure does not include optional paramedic services, which would be an additional $330,486. This total was reduced to reflect the net cost of services (less the 1 % of the total assessed valuation of the Bermuda Dunes area multiplied by the Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and services a 3-mile radius. 3. Community Development: Upon the annexation of Bermuda Dunes, the Community Development Department will assume the processing of all land use related services. These services will, in most cases, be off -set by fees. However, the City will be responsible for the preparation of a Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps, and other miscellaneous costs associated with the in-house preparation of the Specific Plan. a. Code Compliance Officer: Upon annexation, it is anticipated that an additional Code Compliance Officer will be required to provide code enforcement services within the area of Bermuda Dunes. This expenditure is calculated using the first step in the City's payroll salary range for Code Compliance Officer at $2,604 per month. RSG has included an additional 35% of the annual salary to reflect benefits and an additional 10% for supplies, minor equipment, and other overhead costs. 4. Public Works: For purposes of this Report, it is assumed that the current level of service of maintenance programs is sufficient to the community's needs. Upon annexation, CSA No. 121 and other County responsibilities will be assumed by the City. The Public Works cost estimates also include an allowance for contract services to administer these programs. a. Administration: A minimal administrative cost impact based on a per capita factor using City budget data is reflected. This cost represents supplies, meeting and travel costs, equipment, and other services. Bermuda Dunes Annexation Rosenozv Spevacek Group, Inc. Fiscal Feasibility Report March, 1996 9 `%W `*400 b. Street Sweeping: Upon annexation of the Bermuda Dunes area, the City will provide street sweeping services to this area. This expenditure was based on discussion with City staff using a curb mile estimate cost based on City budget data. Street sweeping services are performed bi-weekly by the City of Palm Desert. c. Street Lighting: Street lighting services within the Bermuda Dunes area are currently provided through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds will be transferred to the City. The forecasted expenditure is based on current CSA No. 121 budget data (refer to Exhibit 2). 5. Parks and Recreation: There is no anticipated financial impact relative to existing landscape maintenance services. The landscaped median located along 42nd Street between Limb Hall and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the annexation of Bermuda Dunes, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Thus, the median would continue to be maintained by the assessment district. Currently the Bermuda Dunes area has no public park or open space areas. Additional costs associated with the City's exiting recreation program is not anticipated. 6. Contingency: A 10% contingency factor has been added to the General Fund expenditure estimate to meet unforeseen programs or emergency needs. 7. Roads: a. Capital Improvements: Upon annexation, the City of Palm Desert will be required to pay for the 25% local share for the proposed improvements at the interchange of Washington Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the 1997-98 fiscal year, is the City's share of the estimated construction cost plus a 10% contingency. No outside revenue source has been identified to fund this capital improvement expenditure. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 10 Fiscal Feasibility Report March, 1996 err+ Upon annexation, it is the City's policy to upgrade existing infrastructure systems within the annexation area to meet or exceed current City standards. The funding sources for capital improvements .within the Bermuda Dunes annexation area were not identified because a capital improvement program (CIP) was not developed nor required as part of this analysis. Therefore, in order to prepare a CIP plan for the Bermuda Dunes annexation area, it would require the preparation of an extensive and detailed infrastructure assessment analysis. 8. Road Maintenance: a. Street Maintenance: The street maintenance expenditure was estimated based upon estimated curb miles and area size using budget data from the City of Palm Desert. This cost reflects a 3% increase which includes general street maintenance; City-wide street slurry sealing, overlaying and resurfacing, new and replaced curbs and gutters, centerline striping, and safety and sign painting. b. Traffic Signal Maintenance: Upon annexation, the City of Palm Desert will be required to maintain additional traffic signals. The City of Palm Desert currently maintains 50% of the traffic signals located along Washington Street at 42nd Street, Country Club Drive, and Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will be required to maintain 100% of these three (3) traffic signals and 25% of the traffic signal located at Fred Waring Drive and Jefferson Street. IV. SUMMARY OF FINDINGS Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and road funds exceed the estimated total revenues. Forecasted expenditures and revenues have been calculated using conservative methodologies and modest escalation factors. The forecasted expenditures exceed the estimated revenues for fiscal year 1996-97 by $982,549, $1,400,980 for fiscal year 1997-98, and $977,050 for fiscal year 1998-99. Because of the residential character and rural nature of Bermuda Dunes, the estimated amount of local sales tax generated annually was minimal. For Bermuda Dunes area, there were only 22 retail establishments identified with taxable sales amounts as provided by the State Board of Equalization (refer to Exhibit 3). The Bermuda Dunes community has very little commercial activity with only one lodging establishment. Therefore, the City's forecasted business license tax and transient occupancy tax amounts are significantly low. B Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation 11 Fiscal Feasibility Report March, 1996 401 Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes area with only a population of 5,362 will receive minimal motor vehicle and off -highway fees. Based upon discussions with the City and County staff, RSG has assumed that only five patrol units would be required to provide sufficient police services to the Bermuda Dunes area. The forecasted expenditure was calculated based upon per capita costs utilizing the existing supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is nearly 96% of the total general fund revenue estimate. The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers Agreement in order to provide fire and paramedic services. The expenditures reflected in this analysis are commensurate with the City's desire to maintain a high level of service in terms of structural fire protection and suppression. The forecasted expenditure for structural fire protection services in fiscal year 1996-97 is approximately 60% of the grand total general fund revenue estimate. Thus, the expenditures for public safety services alone exceed the general fund available by 88%. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 12 Fiscal Feasibility Report March, 1996 ON m � T. 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I l C ^ I I V C N1 GI I �I aci O v0, U C 0 o o FR- L 0 • ' U j •CC� N U L Ian Qi O V ,F C N O /C , I U .�( .i. = 3 b�D! �.• mu 1 ODD. • to O 7 H O V H O I O C� G .,] i vUi .0 .y0, 0 V .� .V n .0 E a°�i a°'i a°�i i L= �I c c E C�Cd <3) Uz U, a,cn•-, a.Qincnv�I. a..ai O U• a- Q C^ 1 t I �O on N Np!V1 O DD VII r Ml0 I �Odb p:p N V1 r N I O� �n I v� oo l oo rl,, IM ^ ^ 1J I I en en r 0 0 1 v1 M M !f O �n 9 O* t O, I N f V ry'.N O` Cl Ori� I 00100 O� a, �G � I ^ � �• • ^• �!C 00 1 ^ ^ r N100 � I� " rth vl • �n �O I Q,100 O C, N -.• 00 -• j I N O�' N O N' M cc Go �7'C 0000 M' M I v1 to N T �D I O� 1 7 O':O ^ • ^ %C \0 h 6 ^ O, I Q\ �+ 1fn i i ^ i y j I I F XI %1 R 1 I a�i � UI � I y III FI' L awl : 7 N L- N " E..� N L C f R Z, vpi X U EO :� -J I U >>I N .�j C �w i' �OHI ��I N o Cz. xF va V to, L i a� a vi N Q a a a �.y+ o= I c Hv�aaFa` N a ci c x °� o R 0 i o O O I 0, ca `v, co Oi�, W W IL16 N O O� 00 a ON 00 O� O� O O M O I O i O O:O O tItn O NIN O W) ! vi ^ N N U! �I E N U d �� �i > c N d Oi E M G CO aU i-: ` ao' U w r' 5 vn O r O'N D O D\ N r .m ^ ^ v'1 �• O ! r o0 : 00 N to �O 100 R 'fn M � I00 M ^ N N N en 00100 M � i00 M'M V \.o fV O - N ON O� �a r 0N0 � O O Cl I M co r r M r N N U F- G V acio000ojQ A 2 N N N ;V ;0> y z c c c c o O O o a y a� cC U U U U t y A V) V) V) W) Q Q Ui O m e d, — C C y L w F' 0 ( O C Y Y E d Y > Y N w O N U C EM N 0000 a♦ M O o0 ^ a N eT R O p O n en O 0o O O _ r O O C - d 4' y o Q a = Q v) .a E Q W U a °�L° •� N o cn N F lG v �c «>'+ o IT M N y Co. CD cc U. v�i "A M O O v y O a a i 0 v. n o 0 F GW, y l^ o0 co o U c QO.. C 0. O 2' W H Q :v FWO E"' G�z7 W W > OG1 U. i V Z 5 0 U LT.0 C °• a� 'x v o u �, OY o 00 ca 5 �E-O F� osE. o c°n Upa� F UOU E- w 0 c M in 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. EXHIBIT 3 LIST OF LOCAL SALES TAX GENERATORS WITHIN THE BERMUDA DUNES ANNEXATION AREA Subway Lizett's Hair Design Ernst & Ernst Foods So Much More Wallpaper Carmen's Mexican Food Clam's Up Wonder Cuts Armond's Wholesale Merchandise Teddy's Donuts 2 Lilli's Chinese Cuisine Circle K Food Stores Carl's Jr. Unocal 76-Chemic Inc. Goodyear Jack Sauter Murph's Gaslight/Murphy's Original Pan Fried Chicken Bermuda Dunes Country Club Darby West Care Larry Shaw Wholesale Plants California Desert Nursery Vintage Nursery, Inc. Cameron Nursery and Turf Products Desert Cities Nurseries Source: State Board of Equalization 4100 Washington Avenue #101 4100 Washington Avenue #103 4100 Washington Avenue 4100 Washington Avenue #119 4100 Washington Avenue #123 4100 Washington Avenue #125 4100 Washington Avenue #129 4100 Washington Street #133 4100 Washington Avenue #139 4100 Washington Avenue #141 4100 Washington Avenue #142 4050 Washington Avenue 4010 Washington Avenue 78105 Country Club Drive 79860 42nd Avenue 42360 Adams Street 78260 Darby Road 78400 Darby Road 78600 Darby Road 78755 Darby Road 78850 Darby Road 41555 Yucca Lane pwms,g3 L"n �� t---- Sun City - - — L -; Palm Desert �.. r,-� III—te�sta� y---- 42ND Avenue e f Pee Bermuda Dunes Indio y La Quinta Fred Waring Drive IndiwWells North Source: Urban Decision Systems Inc. Exhibit 4 Bermuda Dunes Annexation Area R l) S 1=. N l) U' P 1 V A C li K l P I N l 41 **awl *"W City of Palm Desert If 111111111111III 111111111HE 9.1% Avenue of the States Mountain View _ � CIZ �1 ap—J I II 42ND Avenue Darby Road Project Area Boundary Commercial Multi -Family Residential (8-18 DU/AC) Exhibit 5 County Redevelopment Project Area law R. F N V P 1: N' A C F K G R () V P I N C. RosENOW SPEVAC'EK GROUP INC. March 7, 1996 Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION FEBRUARY INVOICE Dear Mr. Drell: REC:E1VE[D MAR 11 1996 CWMUNI YDE DpMENTDEpgRTMENT PAW DESERT Pursuant to our agreement for professionservices, the following rendered during the month resents the hours and expenses accrued by RSG for services Feasibility Study $ 481.25 AMOUNT DUE $ 481.25 Sincerely, ROSENOW SPEVACEK GROUP, INC. a Felise Acosta Principal V, Fk ab Enclosures 5 - 7n -2 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 " ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 CITY OF PALM DESERT MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WARING DRIVE PALM DESERT, CA 92260 INVOICE NO.: 0004260-IN DATE: 02/29/96 CLIENT CODE: PD PAGE NO.: 1 ------------------------------------------------------------------------ RATE AMOUNT ----------------- STAFF HOURS FOR PROFESSIONAL SERVICES RENDERED: -------------------------------------- BERMUDA DUNES Contract # C10310 DTM 1.00 i00.000 100.00 02/12/96 COORDINATION DTM .50 100.000 50.00 02/13/96 COORDINATION DTM .50 100.000 50.00 02/15/96 COORDINATION DTM 1.00 100.000 100.00 02/28/96 FINALIZE DOCUMENTS MP 1.25 65.000 81.25 02/28/96 REVISE REVENUE/EXPENDITURE FORECAST DTM 1.00 100.000 100.00 02/29/96 FINALIZE DOCUMENTS CURRENT 2139.50 TOTAL FEES: 481.25 ------------ TOTAL AMOUNT: 481.25 PAYMENT DUE UPON RECEIPT ---------------- ---- OVER 90 OVER 120 BALANLC OVER 30 OVER 60 2139.50 DATE: TO: FROM: SUBJECT: RoSENOW SPEVACEK GROUP INC. February 13, 1996 Phil Drell City of Palm Desert Daniel T. Miller, RSG 10 BERMUDA DUNES ANNEXATION AREA Population Estimate RECEIVED F E B 14 1996 COMMUNITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT The estimated population figure of 6,266 for the annexation area of Bermuda Dunes was obtained from a national research bureau (Urban Decision Systems, Inc.). The population projection for Bermuda Dunes was derived utilizing 1990 census information, which makes general assumptions based upon age specific fertility rates, life expectancy, and net immigration. The population estimate for the annexation area of Bermuda Dunes is based on Census Bureau information and enhanced by various trend and modeling techniques. Attached is the source data we used in our projections. A population estimate of 6,000 for the Bermuda Dunes annexation area is shown in the application submitted to the Riverside County Local Agency Formation Commission ("LAFCO"). This population estimate was obtained using the Myoma Water Company records. Total Area The correct figure should be 3.2 square miles, which reflects the total area shown in legal description in the LAFCO application, excluding City of La Quinta property located at the northwest corner of Fred Waring Drive and Washington Street. Please let me know how you want to proceed with the population estimate. Any changes to this estimate will impact the revenue/expenditure forecast. 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 palmdst\2-12memo Urban Decision System::, Inc. Database Methodalogy Tabie 1: Estimates and Projections Variables Variable Elements, Description po ulatio I Total no uladon in ico=1phc luiit Population by Household population in family househclds, non -Family households, and group quarters population ra 1ouseholds Tora1 member of households in eexnza lt,c unit Households by Family Family and non-f mil; h useholds Type Population by Age and Population, males oleol fc-rules, for Oc%.n age whorls. (;enerally those ssre fire yew coho•.t,,,. So)( with additional detail is tl:i; :,xnaue vaars. The u 'r 11Tr+:t ", S]* ezr8. Population by Race and Fivc race :;ate;ories: u-�ute, Black, American, indiarAskimo/Aleut, AsianiTacific Island_s and Hispanic Ore in Other Race. His anicjNur.-1 Lis anic PoPuladou. .� Households by Size of N+anbrr of?iouseholds with 1, 2, 3, 4, 5, and G+ pea5ans in the hotiszhold Household Households by Age of N,2rrftx..'r of hoWell fld, v,?th: 32Q of hcn1 <d3, 25-34,1-5--W, 45-; i, 55-64, 6 '4, and 75T Head or h'cusehcld '57'1ir'gs Eirrpicym9nt EstLmatc5 croµ rc1, re:lte-i, and vacanc d%Neiiutes Est:rnates of the tu;n, a`'= > >+, ernploycd, twrrnployed, in the armed fore:es, and. not in Status pcpul he labor (c)rcc -- �mplcymant try' lncfustry Fstiniates of the cmplo_•Ll lx)l.-il3tien b} industry. seventeen inda� itr. cite -cries, corre>: xme:iii^_ to the i 95U CQ�:i.LS Cate ones have b,= estirnxed. by Esd=tcs of the e,nrlo�cd population by occupation. fhirtcen -x vwv v••�+• • corre.. ndina to tl+c C en.,ui G3teaQrics have bee., eStimatc:d. Population by Mantai Estimates cf the popu'atioa ago i ST, never married, ma-ticd, uidov4ad, divorc�l, arid Status 4cpUrited population by Educational Estimates of the hi;h?st ierel or.Kiucational 3ttainmcni, poptdatioa 25 1 s tltart fade 9, Attainment -t)nje high school, high ichtx31 diploma, some coil e. associate d,ogrne, bachelors do , astd Total Vehicies Avallaal vehicies Avaidcls per Ncuseheld Ali ntate of the cy-rent =..urttvr of An estimate of the of households with catcgan-, 1. and 2+ vehicles availubt-!. a gregate Income Total Income wi*h 't ;e rsa hic unit, in Curren: dollans Aggregate income by :otxl income, disag3cgatcct b4' household npc: fami1% household, non-nonhousthotl, and Household group cuartcrs• income Dist.7butions Prepared for Family hou_+eholds, Von -Family Households, and total Households. includes fift= :cp=ata income classy~, with the highest ran,:e $150,000+. A. Population The estimates of ail of the variables are based fundamentally on the current and projected population of each geographic unit. The current popuiation of the United States is obtained from the monthly P-25 e and Current estimate of the population and serves as series population estimate. This is a very accurst the basis for projection and estimation at lower levels of geographic detail. The five and ten year projections have been derived from the middle -series projections of the census Bureau, which makes the following general assumptions: age -specific fertility rates will remain at 1990 levels for all but the Hispanic origin population and the American IndianiEskirnarAleut population, which are butyl projected to decline by 15% over the period 1995-2050 Life expectancy is projected to ;ncrease by 6.7 years between 1993 and 2050. Net immigration is projected tc remain at the 1993 level of 8go,000 per year. Urban Decision Systems, Inc.14675 Adrturatty Way Suite 6241 Mama del Rey, CA 90292 / TOO) 633-9568 Urban Decision Systems, Inc.13075 Fair Wdge ortve ZSuite 200M 1 Fartax, VA 22o9311800) 3s4••4ti37 Page e a� Urban Decision Syste Database Methodoioc inc. iM State level estimates are based on a combination of the extension of past trends in population and current estimates by Federal and State authorities. An initial set of State level estimates were derived by using the latest Census Bureau estimates by state (publication P25-1106). The resulting estimates are teen ratio -adjusted so that the sum of the State estimates is equal to the national total. For the five- and ten-year projections, a similar method is employed. However, rather than using simple straight-line techniques, Ucs uses straight-line methods only for growing areas. For declining areas, a log -normal extrap-ilation is used. This has the effect of siowing decline over time, which is characteristic of long term population decline at the state Level. At the county level of geographic detail, similar trend and balancing methods are employed. Where the county projections of population were available from state and local authortties and were deemed -eliable, these external estimates were used as the initial estimate before balancing the sum of the cc,inty populations to the state level estimates and projections. County level projections from most :fates, inciuding all of the larger states, were utilized in the projections. At tr,e block group level of detail, the population model consists of a non -linear trend model which estimates populations given historical patterns, then balances the sum of the block group populations to the parent county level of geography. As a final checJ-. on population, block group population estimates were aggregated to troth the ZIP and County scales and thoroughly compared with estimates from external sources. T;ie result is a comprehensive set of population estimates and projections which includes the knowledge of State and County agencies about their detailed areas but also ensures that the total population is consistent with the Census Bureau estimates, which have proved extremely reliable overtime. B, Population by Household Status The group quarters population, that is population which is not in households (such as persons in insulations, military barracks, nursing homes, college dormitories, and homeless persons), is expected to increase slightly during the decade, but remain relatively constant as a percentage of the total Population. Although UUS expects the population in nursing homes to increase with the aging of the population, this will be offset to a large degree with expected decreases in armed forces personnel. The Share of persons living in non -family households is expected to writinue to increase, as it has during the p:4st two decades. C. Households Total households were modeled by projecting trends in the population per household over time at the national level to provide a control total. An implicit assumption made by UDS is that the declines in average household size over the past few decades will slow considerably over the coming decade - indeed the rate of decline in average household size during the 1980's was much lower than it was durtng the 1970's. The resulting population per household trends for the current and projected years reflect this trend. Households are normally div'ded into family and non -family households. During tare past few decades, the share of households which are composed of related family members has been increasing, and will likely =ntinue to increase during this decade. The estimates and projections of households by type were initially derived separately via trend analyses of the average household size for family and non -family I respectively, then combined and balanced to the total household count. Average household size has generally declined during the past few decades, both as a result of non- tamily household formation (which tend to be smaller units) and as a result of the fact that many families are having fewer children. The growth of one and twc-person household units continues and is likely to Urban 066S 0e Systems, hoc- t 467s Admiralty way Sure 624 i 4iar ina del Rey. CA 902921(800) 633-M68 Urban Decismn System hm 13975 Fair Ridge Drive suite 200N t Fain" VA 2MS1 t ilt00l 364-411137 Papa 3 W' Urban Decision Syster-, Inc. Database Methodology— continue dunng the Coming decade. UDS estimates the number of households by the number of persons in the households by using a set of complex procedures which relate existing counts by type of household to current and projected household counts. D. Population By Age, sex, and Race National level Census bureau projections of age by six and raceihlispanic origin were used as overall controls to ensure consistency with the Census projections. Detailed forecasts by age, sex, and race, as well as Hispanic origin, were obtained from the Census Bureau publication P25-1104, Current Population i acts, Pcpulation Projections of the United Stares. By Age, Sex, Pace, and Hispanic Origin, 1993- 2050, in all cases, the `middle series projections were used. A`- the state level, the projections of individual state agencies were combined with the results of a cohort survival approach to obtain reliable state estimates by age and sex. The block group estimates were compiled using cohort survival methods, then balanced to both the estimated block group population tctais and to the state level control totals. Trends in the racial distribution and Hisoanic populations were used to derive a preli'ninary estimate at the block group level, which were then adjusted to balance with appropriate rc,-troi totals. This method allowed UcS to utilize the historical changes in race and Hispanic origin ci5tributions and project those changed into the future while maintaining �nsis'�ency with national level Pojections. E. Income ucS estimates aggregate income, aggregate income by race and Hispanic origin, and aggregate income by household type (family household, non -family iousehold, group quarters). All income estimates produced by UDS are in current, rather than constant, dollars. In other words, a projection of income for the year 2005 Includes both an inflationary component and a 'real' component, the latter being the difference between the charge in income and the change in inflation during the period. The `real' component is normally attributed to productivity gains in the economy and to differences in the competitiveness of the economy relative to other natcns. Aggregate income estimates for 1995 are based on an analysis of changes in per capita income between the 1990 Census and 1994, as reported in the Census publication PM184, Money income of Households, Families, and Persons in the United States: 1994, It should be noted that the 199C Census income statistics are from the STF-3 and have therefore been balanced to the STF-1 full population counts in order to avoid reporting problems. The projections of aggregate income are based on a review of Bureau of Economic Analysis (SEA) projections. which assume an effective increase o` 3.0% per annum in per capita incomes during the next ten years. These inflators were then applied to the 1992 estimates provided by the Census Bureau a:,c multiplied by the 1995 estimated and 2000/2005 projected national populations in order to arrive at the national aggregate income projection for each year. The methods applied to aggregate incomes were also appiied to incomes by household type (family nouseholdlnon family household/group quarters), race, and Hispanic origin to produce national level estimates and projections for these detail categories- State level est rr.ates and projections were derived by utilizing a set of projections produced by the Sureaa of Economic Analysis (BE,A) which provided initial estimates of changes in per capita income by o the state. These estimates were then applied to the projected population by state shused at the en cotanty already derived population estimates and projections. The same methodology wa level agar') using the SEA projections as a general guide. Urban ow-ission Systems. tnc / "76 AdnvraltY Way Suite 6241 Marina del Rey, CA 9C292 J (800)633�668 Urban Decision Systems, lnc. r 3975 Fair Ridge Drive 5ude 20ON ! Fairta& v.A 22033 1 (600) 364-48 7 ?age 4 TOTAL P.04 EXECUTIVE SUMMARY Bermuda Dunes Area *■r Urban Decision Systems. Inc. 1*40* 09118i 1995 Polygon POPULATION " population growth will be very high during the 1990's * this area grew very rapidly between 1980 and 1990 * population density is low * the median age is very near the national average * an above average percentage of the adult population have college degrees HOUSEHOLDS ' household size is smaller than the national average INCOME * average income is well above the national average • a high share of households earn over $50,000 per year • a significant share of households are very wealthy EMPLOYMENT " unemployment rates are low * female labor force participation rates are high * large construction industry employment * substantial employment in entertainment and recreation " white collar occupations dominate HOUSING " a majority of housing units are renter occupied * moderate percentage of condominiums * high residential turnover * a majority of the housing was built after 1985 NOTE: This report is intended as a brief snapshot of the selected area. Only those key characteristics which are considerably different from national average values are reported. There may be other unique features of this area that are not reported. Use this report only in conjunction with a thorough review of the actual report figures. Source: 1990 Census of Population, 1995 LIDS Estimates (EXS) Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9568 476784 Population+Graphics (National B 1 Urban Decision Systems Inc Bermuda Dunes Area 09r18r95 Polygon Population Households Families Median Age Polygon 6,266 2,663 1,695 33.9 United States 262,775,323 97,427,417 67,963,378 34.0 85+ 80-84 75-79 70-74 65-89 60-84 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15�19 iau S9 0-4 20 Population by Age and Sex (1995) 15 10 5 Male (%) Race/Hispanic Origin, 1995 (%) 100 -- - - --- -- --- --- -- --- 90 - ---------.. .-- ---- ---- -- --- 80 +------------------- ---- - -- --- 70 -i ---- -- ------------------- ----------------- 60 11i, - -------------- ---- ------------ -------- 50 -------------------------------- - -- ------ 40 -:I.,' 20 t 10 li ----- --- -- ----- m Y v it L lU0 C � L C m m t_v a 0 5 10 15 20 Female (%) Educational Attainment, 1995 (%) 35 -- ---- ------ 30 25 20 15 10 5 0 r 0 v OI v � C) Occupation, 1995 (% cti Eo 0c o 0 L fn S m C9 25---------------------- —-- --------- -------- --------- --------- -------- --------- --- - - - - -- --- ---- - -- - -- - -- - — --- - 1s 10 --------------------------- - s- --,. : --- o C f7 y C :2 O N N LA2 E L m Z tL m °a N U O L U Q > a N >= i.i C L w o a` a ti O F- Source: March 15, 1995 UDS Estimates (CPNX) Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9668 476784 BENCHMARK; POPULATION PROF Urban Decision Systems.. Inc Bermuda Dunes Area \r 1*40Y 9/18/95 Page 1 of 5 Polygon POPULATION 2000 Projection 8,012 1995 Estimate 6,266 . 1990 Census 4,519�" 1980 Census 986 % Change, 1990-1995 38.7% % Change, 1980-1990 358.3% In group quarters, 1995 0.1 % HOUSEHOLDS 2000 Projection 3,420 1995 Estimate 21663 1990 Census 1,904 1980 Census 392 % Change, 1990-1995 39.8% % Change, 1980-1990 385.4% FAMILIES 1995 Estimate 1,695 RACE 1995 White 91.8% Black 0.8% American Indian 0.6% Asian or Pacific Islander 2.9% Other 4.0% HISPANIC ORIGIN 1995 11.9% AGE 1995 0-5 8.8% 6-13 12.0% 14-17 4.2% 18-20 3.0% 21-24 5.5% 25-34 18.8% 35-44 17.2% 45-54 10.7% 55-64 8.3% 65-74 7.9% 75-84 3.2% 85+ 0.4% Median Age 33.9 Male 34.0 Female 33.9 HOUSEHOLD 1 Person 26.9% SIZE 1995 2 Persons 39.7% 3-4 Persons 27.1 % 5+ Persons 6.3% TENURE 1995 Owner -Occupied Households 57.1 % Renter -Occupied Households 42.9% Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5) Urban Decision Systems Inc. 14676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9568 476784 BENCHMARK: POPULATION PROF Bermuda Dunes Area Urban Decision Systems, Inc. '"111111111V 9/18/95 Page 2 of 5 Polygon AGGREGATE Total ($ Millions) $177 INCOME 1995 Per Capita $28,291 HOUSEHOLDS Total 2,663 1995 Average Household Size 2.35 HOUSEHOLD Under $5,000 2.4% INCOME $5,000-$9,999 5.3% 1995 $10,000-$14,999 5.3% $15,000-$19,999 3.6% $20,000-$24,999 5.3% $25,000-$29,999 6.1 % $30,000-$34,999 6.3% $35,000-$39,999 4.3% $40,000-$49,999 10.1 % $50,000-$74,999 24.0% $75,000-$99,999 10.4% $100,000-$124,999 6.9% $125,000-$149,999 4.2% Over $150,000 5.9% Median Household Income $51,481 Average Household Income $66,567 FAMILIES Total 1,695 1995 Average Family Size 2.90 FAMILY Under $5,000 1.7% INCOME 1995 $5,000-$9,999 1.9% $10,000-$14,999 2.6% $15,000-$19,999 2.2% $20,000-$24,999 2.9% $25,000-$29,999 5.8% $30,000-$34,999 4.8% $35,000-$39,999 2.9% $40,000-$49,999 7.0% $50,000-$74,999 29.0% $75,000-$99,999 15.2% $100,000-$124,999 10.0% $125,000-$149,999 6.1 % Over $150,000 7.9% Median Family Income $66,319 Average Family Income $80,970 Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5) Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 1 Marina del Rey, CA 90292 / (800) 633-9568 476784 BENCHMARK: POPULATION PROF - Urban Decision Systems, Inc Bermuda Dunes Area 1111111111W " 9/18/95 Page 3 of 5 Polygon HOUSING UNITS Total Units 2,P30 1990 Owner Occupied 43. Renter Occupied 31.8% Vacant Year -Round 13.9% Vacant Seasonally 10.8% Condominiums 6.1 % Mobile Homes 0.1 % Stability (5 Year) 23.0% Turnover (1 Year) 32.2% Median Dwelling Value (1990) $199,204 Median Rent (1990) $612 UNITS PER 1 Unit, Detached 50.1% STRUCTURE 1 Unit, Attached 8.4% 1990 2 Units 2.8% 3-4 Units 7.2% 5-19 Units 17.3% 20-49 Units 3.9% 50+ Units 9.7% Mobile Home/Trailer 0.1 % UNITS BY 1989-March 1990 6.3% YEAR BUILT 1985-1988 45.4% 1990 1980-1984 25.8% 1970-1979 14.1 % 1960-1969 4.9% 1950-1959 2.3% Before 1950 1.1 % SEX & Males 2,212 MARITAL Single (Age 16+) 22.9% STATUS 1990 Females 2,307 Single (Age 16+) 19.0% EDUCATION Population Age 25+ 3,095 1990 No High School Diploma 10.2% High School Only 19.1 % College 1-3 Years 39.3% College 4+ Years 31.4% FAMILIES Total 1,236 1990 With Children 47.2% Married Couples 87.0% Married With Children 38.4% Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5) Urban Decision Systems Inc. 14676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9568 476784 BENCHMARK: POPULATION PRO Permuda Dunes Area 111*00 Urban Decision Systems, Inc `v" # 9/18/95 Page 4 of 5 Polygon LABOR FORCE Males 16+ Years 1,708 1990 In Labor Force 80.9% Females 16+ Years 1,840 In Labor Force 60.6% Unemployed 2.0% INDUSTRY Agriculture/Forestry/Fishing 3.5% 1990 Mining 0.0% Construction 12.6% Manufacturing: Non -Durable Goods 1.8% Manufacturing: Durable Goods 2.0% Transportation 0.8% Communciations / Public Utilities 3.2% Wholesale Trade 2.9% Retail Trade 18.8% Finance, Insurance, and Real Estate 14.1% Business/Repair Services 5.4% Personal Services 7.0% Entertainment and Recreation 3.6% Professional and Related Services 19.9% Public Administration 4.4% OCCUPATION Mangerial/Executive 22.6% 1990 Professional 15.3% Technical 4.2% Clerical 12.2% Sales 17.3% Total: White Collar 71.7% Craftsmen 7 2% Operatives 5.1 % Services 11.6% Laborers 2.8% Farming/Forestry/Fishing 1.5% Total: Blue Collar 28.3% WORKERS 0 9.8% PER FAMILY 1 31.8% 1990 2 48.4% 3+ 10.0% CLASS OF Private For Profit 71.3% WORKER Private Not For Profit 5.1 % 1990 Local Government 10.8% State Government 2.9% Federal Government 0.8% Self -Employed 10.7% Unpaid Family Workers 0.0% Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5) Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 1 Marina del Rey, CA 90292 / (800) 633-9568 476784 BENCHMARK: POPULATION PROF - Urban Decision Systems. Inc Berrhuda Dunes Area fir✓ lose 9/18/95 Page 5 of 5 Polygon WORKERS Total, 16+ Years 2,407 1990 TRANSPORT Car, Truck, or Van 94.0% TO WORK Drove Alone 79.1 % 1990 Carpooled 14.9% Public Transit 0.2% Bus or Trolley Bus 0.2% Streetcar/Trolley 0.0% Subway/Elevated 0.0% Railroad 0.0% Ferryboat 0.0% Taxicab 0.0% Motorcycle 0.7% Bicycle 0.0% Walked 1.3% Other Means 0.0% Worked At Home 3.7% TRAVEL TIME < 5 Minutes 3.4% TO WORK 5-9 Minutes 6.6% 1990 10-19 Minutes 46.8% 20-29 Minutes 23.7% 30-59 Minutes 10.8% 60-89 Minutes 3.9% 90+ Minutes 1.1 % Work At Home 3.7% Average Travel Time (Minutes) 18.2 VEHICLES None 1.7% AVAILABLE 1 30.9% 1990 2 49.0% 3-4 16.5% 5+ 1.9% Total Vehicles 3,667 Average Vehicles Per Household 1.9 Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5) Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 I Marina del Rey, CA 90292 / (800) 633-95" 476784 I c� RIVERSIDE COUNTY J, 1 tCOUNTY �� FIRE DEPARTMENT or ' RIVERSIDE 9A/' 9.Itl93 J. M. HARRIS 210 WEST SAN JACINTO AVENUE • PERRIS, CALIFORNIA 92570 • (909) 940-6900 FIRE CHIEF January 16, 1996 RECEIVED To: Paul Gibson, Finance Director JAN 18 1996 City of Palm Desert' COMMIMlITY DEVELOPMENT DEPARTMENT !—a F CITY OF PALM DESERT From: John McLaughlin, Division Chief Riverside County Fire Department =' Sub: Bermuda Dunes Annexation o Paramedic Response Study Attached are response times for medic units from Stations 55 (Eldorado and Hwy 111) and Station 71 (Portola and Country Club) to various locations in Bermuda Dunes. They indicate a medic unit can get to any location in Bermuda Dunes with a five to ten minute response, which is our current standard. These times were based on the medic unit being in quarters at the time of the call. Of course the Engine Company would arrive sooner to provide BLS care. Also, the following is a breakdown of response activity for Bermuda Dunes during 1995. Medical Aids 721 Fires 263 Public Service Requests 94 Miscellaneous 580 (false alarms, covers, assists) Total 1658 Let me know if you need further information. dpa Attachment C nAIt n L -7 �'t8 ohn McLa ghlin printed on recycled paper W on 0 Riverside County Fire Department C O U N T Y F I R E M E M O R A N D U M Jan 9, 1996 TO: Chief Gouette FROM: Capt Ken Hamilton RE: RESPONSE TIMES THE FOLLOWING ARE THE RESPONSE TIMES YOU REQUESTED. FROM STA. 55 TO FRED WARING AND JEFFERSON 5:33 FROM STA. 55 TO AVE 42 AND WASHINGTON 4:36 FROM STA. 55 TO WASHINGTON AND COUNTRY CLUB 5:54 FROM STA. 55 TO AVE 42 AND ADAMS 6:24 FROM STA. 55 TO AVE 42 AND COUNTRY CLUB 8:11 Ken Hamilton Fire Captian TO: CHIEF GOUETTE FROM: JOHN PERRAULT REGAPDING: RESPONSE TIMEG. AC PER OUR CONVER3ATION ON 1/4/96 YOU AS}(7D US rOR TIME. AND MILAGE TO FIVE DIFFERENT LOCATIONC, PREASSIGNED BY YOU. WE DID THIS AT 1654 HOURS. WITH MODERATE TO HEAVY TRAF7IC. 1. FROM STATION 71 TO WASHINGTON CROSS OF COUNTrY CLUK. 3.57 MINS. 3.? MILE',':, 7. FROM STATION 71 TO 42nd CROSS OF WA3UINETON,, 5.24 MI%J, A^? MILV:, 3, FROM STATION 71 TO 42nd CROSS OF ADAMS. 7.07 MINE. 5.G MILES 4. FROM STATION 71 TD 47nd CROSS Or COUNTRY CLUB. 8.42 MINE. 7.1 MILES 5. FROM STATION 71 TO rREDWARING CROSS OF JEFrmSCm" 10"52 MINE. O.2 MILES 1 = CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT MEMORANDUM TO: City Manager and All Department Heads FROM: Phil Drell, Acting Director DATE: January 5, 1996 SUBJECT: Bermuda Dunes Annexation Fiscal Feasibility Report Attached is the Draft Bermuda Dunes Annexation Fiscal Feasibility Report prepared by Rosenow Spevacek Group, Inc. Please review the report for discussion at the Tuesday, January 16 Executive Management meeting. Please submit written comments to me as soon as possible. PHILIP DRELL, ACTING DIRECTOR COMMUNITY DEVELOPMENT AND PLANNING /tm cc: Carlos Ortega Paul Shillcock BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT ]anuary 5, 1996 Prepared for: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 (619) 340-5776 Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541-4585 V9 En BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT 1. BACKGROUND The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the Bermuda Dunes community. This Report will focus on what City services will be provided within the Bermuda Dunes area, the forecasted cost of those services, and what revenues could reasonably be expected to be available to fund those services. This Report will focus on a compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal year 1998-99 using a range of potential fiscal impacts. It should be understood that there will usually be differences between the forecasts and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. Bermuda Du es area 1995 population is estimated a 6,266) The subject area is comprised of The Berm approximately I& square miles of territory. At the present time, the number of structures or dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a 27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Dunes is located in the central region of Riverside County. The boundaries of the Bermuda Dunes community is generally the area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the south andndary along Indio city limits, Fred Waring Drive and the La Q city limits to theWashington Street up to the Interstate 10 Freeway to the west. Most of the area is still of a rural nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential and rugged terrain (refer to Exhibit 4). The major public agencies currently providing services in the Bermuda Dunes community are the County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District. The County of Riverside is currently responsible for policymaking and administration, law enforcement, animal control, planning and land use regulation, building inspection, flood control, and the maintenance and improvement of roads. Street lighting services within the Bermuda Dunes area are currently provided through County Service Area No. 121. The landscaped median located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon annexation, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Bermuda Dunes Annexation Rosenozv Spevacek Group, Inc. 1 Fiscal Feasibility Report January S, 1996 Water dcurrently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the services is currently in place. Sewer service is currently, and will continue to be, provided by Septic Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive, Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection services to the Bermuda Dunes community. Currently, one fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and services a three-mile radius. The County of Riverside is currently responsible for providing police services within the Bermuda Dunes area. The law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio substations. Upon annexation, no change in fire or police protection services are anticipated because police and fire protection services are provided by the same Riverside County organization. The roads within the Bermuda Dunes area are currently maintained by the County of Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing roads. Many of the General Fund and Road Fund revenues and expenditures were either calculated on a per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a case study methodology. 11. REVENUES A. GENERAL FUND The primary sources of General Fund revenues are noted below and shown on Exhibit 1: 1. Taxes: a. Property and Parcel Taxes: The City's property tax revenue is based on the historical property tax ratio of 250/o/75% between the City and the County respectively as set forth in Resolution No. 81-133 adopted September 24, 1981. Upon annexation, the City would receive approximately 25% of the total General Fund property tax revenue and the County would retain the remaining 75% of General Fund property tax revenue. In addition, the City would also assume service responsibilities of County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the community of Bermuda Dunes and provides funding for street lighting. Upon annexation, CSA No. 121 would be dissolved. One hundred percent (100%) of this special district's levies would be transferred to the City (refer to Exhibit 2). Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 2 Fiscal Feasibility Report January 5, 1996 b. Property Transfer Taxes: The amount of Property Transfer Tax received will depend upon the level of resale activity within Bermuda Dunes. These revenues have been estimated using an average of previous three (3) year property transfer activity within Bermuda Dunes at the rate of .55c per $1,000 of assessed values. C. Homeowners Property Tax Relief: Revenue estimates generated from the Homeowner's Property Tax Relief were not specifically projected because this analysis bases the Property Tax Apportionment on assessed valuation gross of the Homeowners Exemption. Therefore, revenue from the Homeowner's Property Tax Relief is included in the Property Tax Apportionment. d. Sales Taxes: Upon annexation, the City will be eligible to receive a percentage of the sales tax charged on qualifying retail sales from businesses within Bermuda Dunes. The State Board of Equalization estimated that the commercial areas within Bermuda Dunes are generating approximately $114,500 in sales tax revenues annually. RSG has assumed a modest 3% increase on these sales tax revenues for Bermuda Dunes (refer to Exhibit 3). e. Transient Occupancy Taxes: Upon annexation, the City will receive the Transient Occupancy Tax. The City's Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging establishment, the New Inn located within the Bermuda Dunes Country Club, which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax based on an occupancy factor and average room rate. 1 •1 0.1 • ITRrarml Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These taxes are collected by the State's Department of Motor Vehicles and allocated to cities on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a per capita basis. Both subventions are based on ±6,26t, which is the estimated population for Bermuda Dunes. The per capita figures used in the revenue summary have been provided by the State Controller's office for the 1995-96 fiscal year. Bermuda Dunes Annexation *osenow Spevacek Group, Inc. Fiscal Feasibility Report January S, 1996 3. I M 3 . Franchise Fees Upon annexation, the City will receive the franchise fees currently paid to the County by Continental Cable Television, the Southern California Gas Company, Waste Management, and Western Waste. These fees have been estimated on a per capita basis using budget figures from the City of Palm Desert. FT-R- oITZI : n F 7-� The fees described 'below are not included in Exhibit 1 because these fees specially offset costs of development related services, only the "net" cost of these services are indicated under "Expenditures". a. Land Use Planning and Regulation Fees: The City is authorized to charge fees for all land use planning and regulation services. The City would utilize the City's existing fee schedule. These fees should off -set most of the City's cost in providing these services. b. Building Inspection and Permit Fees: The fees collected for these building and permit inspection services should, in most cases, totally offset the cost of these services. c. Engineering Fees: The City is also authorized to charge fees for plan checking, public works inspection, permit issuance and review and other engineering services. The fees collected for these services should, in most cases, offset the cost of these services. d. Development Fees: Under the provisions of State law, the City may collect development fees for the purpose of construction or improving capital facilities. Fees received must be segregated from the General Fund in order to avoid commingling. Certain fees must be spent or committed within five years from the time they are collected. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report January S, 1996 4 54, Other Revenues a. Fines and Forfeitures: This represents both Motor Vehicle Code fines, Municipal Code fines, and other miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from Bermuda Dunes were estimated on a per capita basis using current budget data from the City of Palm Desert. b. Business License Tax: Upon annexation, the City will be eligible to impose the City's current Business License Tax. The Business License fee for the City of Palm Desert is calculated based upon gross sales. Based on discussions with City staff, RSG has estimated the amount of Business License Tax using an average Business License fee for the local sales tax generators identified within the Bermuda Dunes annexation area (refer to Exhibit 3). C. Proposition A Fire Tax: The Proposition A Fire Tax is calculated using a per parcel cost. This figure is estimated using an estimated 700 apartments and 300 condominiums at a per parcel cost of $36 per unit, and an estimated 1,200 single family residential units at $48 per unit. d. County RDA. - Currently there exists along Washington Street and 42nd Avenue a County redevelopment project area. A small portion of the County Redevelopment Project Area is located within the City of Palm Desert, and the remaining portion exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This County Redevelopment Project Area consists of commercial and multifamily residential use and is located along Washington Street between Mountain View to the south and just north of 42nd Avenue. aft, .it"is,.-murned4w City vowid nab ice ow the County RedeyeIopmgMPrQjeaArea and continued to be t s tamed as a County Redevelopment Project Area.' Because the County Redevelopment Project Area would not be taken over by the City, no revenues have been forecasted in this analysis. e. Interest: Because expenditures exceeded revenues resulting in no excess cash, RSG did not include interest in this analysis. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report January 5, 1996 5 M LWA B. RbAD FUND All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the cities based upon total population size. Because the annexation of Bermuda Dunes is only adding 6,266 population to the existing 37,573 of Palm Desert, the added population will not put the City's population above the next threshold. As such, no revenue is reflected relative to Section 2107.5. Similar to other state subventions, road fund revenues initially would be based at the estimated population of 6,266. Other Road Fund revenues include the voter - approved Measure "A" sales tax distributed by the County Transportation Commission. Revenues attributed to these gasoline taxes are restricted for use on road related maintenance expenditures. III. EXPENDITURES A. GENERAL FUND EXPENDITURES Expenditures have been categorized by departments within the City's organizational structure and are estimated as follows: a. Administration: The analysis assumed no new positions, equipment or major operating costs would be incurred because of the annexation. Minimal expenditures including legal costs, advertising, postage, and other selected services and supplies were estimated. Costs associated with the 1997-98 election are shown. Costs were estimated based on a case by case analysis or a per capita rate using City budget data. b. Insurance: Upon annexation of Bermuda Dunes, it is probable that the cost of the City's insurance policy will be impacted. RSG has estimated these costs based on a per capita figure using City budget data. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 6 Fiscal Feasibility Report err►' `400, f' c. Animal Control: Upon annexation of Bermuda Dunes, the current City animal control contractor, California Animal Care, will assume animal control services for this area. Costs were estimated assuming additional personnel and equipment as required by California Animal Care. These costs are net of any animal license fee revenues. d. County Property Tax Collection Charges: Beginning in 1992-93, the County Auditor -Controller's Office charged cities and local districts receiving property tax revenue for incidental administrative costs. These charges are estimated at 0.2% of all property tax revenues. 2. Public Safety. a. Sheriff's Contract: The Riverside County Sheriff's Department estimates service costs on a per capita basis. The City has indicated a desire to maintain a patrol beat to population ratio of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG believes this estimated service level appears excessive in this particular community due to the existing calls for service and the open space character of Bermuda Dunes. Thus, RSG has assumed based on discussions with City and County staff that only 5 beats will be needed to provide sufficient police services to the merchants and residents of Bermuda Dunes. b. Jail Booking Fee: Riverside County collects from its Cities a flat fee for jail bookings. Currently, the present jail booking fee is approximately $110. Bermuda Dunes jail booking fees were estimated using a per capita rate based on jail bookings for the City of Palm Desert. C. Fire Protection: The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a joint Powers Agreement forming the Cove Communities Public Safety Commission in order to provide fire and paramedic services. These costs are net of the property tax levy of the County Fire District. Fire Protection expenditures were estimated using Riverside County Fire budget costs. This expenditure reflects a percentage of the assessed valuation based upon the 1995-96 total cost. The estimated budget figure includes $603,833 which provides for fire services staff costs, a one-time $110,000 for new equipment and $12,000 for training and other maintenance services. This estimated budget figure also includes optional Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 7 Fiscal Feasibility Report January S, 1996 j� paramedic services, which would be an additional 330,486. his total, which amounts to $1,056,319, was reduced to reflect the net cost o services (less the 1 % of the total assessed valuation of the Bermuda Dunes area multiplied by the Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and services a 3-mile radius. Upon the annexation of Bermuda Dunes, the Community Development Department will assume the processing of all land use related services. These services will, in most cases, be off -set by fees. However, the City will be responsible for the preparation of a Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps, and other miscellaneous costs associated with the in-house preparation of the Specific Plan. a. Code Compliance Officer: Upon annexation, it is anticipated that an additional Code Compliance Officer will be required to provide code enforcement services within the area of Bermuda Dunes. This expenditure is calculated using the first step in the City's payroll salary range for Code Compliance Officer at $2,604 per month. RSG has included an additional 35% of the annual salary to reflect benefits and an additional 10% for supplies, minor equipment, and other overhead costs. For purposes of this Report, it is assumed that the current level of service of maintenance programs is sufficient to the community's needs. Upon annexation, CSA No. 121 and other County responsibilities will be assumed by the City. The Public Works cost estimates also include an allowance for contract services to administer these programs. a. Administration: A minimal administrative cost impact based on a per capita factor using City budget data is reflected. This cost represents supplies, meeting and travel costs, equipment, and other services. b. Street Sweeping: Upon annexation of the Bermuda Dunes area, the City will provide street sweeping services to this area. This expenditure was estimated based on discussion with City staff using a per capita cost based on City budget data. Street sweeping services are performed bi-weekly by the City of Palm Desert. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 8 Fiscal Feasibility Report fir+' 1*400 t� c. Street Lighting. - Street lighting services within the Bermuda Dunes area are currently provided through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds will be transferred to the City. The forecasted expenditure is based on current CSA No. 121 budget data (refer to Exhibit 2). There is no anticipated financial impact relative to existing landscape maintenance services. The landscaped median located along 42nd Street between Limb Hall and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the annexation of Bermuda Dunes, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Thus, the median would continue to be maintained by the assessment district. Currently the Bermuda Dunes area has no public park or open space areas. Additional costs associated with the City's exiting recreation program is not anticipated. A 10% contingency factor has been added to the General Fund expenditure estimate to meet unforeseen programs or emergency needs. 7. Roads: a. Capital Improvements: Upon annexation, the City of Palm Desert will be required to pay for the 25% local share for the proposed improvements at the interchange of Washington Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the 1997-98 fiscal year, is the City's share of the estimated construction cost plus a 10% contingency. No outside revenue source has been identified to fund this capital improvement expenditure. Upon annexation, it is the City's policy to upgrade existing infrastructure systems within the annexation area to meet or exceed current City standards. ing e fer c; improvements within the. Bermuda Dunes annexation area were not iOppOW because a capital improvement program (CIP) was not developed nor reiqu�ired as part of this analysis. Therefore, in order to prepare a CIP plan for the Bermuda Dunes annexation area, it would require the preparation of an extensive and detailed infrastructure assessment analysis. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January 5, 1996 9 Fiscal Feasibility Report a. Street Maintenance: The street maintenance expenditure was estimated based upon a per capita cost using City budget data for the City of Palm Desert. This cost reflects a 3% increase which includes general street maintenance; City-wide street slurry sealing, overlaying and resurfacing, new and replaced curbs and gutters, centerline striping, and safety and sign painting. b. Traffic Signal Maintenance: Upon annexation, the City of Palm Desert will be required to maintain additional traffic signals. The City of Palm Desert currently maintains 50% of the traffic signals located along Washington Street at 42nd Street, Country Club Drive, and Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will be required to maintain 100% of these three (3) traffic signals and 25% of the traffic signal located at Fred Waring Drive and Jefferson Street. IV. SUMMARY OF FINDINGS Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and road funds exceed the estimated total revenues. Forecasted expenditures and revenues have been calculated using conservative methodologies and modest escalation factors. The forecasted general fund expenditures exceed the estimated revenues for fiscal year 1996-97 by $1,125,944, $1,082,063 for fiscal year 1997-98, and $1,129,179 for fiscal year 1998-99. The three fiscal year revenue and expenditure forecast concerning the road fund also reflects expenditure totals exceeding estimated revenues. In fiscal year 1996-97, the forecasted expenditures exceeded revenues by $114,511, $595,009 in fiscal year 1997-98, and $121,485 in fiscal year 1998-99. Because of the residential character and rural nature of Bermuda Dunes, the estimated amount of local sales tax generated annually was minimal. For Bermuda Dunes area, there were only 22 retail establishments identified with taxable sales amounts as provided by the State Board of Equalization (refer to Exhibit 3). The Bermuda Dunes community has very little commercial activity with only one lodging establishment. Therefore, the City's forecasted business license tax and transient occupancy tax amounts are significantly low. Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes area with only approximately a population of 6,300 will receive minimal motor vehicle and off -highway fees. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report January 5, 1996 10 BAed upon discussions with the City and County staff, RSG has assumed that only five patrol units would be required to provide sufficient police services to the Bermuda Dunes area. The forecasted expenditure was calculated based upon per capita costs utilizing the existing supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is nearly 90% of the total general fund revenue estimate. The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers Agreement in order to provide fire and paramedic services. The expenditures reflected in this analysis are commensurate with the City's desire to maintain a high level of service in terms of structural fire protection, suppression, and paramedic services. The forecasted expenditure for structural fire protection services in fiscal year 1996-97 is approximately 96% of the grand total general fund revenue estimate. Thus, the expenditures for public safety services alone exceed the general fund available by 88%. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 11 Fiscal Feasibility Report owls ���5e�v►v� h .r 00 O� N N f. .w fn f"� •+ V1 V1 M y� Vw N M}, a C � a�w � e�`�, O � oo v � 00 Q 1� O► t`I O wt � qG�� ~ N G1 II°� O, N ww [ice- fihl`�i h N �r rQ';1 nr w 00 O� w 00 O� O� �O O� O� r. O ''%Ml, O A O M h M 8 ��R a � I�4 U E-t l .Rt N %O O !V 00 00 O � aac� as VWi VW1 en h a h h rr � h W% 0 M h N v1 Vl a � � war .r O R n N I h M M Vt oin U � a i zz w o 0 0 0W W cn En, � W F N O N cm In M 05 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. EXHIBIT 3 LIST OF LOCAL SALES TAX GENERATORS WITHIN THE BERMUDA DUNES ANNEXATION AREA Subway Lizett's Hair Design Ernst & Ernst Foods So Much More Wallpaper Carmen's Mexican Food Clam's Up Wonder Cuts Armond's Wholesale Merchandise Teddy's Donuts 2 Lilli's Chinese Cuisine Circle K Food Stores Carl's Jr. Unocal 76-Chemic Inc. Goodyear lack Sauter Murph's Gaslight/Murphy's Original Pan Fried Chicken Bermuda Dunes Country Club Darby West Care Larry Shaw Wholesale Plants California Desert Nursery Vintage Nursery, Inc. Cameron Nursery and Turf Products Desert Cities Nurseries Source: State Board of Equalization 4100 Washington Avenue #101 4100 Washington Avenue #103 4100 Washington Avenue 4100 Washington Avenue #119 4100 Washington Avenue #123 4100 Washington Avenue #125 4100 Washington Avenue #129 4100 Washington Street #133 4100 Washington Avenue #139 4100 Washington Avenue #141 4100 Washington Avenue #142 4050 Washington Avenue 4010 Washington Avenue 78105 Country Club Drive 79860 42nd Avenue 42360 Adams Street 78260 Darby Road 78400 Darby Road 78600 Darby Road 78755 Darby Road 78850 Darby Road 41555 Yucca Lane pa1mdst\exh3 Now Palm Desert A North Swm: Urban Decision Systems Inc. Exhibit 4 Bermuda Dunes Annexation Area RO-SENOW S PEVACEK GROUP INC. City of Palm Desert 9 s 1 I Mountain view _LLJ ----- --- -- ITFFJI [IT Z!.l C 3 42ND Avenue Project Area Boundary ® Commercial Multi -Family Residential (8-18 MAC) Exhibit 5 County Redevelopment Project Area "A® ROSE\OW S PE VAC E K GROUP INC. .7 f CITY OF PALM DESERT ��— DEPARTMENT OF COMMUNITY DEVELOPMENT — A N MEMORANDUM Pusuc'i a Eli F ECF,,IVE f,IT� r TO: City Manager and All Department Heads rU�n&s"995 FROM: Phil Drell, Acting Director PUBLIC WORKS DEPARI'!1"i\i+ CITY OF PALM DESETJ DATE: January 5, 1996 SUBJECT: Bermuda Dunes Annexation Fiscal Feasibility Report Attached is the Draft Bermuda Dunes Annexation Fiscal Feasibil4l, Report prepared by Rosenow Spevacek Group, Inc. Please review 0"4 report for discussion at the Tuesday, January 16 Executive Manageme'll meeting. Please submit written comments to me as soon as possible- PHILIP DRELL, ACTING DIRECTOR COMMUNITY DEVELOPMENT AND PLANNING /tm cc: Carlos Ortega Paul Shillcock RECEIVED JAN p 8'996 PUBUCVVOAKBDEPARTMENT CRY OF PALM *W r 1 I I In I (Q I O "Tr (Cp O ID (0 '1 N Lrl M r W to #M■ 1n I I I 1 M r N f9 a L. Cl) II V (D 10 co I n N O O O W WN J CO ICD I r O1 II I U Iz n l D 0 • I • I I I I 1 I I I 1 a 0 2 N 1 NI M 1 N 1 N 1 N 1 V 1 Cl) 1 N I N I N 1 M I Cl)* 1 N 1 M M 1 M 1 N 1 N 1 M I N I M 1 N 1 M I I I # Z Z a:) W = I I I I I I I I I I I I I I I I I 1 I z LL U 1I1 In r• II M• III In• II1 p I1I r III W Q• I1II M N MM MM N CO II1 III1 I1II pO rr II1 II1 +I' N N • Z O 10 W1 LA. 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Q' I o w * � * r * ll: it ♦ * * cD co w O Cl) * O * * co U a * * * N C) -1 W > .. z O * Cl) w p F- N J * CD * cD * * CN Cl) ** O J O S :3 = Cl) * 0) * r C CL O * * * CL * * J * N * 00 * * O Q R * n * * N r "O * N * * (1)0 * r * * 00 I F- In * r * * N * (7 * * (7 * * * * * * * * * * * * * * * * * * * * * w w * Q * * Q In 00f- a * O ** O I N ,L w J d• * CL * * H J O > p * Z * * Z CL Co Z U w G O U Z * Z ** O i (x 0_ U cm V w C'TY OF PALM DESERT FISCAL IMPACT REPORT PROPOSED ANNEXATION PALM DESERT COUNTRY CLUB AREA PREPARED BY JONATHAN & ASSOCIATES, INC. CERTIFIED PUBLIC ACCOUNTANTS SEPTEMBER 10, 1992 Aftr 14we t TABLE OF CONTENTS INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . 1 DESCRIPTION OF PROPOSED ANNEXATION . . . . . . . . . . . . . 2 MAP OF ANNEXATION AREA . . . . . . . . . . . . . . . . . . . 5 IMPACT ON CITY OF PALM DESERT Impact on City of Palm Desert . . . . . . . . . . . . . 6 Summary of Revenue to City of Palm Desert . . . . . . . 10 Summary of Expenditures by City of Palm Desert . . . . 16 IMPACT ON COUNTY OF RIVERSIDE Impact on County of Riverside . . . . . . . . . . . . . 20 Revenue to County of Riverside . . . . . . . . . . . . 23 Expenditures by County of Riverside . . . . . . . . 24 IMPACT ON OTHER AGENCIES Impact on Other Agencies . . . . . . . . . . . . . . . 25 Structural Fire Protection . . . . . . . . . . . . . . 28 County Free Library . . . . . . . . . . . . . . . . . . 28 BASEDATA . . . . . . . . . . . . . . . . . . . . . . . . . 29 ASSUMPTIONS. . . . . . . . . . . . . . . . . . . . . . . . 34 M I INTRODUCTION This Fiscal Impact Report analyzes the financial effect on the City of Palm Desert, the County of Riverside, and other affected agencies which would result from the proposed annexation. A hybrid approach is utilized, combining the Per Capita Multiplier Method and the Case Study Method. A five year time frame has been presented, beginning with fiscal year 1993/1994. Column headings of 1993 indicate the fiscal year which begins July 1, 1993 and ends June 30, 1994, headings of 1994 indicate fiscal year 1994/1995, and so on. The following chart summarizes the net annual fiscal impact, the cumulative impact for the five year period presented, and the annual impact thereafter, for each of the affected entities. YEAR CITY COUNTY FIRE LIBRARY 1993 224,463 216,938 159,791 81,809 1994 558,857 263,621 173,625 88,445 1995 636,840 286,734 181,006 92,085 1996 719,819 309,289 188,210 95,640 1997 809,164 331,915 195,458 99,218 CUMUL 2,949,143 1,408,498 898,089 457,197 ANNUAL 809,164 331,915 195,458 99,218 -Page 1 - DESCRIPTION OF PROPOSED ANNEXATION AREA The proposed annexation area encompasses approximately 1,604 acres adjacent to the northeast boundary of the City of Palm Desert. The area is bounded by Country Club Drive to the north, Washington Street to the east, Fred Waring Drive to the south, and the existing city limit to the west, as indicated on the map which follows. The parcel numbers correspond to those indicated on the map. PARCEL 1 This parcel is zoned PR-4 (planned residential, 4 units to the acre), and contains Palm Desert Resort - a country club with 930 residential units, an 18 hole golf -course, a club house, and typical amenities (i.e. swimming pools, tennis courts, etc.). PARCEL 2 This parcel is zoned R-1 8000 (one residence per lot, minimum lot size of 8,OOO.square feet), and contains Whitehawk - a private gated community of 432 homes, of which 288 are complete at this point. The remaining 144 homes are assumed to be built out ratably over the five year period presented. PARCEL 3 This parcel is zoned R-3 (multi -family, 1 unit per 2,500 square feet), and contains Sun Dunes Apartments - 24 units, and Desert Oasis Apartments - 320 units. PARCEL 4 This parcel is zoned PC-2 (neighborhood commercial), and contains typical uses under this zoning, i.e. gas station, convenience mart, video store, etc. PARCEL 5 This parcel is zoned R1 M (single family mobile homes, 5,000 square foot lots), and contains Golden Sun Estates - a mobile home park with 200 units. - Page 2- Own on PARCEL 6 This parcel is zoned R-3, and contains Royal Palm Apartments -100 units. PARCEL 7 This parcel is zoned PR-4, and contains Woodhaven Country Club -504 units fully built out, 18 hole golf -course, clubhouse, and typical amenities. PARCEL 8 This parcel is zoned R-3 2000 (multi -family residential, 1 unit per 2,000 square feet), and contains Palm Desert Apartments -386 units. PARCEL 9 This parcel is zoned PC-2, and contains the typical uses under this zoning, including a gas station, restaurants, bar, bank, offices, etc. PARCEL 10 This parcel is zoned R-3 2000, and contains Palm Desert Villas, an apartment complex. PARCEL 11 This parcel is zoned R-3 4000 (multi -family residential, 1 unit to 4,000 square feet), and contains Palm Desert Palms - a 40 unit apartment complex, Golden Oaks/Royal Oaks - a 104 unit apartment complex, a church, a private school, a child care facility, and a single residence. PARCEL 12 This parcel is a vacant lot of approximately 4.5 acres, zoned R-3 2000. PARCEL 13 This parcel is approximately 1.61 acres, zoned R-3 4000. It contains office buildings, and is only partially built out at this point. PARCEL 14 - Page 3 - ItiM w **So This parcel is zoned PR-4, and contains Desert Breezes - a walled and gated community of 76 units. PARCEL 15 This parcel contains Palm Desert Country Club, and is zoned variously as R-1 9000 (single residence with 9,000 square foot minimum lot size), R-2 4000 (multi -family with 2 units to 4,000 square feet), and O.S.(open space). The development contains 954 homes along an 18 hole golf course. PARCEL 16 This parcel is zoned PR-4, and contains Oasis Country Club - a typical golf -course development with 1049 units, 18 hole golf -course, club house, and the usual amenities. The development currently has 682 units completed, with the remaining development projected to occur ratably over the five year period presented. PARCEL 17 This parcel is zoned PC-2 and contains the typical uses under this zoning, i.e. gasoline station, convenience mart, shops, offices, etc. - Page 4 - III 1 • `� ` •11f J'1 �, I �\� 1' I !� R•I 8000 RIM q .. I I 1 ilr M1rllll { •_ --- Ij-�. ���j';A1, � i i ; I �•A �r .1.. I <1 COU1111,r rl Vn PR.4 1 1 'I I' T.�rl•..-r--arc" R•3 2000 Yt — y _J O.S. PC 1 rY�,r �1 t ( - II PC z:. DAMS couNrnr cwo O I II I. tt' 00 r PR-4 I • II 4.... J R.I 9000 \r --411 M. PALU DEB fnr COwrtnr urn O.S. R-40 2000 I O S ;t CI �`il lai,V f — - R 1 9000/ O.S. I' PR•d II `1�':hL . _.�R 4000 - Page 5 - M En IMPACT ON CITY OF PALM DESERT The financial effect on the City of Palm Desert which would result from the proposed annexation has been analyzed and is presented in the schedules which follow. The schedule titled Summary of Impact on City of Palm Desert shows revenue, cost, and net annual impact to the City for fiscal years 1993 through 1997, as well as cumulative impact for the five year period. Revenue is summarized in Schedule 1 and detailed in Schedules 1 A through 1 D. Cost is summarized in Schedule 2 and detailed in Schedules 2A and 2B. Significant assumptions are presented in the schedules titled Base Data, and in the Assumptions section of this report. As shown in the schedules, the net annual impact to the City of Palm Desert is: 1993 $224,463 1994 $558,857 1995 $636,840 1996 $719, 819 1997 $809,164 Cumulative impact for the five year build -out period is projected to be a positive impact of $2,949,143. It is calculated that the net annual impact to the City of Palm Desert after the build -out stage will be a positive impact of $809,164 per year. PUBLIC REVENUE The revenue which would flow to the City of Palm Desert as a result of this annexation is summarized in Schedule 1, and detailed in Schedules 1 A through 1 D. Only those revenues expected to be generated from the area proposed for annexation are included. Property tax revenue, detailed in Schedule 1A, is based on cumulative assessed value. An annual increase in valuation of 2.00% is included pursuant to the reassessment provisions of Proposition 13. In the interest of conservatism, any reassessments which may occur from subsequent sales of property are not included. The calculations of revenue factors utilize the City of Palm Desert Financial Plan for the Fiscal Year 1992/ 1993. - Page 6 - M PUBLIC COST The costs to the City of Palm Desert which would result from the proposed annexation are summarized in Schedule 2, and detailed in Schedules 2A and 2B. Only those costs directly attributable to the annexed area are included. The calculations of cost factors utilize the City of Palm Desert Financial Plan for the Fiscal Year 1992/1993. The cost of public improvements which were identified in the Feasibility Study for Project Area 4 (prepared July 1991) are not included in this analysis. It is expected that these improvements, totalling $32,509,038, will eventually be required in order to bring the annexed area up to City standards. Alternative funding mechanisms are being considered, although none have been implemented as of the date of this report. - Page 7 - - Page 8- *4400, *Aso, CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SUMMARY OF IMPACT ON CITY OF PALM DESERT REVENUE - SCHEDULE 1 I 1,917,994 1 2,237,361 1 2,317,317 1 2,395,222 1 2,476,539 1 11,344,432 1 COST - SCHEDULE 2 I 1,693,531 1 1,678,504 1 1,680,476 1 1,675,403 1 1,667,375 1 8,395,289 1 NETANNUALIMPACT 224463 558,857 636,840 719,819 809,164 2,949143, CUMULATIVE IMPACT. 224,463 783,320 1,420,160 2.139,979 2,949,143 - Page 9- m E5 CITY OF PALM DESERT ANNEXATION -PALM DESERT C.C. AREA SPECIAL FUND REVENUES - (30.21 GENERAL FUND RL.� REVENUE - (19.9%) TAX REVENUE - (12.0%) SUMMARY OF REVENUE TO CITY OF PALM DESERT - Page 10 - Nomool **me CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 1 - SUMMARY OF REVENUE TO CITY OF PALM DESERT PROPERTY TAX REVENUE - SCHEDULE 1A 415,823 438,814 453,948 468,817 483,789 2,261,191 SALES TAX REVENUE - SCHEDULE 1B 209,620 240,792 271,964 303,136 334,308 1,359,820 GENERAL FUND REVENUES - SCHEDULE 1C 741,978 862,282 880,639 898,181 917,208 4,300.288 SPECIAL FUND REVENUES - SCHEDULE iD 550,572 695,473 710,766 725,088 741,234 3,423,132 TOTAL REVENUE TO CITY OF PALM DESERT 1,917,994 2,237,361 2,317,317 2,395,222 2,476,539 11,344,432i -Page 11 - m cm CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 1 A - PROPERTY TAX REVENUE ASSESSED VALUE - RESIDENTIAL PROPERTY 546,950,400 565,587,200 584,224,000 602,715,200 621,352,000 ASSESSED VALUE - COMMERCIAL PROPERTY 16,495,833 17,742,706 18,989,578 20,236,450 21,483,323 TOTAL ASSESSED VALUE 563,446,233 583,329,906 603,213,578 622,951,650 642,835,323 REASSESSMENT 11,268,925 11,891,977 12,302,111 12,705,075 TOTAL CUMULATIVE ASSESSED VALUE 563,446,233 594,598,830 615,105,555 635,253,761 655,540,398 PORTION ALLOCATED TO CITY OF PALM DESERT 0.0738% 0.0738% 0.0738% 0.0738% 0.0738% NET PROPERTY TAX REVENUE TO CITY OF PALM DESERT 415,823 438,814 453,948 468,817 483,789 - Page 12 - Now *VAP* CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 1 B - SALES TAX REVENUE COMMERCIAL SQUARE FOOTAGE 194,618 225,789 256,961 288,133 319,305 PORTION PROJECTED AS RETAIL USE 75.00% 75.00% 75.00% 75.00% 75.00% CUMULATIVE SQUARE FOOTAGE OF RETAIL USE 194,618 225,790 256,962 288,134 319,306 AVERAGE ANNUAL TAXABLE SALES PER SQUARE FOOT $100.00 $100.00 $100.00 $100.00 $100.00 TAXABLE SALES 19,461,833 22,579,014 25,696,195 28,813,376 31,930,557 TAXABLE SALES -COUNTRY CLUBS 1,500,210 1,500,210 1,500,210 1,500,210 1,500,210 TOTAL TAXABLE SALES 20,962,043 24,079,224 27,196,405 30,313,586 33,430,767 SALES TAX RATE ALLOCATED TO CITY OF PALM DESERT 1.00% 1.00% 1.00% 1.00`Y 1.00% SALES TAX REVENUE TO CITY OF PALM DESERT 209,620 240,792 271,964 303,136 334,308 - Page 13 - CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 1 C - GENERAL FUND REVENUES GENERAL FUND REVENUES TO CITY OF PALM DESERT I: 1993 i 994 1995 1996 1997> BUSINESS LICENSE TAX 9,000 9,000 9,000 9,000 9,000 FRANCHISES 215,845 221,841 227,836 233,785 239,781 OTHER TAXES 74,870 76,950 79,030 81,093 83,173 STATE SUBVENTIONS 267,821 275,260 282,700 290,081 297,521 OTHER REVENUES 102,302 105,144 107,985 110,805 113,647 TRANSIENT OCCUPANCY TAX 72,140 72,140 72,140 72,140 72,140 LICENSE AND PERMITS 0 55,320 55,320 54,956 55,320 FEES FOR SERVICES 0 46,627 46,627 46,320 46,627 TOTAL GENERAL FUND REVENUES TO CITY OF PALM DESERT 741,978 862,282 880,639 898,181 917,208 - Page 14 - m E5 CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 1 D - SPECIAL FUND REVENUES TRAFFIC SAFETY/MEASURE A 232,139 238,587 245,036 251,434 257,882 GAS TAX 97,249 99,950 102,652 105,332 108,033 PROP A FIRE TAX 221,184 227,328 233,472 239,568 245,712 NEW CONSTRUCTION TAX 0 79,029 79,029 78,509 79,029 DRAINAGE FACILITY 0 50,578 50,578 50,246 50,578 TOTAL SPECIAL FUND REVENUES TO CITY OF PALM DESERT 550,572 695,473 710,766 725,088 741,234, - Page 15 - m m CITY OF PALM DESERT ANNEXATION -PALM DESERT C.C. AREA SPEC REV FUND EXPEND (26.' N FUND EXPEND (73.9%) SUMMARY OF EXPENDITURES BY CITY OF PALM DESERT - Page 16 - CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 2 - SUMMARY OF EXPENDITURES BY CITY OF PALM DESERT GENERAL FUND EXPENDITURES - SCHEDULE 2A 1,218,511 1,257,511 1,253,511 1,242,511 1,228,511 6,200,555 SPECIAL REV FUND EXPENDITURES - SCHEDULE2B 475,020 420,993 426,965 432,892 438,864 2,194,734 TOTAL EXPENDITURES BY CITY OF PALM DESERT 1,693,531 1,678,504 1,680.476 1,675,403, 1,667,375 81395,289' - Page 17 - Rm En CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 2A - GENERAL FUND EXPENDITURES GENERAL FUND EXPENDITURES BY CITY OF: PALM DESERT » 1993 1994 1995 1996 i 997:!. INSURANCE 110,000 110,000 120,000 120,000 120,000 LEGAULITIGATION 20,000 20,000 20,000 20,000 20,000 HAUTELINE (POSTAGE/PRINTING) 10,000 10,000 10,000 10,000 10,000 ELECTION (ELECTION YEARS ONLY) 14,000 14,000 BUILDING & SAFETY 25,000 25,000 ANIMAL CONTROL 20,000 20,000 20,000 20,000 20,000 GENERAL SERVICES - DUES 13,000 13,000 13,000 13,000 13,000 POLICE 625,511 625,511 625,511 625,511 625,511 PUBLIC WORKS 420,000 420,000 420,000 420,000 420,000 TOTAL GENERAL FUND EXPENDITURES BY CITY OF PALM DESERT 1,218,511 1,257,511 1,253,511 1,242,511 1,228,511 - Page 18 - I9 rm CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 213 - SPECIAL REVENUE FUND EXPENDITURES SPECIAL REV FUND:EXPENDITURESI BY CITY OF<PALM DESERT 1993 1994 1995 1996j.1997' TRAFFIC SAFETY/MEASURE A 112,099 115,213 118,327 121,416 124,530 GAS TAX 102,921 105,780 108,639 111,475 114,334 PROP A FIRE TAX 260,000 200,000 200,000 200,000 200,000 TOTAL SPEC REV FUND EXPEND BY CITY OF PALM DESERT 475,020 420,993' 426,965 432,892, 438 864 - Page 19 - IMPACT ON COUNTY OF RIVERSIDE The financial effect on the County of Riverside annexation is summarized in Schedule 3, and net annual impact is projected as follows: 1993 1994 1995 1996 1997 which would result from the proposed detailed in Schedules 3A and 3B. The $216,938 $263,621 $286, 734 $309,289 $331,915 The cumulative impact for the five year build -out period is calculated as a negative impact of $1,408,498. It is projected that following the build -out stage, the net annual impact to the County of Riverside will be a positive impact of $331,915 per year. PUBLIC REVENUE The revenue which would flow to the County of Riverside is presented in schedule 3A. Only specific revenue identified as revenue generated in the proposed annexation area is included. Property tax revenue is based on cumulative assessed value, which includes the annual reassessment of 2.00% allowed under Proposition 13, but does not include any revaluations which may occur from subsequent sales. Retail sales tax revenue is based on projected retail sales, as presented earlier in this report in Schedule 1 B. The revenue factor of 0.25% represents the County's share of sales tax collected. PUBLIC COST The public cost which the County will incur is based on the variable expenditures which would apply to the annexation area, as adopted from the County of Riverside Final Budget for the Fiscal Year 1991 /1992. This amount is divided by the population of Riverside County to arrive at the per capita factor of $105.01, which is then applied to the cumulative population projected for the proposed annexation area. - Page 20- w CITY OF PALM DESERT ANNEXATION - PALM DESERTAREA 0*1 • • • . - ANNUAL REVENUE F/71 ANNUAL \\\ COST - Page 21 - CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SUMMARY OF IMPACT ON COUNTY OF RIVERSIDE REVENUE - SCHEDULE 3A 1 1,299,875 1 1,376,640 1 1,429,835 1 1,482,236 1 1,534,943 1 7,123,529 1 PUBLIC COST- SCHEDULE 3B 1 1,082,937 1 1,113,019 1 1.143,100 1 1,172,947 1 1,203,028 1 5,715,031 1 NET ANNUAL IMPACT 216,938 263,621 286,734 309,289 331,915 1,408 498I' CUMULATIVE IMPACT 216.938 480,559 767,294 1,076,583 1,408,498 - Page 22 - CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 3A - REVENUE TO COUNTY OF RIVERSIDE PROPERTY TAX REVENUE CUMULATIVE ASSESSED VALUE PROPERTY TAX RATE ALLOCATED TO COUNTY TOTAL PROPERTY TAX REVENUE TO COUNTY OF RIVERSIDE 563,446,233 594,598,830 615,105,555 635,253,761 I 655,540,398 0.2214 0.2214 0.2214% 0.2214J 0.2214% 1,247,470 1 1,316,4421 1,361,8441 1,406,452 1 1,451,366 1 SALES TAX REVENUE RETAIL SALES IN ANNEXED AREA 20,962,043 24,079,224 27,196,405 30,313,586 33,430,767 SALES TAX RATE ALLOCATED TO COUNTY 0.25% 0.25 0.25% 0.25% 0.25% TOTAL SALES TAX REVENUE TO COUNTY OF RIVERSIDE 52,405 60,198 67,991 75,784 83,577 TOTAL REVENUE TO COUNTY OF RIVERSIDE 1,299,875 1,376,640 1,429,835 1,482,236 1,534,943 - Page 23 - `rl CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 36 - EXPENDITURES BY COUNTY OF RIVERSIDE CUMULATIVE A NEXEDAREA CATION NI 10,3131 10,5991 10,886 I 11,170 CAPITA COST FACTOR 1 105.01 1 105.01 1 105.01 1 105.01 11,4561 105.01 1 TOTAL EXPENDITURES BY COUNTY OF RIVERSIDE 1,082,937 1,113,019 1,143,100 1,172,947 1,203,028 - Page 24 - S il�yr \11i IMPACT ON OTHER AGENCIES The fiscal impact on other agencies which would be financially affected by the proposed annexation has been analyzed, and is presented in Schedule 4. Other agencies considered to be affected are the Structural Fire Protection Agency and the County Free Library Agency. STRUCTURAL FIRE PROTECTION AGENCY The net annual impact on the Structural Fire Protection Agency is projected as follows: 1993 $159, 791 1994 $173, 625 1995 $181, 006 1996 $188, 210 1997 $195,458 The cumulative impact for the five year build -out period is projected to be a total positive impact of $898,089. Thereafter, the annual impact to the Structural Fire Protection Agency is calculated to be a net positive impact of $195,458 per year. The revenue factor utilized is representative of the Tax Levy Factors in the annexation area, as explained earlier in this report. The per capita cost factor is derived from the County of Riverside Final Budget for 1991 /1992, and divided by Riverside County population. COUNTY FREE LIBRARY AGENCY The net annual impact on the County Free Library is projected as follows: 1993 $81,809 1994 $88,445 1995 $92,085 1996 $95,640 1997 $99, 218 The cumulative impact for the five year build -out period is projected to be a total - Page 25 - .\.MI IN;ow 14 ,. . I . mmm10 AL REVENUE ANNUAL COST - Page 27 - r CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA SCHEDULE 4 - IMPACT ON OTHER AGENCIES REVENUE, BASED ON ASSESSED VALUE FACTOR 341,501 360,382 372,811 385,023 397,318 1,857,035 COST, BASED ON PER CAPITA FACTOR 181,710 186,757 191,805 196,813 201,860 958,945 COUNTY FREE LIBRARY 1993 1994 1995 1996 1997 TOTAL REVENUE, BASED ON ASSESSED VALUE FACTOR COST, BASED ON PER CAPITA FACTOR 158,638 76,830 167,409 78,964 173,183 81,098 178,856 83,215 184,567 85,350 862,654 405,456 NET ANNUAL IMPACT TO COUNTY FREE LIBRARY 81,809 88,445 92,085 95,640 99,218 457,197 CUMULATIVE IMPACT 81,809 170,254 262,339 357,979 457,197 - Page 28- CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA BASE DATA RESIDENTIAL UNITS 1993 1994 1995 1996 1997 PALM DESERT RESORT 930 930 930 930 930 WHITEHAWK 288 324 360 396 432 SUN DUNES APARTMENTS 24 24 24 24 24 DESERT OASIS APARTMENTS 320 320 320 320 320 GOLDEN SUN ESTATES 200 200 200 200 200 ROYAL PALM APARTMENTS 100 100 100 100 100 WOODHAVEN COUNTRY CLUB 504 504 504 504 504 PALM DESERT APARTMENTS 386 386 386 386 386 PALM DESERT PALMS APARTMENTS 40 40 40 40 40 GOLDEN/ROYAL OAKS APARTMENTS 104 104 104 104 104 DESERT BREEZES 76 76 76 76 76 PALM DESERT COUNTRY CLUB 954 954 954 954 954 OASIS COUNTRY CLUB 682 774 866 957 1,049 TOTAL RESIDENTIAL UNITS 4,608 4,736 4,864 4,991 5,119 - Page 29- CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA BASE DATA CUMULATIVE POPULATION 1993 1094..1995 1936 1997 PALM DESERT RESORT 2,081 2,081 2,081 2,081 2,081 WHITEHAWK 645 725 806 886 967 SUN DUNES APARTMENTS 54 54 54 54 54 DESERT OASIS APARTMENTS 716 716 716 716 716 GOLDEN SUN ESTATES 448 448 448 448 448 ROYAL PALM APARTMENTS 224 224 224 224 224 WOODHAVEN COUNTRY CLUB 1,128 1,128 1,128 1,128 1,128 PALM DESERT APARTMENTS 864 864 864 864 864 PALM DESERT PALMS APARTMENTS 90 90 90 90 90 GOLDEN/ROYAL OAKS APARTMENTS 233 233 233 233 233 DESERT BREEZES 170 170 170 170 170 PALM DESERT COUNTRY CLUB 2,135 2,135 2,135 2,135 2,135 OASIS COUNTRY CLUB 1,526 1,132 1,938 2,142 2,348 TOTAL CUMULATIVE POPULATION 10,313 10,599 10,886 11,170 11,456 - Page 30 - CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA BASE DATA PALM DESERT RESORT WHITEHAWK SUN DUNES APARTMENTS DESERT OASIS APARTMENTS GOLDEN SUN ESTATES ROYAL PALM APARTMENTS WOODHAVEN COUNTRY CLUB PALM DESERT APARTMENTS PALM DESERT PALMS APARTMENTS GOLDEN/ROYAL OAKS APARTMENT DESERT BREEZES PALM DESERT COUNTRY CLUB OASIS COUNTRY CLUB TOTAL RESIDENTIAL SQUARE FOOTAGE 1,209, 000 1,209, 000 1,209,000 1,209, 000 1,209, 000 374,400 421,200 468,000 514,800 561,600 24,000 24,000 24,000 24,000 24,000 320,000 320,000 320,000 320,000 320,000 200,000 200,000 200,000 200,000 200,000 100,000 100,000 100,000 100,000 100,000 655,200 655,200 655,200 655,200 655,200 386,000 386,000 386,000 386,000 386,000 40,000 40,000 40,000 40,000 40,000 104,000 104,000 104,000 104,000 104,000 98,800 98,800 98,800 98,800 98,800 1,240, 200 1,240,200 1,240,200 1,240,200 1,240,200 886,600 1,006,200 1,125, 800 1,244,100 1,363,700 5,638,200 1 5,804,600 1 5,971,000 1 6,136,100 1 6,302,500 SQUARE FOOTAGE OF NEW CONSTRUCTION 1993 1994 1995 1996 1997 WHITEHAWK OASIS COUNTRY CLUB 0 0 46,800 119,600 46,800 119,600 46,800 118,300 46,800 119,600 NEW RESIDENTIAL SQUARE FOOTA 0 166,400 166,400 165,100 166,400 NEW COMMERCIAL SQUARE FOOTA 0 31,172 31,172 31,172 31,172 TOTAL SQUARE FOOTAGE OF NEW CONSTRUCTION 0 197,572 197,572 196,272 197,572 - Page 31 - 1 i1 f iu_..r4 CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA BASE DATA ASSESSED VALUE.:: RESIDENTIAL PROPERTY 1993 1994. :1995J.1996 1997 PALM DESERT RESORT 135,408,000 135,408,000 135,408,000 135,408,000 135,408,000 WHITEHAWK 41,932,800 47,174,400 52,416,000 57,657,600 62,899,200 SUN DUNES APARTMENTS 960,000 960,000 960,000 960,000 960,000 DESERT OASIS APARTMENTS 12,800,000 12,800,000 12,800,000 12,800,000 12,800,000 GOLDEN SUN ESTATES 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 ROYAL PALM APARTMENTS 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 WOODHAVEN COUNTRY CLUB 73,382,400 73,382,400 73,382,400 73,382,400 73,382,400 PALM DESERT APARTMENTS 15,440,000 15,440,000 15,440,000 15,440,000 15,440,000 PALM DESERT PALMS APARTMENTS 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 GOLDEN/ROYAL OAKS APARTMENTS 4,160,000 4,160,000 4,160,000 4,160,000 4,160,000 DESERT BREEZES 11,065,600 11,065,600 11,065,600 11,065,600 11,065,600 PALM DESERT COUNTRY CLUB 138,902,400 138,902,400 138,902,400 138,902,400 138,902,400 OASIS COUNTRY CLUB 99,299,200 112,694,400 126,089,600 139,339,200 152,734,400 TOTAL ASSESSED VALUE - RESIDENTIAL PROPERTY 546,950,400 565,587,200 584,224,000 602,715,200 621,352,000 - Page 32 - CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA BASE DATA ASSESSED VALUE - COMMERCIAI PROPERTY 1993' 1994'' t995 I i996 :I 1997' LAND PARCELS 4 AND 17 420,354 420,354 420,354 420,354 420,354 PARCEL 9 765,349 765,349 765,349 765,349 765,349 PARCEL 12 196,020 196,020 196,020 196,020 196,020 PARCEL 13 70,132 70,132 70,132 70,132 70,132 TOTAL LAND (IN SQUARE FEET) 1,451,855 1,451,855 1,451,855 1,451,855 1,451,855 AVERAGE VALUATION RATE $6.00 $6.00 $6.00 $6.00 $6.00 TOTAL LAND VALUE 8,711,130 8,711,130 8,711,130 8,711,130 8,711,130 STRUCTURES PARCELS 4 AND 17 13,000 33,824 54,648 75,471 96,295 PARCEL 9 168,377 168,377 168,377 168,377 168,377 PARCEL 12 7,841 15,682 23,522 31,363 39,204 PARCEL 13 5,400 7,907 10,415 12,922 15,429 TOTAL STRUC (IN SQUARE FEET) 194,618 225,789 256,961 288,133 319,305 AVERAGE VALUATION RATE $40.00 $40.00 $40.00 $40.00 $40.00 TOTALSTRUCTUREVALUE 7,784,703 9,031,576 10,278,448 11,525,320 12,772,193 TOTAL ASSESSED VALUE - COMMERCIAL PROPERTY 16,495,833 17,742,706 18,989,578 20,236,450 21,483,323 COST OF NEW CONSTRUCTION 1993 1994 1995 1996 1997 COMMERCIAL PROPERTY RESIDENTIAL PROPERTY 0 0 1,246,872 6,656,000 1,246,872 6,656,000 1,246,872 6,604,000 1,246,872 6,656,000 TOTAL COST OF NEW CONSTRUCTIO 0 7,902,872 7,902,872 7,850,872 7,902,872 - Page 33 - CITY OF PALM DESERT PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA ASSUMPTIONS GENERAL ASSUMPTIONS POPULATION PER HOUSEHOLD. Average population per household of 2.238 is utilized, per the California Department of Finance estimate as of January 1, 1992; report printed April 29, 1992. POPULATION FOR CITY OF PALM DESERT. Palm Desert population of 24,817 is estimated by the California Department of Finance as of January 1, 1992. Population of 3,466 is added for area north of Country Club annexed to the City after January 1, 1992, for total population of 28,283. This amount is adjusted for a seasonal influx of 17,000 for an average of six months per year, resulting in a seasonally adjusted population of 36,783. SIZE OF DWELLING UNITS. Average sizes of dwelling units is assumed as follows: Apartments 1,000 square feet All others 1,300 square feet SCHEDULE 1A - PROPERTY TAX REVENUE ASSESSED VALUE - RESIDENTIAL PROPERTY. Average assessed values assumed for residential properties are as follow: Apartments $40.00 per square foot All others $112.00 per square foot ASSESSED VALUE - COMMERCIAL PROPERTY. Average assessed value of $40.00 per square foot is utilized for commercial property. COVERAGE. Coverage of 22.00% is utilized for commercially zoned properties, and 20.00% for properties zoned residential. REASSESSMENT. Reassessments are calculated as 2.00% of cumulative assessed value in the prior year. TAX LEVY FACTOR. The average tax levy factor calculated in the Feasibility Study for Project Area 4 dated July, 1991 is utilized in this report. The Feasibility Study computed a weighted average of 37 Tax Rate Areas contained in the annexed area. - Page 34 - PROPERTY TAX REVENUE -SHARING. By agreement between the County of Riverside and the City of Palm Desert, the City is expected to receive 25.00% of the County's property tax revenue generated in the annexed area. Using the Tax Levy Factor explained above, this computes to be a factor of 0.0738% for the City of Palm Desert. SCHEDULE 1 B - SALES TAX REVENUE RETAIL USE. It is projected that retail use accounts for 75.00% of commercial developments in the annexed area. TAXABLE SALES. Annual taxable sales per square foot were calculated by using historical data, as well as assumptions regarding projected users of future developments in the annexed area. TAXABLE SALES - COUNTRY CLUBS. Taxable sales for the country clubs in the annexed area were provided by some clubs, and extrapolated for others. SCHEDULE 1C - GENERAL FUND REVENUES BUSINESS LICENSE TAX. The annexed area contains approximately 100 businesses, which incur an annual business license tax of $90.00 each. REVENUE FACTORS. The following factors were applied to cumulative population in order to calculate the projected revenues: Franchises $20.93 Other Taxes $7.26 State Subventions $25.97 Other Revenues $9.92 The per capita factors were calculated by dividing the projected revenues, per the City of Palm Desert 1992/1993 Financial Plan, by the seasonally adjusted population of the City of Palm Desert. TRANSIENT OCCUPANCY TAX. Rents subject to the Transient Occupancy Tax is provided by some owners and extrapolated for others. A rate of 9.00% is applied to taxable rents. LICENSE & PERMITS. License and Permit revenue of $7.00 per $1,000 of new construction is applied to projected construction in the annexed area. FEES FOR SERVICES. Fees for Services revenue of $5.90 per $1,000 of new construction is applied to projected construction in the annexed area. - Page 35 - ,Or SCHEDULE 1 D - SPECIAL FUND REVENUES TRAFFIC SAFETY/MEASURE A. Revenue projected by the City in its 1992/1993 budget is divided by seasonally adjusted population to arrive at a revenue factor of $22.51 per capita, which is then applied to cumulative population for the annexed area. GAS TAX. Revenue projected by the City in its 1992/1993 budget is divided by seasonally adjusted population to arrive at a revenue factor of $9.43 per capita, which is then applied to cumulative population for the annexed area. PROP A FIRE TAX. The revenue factor of $48.00 per dwelling is applied to cumulative dwelling units in the annexed area. NEW CONSTRUCTION TAX. The revenue factor of $0.40 per square foot was applied to new construction only. DRAINAGE FACILITY FEE. The revenue factor of $6.40 per $1,000 of new construction was applied to new construction only. SCHEDULE 2A - GENERAL FUND EXPENDITURES EXPENDITURES. Only those incremental costs specifically identified as resulting in the proposed annexation area have been included. All relevant department heads were interviewed, and have provided their estimates of identifiable costs which would be incurred for the proposed annexation area in the event of annexation. PUBLIC IMPROVEMENTS. No public improvements have been included in this analysis. It is anticipated that other funding mechanisms will be utilized to bear the cost of such improvements. SCHEDULE 2B - SPECIAL REVENUE FUND EXPENDITURES EXPENDITURES. Traffic Safety/Measure A and Gas Tax expenditures were adopted from the City's 1992/1993 budget, converted to a per capita factor, and applied to the cumulative population in the annexed area. Prop A Fire Tax expenditures were estimated by appropriate department heads as those specific incremental costs which would be incurred for the annexation area in the event of annexation. FACTORS. Per capita factors were calculated by dividing projected expenditures by - Page 36 - N = pp ~ WO A ((DD C O n CD N " (D 0 C ca w 0 (D N Q w N (D O W W lfl A (D O oCD u 1 Cc Zo o N N C W C) 3 I s \ N (A f GO] � N 0 cn — (D N 7 ? CD I O 3 OQ Z CD (D (DD X X Ai J• TTy a y CD Q N (T su J a J• ram► 91) -P 3 CY) o (31 c N CS1 O v D Z.V 0 C v op o 2, m v 5 D z $ v O o c $ v o p m n v c (D v sn m -o 0 —1 (D (N N O J• < 0 (D 0 (n (D 5 W < J. J. J �} J (D (n D D O O O O � c+ C+ W •• •• (D I Q 9v I -P 0 Q1 FJ W C CT1 Cn I--' O fD to —I N (/1 OuiCn O (D X fu 17+ Ul O 0 O c+ 1< () C+ c ('Q -n O v CD W 9 T c (n �n z m o0 pi O O v 'S i C-+ �Ln O (D no < D � � (D N 7c V O n G� Ln J• S 0 -P Fti (n O C� C+ W O Ln CC G M C� q O M c m r-It2m '1y k ROS FN OW PE,%'ACE K GROUP INC. March 7, 1996 Mr. Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION FEBRUARY INVOICE Dear Mr. Drell: RECEIvro MAR 11 1996 CNRUNmDEMa'MENT OAYOFPAW DES E�KPAft Pursuant to our agreement for professional services, the following represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study $ 481.25 AMOUNT DUE $ 481.25 Sincerely, ROSENOW SPEVACEK GROUP, INC. Felise Acosta Principal Fkab Enclosures 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 I ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0004260-IN DATE: 02/29/96 CITY OF PALM DESERT CLIENT CODE: PD MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WARING DRIVE PAGE NO.: 1 PALM DESERT, CA 92260 ---•------- STAFF HOURS RATE AMOUNT FOR PROFESSIONAL SERVICES RENDERED: -------------------------------------------------------- ______•___________ ______________ ----•----- BERMUDA DUNES Contract # C10310 DTM 1.00 100.000 100.00 02/12/96 COORDINATION OTM .50 100.000 50.00 02/13/96 COORDINATION DTM .50 100.000 50.00 02/15/96 COORDINATION DTM 1.00 100.000 100.00 02/28/96 FINALIZE DOCUMENTS MP 1.25 65.000 81.25 02/28/96 REVISE REVENUE/EXPENDITURE FORECAST DTM 1.00 100.000 100.00 02/29/96 FINALIZE DOCUMENTS TOTAL FEES: 481.25 TOTAL AMOUNT: 481.25 PAYMENT DUE UPON RECEIPT _ ---- ------------------------- ------ ----- ------------------- OVER 60 =s---s----------------------------- ------------ OVER 90 OVER 120 BALANCE CURRENT OVER 30 2139.50 2139.50 It CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT MEMORANDUM TO: File DATE: March 22, 1996 SUBJECT: Bermuda Dunes Annexation Feasibility Study Contract amount not to exceed $15,000. Schedule of Payments: 11/14/95 $ 5,303.75 2,281.25 12/11/95 3,055.00 1/02/96 2,236.25 1/18/96 1,658.25 2/20/96 3/22/96 $481.25 - $15.75 = 465.50 $15,000.00 0 6 O -a 0 A V C)Z CD w a r z A c ~ 2 Q N N w I O O �o 's C Q. 0 C rD Ln n cD x -n cD a N N c J. c 0- CL J. 6'3 a� Ln co fi zo o� S 0 .w. a 00 0 z 5 D (a 0 a(D � 2 $ Vj .�► N G 0 0 N C 11 A C O N � A CL w a O C 0 N N w, 0 3M" � N (D m � ° CD CD 0a m 3 z 0 0 0 v •< CD fl V :3 0 0 m (D fl Al (D CL < ° su CL 0 D m 3 0 c v CD 0O o0° o , v � o � D $ z o O o_ c $ v o p m :1) cn 0 00 v c "' cn CD v w 0 0 -h (D V) Ln 0 A, N fD l� fD N -h 0 -s CD a a 0 C 0 fN D (D clt a o� cD 01 N J. o- C'J N ct C T 0 v CD 0 CD T c D O C z m CD a w w *0 CD a N CD O to �o NLn7 Wiz= m m nI m _0 G-) (D D� � Q 0 t0 (D (D v O n O S 0 w f) C kD -�-0 t-+ lD (N 0 C J. ct w O Ul 0 O M c m � RoSENOW SPEVACEK GROUP INC. RECEIVED F E B 16 1996 COMMUNITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT February 12, 1996 Mr. Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION JANUARY INVOICE Dear Mr. Drell: Pursuant to our agreement for professional services, the following represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study $ 1,658.25 AMOUNT DUE $ 1,658.25 Sincerely, ROSENOW SPEVACEK GROUP, INC. J��- Felise Acosta Principal FA:ab Enclosures 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 wtir ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0004182-IN DATE: 01/31/96 CITY OF PALM DESERT CLIENT CODE: PD MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WARING DRIVE 1 PALM DESERT, CA 92260 PAGE NO.: ------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT ----------------------------------------------------------------------------- BERMUDA DUNES Contract # C10310 01/02/96 DRAFT FEASIBILITY REPORT BR 2.00 35.000 70.00 DTM .50 125.000 62.50 01/02/96 COORDINATION 01/03/96 DRAFT FEASIBILITY REPORT BR 1.00 35.000 35.00 01/03/96 DRAFT DOCUMENTS DTM 2.00 125.000 250.00 01/03/96 DRAFT REVISIONS TO STUDY MP 6.00 65.000 390.00 01/04/96 FINALIZE DOCUMENTS DTM 3.00 125.000 375.00 MP 1.50 65.000 97.50 01/04/96 DRAFT STUDY MP 2.00 65.000 130.00 01/04/96 GRAPHICS - EXHIBITS 01/05/96 FINALIZE DOCUMENTS DTM .50 125.000 62.50 MP 1.75 65.000 113.75 01/05/96 DRAFT DOCUMENTS DTM .50 125.000 62.50 01/16/96 COORDINATION ------------ TOTAL FEES: 1648.75 9.50 01/04/96 MAILING SERVICES - UPS 08414149089 TOTAL EXPENSES: 9.50 ------------ TOTAL AMOUNT: 1658.25 PAYMENT DUE UPON RECEIPT ---------------- ----------------- CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 1658.25 2236.25 2281.25 3055.00 23.25 9254.00 41 Rost:NOW SPEVACEK GROUP INC.RECEIVED FE B 16 1996 COMMUNITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT February 12, 1996 Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION JANUARY INVOICE Dear Mr. Drell: Pursuant to our agreement for professional services, the following represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study $ 1,658.25 AMOUNT DUE $ 1,658.25 Sincerely, ROSENOW SPEVACEK GROUP, INC. Felise Acosta Principal Fk ab Enclosures 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 ROSENOY SPEVACEK GROUP INC. ` 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0004182-IN CITY OF PALM DESERT DATE: 01/31/96 MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED PARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 1 --------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT ------------------------------------------------------------------------------------------------------------------- BERMUDA DUNES Contract # C10310 01/02/96 DRAFT FEASIBILITY REPORT BR 2.00 35.000 70.00 01/02/96 COORDINATION DTM .50 125.000 62.50 01/03/96 DRAFT FEASIBILITY REPORT BR 1.00 35.000 35.00 01/03/96 DRAFT DOCUMENTS DTM 2.00 125.000 250.00 01/03/96 DRAFT REVISIONS TO STUDY MP 6.00 65.000 390.00 01/04/96 FINALIZE DOCUMENTS DTM 3.00 125.000 375.00 01/04/96 DRAFT STUDY MP 1.50 65.000 97.50 01/04/96 GRAPHICS - EXHIBITS MP 2.00 65.000 130.00 01/05/96 FINALIZE DOCUMENTS DTM .50 125.000 62.50 01/05/96 DRAFT DOCUMENTS MP 1.75 65.000 113.75 01/16/96 COORDINATION DTM .50 125.000 62.50 TOTAL FEES: ------------ 1648.75 01/04/96 MAILING SERVICES - UPS 08414149089 9.50 ------------ TOTAL EXPENSES: 9.50 ------------ TOTAL AMOUNT: 1658.25 PAYMENT DUE UPON RECEIPT ---------------------------------------------------------------------------------- CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 1658.25 2236.25 2281.25 3055.00 23.25 9254.00 r tn� CD o 0 v 3 :M CD n D (D i^' ? O A ,. Q -► O Q o 7 CDw CD N c . • a -� (D Z to -0 :, 0 2 3 W (D J N •7 Q N0. fA O N O (DC c CD O CD 0 CD J. CD O N 0 CD � N C O Zo Q. CD ¢1 CL .. "` W (D � O � (D C �1 (DD p C) V1 CL I co N (D rn w ? `� Y o` t t r (D ? (D •...i 4 4.t` � - dl ' In O a CD °' c� A_ X O Z N C+ Cf f/ III// (D CD _0 `< O O A= c j (D N m O O (D 'n (D W N LA(D CLQ. �. ��:e `G J. 0. FL J. < O I. C IL .� CD�Z. :a W t D N 3 N O W j N Ul O CD Z. ° ° o r- 0 0 � m v rl z $ v o o c $ v _ N P O O N C m W v N C (n (D iTt]-n (D a v `• o O 00 � � ¢I S (N M y0o CL C� lfl (D (D N O 77 o(-)m LTI J• 1 -S O W n C ko - -0 F-+ (D v C C) C+ (D W 0 Ul O O N 7E (3D V1 0 0 C A m W 0 CL m n z, A , "-- J � ICI�I% ROSENOW 'S PEVACEK GROUP INC. JAN 17 1996 COMMINIM DEVELOPMENT DEPARTMENT CITY OF PALM DESERT January 9, 1996 Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION DECEMBER INVOICE Dear Mr. Drell: Pursuant to our agreement for professional services, the following represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study AMOUNT DUE Sincerely, ROSENOW SPEVACEK GROUP, INC. Felise Acosta Principal FA:ab Enclosures $ 29236.25 $ 2,236.25 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 `.+ ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 CITY OF PALM DESERT MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WRING DRIVE PALM DESERT, CA 92260 cm INVOICE NO.: OD04078-IN DATE: 12/31/95 CLIENT CODE: PD PAGE NO.: 1 ---------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT ------------------------------------------------------------------------ BERMUDA DUNES Contract * C10310 MP 2.00 65.000 130.00 12/01/95 RESEARCH DTM 2.00 125.000 250.00 12/05/95 TEAM COORDINATION MP 1.50 65.000 97.50 12/05/95 RESEARCH MP 2.00 65.000 130.00 12/07/95 RESEARCH FEES 12/11/95 RESEARCH/INFORMATION REQUEST MP 2.00 65.000 130.00 MP 2.00 65.000 130.00 12/12/95 RESEARCH 12/12/95 PHONE CALLS WITH P. GIBSON,K.WELLER, S.B.E.-MARK MP 2.00 65.000 130.00 MINOR 12/13/95 RESEARCH - TRANSFER DATES 12/14/95 PHONE CALLS WITH THEOBALD,FIRE CHIEF,POICE CAPTAIN 12/15/95 DATA ANALYSIS 12/15/95 RESEARCH 12/18/95 RESEARCH 12/19/95 TEAM COORDINATION 12/19/95 DRAFT DOCUMENTS 12/21/95 RESEARCH MP 2.00 65.000 130.00 11P 1.00 65.000 65.00 DTM 1.00 125.000 125.00 MP 1.00 65.000 65.00 MP 2.50 65.000 162.50 DTM 1.50 125.000 187.50 MP .25 65.000 16.25 MP 4.00 65.000 260.00 ROSENOY SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 , SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0004078-IN DATE: 12/31/95 CITY OF PALM DESERT MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED WRING DRIVE PALM DESERT, CA 92260 PAGE NO.: 2 -------- ----------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF NOURS RATE AMOUNT -------- ----------------------------------------------------------------------------------------------------------------------- 12/22/95 DRAFT DOCUMENTS HP 3.50 65.000 227.50 ------------ TOTAL FEES: 2236.25 ------------ TOTAL AMOUNT: 2236.25 PAYMENT DUE UPON RECEIPT ------- ------ sssxxssaxxsxssxsxsxxsxxxxxsxxsxxsxxs_-x�xxxxsxxsxx� CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 2236.25 2281.25 3055.00 23.25 7595.75 RECEIVED ROSENOW PEVACEK GROUP INC. JAN 17 1996 COMMINITY7D VELOPMENT DEPARTI�NT January 9, 1996 Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERAVIUDA DUNES ANNEXATION DECEMBER INVOICE Dear Mr. Drell: Pursuant to our agreement for professional services, the following represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study AMOUNT DUE Sincerely, ROSENOW SPEVACEK GROUP, INC. Felise Acosta Principal FA:ab Enclosures $ 2,236.25 $ 2,236.25 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 ,*Moe ROSENOW SPEVACEK GROUP INC. -Iw 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0004078-IN CITY OF PALM DESERT DATE: 12/31/95 MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED WARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 1 -------------------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT -------------------------------------------------------------------------------------------------------------------------------- BERMUDA DUNES Contract # C10310 12/01/95 RESEARCH MP 2.00 65.000 130.00 12/05/95 TEAM COORDINATION DTM 2.00 125.000 250.00 12/05/95 RESEARCH MP 1.50 65.000 97.50 12/07/95 RESEARCH FEES MP 2.00 65.000 130.00 12/11/95 RESEARCH/INFORMATION REQUEST MP 2.00 65.000 130.00 12/12/95 RESEARCH MP 2.00 65.000 130.00 12/12/95 PHONE CALLS WITH P. GIBSON,K.WELLER, S.B.E.-MARK MP 2.00 65.000 130.00 MINOR 12/13/95 RESEARCH - TRANSFER DATES MP 2.00 65.000 130.00 12/14/95 PHONE CALLS WITH THEOBALD,FIRE CHIEF,POICE MP 1.00 65.000 65.00 CAPTAIN 12/15/95 DATA ANALYSIS DTM 1.00 125.000 125.00 12/15/95 RESEARCH MP 1.00 65.000 65.00 12/18/95 RESEARCH MP 2.50 65.000 162.50 12/19/95 TEAM COORDINATION DTM 1.50 125.000 187.50 12/19/95 DRAFT DOCUMENTS MP .25 65.000 16.25 12/21/95 RESEARCH MP 4.00 65.000 260.00 ROSENOY SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 *law SANTA ANA, CA 92705 (714) 541-4585 CITY OF PALM DESERT MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WRING DRIVE PALM DESERT, CA 92260 INVOICE NO.: 0004078-IN DATE: 12/31/95 CLIENT CODE: PD PAGE NO.: 2 -------------------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT -------------------------------------------------------------------------------------------------------------------------------- 12/22/95 DRAFT DOCUMENTS MP 3.50 65.000 227.50 ------------ TOTAL FEES: 2236.25 ------------ TOTAL AMOUNT: 2236.25 PAYMENT DUE UPON RECEIPT -------- ---------------------- ------------- CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 2236.25 2281.25 3055.00 23.25 7595.75 Rosenow Spevacek Group, Inc. 540 Forth Golden Circle, Suite 305 Santa. Aria, California 92705 ._l A N - 5 199E Fax Cover Sheet COMMUdlICI DEVELOPMENT DE DEPARTMENT CITY OF PALM DESERT CON,ffDEVM rNN0"CE The information contained in this besialk mCAWC is priWesed and ronfldenNal informadon lnten" only for the use of the indirldual or entity named below. If the resider of this me&We is not the intended rr cipkat, you = hemo notified that my dissemination, distribution or cofy*W of this Conlnlulti Mod is strictly arohlbited. If You have ime wd this cominssid4otion in etxar, phase b=Cdlrtely rrotlty us by DATE: January 5,1998 TO: Phil Drell City of Palm Desert FROM: Melecio Picazo RSG TIME: 4:62 PM PHONE: 819134E-0611 FAX 618i841-7098 PHONE: 7141541-4585 FAX: 7141836.1748 RE: REVISIONS TO REVENUEIEXPENDITURE FORECAST EXHIBIT 1 ANNEXATION OF BERMUDA DUNES Number of pages including cover shoot: 2 Message For your review, here is the revised draft to Page 1 of 2 concerning the revenue/expenditure forecast exhibit I regarding the Bermuda Dunes Fiscal Feasibility Report. General administrative expenditures under the Cenerai Fund eommetieing with Fiscal Year 1990-97 were incorrectly shown - Should you have any questions or require further information, please give me a call. Zn' ,� c�Tn' oN! vo: 8T 96 s So NUE 8VZI-918-VIA : QI 3NI ASSd G7. ..i M k V•� 4�'S i�i rYlwl ~w w I �'1 ry g I g � ►"� l"7 Irk r5 GQ1� ►" !"f W �F Zrl } NI �r,• crn'OM tn:RT g6lgo Nuf BV�I-K8-VTf:(H M on CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT MEMORANDUM TO: City Manager and All Department Heads FROM: Phil Drell, Acting Director DATE: January 5, 1996 SUBJECT: Bermuda Dunes Annexation Fiscal Feasibility Report Attached is the Draft Bermuda Dunes Annexation Fiscal Feasibility Report prepared by Rosenow Spevacek Group, Inc. Please review the report for discussion at the Tuesday, January 16 Executive Management meeting. Please submit written comments to me as soon as possible. PHILIP DRELL, ACTING DIRECTOR COMMUNITY DEVELOPMENT AND PLANNING /tm cc: Carlos Ortega Paul Shillcock �j J i u i • � i � � Z%� Ae1 .� � ' I BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT January 5, 1996 Prepared for: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 (619) 340-5776 Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541-4585 i cm 1. BACKGROUND BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPORT The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to meet certain applicable requirements of the Cortese-f nox Local the BermudaGovernment Dunes commuReorganization Priortif to and when the City desires to pursue annexation o determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the Bermuda Dunes community. This Report will focus of thoseservices, City andwhat could services will be provided the Bermuda Dunes area, the forecasted co reasonably be expected to be available to fund those services. This Report will focus on a compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal year 1998-99 using a range of potential fiscal impacts. It should be understood that there will usually be differences between the forecasts and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. The Bermuda Dunes area 1995 population is estimated at 6,266. The subject area is comprised of approximately 10.7 square miles of territory. At the present time, the number of structures or dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a 27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Dunes is located in the central region of Riverside County. The boundaries of the Bermuda Dunes community is generally the area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the east boundary Indio city limits, Fred Waring Drive and the La Quinta t Mos'tsto of thearea hins still of ath, anarural ng Washington Street up to the Interstate 10 Freeway to he wes t.nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential and rugged terrain (refer to Exhibit 4). The major public agencies currently providing services in the Bermuda Dunes community are the County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District. The County of Riverside is currently responsible for policymaking and administration, law enforcement, animal control, planning and land use regulation, building inspection, flood control, and the maintenance and improvement of roads. Street lighting services within the Bermuda Dunes area are currently provided through County Service Area No. 121. The landscaped median located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon annexation, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 1 Fiscal Feasibility Report January 5, 1996 cm E5 Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the services is currently in place. Sewer service is currently, and will continue to be, provided by Septic Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive, Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection e County services to the Bermuda Dunes community. nd rservice � aefire station, three --mile radius. The he County re of Station No. 31, is located at 42nd Avenue a Riverside is currently responsible for providing police services within the Bermuda Dunes area. The law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio substations. Upon annexation, no change in fire or police protection services are anticipated because police and fire protection services are provided by the same Riverside County organization. The roads within the Bermuda Dunes area are currently maintained by the County of Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing roads. Many of the General Fund and Road Fund revenues and expenditures were either calculated on a per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a case study methodology. 11. REVENUES A. GENERAL FUND The primary sources of General Fund revenues are noted below and shown on Exhibit 1: 1. m: a. Property and Parcel Taxes: The City's property tax revenue is based on the historical property tax ratio of 250/,/75% between the City and the County respectively as set forth in Resolution No. 81-133 adopted September 24, 1981. Upon annexation, the City would receive approximately 25% of the total General Fund property tax revenue and the County would retain the remaining 75% of General Fund property tax revenue. In addition, the City would also assume service responsibilities of County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the community of Bermuda Dunes and be disosolved.funding One hund ed perlighting. 100%j of annexation, CSA No. 121 would this special district's levies would be transferred to the City (refer to Exhibit 2). Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 2 Fiscal Feasibility Report January S, 1996 a b. Property Transfer Taxes: The amount of Property Transfer Tax received will depend upon the level of resale activity within Bermuda Dunes. These revenues have been estimated using an average of previous three (3) year property transfer activity within Bermuda Dunes at the rate of .55C per $1,000 of assessed values. C. Homeowners Property Tax Relief Revenue estimates generated from the Homeowner's Property Tax Relief were not specifically projected because this analysis bases the Property Tax Apportionment on assessed valuation gross of the Homeowners Exemption. Therefore, revenue from the Homeowner's Property Tax Relief is included in the Property Tax Apportionment. d. Sales Taxes: Upon annexation, the City will be eligible to receive a percentage of the sales tax charged on qualifying retail sales from businesses within Bermuda Dunes. The State Board of Equalization estimated that the commercial areas within Bermuda Dunes are generating approximately $11n, hese0'n sales tax revenues annually. sales tax revenues for Bermuda RSG has assumed a modest 3% increase o Dunes (refer to Exhibit 3). e. Transient Occupancy Taxes: Upon annexation, the City will receive the Transient Occupancy Tax. The City's Transient Occupancy Tax rate is 9%rithBermuda in the BerDunes muda Dune Country Club, establishment, the New Inn located which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax based on an occupancy factor and average room rate. .� u. . 151 ra =r Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These taxes are collected by the State's Department of Motor Vehicles and allocated to cities on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a per capita basis. Both subventions are based on 6,266 which is the estimated population for Bermuda Dunes. The per capita figures used in the revenue summary have been provided by the State Controller's office for the 1995-96 fiscal year. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 3 Fiscal Feasibility Report January S, 1996 en 3 4 Franchise Fees Upon annexation, the City will receive the franchise fees currently paid to the County by Continental Cable Television, the Southern California Gas Company, Waste Management, and Western Waste. These fees have been estimated on a per capita basis using budget figures from the City of Palm Desert. The fees described below are not included in Exhibit 1 because these fees specially offset costs of development related services, only the "net" cost of these services are indicated under "Expenditures". a. Land Use Planning and Regulation Fees: The City is authorized to charge fees for all land use planning and regulation services. The City would utilize the City's existing fee schedule. These fees should off -set most of the City's cost in providing these services. b. Building Inspection and Permit Fees: The fees collected for these building and permit inspection services should, in most cases, totally offset the cost of these services. C. Engineering Fees: The City is also authorized to charge fees for plan checking, public works inspection, permit issuance and review and other engineering services. The fees collected for these services should, in most cases, offset the cost of these services. d. Development Fees: Under the provisions of State law, the City may collect development fees for the purpose of construction or improving capital facilities. Fees received must be segregated from the General Fund in order to avoid commingling. Certain fees must be spent or committed within five years from the time they are collected. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report January 5, 1996 4 5.A, Other Revenues a. Fines and Forfeitures: This represents both Motor Vehicle Code fines, Municipal Code fines, and other miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from Bermuda Dunes were estimated on a per capita basis using current budget data from the City of Palm Desert. b. Business License Tax: Upon annexation, the City will be eligible to impose the City's current Business License Tax. The Business License fee for the City of Palm Desert is calculated based upon gross sales. Based on discussions with City staff, RSG has estimated the amount of Business License Tax using an average Business License fee for the local sales tax generators identified within the Bermuda Dunes annexation area (refer to Exhibit 3). C. Proposition A Fire Tax: The Proposition A Fire Tax is calculated using a per parcel cost. This figure is estimated using an estimated 700 apartments and 300 condominiums at a per parcel cost of $36 per unit, and an estimated 1,200 single family residential units at $48 per unit. d. County RDA. - Currently there exists along Washington Street and 42nd Avenue a County redevelopment project area. A small portion of the County Redevelopment Project Area is located within the City of Palm Desert, and the remaining portion exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This County Redevelopment Project Area consists of commercial and multifamily residential use and is located along Washington Street between Mountain View to the south and just north of 42nd Avenue. in this analysis, it is assumed the City would not take over the County Redevelopment Project Area and continued to be maintained as a County Redevelopment Project Area. Because the County Redevelopment Project Area would not be taken over by the City, no revenues have been forecasted in this analysis. e. Interest: Because expenditures exceeded revenues resulting in no excess cash, RSG did not include interest in this analysis. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report January S, 1996 5 i B. ROAD FUND All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the cities based upon total population size. Because the annexation of Bermuda Dunes is only adding 6,266 population to the existing 37,573 of Palm Desert, the added population will not put the City's population above the next threshold. As such, no revenue is reflected relative to Section 2107.5. Similar to other state subventions, road fund revenues initially would be based at the estimated population of 6,266. Other Road Fund revenues include the voter - approved Measure "A" sales tax distributed by the County Transportation Commission. Revenues attributed to these gasoline taxes are restricted for use on road related maintenance expenditures. III. EXPENDITURES A. GENERAL FUND EXPENDITURES Expenditures have been categorized by departments within the City's organizational structure and are estimated as follows: a. Administration: The analysis assumed no new positions, equipment or major operating costs would be incurred because of the annexation. Minimal expenditures including legal costs, advertising, postage, and other selected services and supplies were estimated. Costs associated with the 1997-98 election are shown. Costs were estimated based on a case by case analysis or a per capita rate using City budget data. b. Insurance: Upon annexation of Bermuda Dunes, it is probable that the cost of the City's insurance policy will be impacted. RSG has estimated these costs based on a per capita figure using City budget data. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 6 Fiscal Feasibility Report January 5, 1996 1.r+ A C. Animal Control: Upon annexation of Bermuda Dunes, the current City animal control contractor, California Animal Care, will assume animal control services for this area. Costs were estimated assuming additional personnel and equipment as required by California Animal Care. These costs are net of any animal license fee revenues. d. County Property Tax Collection Charges: Beginning in 1992-93, the County Auditor -Controller's Office charged cities and local districts receiving property tax revenue for incidental administrative costs. These charges are estimated at 0.2% of all property tax revenues. 2. Public Safetv: a. Sheriff's Contract: The Riverside County Sheriff's Department estimates service costs on a per capita basis. The City has indicated a desire to maintain a patrol beat to population ratio of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG believes this estimated service level appears excessive in this particular community due to the existing calls for service and the open space character of Bermuda Dunes. Thus, RSG has assumed based on discussions with City and County staff that only 5 beats will be needed to provide sufficient police services to the merchants and residents of Bermuda Dunes. b. Jail Booking Fee: Riverside County collects from its Cities a flat fee for jail bookings. Currently, the present jail booking fee is approximately $110. Bermuda Dunes jail booking fees were estimated using a per capita rate based on jail bookings for the City of Palm Desert. C. Fire Protection: The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a Joint Powers Agreement forming the Cove Communities Public Safety Commission in order to provide fire and paramedic services. These costs are net of the property tax levy of the County Fire District. Fire Protection expenditures were estimated using Riverside County Fire budget costs. This expenditure reflects a percentage of the assessed valuation based upon the 1995-96 total cost. The estimated budget figure includes $603,833 which provides for fire services staff costs, a one-time $110,000 for new equipment and $12,000 for training and other maintenance services. This estimated budget figure also includes optional Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report January S, 1996 7 paramedic services, which would be an additional $330,486. This total, which amounts to $1,056,319, was reduced to reflect the net cost of services (less the 1 % of the total assessed valuation of the Bermuda Dunes area multiplied by the Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and services a 3-mile radius. •1111.1 �'Lei 1ll'1� Upon the annexation of Bermuda Dunes, the Community Development Department will assume the processing of all land use related services. These services will, in most cases, be off -set by fees. However, the City will be responsible for the preparation of a Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps, and other miscellaneous costs associated with the in-house preparation of the Specific Plan. a. Code Compliance Officer: Upon annexation, it is anticipated that an additional Code Compliance Officer will be required to provide code enforcement services within the area of Bermuda Dunes. This expenditure is calculated using the first step in the City's payroll salary range for Code Compliance Officer at $2,604 per month. RSG has included an additional 35% of the annual salary to reflect benefits and an additional 10% for supplies, minor equipment, and other overhead costs. WTIA• For purposes of this Report, it is assumed that the current level of service of maintenance programs is sufficient to the community's needs. Upon annexation, CSA No. 121 and other County responsibilities will be assumed by the City. The Public Works cost estimates also include an allowance for contract services to administer these programs. a. Administration: A minimal administrative cost impact based on a per capita factor using City budget data is reflected. This cost represents supplies, meeting and travel costs, equipment, and other services. b. Street Sweeping: Upon annexation of the Bermuda Dunes area, the City will provide street sweeping services to this area. This expenditure was estimated based on discussion with City staff using a per capita cost based on City budget data. Street sweeping services are performed bi-weekly by the City of Palm Desert. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. 8 Fiscal Feasibility Report January S, 1996 c. Street Lighting. - Street lighting services within the Bermuda Dunes area are currently provided through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds will be transferred to the City. The forecasted expenditure is based on current CSA No. 121 budget data (refer to Exhibit 2). There is no anticipated financial impact relative to existing landscape maintenance services. The landscaped median located along 42nd Street between Limb Hall and Glass Drive is currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the annexation of Bermuda Dunes, the City would administer the special district as the taxes would be transferred to the City and detached from the County. Thus, the median would continue to be maintained by the assessment district. Currently the Bermuda Dunes area has no public park or open space areas. Additional costs associated with the City's exiting recreation program is not anticipated. A 10% contingency factor has been added to the General Fund expenditure estimate to meet unforeseen programs or emergency needs. a. Capital Improvements: Upon annexation, the City of Palm Desert will be required to pay for the 25% local share for the proposed improvements at the interchange of Washington Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the 1997-98 fiscal year, is the City's share of the estimated construction cost plus a 10% contingency. No outside revenue source has been identified to fund this capital improvement expenditure. Upon annexation, it is the City's policy to upgrade existing infrastructure systems within the annexation area to meet or exceed current City standards. The funding sources for capital improvements within the Bermuda Dunes annexation area were not identified because a capital improvement program (CIP) was not developed nor required as part of this analysis. Therefore, in order to prepare a CIP plan for the Bermuda Dunes annexation area, it would require the preparation of an extensive and detailed infrastructure assessment analysis. Bermuda Dunes Annexation Rosenow Spevacek Group, Inc. Fiscal Feasibility Report January 5, 1996 9 err *4100, a. Street Maintenance: The street maintenance expenditure was estimated based upon a per capita cost using City budget data for the City of Palm Desert. This cost reflects a 3% increase which includes general street maintenance; City-wide street slurry sealing, overlaying and resurfacing, new and replaced curbs and gutters, centerline striping, and safety and sign painting. b. Traffic Signal Maintenance: Upon annexation, the City of Palm Desert will be required to maintain additional traffic signals. The City of Palm Desert currently maintains 50% of the traffic signals located along Washington Street at 42nd Street, Country Club Drive, and Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will be required to maintain 100% of these three (3) traffic signals and 25% of the traffic signal located at Fred Waring Drive and Jefferson Street. IV. SUMMARY OF FINDINGS Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and road funds exceed the estimated total revenues. Forecasted expenditures and revenues have been calculated using conservative methodologies and modest escalation factors. The forecasted general fund expenditures exceed the estimated revenues for fiscal year 1996-97 by $1,125,944, $1,082,063 for fiscal year 1997-98, and $1,129,179 for fiscal year 1998-99. The three fiscal year revenue and expenditure forecast concerning the road fund also reflects expenditure totals exceeding estimated revenues. In fiscal year 1996-97, the forecasted expenditures exceeded revenues by $114,511, $595,009 in fiscal year 1997-98, and $121,485 in fiscal year 1998-99. Because of the residential character and rural nature of Bermuda Dunes, the estimated amount of local sales tax generated annually was minimal. For Bermuda Dunes area, there were only 22 retail establishments identified with taxable sales amounts as provided by the State Board of Equalization (refer to Exhibit 3). The Bermuda Dunes community has very little commercial activity with only one lodging establishment. Therefore, the City's forecasted business license tax and transient occupancy tax amounts are significantly low. Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes area with only approximately a population of 6,300 will receive minimal motor vehicle and off -highway fees. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 10 Fiscal Feasibility Report -low ftoof Based upon discussions with the City and County staff, RSG has assumed that only five patrol units would be required to provide sufficient police services to the Bermuda Dunes area. The forecasted expenditure was calculated based upon per capita costs utilizing the existing supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is nearly 90% of the total general fund revenue estimate. The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers Agreement in order to provide fire and paramedic services. The expenditures reflected in this analysis are commensurate with the City's desire to maintain a high level of service in terms of structural fire protection, suppression, and paramedic services. The forecasted expenditure for structural fire protection services in fiscal year 1996-97 is approximately 96% of the grand total general fund revenue estimate. Thus, the expenditures for public safety services alone exceed the general fund available by 88%. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 11 Fiscal Feasibility Report lil lil La Nwoo, Avape eC4 `wawNO .-i WE n f. R ei �n 4n•� h N p 00 � owh F 6,.r A N W, A�o 6 o f1 I s WW8 ko 9 'AR i M 2 l -7n1 (1Tn•nId nn,QT Qr,,Q-1 qHI F 3bLl-9�$-bI_:QI w 2 M'1 .. W M Vf 00 M M O woo1 '? C � M M N N Gi N N L+ it O 00 00 N 00 � h Q O C 00 00 V 1 V 1 M h h M h rr rr O N h Or- If, O 00 N S G* W, h c�•1 h on in N *% V1 O wl �t O0 OV1in h 0� l � N 0 C4 00 00 Min on O\ E5 N O N cm E5 Sa P- 4 EXHIBIT 3 LIST OF LOCAL SALES TAX GENERATORS WITHIN THE BERMUDA DUNES ANNEXATION 1. Subway 4100 Washington Aven 2. Lizett's Hair Design 4100 Washington Aven 3. Ernst & Ernst Foods 4100 Washington Aven 4. So Much More Wallpaper 4100 Washington Aven 5. Carmen's Mexican Food 4100 Washington Aven 6. Clam's Up 4100 Washington Aven 7. Wonder Cuts 4100 Washington Aven 8. Armond's Wholesale Merchandise 4100 Washington Stree 9. Teddy's Donuts 2 4100 Washington Aven 10. Lilli's Chinese Cuisine 4100 Washington Aven 11. Circle K Food Stores 4100 Washington Aven 12. Carl's Jr. 4050 Washington Aven 13. Unocal 76-Chemic Inc. 4010 Washington Aven 14. Goodyear Jack Sauter 78105 Country Club Di 15. Murph's Gaslight/Murphy's Original Pan Fried Chicken 79860 42nd Avenue 16. Bermuda Dunes Country Club 42360 Adams Street 17. Darby West Care 78260 Darby Road 18. Larry Shaw Wholesale Plants 78400 Darby Road 19. California Desert Nursery 78600 Darby Road 20. Vintage Nursery, Inc. 78755 Darby Road 21. Cameron Nursery and Turf Products 78850 Darby Road 22. Desert Cities Nurseries 41555 Yucca Lane Source: State Board of Equalization #101 #103 e #119 e #123 e #125 e #129 #133 e #139 e #141 e #142 pa1mdsflexh3 4 Palm Desert Sun City CaIJ4try I b te m W 42ND Avenue Bermuda Dunes La Quinta Fred Waring Drive uL.W ells Source: Urban Decision systems Inc. Exhibit 4 Bermuda Dunes Annexation Inter site I ' Op Indio North ROSEN0W S P E V A C E K GROUP NC. City of Palm Desert cm <:Ys�:;• i� Avenue of the States da Dunes Darby Road AProject Area Boundary N ® Commercial Multi -Family Residential i8-18 DU/AQ Exhibit 5 County Redevelopment Project rea K. ROSENOW S PE VACEK GROUP ZINC. R O S E N O W S P E V A C E K G R O U P I January 4, 1996 Mr. Phil Drell CITY OF PALM DESERT 73 -5 10 Fred Waring Drive Palm Desert, California 92260-2578 BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPI Dear Mr. Drell: C. RECEIVE® JAN - 5 1996 COMMLMrTV DEVELOPMENT DEPARTMENT CITY Of PALM DESERT Via Overnight Mail The Rosenow Spevacek Group, Inc. (RSG) is pleased to submit a draft of the Bermuda Dunes Annexation Fiscal Feasibility Report. This Report will focus on what City services will be provided within the Bermuda Dunes area, a forecasted cost of those services, and what revenues could reasonably be expected to be available to fund those services. Should you have any questions or require further information, please gi Sincerely, ROSENOW SPEVACEK GROUP, INC. r � k �7/ Felise Acosta Principal FA:DTM:dw Enclosure , a l el T. Miller Principal me a call. 540 Nort PaI2AH ah Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 71 /836-1748, San Diego 619/967-6462 vDG3Glff4 BERMIIDA DUNES ANNEXA ION FISCAL FEASIBILITY REPO T January 5, 1996 Prepared for: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 (619) 340-5776 Prepared by: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541-4585 %W 1401001 BERMUDA DUNES ANNEXATIO FISCAL FEASIBILITY REPORT 1. BACKGROUND The City of Palm Desert ("City") engaged the Rosenow Spevacek Grou , Inc. ("RSG") to prepare a fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the Bermuda Dunes community. This Report will focus on what City services will be provided within the Bermuda Dunes area, the forecasted cost of those services, and what revenues could reasonably be expected to be available to fund those services. This Report will focus on a compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal year 1998-99 using a range of potential fiscal impacts. It should be understood that there will usually be differences between the forecasts and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. The Bermuda Dunes area 1995 population is estimated at 6,266. Thesubject area is comprised of approximately 10.7 square miles of territory. At the present time, tile number of structures or dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a 27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Du ies is located in the central region of Riverside County. The boundaries of the Bermuda Dunes community is generally the area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the east boundary Indio city limits, Fred Waring Drive and the La Quinta city limits to the south, and along Washington Street up to the Interstate 10 Freeway to the west. Most of the area is still of a rural nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential and rugged terrain (refer to Exhibit 4). The major public agencies currently providing services in the Bermudil Dunes community are the County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District. The County of Riverside is currently responsible for policymaking and administration, law enforcement, animal control, planning and land use regulation, building inspection, flood control, and the maintenance and improvement of roads. Street lighting s rvices within the Bermuda Dunes area are currently provided through County Service Area No. 121. The landscaped median located along 42nd Street between Limahall Road and Glass Drive is Currently being maintained by Riverside County through a special assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon annexation, the City would administer the sped I district as the taxes would be transferred to the City and detached from the County. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 1 Fiscal Feasibility Report Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the services is currently in place. Sewer service is currently, and will contin e to be, provided by Septic Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive, Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection services to the Bermuda Dunes community. Currently, one fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and services a three-mile radius. The County of Riverside is currently responsible for providing police services within the Bermuda Dunes area. The law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio substations. Upon annexation, no change in fire or police protection services are anticipated because police and fire protection services are provided by the same Riverside County organization. The roads within the Bermuda Dunes area are currently maintained by the County of Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing roads. Many of the General Fund and Road Fund revenues and expenditures were either calculated on a per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a case study methodology. 11. REVENUES A. GENERAL FUND The primary sources of General Fund revenues are noted below 1. Taxes: a. Property and Parcel Taxes: The City's property tax revenue is based on the hi 250/,/75% between the City and the County respectiv No. 81-133 adopted September 24, 1981. Upon receive approximately 25% of the total General Fun the County would retain the remaining 75% of revenue. In addition, the City would also assum County Services Area ("CSA") No. 121. CSA Nc community of Bermuda Dunes and provides fundir annexation, CSA No. 121 would be dissolved. One this special district's levies would be transferred to the d shown on Exhibit 1: :orical property tax ratio of ply as set forth in Resolution annexation, the City would 1 property tax revenue and general Fund property tax service responsibilities of 121 is wholly within the g for street lighting. Upon hundred percent (100%) of City (refer to Exhibit 2). Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 2 Fiscal Feasibility Report 1*.✓ b. Property Transfer Taxes: The amount of Property Transfer Tax received will dep nd upon the level of resale activity within Bermuda Dunes. These revenues have been estimated using an average of previous three (3) year property transfer activity within Bermuda Dunes at the rate of .55C per $1,000 of assessed values. C. Homeowners Property Tax Relief: Revenue estimates generated from the Homeowner's roperty Tax Relief were not specifically projected because this analysis bases the Property Tax Apportionment on assessed valuation gross of the Homeowners Exemption. Therefore, revenue from the Homeowner's Property Tax Relief is included in the Property Tax Apportionment. d. Sales Taxes: Upon annexation, the City will be eligible to receive a percentage of the sales tax charged on qualifying retail sales from businesses within Bermuda Dunes. The State Board of Equalization estimated that the commercial areas within Bermuda Dunes are generating approximately $114,500 in s4ales tax revenues annually. RSG has assumed a modest 3% increase on these sal s tax revenues for Bermuda Dunes (refer to Exhibit 3). e. Transient Occupancy Taxes: Upon annexation, the City will receive the Transient Occupancy Tax. The City's Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging establishment, the New Inn located within the Bermuda Dunes Country Club, which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax based on an occupancy factor and average room rate. 2. State Subventions (Motor Vehicle Fees) Upon annexation, the City will be eligible to receive Motor ehicle In -Lieu taxes. These taxes are collected by the State's Department of Motor Vehicles and allocated to cities on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a per capita basis. Both subventions are based on 6,266 which is the estimated population for Bermuda Dunes. The per capita figures used in the revenue summary have been provided by the State Controller's office for the 1995-96 fiscal year. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 3 Fiscal Feasibility Report gn 3. Franchise Fees Upon annexation, the City will receive the franchise fees c rrently paid to the County by Continental Cable Television, the Southern California Gas Company, Waste Management, and Western Waste. These fees have been estimated on a per capita basis using budget figures from the City of Palm Desert. 1 • - 11 The fees described below are not included in Exhibit 1 ecause these fees specially offset costs of development related services, only the "net" cost of these services are indicated under "Expenditures". a. Land Use Planning and Regulation Fees: The City is authorized to charge fees for all land use planning and regulation services. The City would utilize the City's existing fee chedule. These fees should off -set most of the City's cost in providing these servic s. b. Building Inspection and Permit Fees: The fees collected for these building and permit in pection services should, in most cases, totally offset the cost of these services. C. Engineering Fees: The City is also authorized to charge fees for plan checking, public works inspection, permit issuance and review and other engineering services. The fees collected for these services should, in most cases, Offset the cost of these services. d. Development Fees: Under the provisions of State law, the City may collect development fees for the purpose of construction or improving capital facilities. Fees received must be segregated from the General Fund in order to avoid commingling. Certain fees must be spent or committed within five years from the time they are collected. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 4 Fiscal Feasibility Report en 5. Other Revenues a. Fines and Forfeitures: This represents both Motor Vehicle Code fines, Muni ipal Code fines, and other miscellaneous fines and forfeitures. Motor Vehicle anc Municipal Code fines from Bermuda Dunes were estimated on a per capita basi using current budget data from the City of Palm Desert. b. Business License Tax: Upon annexation, the City will be eligible to impos( License Tax. The Business License fee for the City based upon gross sales. Based on discussions with the amount of Business License Tax using an average local sales tax generators identified within the Berm (refer to Exhibit 3). C. Proposition A Fire Tax: the City's current Business f Palm Desert is calculated ty staff, RSG has estimated 3usiness License fee for the da Dunes annexation area The Proposition A Fire Tax is calculated using a per parcel cost. This figure is estimated using an estimated 700 apartments and 300 condominiums at a per parcel cost of $36 per unit, and an estimated 1,200 single family residential units at $48 per unit. d. County RDA: Currently there exists along Washington Street ai redevelopment project area. A small portion of Project Area is located within the City of Palm Desei exists in the unincorporated Bermuda Dunes territc County Redevelopment Project Area consists of residential use and is located along Washington StreE the south and just north of 42nd Avenue. In this ai would not take over the County Redevelopment Proj maintained as a County Redevelopment Project Redevelopment Project Area would not be taken o have been forecasted in this analysis. e. Interest: 142nd Avenue a County ie County Redevelopment and the remaining portion i (refer to Exhibit 5). This ►mmercial and multifamily between Mountain View to lysis, it is assumed the City A Area and continued to be 'ea. Because the County !r by the City, no revenues Because expenditures exceeded revenues resulting in no excess cash, RSG did not include interest in this analysis. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 5 Fiscal Feasibility Report M M B. ROAD FUND All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the cities based upon total population size. Because the annexation of Bermuda Dunes is only adding 6,266 population to the existing 37,573 of Palm Desert, th added population will not put the City's population above the next threshold. As such, no -evenue is reflected relative to Section 2107.5. Similar to other state subventions, road fund revenues initially would be based at the estimated population of 6,266. Other Road Fund -evenues include the voter - approved Measure "A" sales tax distributed by the County Transp rtation Commission. Revenues attributed to these gasoline taxes are restricted for use expenditures. 111. EXPENDITURES A. GENERAL FUND EXPENDITURES Expenditures have been categorized by departments within the and are estimated as follows: 1. General Government a. Administration: road related maintenance s organizational structure The analysis assumed no new positions, equipment or major operating costs would be incurred because of the annexation. Minimal expenditures including legal costs, advertising, postage, and other selected services and supplies were estimated. Costs associated with the 1997-98 election are shown. Costs were estimated based on a case by case analysis or a per apita rate using City budget data. b. Insurance: Upon annexation of Bermuda Dunes, it is probabl( insurance policy will be impacted. RSG has estimate capita figure using City budget data. that the cost of the City's I these costs based on a per Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 6 Fiscal Feasibility Report C. Animal Control: Upon annexation of Bermuda Dunes, the current Ci animal control contractor, California Animal Care, will assume animal control services for this area. Costs were estimated assuming additional personnel and equipment as required by California Animal Care. These costs are net of any animal license fee revenues. d. County Property Tax Collection Charges: Beginning in 1992-93, the County Auditor-Controlle 's Office charged cities and local districts receiving property tax revenue for inc dental administrative costs. These charges are estimated at 0.2% of all property to revenues. 2. Public Safety: a. Sheriff's Contract: The Riverside County Sheriff's Department estimates ervice costs on a per capita basis. The City has indicated a desire to maintain a patrol beat to population ratio of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG believes this estimated service level appears excessive in this particular community due to the existing calls for service and the open space character of Bermuda Dunes. Thus, RSG has assumed based on discussion5 with City and County staff that only 5 beats will be needed to provide sufficient police services to the merchants and residents of Bermuda Dunes. b. Jail Booking Fee: Riverside County collects from its Cities a flat fee for ail bookings. Currently, the present jail booking fee is approximately $110. Berry uda Dunes jail booking fees were estimated using a per capita rate based on jail ookings for the City of Palm Desert. C. Fire Protection: The Cities of Palm Desert, Indian Wells, and Ranch( Joint Powers Agreement forming the Cove Communil in order to provide fire and paramedic services. property tax levy of the County Fire District. Fire I estimated using Riverside County Fire budget costs. percentage of the assessed valuation based upon t estimated budget figure includes $603,833 which F costs, a one-time $110,000 for new equipment ai other maintenance services. This estimated budget Mirage have entered into a es Public Safety Commission These costs are net of the rotection expenditures were This expenditure reflects a ie 1995-96 total cost. The rovides for fire services staff d $12,000 for training and figure also includes optional Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 7 Fiscal Feasibility Report lftw ti..re paramedic services, which would be an additional $ 30,486. This total, which amounts to $1,056,319, was reduced to reflect the net cost of services (less the 1 % of the total assessed valuation of the Bermuda Dunes area multiplied by the Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County Fire Station No. 31, is located at 42nd Avenue and ser ices a 3-mile radius. Upon the annexation of Bermuda Dunes, the Community Development Department will assume the processing of all land use related services. These services will, in most cases, be off -set by fees. However, the City will be respons ble for the preparation of a Specific Plan. This one-time cost in 1996-97 reflects dupl cating fees, printing, maps, and other miscellaneous costs associated with the in-house preparation of the Specific Plan. a. Code Compliance Officer: Upon annexation, it is anticipated that an additional C de Compliance Officer will be required to provide code enforcement services within the area of Bermuda Dunes. This expenditure is calculated using the first step in the City's payroll salary range for Code Compliance Officer at $2,604 per month. RSG has included an additional 35% of the annual salary to reflect ben fits and an additional 10% for supplies, minor equipment, and other overhead co ts. 4. Public Works For purposes of this Report, it is assumed that the Current level of service of maintenance programs is sufficient to the community's needs. Upon annexation, CSA No. 121 and other County responsibilities will be assumed by the City. The Public Works cost estimates also include an allowance for contract services to administer these programs. a. Administration: A minimal administrative cost impact based on a er capita factor using City budget data is reflected. This cost represents supplies, meeting and travel costs, equipment, and other services. b. Street Sweeping: Upon annexation of the Bermuda Dunes area, e City will provide street sweeping services to this area. This expenditure was estimated based on discussion with City staff using a per capita cost base on City budget data. Street sweeping services are performed bi-weekly by the Cit i of Palm Desert. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 8 Fiscal Feasibility Report c. Street Lighting: Street lighting services within the Bermuda Dunes area are currently provided through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds will be transferred to the City. The forecasted expenditure is based on current CSA No. 121 budget data (refer to Exhibit 2). PREFOMM-741' •1 There is no anticipated financial impact relative to exist services. The landscaped median located along 42nd Stri Glass Drive is currently being maintained by Riverside assessment district formed pursuant to the 1972 Lighting an annexation of Bermuda Dunes, the City would administE taxes would be transferred to the City and detached frc median would continue to be maintained by the assessr Bermuda Dunes area has no public park or open spa, associated with the City's exiting recreation program is not a 6. Continsency: ig landscape maintenance et between Limb Hall and County through a special I Landscape Act. Upon the the special district as the -n the County. Thus, the ent district. Currently the e areas. Additional costs iticipated. A 10% contingency factor has been added to the General F nd expenditure estimate to meet unforeseen programs or emergency needs. 7. Roads: a. Capital Improvements: Upon annexation, the City of Palm Desert will be i local share for the proposed improvements at the Street and Interstate 10 Freeway. This forecasted i 1997-98 fiscal year, is the City's share of the estim; 10% contingency. No outside revenue source has capital improvement expenditure. Upon annexation, it is the City's policy to upgrade e within the annexation area to meet or exceed current sources for capital improvements within the Bermi were not identified because a capital improvem( developed nor required as part of this analysis. The CIP plan for the Bermuda Dunes annexation preparation of an extensive and detailed infrastructure !quired to pay for the 25% interchange of Washington rpenditure, reflected in the :ed construction cost plus a )een identified to fund this cisting infrastructure systems City standards. The funding da Dunes annexation area nt program (CIP) was not efore, in order to prepare a -ea, it would require the assessment analysis. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 9 Fiscal Feasibility Report y.: 8. Road Maintenance a. Street Maintenance: The street maintenance expenditure was estimated Is using City budget data for the City of Palm Desert. Th which includes general street maintenance; City - overlaying and resurfacing, new and replaced cu striping, and safety and sign painting. b. Traffic Signal Maintenance: Upon annexation, the City of Palm Desert will be re( traffic signals. The City of Palm Desert currently r signals located along Washington Street at 42nd Stre Avenue of the States. Upon annexation of the Bermt be required to maintain 100% of these three (3) tr; traffic signal located at Fred Waring Drive and Jefferso IV. SUMMARY OF FINDINGS E!d upon a per capita cost cost reflects a 3% increase de street slurry sealing, > and gutters, centerline uired to maintain additional iaintains 50% of the traffic !t, Country Club Drive, and da Dunes area, the City will ffic signals and 25% of the i Street. Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and road funds exceed the estimated total revenues. Forecasted expenditures and revenues have been calculated using conservative methodologies and modest escalation factors. The forecasted general fund expenditures exceed the estima 1996-97 by $1,125,944, $1,082,063 for fiscal year 1997-98, ar 1998-99. The three fiscal year revenue and expenditure foreci also reflects expenditure totals exceeding estimated revenues. forecasted expenditures exceeded revenues by $114,511, $591 and $121,485 in fiscal year 1998-99. Because of the residential Bermuda Dunes, the estimated amount of local sales tax gene For Bermuda Dunes area, there were only 22 retail establishr sales amounts as provided by the State Board of Equalizatio Bermuda Dunes community has very little commercial acti establishment. Therefore, the City's forecasted business license tax amounts are significantly low. A revenues for fiscal year d $1,129,179 for fiscal year 5t concerning the road fund In fiscal year 1996-97, the ,009 in fiscal year 1997-98, haracter and rural nature of ated annually was minimal. ents identified with taxable i (refer to Exhibit 3). The ,ity with only one lodging tax and transient occupancy Because states subventions are allocated to cities on a per capi a basis, the Bermuda Dunes area with only approximately a population of 6,300 will receive minimal motor vehicle and off -highway fees. Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 10 Fiscal Feasibility Report Based upon discussions with the City and County staff, RSG has units would be required to provide sufficient police services to the forecasted expenditure was calculated based upon per capita supported rate for Riverside County Sheriff and using an escalatio expenditure for the Sheriff contract amount for public safety sery nearly 90% of the total general fund revenue estimate. The Cities of Palm Desert, Indian Wells, and Rancho Mirage Agreement in order to provide fire and paramedic services. The 1 analysis are commensurate with the City's desire to maintain a hil structural fire protection, suppression, and paramedic services. for structural fire protection services in fiscal year 1996-97 is app total general fund revenue estimate. Thus, the expenditures for exceed the general fund available by 88%. sumed that only five patrol Bermuda Dunes area. The costs utilizing the existing rate of 7%. The estimated :es in fiscal year 1996-97 is are part of a Joint Powers xpenditures reflected in this h level of service in terms of The forecasted expenditure oximately 96% of the grand public safety services alone Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation January S, 1996 11 Fiscal Feasibility Report ON C1 00 O� 00 ON 10 00 00 en O ell �NOW �pp O M C4 M en V1 h 00 00 O, N N N M !` h O Q 00 W OO �O g 00 W, N 00 N N M V1 O N V1 N •-4 M N : O h �Mp N M 00 t` 000 h N M 00 N N O O 00' Vh1 t N 00 8 0 � u � a i F A w c c .0 .t M N �0 of M 00 t- t- N h K o O -! 00 t- N V1 •-� r-N O+ 00 tO rC --i --i et •-+ N t` 00 00 t- 8 K N D\ � O� 4 � ��pp t- N �O 9 a ' � w z w 00 ON O M elf 1-4 N eq en 00 00 00 �+ Vi �O O N tn en 00 00 8 ON �D ON N .r w r, �� Ow O � � OMO OMO 43 ° 88 � M M .-� T Q` Ch ON O 00 00 O 0 o D\ O� I~i ON h s cm ON O� 00 O� O1 �- 4 00 - ON O� .-r O� �O O� O� �Io�o M V) 00 M M 00 00 O voo1 d' O� � M M O O hIh C N N e�z aqu N rP N %-0 O 00 V1 M M V1 O� 000 N �p Vi N M h M V) h 4 N O N Im rm E, r, 0 Rn en EXHIBIT 3 LIST OF LOCAL SALES TAX GENERATORS WITHIN THE BERMUDA DUNES ANNEXATION AREA 1. Subway 4100 Washington Avenue #101 2. Lizett's Hair Design 4100 Washington Avenue #103 3. Ernst & Ernst Foods 4100 Washington Avenue 4. So Much More Wallpaper 4100 Washington Avenue #119 5. Carmen's Mexican Food 4100 Washington Avenue #123 6. Clam's Up 4100 Washington Avenue #125 7. Wonder Cuts 4100 Washington Avenue #129 8. Armond's Wholesale Merchandise 4100 Washington Street #133 9. Teddy's Donuts 2 4100 Washington Ave lue #139 10. Lilli's Chinese Cuisine 4100 Washington Ave iue #141 11. Circle K Food Stores 4100 Washington Ave iue #142 12. Carl's Jr. 4050 Washington Ave iue 13. Unocal 76-Chemic Inc. 4010 Washington Aven ue 14. Goodyear Jack Sauter 78105 Country Club Drive 15. Murph's Gaslight/Murphy's Original Pan Fried Chicken 79860 42nd Avenue 16. Bermuda Dunes Country Club 42360 Adams Street 17. Darby West Care 78260 Darby Road 18. Larry Shaw Wholesale Plants 78400 Darby Road 19. California Desert Nursery 78600 Darby Road 20. Vintage Nursery, Inc. 78755 Darby Road 21. Cameron Nursery and Turf Products 78850 Darby Road 22. Desert Cities Nurseries 41555 Yucca Lane Source: State Board of Equalization pa1mdst\exh3 �� � r-- Palm Desert Sun City Couhtry cfu M LLl 42ND Avenue Bermuda Dunes I I I I 1-1-r I La Quints Fred Waring Drive uLWells Source: Urban Decision Systems Inc. Exhibit 4 Bermuda Dunes Annexation a j�terstat �I e10 e F a.Y Indio North ROSENOW S P E V A C E K GROL'P ItiC. City of Palm Desert 42ND A w ! 1 i Avenue of the States I� _0 JY- L t I' J i .l. 1! _ d' {,. TT I it Mountain View Darby Road Con �i n II N e� Bermuda Dunes Project Area Boundary Commercial Multi-Famlly Residential e-is ow cM Exhibit 5 County Redevelopment Project rea ROSFNOW SPEVACEK GROUP INC. m (D c CL aj S] C , � S (D N �S S 3 rD 1 tD CD� x (rD 0cn a rt- N J. CL Q C� D w � o O Ul c Ul 0 o p CD Z.0 O °0 o m sv $ 0 z O v c CD v m CD > (D ..v g A ¢+ N a(D m R. 0)$ rA co n =+ O O (D CDCD N C !y w (p O N 7 C CL w a G ? F-+ (D ? I A N I 3 ,0 rn N m w w S CD CD 0 cr N � �r m -a :3 0 CD :3 D CL CD W � CL lYQ < O 1 Q n CD. rw CD = _ (D D C v m v D z v m O z v n O 33 m 0 q 0 D r w 0 cn Ul C 0 -h (D N N O O S1 J N (D 'S n N O 5 cc 'S C CL 0 c (D N (D X S1 0 (D a J. C. tc CL N (D O O m U)Ln;c sv -P�. O r Cof O O cl+ 0 W ? m fi7 fD � n O <� N O 77 V O(-)m Ln J• •Z O J� H- V V (N C n J.. c+ lD W O m q O M c m n z= r-m I M a ROSEN0W SPEVACEK GROL`P I 'C. November 9, 1995 Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION OCTOBER INVOICE Dear Mr. Drell: Pursuant to our agreement for professional services, the follow and expenses accrued by RSG for services rendered during the Feasibility Study $ 3,055.00 AMOUNT DUE $ 3,055.00 Sincerely, ROSENOV I SPEVACEK GR UP, INC. wvj Daniel T. Miller Principal DTM:ab 7� 4tj Enclosures \ A\V RECEIVED 140�V 2 0 1995 COMMUNITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT represents the hours ith. 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax1714/836-1748, San Diego 619/967-6462 ROSENOW SPEVACEK GROUP INC. '4010 540 N. GOLDEN CIRCLE STE. 305 } SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0003947-IN CITY OF PALM DESERT DATE: 10/31/95 MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED WARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 1 ------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS ------------------------------------ RATE ------------------------------------ AMOUNT ------------------------------------------------------------------------------------------- BERMUDA DUNES 10/02/95 TEAM COORDINATION DTM 1.50 1 5.000 187.50 10/02/95 COMPUTER REPORTS - TOP 10 MP 3.00 $5.000 195.00 10/02/95 RESEARCH FRANCHISE FEES MP 1.25 55.000 81.25 10/02/95 PHONE CALL RE:FRANCHISES MP .25 55.000 16.25 10/02/95 PHONE CALLS WITH COUNTY MP .25 65.000 16.25 10/03/95 FIELD WORK - INFRASTRUCTURE SURVEY MP 6.50 65.000 422.50 10/03/95 PHONE CALLS WITH COUNTY MP .25 65.000 16.25 10/04/95 DATA ANALYSIS DTM 1.00 125.000 125.00 10/04/95 COMPUTER REPORTS - 1% BREAKDOWN MP 4.00 65.000 260.00 10/04/95 RESEARCH TRA MP 2.50 65.000 162.50 10/05/95 RESEARCH TRA,PROJECT AREA AP MAPS MP 4.00 65.000 260.00 10/06/95 RESEARCH - 1% BREAKDOWN MP .50 65.000 32.50 10/11/95 TEAM COORDINATION DTM 1.00 125.000 125.00 10/16/95 TEAM COORDINATION DTM 1.00 125.000 125.00 10/17/95 DOCUMENT REVIEW DTM 1.00 25.000 125.00 10/19/95 COMPUTER REPORTS - TOP 10 MP 4.75 65.000 308.75 ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 m (714) 541-4585 INVOICE NO.: 0003947-IN CITY OF PALM DESERT DATE: 10/31/95 MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED WARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 2 ------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS ------------------------------------ RATE ------------------------------------ AMOUNT ------------------------------------------------------------------------------------------- 10/23/95 DRAFT DOCUMENTS DTM 1.00 1 5.000 125.00 10/24/95 COMPUTER REPORTS - TOP 10 MP 1.50 5.000 97.50 10/30/95 COMPUTER REPORTS - TOP 10 AV/95-96 ASSESSED VALUE MP 5.00 $5.000 325.00 BY TRA 10/30/95 PHONE CALL WITH TAX COLLECTOR MP .25 $5.000 16.25 10/31/95 PHONE CALL WITH COUNTY MP .50 5.000 32.50 TOTAL FEES ------------ 3055.00 TOTAL AMOUNT: 3055.00 PAYMENT DUE UPON RECEIPT CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 3055.00 5327.00 8382.00 9 iff- --4u-n R O S E N O W SPEVACEKGROUP INC. RECEIVED November 9, 1995 fv O V 2 0. 1995 COMMIACITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERNIUDA DUNES ANNEXATION OCTOBER INVOICE Dear Mr. Drell: Pursuant to our agreement for professional services, the followi g represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study AMOUNT DUE Sincerely, ROSENOW SPEVACEK GR UP, INC. Daniel T. Miller Principal DTM:ab Enclosures $ 3,055.00 $ 3,055.00 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fa714/836-1748, San Diego 619/967-6462 ROSENOW SPEVACEK GROUP INC. -*M✓` 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0003947-IN CITY OF PALM DESERT DATE: 10/31/95 MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED WARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 1 ------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS ------------------------------------ RATE ------------------------------------ AMOUNT ------------------------------------------------------------------------------------------- BERMUDA DUNES 10/02/95 TEAM COORDINATION DTM 1.50 1 5.000 187.50 10/02/95 COMPUTER REPORTS - TOP 10 MP 3.00 65.000 195.00 10/02/95 RESEARCH FRANCHISE FEES MP 1.25 65.000 81.25 10/02/95 PHONE CALL RE:FRANCHISES MP .25 5.000 16.25 10/02/95 PHONE CALLS WITH COUNTY MP .25 5.000 16.25 10/03/95 FIELD WORK - INFRASTRUCTURE SURVEY MP 6.50 5.000 422.50 10/03/95 PHONE CALLS WITH COUNTY MP .25 5.000 16.25 10/04/95 DATA ANALYSIS DTM 1.00 15.000 125.00 10/04/95 COMPUTER REPORTS - 1% BREAKDOWN MP 4.00 65.000 260.00 10/04/95 RESEARCH TRA MP 2.50 65.000 162.50 10/05/95 RESEARCH TRA,PROJECT AREA AP MAPS MP 4.00 65.000 260.00 10/06/95 RESEARCH - 1% BREAKDOWN MP .50 65.000 32.50 10/11/95 TEAM COORDINATION DTM 1.00 125.000 125.00 10/16/95 TEAM COORDINATION DTM 1.00 125.000 125.00 10/17/95 DOCUMENT REVIEW DTM 1.00 25.000 125.00 10/19/95 COMPUTER REPORTS - TOP 10 MP 4.75 65.000 308.75 ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 im l CITY OF PALM DESERT MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WARING DRIVE PALM DESERT, CA 92260 (714) 541-4585 INVOICE NO.: 0003947-IN DATE: 10/31/95 CLIENT CODE: PD PAGE NO.: 2 ------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS ---------------------- RATE ------------------- AMOUNT ------------------------------------------------------------------------------------------- 10/23/95 DRAFT DOCUMENTS DTM 1.00 15.000 125.00 10/24/95, COMPUTER REPORTS - TOP 10 MP 1.50 5.000 97.50 10/30/95 COMPUTER REPORTS - TOP 10 AV/95-96 ASSESSED VALUE MP 5.00 $5.000 325.00 BY TRA 10/30/95 PHONE CALL WITH TAX COLLECTOR MP .25 65.000 16.25 10/31/95 PHONE CALL WITH COUNTY MP .50 5.000 32.50 TOTAL FEES: 3055.00 TOTAL AMOUNT: 3055.00 PAYMENT DUE UPON RECEIPT CURRENT OVER 30 OVER 60 OVER 90 3055.00 5327.00 OVER 120 BALANCE 8382.00 In v � a � O (CD � $ 0 a$ _ o c m o wa A Z N Q CD 1 W O + �op O A A CD Z.0 o PO 0 0 w $ 0 Z 0 v c w v w (D Z 7 CD CD O h N -h (D 7 m a (D N N � (Q C. W O $ N w N J n .. O O N N CD c ND wCD J. O N n V) 1 CD 7 N CL SCD O I a= a co m (D N A N c (D CL a \ N (CD 0 U 1 .N.r iv N (rD N < CD D w CD0 rD C w X 07 co -o ,< c+ o (D CD c 0 0 -, o CD -n m a N �1 CD J. w Cr Q < O J a0 CD � N c+ ?.. C- o ? `< (D --i O c D v r m v D Z v T O Z v, O Vv 0 N 00 m n N O v (D U) n m T c a 0 w a cwn CD o O Vl n �o n ON r oo rn > I� m m (D () O < D � 0-0 rD rD v O n G) J. -5 O w ci G !-+ (D V -A V N � c c) J.• C. W 0 Ul O g CD CL O C w_ 3 3 on (D O 4) T O 7 111�I� j'j'j R o s F\ G v: A c 6 h G R o 1, P [�ECEIVED C. December 6, 1995 Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION NOVEMBER INVOICE Dear Mr. Drell: Pursuant to our agreement for professional services, the follow and expenses accrued by RSG for services rendered during the Feasibility Study $ 2,281.25 AMOUNT DUE $ 29281.25 Sincerely, ROSENOW SPEVACEK GROUP, INC. Felise Acosta Principal FA:ab Enclosures -JEC 1 1 1995 !TY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT represents the hours 540 :forth Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fa� 714/836-1748, San Diego 619/967-6462 llew ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 CITY OF PALM DESERT MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WARING DRIVE PALM DESERT, CA 92260 m INVOICE NO.: 0004016-IN DATE: 11/30/95 CLIENT CODE: PD PAGE NO.: 1 ----------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT ---------------------------------------------------------------------------------------------------------------- BERMUDA DUNES Contract # C10310 11/10/95 TEAM COORDINATION DTM 1.00 125.000 125.00 11/10/95 TEAM COORDINATION MP .75 65.000 48.75 11/15/95 RESEARCH EXPENDITURE AND REVENUE FORECAST MP 4.50 65.000 292.50 11/15/95 PHONE CALLS WITH COUNTY MP 1.50 65.000 97.50 11/16/95 DATA ANALYSIS DTM 1.00 125.000 125.00 11/16/95 RESEARCH TAXING ENTITIES,CR42 TRA REPORTS,IX MP 5.00 65.000 325.00 BREAKDOWN 11/16/95 DRAFT DOCUMENTS/REQUEST INFO FROM COUNTY MP 1.00 65.000 65.00 11/17/95 RESEARCH REVENUE FORECAST MP 4.00 65.000 260.00 11/20/95 FIELD WORK - IDENTIFY RETAIL ESTABLISHMENTS/SALES MP 6.00 65.000 390.00 TAX 11/20/95 RESEARCH PROPERTY OWNERS MP 1.50 65.000 97.50 11/21/95 RESEARCH - SBE SALES TAX,FORECAST MP 4.25 65.000 276.25 11/28/95 RESEARCH RETAIL ESTABLISHMENTS/SBE MP 1.25 65.000 81.25 11/30/95 RESEARCH SSE SALES TAX VERIFICATION MP 1.50 65.000 97.50 ------------ TOTAL FEES: 2281.25 ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0004016-IN CITY OF PALM DESERT DATE: 10/31/95 MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED WARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 2 -------------------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT ---------------------------------------------------------------------------------------------------------------------- ------------ TOTAL AMOUNT: 2281.25 PAYMENT DUE UPON RECEIPT CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 2281.25 :3055.00 5327.00 10663.25 4 ROSFN(.)V' C P F VALE K G ROi'P INC. December 6, 1995 Mr.Phil Drell, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 EEWAUDA DUNES ANNEXATION NOVEMBER INVOICE Dear Mr. Drell: j G a 1995 COMMONITV DEVELOPMENT DEPARTMENT CITY OF PALM DESERT Pursuant to our agreement for professional services, the following represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study $ 2,281.25 AMOUNT DUE $ 2,281.25 Sincerely, s ROSENOW SPEVACEK GROUP, INC.-00 -' Felise Acosta Principal Fk ab Enclosures 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: 0004016-IN CITY OF PALM DESERT DATE: 11/30/95 MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD 73510 FRED WARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 1 -------------------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: -------------------------------------------------------------------------------------------------------------------------------- STAFF HOURS RATE AMOUNT BERMUDA DUNES Contract # C10310 11/10/95 TEAM COORDINATION DTM 1.00 125.000 125.00 11/10/95 TEAM COORDINATION MP .75 65.000 48.75 11/15/95 RESEARCH EXPENDITURE AND REVENUE FORECAST MP 4.50 65.000 292.50 11/15/95 PHONE CALLS WITH COUNTY MP 1.50 65.000 97.50 11/16/95 DATA ANALYSIS DTM 1.00 125.000 125.00 11/16/95 RESEARCH TAXING ENTITIE:S,CR42 TRA REPORTS,1% MP 5.00 65.000 325.00 BREAKDOWN 11/16/95 DRAFT DOCUMENTS/REQUEST INFO FROM COUNTY MP 1.00 65.000 65.00 11/17/95 RESEARCH REVENUE FORECAST MP 4.00 65.000 260.00 11/20/95 FIELD WORK - IDENTIFY RETAIL ESTABLISHMENTS/SALES MP 6.00 65.000 390.00 TAX 11/20/95 RESEARCH PROPERTY OWNERS MP 1.50 65.000 97.50 11/21/95 RESEARCH - SBE SALES TAX,FORECAST MP 4.25 65.000 276.25 11/28/95 RESEARCH RETAIL ESTABLISHMENTS/SBE MP 1.25 65.000 81.25 11/30/95 RESEARCH SBE SALES TAX VERIFICATION MP 1.50 65.000 97.50 TOTAL FEES: ------------ 2281.25 ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 cm (714) 541-4585 CITY OF PALM DESERT MR. CARLOS ORTEGA, EXEC. DIR. 73510 FRED WARING DRIVE PALM DESERT, CA 92260 INVOICE NO.: 0004016-IN DATE: 10/31/95 CLIENT CODE: PD PAGE NO.: 2 -------------------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT -------------------------------------------------------------------------------------------------------------------------------- ------------ TOTAL AMOUNT: 2281.25 PAYMENT DUE UPON RECEIPT CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 2281.25 3055.00 5327.00 10663.25 o m o m(D =mnW 3vo� Ap Aj VO _ai (CD < a N m m (D c+ C •p c C n. 0 N h N Z a N m [D -, o x w N C CD (D O tD c A w .rT m N O AO N N m fi 0 ,� 1 z c � a a (D .�+ I CL p7 AU) (v ^` W 11 y v c w < T (D O : o m = m A) sj N a .A 0 r J. Q (D v z N m (D 0 .0 I J. J. 1 (AD� (D (J. 0 0 c (A Q f� r� Q �+ 0 tc O C+ Y. A s 91) (<Q n C+ z D .~► Ll � " m 0 (n 3 c-) ``) o c o w o V O p Y 0 r v D v (D O o z $ v Dr. z O O car, m o z � 0 LO v c (D v w m (!) (n ;o = O ON S C+ (L L O 0 00 (L � C+ A� (N (D M (D n0 Q 0 l0 (D (D V � O(") M (xiJ' -S (D W () c J'0 t-+ (D ^ T V N O c n J.• C+ w O n In V D r v m m m 4 D0 Z= rm O v R O S F N O W S PEVACEK G ROUP INC October 13, 1995 Mr.Da•1, Planning Director CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, California 92260 BERMUDA DUNES ANNEXATION SEPTEMBER INVOICE Dear 010a-F 2 4 1995 COMMIINITV DEVELOPMENT DEPARTMENT CITY OF PALM DESERT Pursuant to our agreement for professional services, the following represents the hours and expenses accrued by RSG for services rendered during the month. Feasibility Study $ 5,303.75 AMOUNT DUE $ 5,303.75 Sincerely, ROSENOW SPEVACEK GROUP, INC. I Daniel T. Miller Principal DTM: ab Enclosures 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 ti ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 INVOICE NO.: DD03890-IN CITY OF PALM DESERT DATE: 09/30/95 CLIENT CODE: PD 73510 FRED WARING DRIVE PALM DESERT, CA 92260 PAGE NO.: 1 -------------------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT -------------------------------------------------------------------------------------------------------------------------------- BERMUDA DUNES 09/05/95 TEAM COORDINATION DTM 1.00 125.000 125.00 09/06/95 PREPARATION & MEETINGS DTM 2.00 125.000 250.00 09/06/95 STAFF MEETING JS 3.50 90.000 315.00 09/11/95 PREPARATION & MEETINGS DTM 3.00 125.000 375.00 09/12/95 DOCUMENT REVIEW DTM 2.50 125.000 312.50 09/12/95 RESEARCH - BERMUDA DUNES ANNEX MP 3.75 65.000 243.75 09/13/95 DOCUMENT REVIEW JS 1.00 90.000 90.00 09/13/95 RESEARCH 94-95 A.V. MP 7.00 65.000 455.00 09/14/95 DOCUMENT REVIEW DTM 2.00 125.000 250.00 09/14/95 TEAM COORDINATION JS .50 90.000 45.00 09/14/95 COMPUTER REPORTS - A.V. TABLE BY TRA MP 4.25 65.000 276.25 09/15/95 TEAM COORDINATION DTM 2.00 125.000 250.00 09/15/95 RESEARCH JS 1.00 90.000 90.00 09/15/95 FIELD WORK - 94-95 A.V. TABLE INFO MP 3.00 65.000 195.00 09/15/95 PHONE CALLS MP .25 65.000 16.25 09/18/95 TEAM COORDINATION DTM 1.00 125.000 125.00 ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 ,may SANTA ANA, CA 92705 (714) 541-4585 CITY OF PALM DESERT 73510 FRED WARING DRIVE PALM DESERT, CA 92260 INVOICE NO.: 0003890-IN DATE: 09/30/95 CLIENT CODE: PD PAGE NO.: 2 -------------------------------------------------------------------------------------------------------------------------------- FOR PROFESSIONAL SERVICES RENDERED: -------------------------------------------------------------------------------------------------------------------------------- STAFF HOURS RATE AMOUNT 09/18/95 PHONE CALLS MP .75 65.000 48.75 09/19/95 RESEARCH RE:BERMUDA DUNES ANNEX MP 3.75 65.000 243.75 09/19/95 PHONE CALLS MP .75 65.000 48.75 09/19/95 PHONE CALLS MP .50 65.000 32.50 09/19/95 PHONE CALLS MP .75 65.000 48.75 09/20/95 RESEARCH JS 2.00 90.000 180.00 09/20/95 RESEARCH MP 2.00 65.000 130.DO 09/20/95 PHONE CALLS WITH COUNTY, S.B.E.,ASSESSORS MP 2.00 65.000 130.00 OFFICE,PLANNING DEPT. 09/21/95 PHONE CALLS WITH COUNTY MP .50 65.000 32.50 09/22/95 PHONE CALLS WITH COUNTY MP .50 65.000 32.50 09/25/95 DOCUMENT REVIEW JS 1.00 90.000 90.00 D9/26/95 TEAM COORDINATION DTM 1.00 125.000 125.00 09/26/95 DOCUMENT REVIEW JS 1.00 90.000 90.00 09/26/95 PHONE CALLS WITH COUNTY MP .50 65.000 32.50 09/27/95 PHONE CALLS WITH UTILITY COMPANIES MP .50 65.000 32.50 09/29/95 RESEARCH 1% BREAKDOWN, ZONING MAP MP 7.50 65.000 487.50 ------------ TOTAL FEES: 5198.75 ROSENOW SPEVACEK GROUP INC. 540 N. GOLDEN CIRCLE STE. 305 SANTA ANA, CA 92705 (714) 541-4585 CITY OF PALM DESERT 73510 FRED WARING DRIVE PALM DESERT, CA 92260 INVOICE NO.: 0003890-IN DATE: 09/30/95 CLIENT CODE: PD PAGE NO.: 3 ------------------------------------------------------------------------------------------------------------------ FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT 09/19/95 REPRODUCTION COSTS - BUDGET BULLETIN 12.00 09/26/95 PROFESSIONAL SERVICES PROVIDED BY U.D.S. #161146 105.00 DEMOGRAPHICS INFORMATION OF BERMUDA DUNES AREA 09/30/95 REPRODUCTION COSTS - MAP FROM COUNTY PLANNING 11.25 DEPT. ------------ TOTAL EXPENSES: 128.25 ------------ TOTAL AMOUNT: 5327.00 PAYMENT DUE UPON RECEIPT CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE 5327.00 5327.00 ' CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT TO: Honorable Mayor and City Council FROM: Philip Drell, Acting Director DATE: November 9, 1995 SUBJECT: Bermuda Dunes Feasibility Study Appropriation I. RECOMMENDATION: By minute motion appropriate $15,000 from unappropriated reserves for the Bermuda Dunes Feasibility Study, Contract No. C10310. II. BACKGROUND: On August 24, 1995 city council approved an agreement with Rosenow Spevacek Group, Inc., in an amount not to exceed $15,000, to complete a fiscal impact study for possible annexation of the Bermuda Dunes atea into the city. Staff is now requesting that city council appropriate the $15,000 from unappropriated reserves. III. ATTACHMENT: August 24, 1995 city council minutes PHILIP DRELL, ACTING DIRECTOR DEPARTMENT OF a5M71���3ELI9I�IENT DENIED OTHER- /tm ®r' gizzaJ. Qxa• ila pith C;it;� C1Lx'' :� Of=ioe M 2 4 1995 C i ®f Palm Desert COMMUNITY DEVELOPMENT PALM DEPARTMENT f6L CITY OF PALM DFSERI 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260-2578 TELEPHONE (619) 346-0611 FAX (619) 340-0574 October 23, 1995 Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705-3914 Gentlemen: RE: Study of the Fiscal Feasibility of Annexation of Bermuda Dunes to the City of Palm Desert - Contract No. C10310 At its regular meeting of August 24, 1995, the Palm Desert City Council, by minute motion, approved your proposal for the subject feasibility study. We are enclosing a copy of the signed agreement for your records. If you have any questions or require additional information, please do not hesitate to contact us. Sincerely, SHEILA R. GILLIGAN, CMC DIRECTOR OF COMMUNITY AFFAIRS/CITY CLERK SRG:wjm Enclosure (as noted) cc: Community Development Department Finance Department R O S E N O W S PEVACEK GROUP INC. F 0t) REV October 11, 1995 ?itt- Drztk Mr. well, Planning Director City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 -F(ti . j Dear P-ettl: 00. 161995 OT00�M FAL* 6 SER,A1tIN�� On May 9, 1995, the Rosenow Spevacek Group, Inc. ("RSG") rendered a proposal for a study of the fiscal feasibility of annexing the Bermuda Dunes community to the City of Palm Desert. Subsequently, on August 24, 1995, the City Council authorized City staff to engage RSG to commence the feasibility study. A general outline of the servic6s RSG will provide in evaluating the fiscal feasibility of annexing the Bermuda Dunes area is attached. The Project Manager for this engagement will be Daniel T. Miller. Mr. Miller will be responsible for project oversight and will be assisted by James C. Simon and Melecio Picazo. The activities associated with the attached scope of work will be charged on a time and materials basis for a fee not -to -exceed $15,000, inclusive of reasonable out-of-pocket expenses. The fee includes the preparation of all required documents, attendance at two (2) specified public meetings, and up to fifteen (15) copies of the report and support documents. The fee will be invoiced on a monthly basis, in accordance with the following hourly rate schedule: Project Manager $125 Associate $ 90 Analyst $65 Word Processing $35 Should you have any questions regarding this fee proposal and scope of work, please don't hesitate to contact me at your convenience. Sincerely, ROSENOW SPEVACEK GROUP, INC. Daniel T. Miller Principal ff ACCEPTED AND APPROVED: BY --:A �- DATE: - ,2_ 3 _S• J DTM:br 540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462 M cm FEASIBILITY STUDY INTO THE PROPOSED ANNEXATION OF BERMUDA DUNES SCOPE OF WORK The proposed Scope of Work for the Bermuda Dunes Annexation Feasibility Study is outlined below and will meet the applicable requirement of the Cortese -Knox Local Government Reorganization Act of 1985. The primary focus of the scope of work is to determine the financial feasibility of annexation. The community of Bermuda Dunes must be a financially viable addition to the City. Prepatory to determining the financial conditions will require extensive data collection of financial, demographic, and land use information from the State, County, and local sources. The community desired levels of municipal services will be contrasted with existing service levels and the costs compared to reasonably expected revenues. Multiyear budgets will be prepared. Recommendations for the City boundary will be formulated based upon geopolitical constraints and a brief discussion will be provided to review the effects of local control on land use decisions. The following Scope of Work provides a framework within which to prepare the study and meet the City's objectives. We welcome the opportunity to further describe the work effort involved. I. ANALYZE TH9 PROPOSED ANNEXATION STUDY AREA A. Community History and Background B. Study Area Boundaries C. Local Geography Considerations D. Transportation Access E. Residential and Commercial Development II. ANALYZE THE CURRENT DELIVER OF MUNICIPAL SERVICES A. General Government B. Public Safety C. Parks, Recreation and Community Services D. Community Development E. Public Works, Engineering and Public Utilities F. Discussion of Service Levels III. DETERMINE FISCAL FEASIBILITY OF PROVIDING MUNICIPAL SERVICES A. Current Fiscal Year Costs of Municipal Services Provided B. Current Fiscal Year Revenues Available to the City C. Comparative Analysis of Expenses Versus Revenues for Purposes of Determining Fiscal Feasibility D. Determine Property Tax Transfer Requirement - Negotiation with County n IV. DETERMINE EFFECTS OF TRANSITION OF MUNICIPAL SERVICES A. Preliminary Recommendations for Transition of Municipal Services B. Criteria for Transition of Municipal Services Responsibility C. Estimated Savings or Loss to County due to Annexation V. DEVELOP PRELIMINARY FIRST TWO FULL FISCAL YEARS BUDGET A. City Revenues for the First Two Full Fiscal Years of Operations B. Estimated Costs of Services for the First Two Fiscal Years C. Comparison of Costs and Revenues - First Two Fiscal Years D. Discussion of Potential Capital Improvements VI. DISCUSSION OF LOCAL GOVERNMENTAL CONTROL A. General Plan B. Land Uses and Zoning C. County Redevelopment Area VII. DETERMINE PROCESS AND REQUIREMENT FOR ANNEXATION A. LAFCO Proceedings B. Property Tax Transfer C. Proposed Appropriations Limits (GANN) D. Recommended Terms and Conditions for LAFCO Decision VIII. DEVELOP AND PRESENT FINAL REPORT