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Home My WebLink AboutRes 05-56 and 05-57 Order Levy & Collection Consolidated Landscape & Lighting Dist FY 2005/06REQUEST: CITY OF PALM DESERT DEVELOPMENT SERVICES STAFF REPORT 1. Approval to Amend/Or Approve the Final Engineers' Report for the Palm Desert Consolidated Landscape and Lighting District Fiscal Year 2005/2006. 2. Approval to Order the Levy and Collection of Annual Assessments within the Palm Desert Consolidated Landscape and Lighting District for Fiscal Year 2005/2006. DATE: June 23, 2005 CONDITIONS: Resolution No.(s) _05-56 , 05-57 Final Engineers' Report / Table 1-1 (Annual Levies) Recommendation: Waive further reading and adopt: 1. Resolution No. _05-56 , amending or approving the final Engineers' Report for the Consolidated Palm Desert Landscaping and Lighting District, Fiscal Year 2005/2006. 2. Resolution No. _05-57 , ordering the levy and collection of assessments within the consolidated Palm Desert Lighting and Landscape District for Fiscal Year 2005/2006. Executive Summary: The Palm Desert Consolidated Landscape and Lighting District consists of 35 individual landscape and lighting districts. Each year the City is required to hold a public hearing to review and approve the district budgets and annual levies (i.e. Final Engineers' Report). On May 23, 2005, the City Council initiated the process to levy and collect the annual assessments and granted preliminary approval of the Engineers' Report. A Public Hearing was scheduled for June 23, 2005, to allow public input. The attached resolutions allow the City to: 1. Grant final approval of the Engineers' Report (budgets and annual levies) for the Palm Desert Consolidated Landscape and Lighting District for Fiscal Year 2005/2006. 2. Order the levy and collection of annual assessments for Fiscal Year 2005/2006. Staff recommends that the City Council open the public hearing and take testimony. At the conclusion of the public hearing, staff recommends approval of the attached resolutions. Staff Report Palm Desert Consolidated LLD FY 05/06 Page2of3 June 23, 2005 Background: The City of Palm Desert administers 35 individual landscape and lighting districts, referred to as the Consolidated Palm Desert Landscape and Lighting District. These districts were established to pay for the maintenance of perimeter landscaping and streetlighting that benefits residential subdivisions. Each year the City prepares an annual budget and levy for each district, which is reviewed and approved by the City Council. The budgeted amounts within each district are levied and collected through each parcel's property tax bill. Discussion: In July of 2004, sixteen districts approved an increase to their annual levy. In exchange, the City agreed to renovate the districts with water efficient landscaping and irrigation. The annual assessments approved last year will be sufficient to pay for the maintenance and utilities after renovation. During the last fiscal year the City has provided maintenance to all districts, including those that were anticipated to be completely renovated. Those districts that were approved for renovation, staff provided a minimum level of service to maintain the districts in an acceptable and safe condition. Any assessments that were not expended during this fiscal year will be placed in the district's reserve fund. Reserve funds can only be spent on the applicable district and are set aside for emergency repairs or required upgrades. The City is currently out to bid for renovation of these districts. Bids will be opened on June 7, 2005. Approval of a contract to the lowest responsive bidder will be presented to the City Council on June 23, 2005, and construction will begin in July of 2005. Once the districts are renovated, full service will be re-established for all renovated districts. The Engineers' Report includes a detailed budget for all districts, including those that will be renovated. Attached to the report is Table 1-1, which summarizes the annual levies for each district and identifies which districts will be renovated. The budgets specified in the Engineers' Report are sufficient to maintain the districts after the renovations take place. Staff Report Palm Desert Consolidated LLD FY 05/06 Page3of3 June 23, 2005 Recommendation: Staff recommends that the City Council open the public hearing and approve the attached resolutions, granting final approval of the Engineers' Report and ordering the levy and collection of annual assessment within the Palm Desert Consolidated Landscape and Lighting District for Fiscal Year 2005/2006. Submitted By: Department Head: Martin Alvarez Homer Croy Senior Management Analyst ACM for Development Services Approval: Carlos L. Ortega Paul Gibson City Manager Director of Finance/City Treasurer Palm Desert Consolidated Landscape and Lighting District Annual Levy Fiscal Year 2005/2006 Table 1 District Canyon Cove Vineyards Parkview Estates Desert Mirage Sandcastles Primrose II Mont. Meadows The Glen Hovley Estates Sonata I Sonata II Hovley Collection La Paloma I La Paloma II La Paloma III Sandpiper Court Sandpiper West Hovley West Diamondback Palm Court Waring Court Palm Gate The Grove Portola Place PD Country Club Kaufman and Broad Canyon Crest College View Estate II Sundance West College View Estate I Petunia I Sundance East The Boulders Sundance West FY 05/06 Annual Renovation Units Levy 225 132 172 29 41 37 40 16 16 16 94 38 16 16 15 16 16 16 20 20 16 37 105 23 1730 163 67 32 32 32 32 14 16 32 $88.80 $63.88 $22.20 $381.52 $52.20 $175.68 $88.80 $284.76 $401.04 $330.80 $125.20 $129.28 $379.60 $390.80 $284.88 $389.88 $386.88 $300.94 $382.72 $265.86 $340.38 $72.14 $209.12 $197.68 $20.80 $120.70 $157.74 $392.20 $447.94 $331.96 $294.68 $461.42 $326.70 $349.30 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes RESOLUTION NO. 05-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND/OR APPROVING THE FINAL ENGINEER'S ANNUAL LEVY REPORT FOR THE CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING DISTRICT, FISCAL YEAR 2005/06 The City Council of the City of Palm Desert (hereafter referred to as the "City Council") does resolve as follows: WHEREAS, The City Council, pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code, did by previous Resolution order the Engineer, MuniFinancial, to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22565, in connection with the proposed levy and collection of assessments for the Consolidated Palm Desert Landscaping and Lighting District (hereafter referred to as the "District") for the fiscal year commencing July 1, 2005 and ending June 30, 2006; and, WHEREAS, The Engineer has prepared and filed with the City Clerk of the City of Palm Desert and the City Clerk has presented to the City Council such report entitled "Engineer's Annual Levy Report, Consolidated Palm Desert Landscaping and Lighting District, Fiscal Year 2005/06" (hereafter referred to as the "Report"); and, WHEREAS, The City Council has carefully examined and reviewed the Report as presented, and is satisfied with each of the items and documents as set forth therein, and finds that the levy of assessments have been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Report. NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1 The above recitals are true and correct. Section 2 The Report as presented, consists of the following: a) A Description of the District and Improvements. b) The Annual Budget (Costs and Expenses of Services, Operations and Maintenance). c) A Description of the Method of Apportionment resulting in an Assessment Rate per Levy Unit for each Zone within said District for Fiscal Year 2005/06. Section 3 The Report as presented, is hereby approved (as presented or amended as applicable), and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. Section 4 The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation and final approval of the Report. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of , 2005. AYES: NOES: ABSENT: ABSTAINED: ATTEST: RACHELLE D. KLASSEN, City Clerk CITY OF PALM DESERT, CALIFORNIA BUFORD A. CRITES, Mayor 2 RESOLUTION NO. 05-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN THE CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING DISTRICT, FISCAL YEAR 2005/06 The City Council of the City of Palm Desert (hereafter referred to as the "City Council") does resolve as follows: WHEREAS, The City Council has by previous Resolutions initiated proceedings and declared its intention to levy special benefit assessments against parcels of land within the Consolidated Palm Desert Landscaping and Lighting District (hereafter referred to as the "District") for the fiscal year commencing July 1, 2005 and ending June 30, 2006; pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the "Act") to pay the costs and expenses of operating, maintaining and servicing landscaping, lighting and appurtenant facilities located within the District; and, WHEREAS, The Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer's Annual Levy Report (hereafter referred to as the "Report") in connection with the proposed levy and collection of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution approve such Report; and, WHEREAS, The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2005 and ending June 30, 2006, to pay the costs and expenses of operating, maintaining and servicing landscaping and street lighting improvements and appurtenant facilities located within the District, and for which assessed properties receive special benefit. NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1 Following notice duly given, the City Council has held a full and fair Public Hearing regarding the District, the levy and collection of assessments, the Engineer's Annual Levy Report prepared in connection therewith, and considered any oral and written statements, protests and communications made or filed by interested persons regarding these matters. Section 2 Based upon its review (and amendments, as applicable) of the Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that: a) The land within the District will receive special benefit by the operation, maintenance and servicing of landscaping, lighting, and appurtenant facilities within the boundaries of District. b) District includes all of the lands receiving such special benefit. c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2005 and ending June 30, 2006. Section 3 The Report and assessment as presented to the City Council and on file in the office of the City Clerk comply with the applicable provisions of the California State Constitution Article XIIID and are hereby confirmed as filed. Section 4 The maintenance, operation and servicing of the improvements and appurtenant facilities shall be performed pursuant to the Act. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the installation, maintenance, operation, administration and servicing of the landscaping and lighting improvements including turf, ground cover, shrubs and trees, irrigation systems, street lighting, water features, ornamental lighting, entry monuments, drainage systems and all appurtenant facilities related thereto. Section 5 The County Auditor of Riverside County shall enter on the County Assessment Roll opposite each eligible parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected, pursuant to Chapter 4, Article 2, Section 22646 of the Act. After collection by the County, the net amount of the levy shall be paid to the City Treasurer. Section 6 The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the Consolidated Palm Desert Landscaping and Lighting District, and such money shall be expended only for the maintenance, operation and servicing of the landscaping, lighting and appurtenant facilities as described in Section 4. Section 7 The adoption of this Resolution constitutes the District levy for the fiscal year commencing July 1, 2005 and ending June 30, 2006. Section 8 The City Clerk, or their designate, is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution. 2 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of , 2005. AYES: NOES: ABSENT: ABSTAINED: ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California BUFORD A. CRITES, Mayor 3 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 CITY OF PALM DESERT ENGINEER'S ANNUAL LEVY REPORT Consolidated Palm Desert Landscaping And Lighting District Fiscal Year 2005/06 INTENT MEETING: May 26, 2005 PUBLIC HEARING: 7une 23, 2005 Corporate office office �ocations 27368 via lndustria Anaheim, CA Phoenix, AZ Suite 110 Lancaster, CA Sacramento, CA Page 1 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Temecula, CA 92590 �os Angeles Regional office Seattle, WA Tel: (951) 587-3500 oakland, CA Tel: (800) 755-MUNI (6864) Fax: (951) 587-3510 www.muni.com 0 ENGINEER�S REPORT AFFIDAVIT Establishment of Annual Assessments for the: Consolidated Palm Desert �andscaping and �ighting District City of Palm Desert Riverside County, state of California This Report identifies the parcels within the District and the relevant zones therein, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Page 2 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Report as directed by the City Council. �ated this day of , 2005. MuniFinancial Assessment Engineer on Behalf of the City of Palm Desert By Adina Vazquez, Project Manager District Administration Services By Richard Kopecky R. C. E. #16742 u TABLE OF CONTENTS I. OVERVIEW........................... ............................................... ...................................1 A. Introduction.................... .................................................. ...... ..... . ...........1 B. Compliance with the Current Legislation..... . ... ... .. .... ..........................2 .. .. .... .. .. .. C. General Description of the District and Page 3 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 services ...............................................2 II. SPECIFIC IMPROVEMENTS AND SPECIAL BENEFIT ZONES .................6 III. METHOD OF APPORTIONMENT ..................................................................17 A. General........................... ............................................... ....... ........................17 B. Benefit Analysis............. ............................................................ .....................17 C. Assessment Methodology......................................................................... .........19 D. Assessment Range Formula............................................................................. 20 IV. DISTRICT BUDGETS... ...................................................................... ........ .22 A. Description of Budget Items... .......................................................................22 B. District Budgets.......... ............................................................... ..................25 APPENDIX A — DISTRICT BOUNDARY MAPS........ ......................................58 APPENDIX B — 2005/06 COLLECTION ROLL.... ..................................................59 0 I. Overview A. Introduction The City of Palm Desert (hereafter referred to as "City") annually levies and collects special assessments in order to provide and maintain improvements within the Consolidated Palm Desert �andscaping and �ighting Maintenance Assessment District (hereafter referred to as "District"). The District was formed in 1993, through the consolidation of several individual landscaping and lighting maintenance districts that previously existed within the City. The original districts and subsequent annexations of various territories and developments to the Consolidated District are identified as separate zones and/or sub-zones (hereafter referred to jointly as "zones"). The District and the zones therein have been established and are levied annual assessments pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California streets and Highways Code (hereafter referred to as the "1972 Act"). This Engineer's Annual �evy Report (hereafter referred to as the "Report") describes the District and improvements, any proposed changes to the District or improvements and the proposed budgets and assessments for Fiscal Year 2005/06. The proposed assessments are based on the City's estimated cost to maintain the improvements that provide special benefit Page 4 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 to properties within the District. The various improvements within the District and the costs of those improvements are identified and budgeted separately for each zone, including the expenditures, deficits, surpluses, revenues, and reserves. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessment Number by the Riverside County Assessor's office. The Riverside County Auditor/Controller uses Assessment Numbers and specific Fund Numbers, to identify on the tax roll, properties assessed for special district benefit assessments. Each parcel within a Zone is assessed proportionately for only those improvements provided in that zone from which the parcel receives special benefit. At a noticed Public Hearing, the City Council will consider all testimony and wri tten comments presented and may direct any necessary modifications to the Report and approve the Report as submitted or amended. Following approval of the Report, the City Council by resolution, shall order the improvements to be made, and confirm the levy and collection of assessments pursuant to the 1972 Act. The assessment rates and method of apportionment described in this Report as approved by the City Council defines the assessments to be applied to each parcel within the District for Fiscal Year 2005/06. The assessments as approved will be submitted to the Riverside County Auditor/Controller to be included on the property tax roll for each parcel for the fiscal year. 0 B. Compliance with the Current �egislation The City Council annually conducts a public hearing to accept public comments and testimony, to review the Report and adopt the annual assessments to be levied on the County tax roll for the fiscal year. The assessments described in this Report and subsequently approved by the City Council have been prepared in accordance with the 1972 Act and in compliance with the provisions of the California Constitution, Article XIIID (hereafter referred to as the "Article XIIID"), which was enacted by the passage of Proposition 218 in November 1996. In compliance with the provisions of Article XIIID, in Fiscal Year 1997/98, the City conducted property owner ballot proceedings for the special benefit assessments applicable to each of the existing zones within the District. At that time, the assessments presented to property owners included the assessment range formula previously established for the Page 5 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 District and described in this Report. upon tabulation of the ballots returned, it was determined that majority protest did not exist and the City Council approved and adopted the assessments and assessment range formula balloted and approved by the property owners. similar proceedings have been conducted for all new or increased assessments including any annexations to the District. C. General Description of the District and services The City annually levies and collects assessments in order to maintain and service various improvements within the District. For Fiscal Year 2005/06, the District is comprised of thirty-three (33) separate benefit zones, each funding specific improvements and services. The zones are identified as: • Zone # 2 Canyon Cove (222 parcels) • Zone # 3 Vineyards (132 parcels) • Zone # 4 Parkview Estates (172 parcels) • zone # 5 Cook and Country Club — Desert Mirage sub-zone (29 parcels) • zone # 5 Cook and Country Club — sandcastle sub-zone (41 parcels) • zone # 5 Cook and Country Club — Primrose 2 sub-zone (37 parcels) • Zone # 6 Hovley Lane — Monterey Meadows Sub-zone (40 parcels) • zone # 6 Hovley �ane — The Glen sub-zone (16 parcels) • Zone # 6 Hovley Lane — Hovley Estates Sub-zone (16 parcels) • Zone # 6 Hovley Lane — Sonata I Sub-zone (16 parcels) 0 • Zone # 6 Hovley Lane — Sonata II Sub-zone (94 parcels) • zone # 6 Hovley �ane — Hovley Collection sub-zone (38 parcels) • Zone # 6 Hovley Lane — La Paloma I Sub-zone (16 parcels) • Zone # 6 Hovley Lane — La Paloma II Sub-zone (16 parcels) • Zone # 6 Hovley Lane — La Paloma III Sub-zone (15 parcels) • Zone # 6 Hovley Lane — Sandpiper Court Sub-zone (16 parcels) • Zone # 6 Hovley Lane — Sandpiper West Sub-zone (16 parcels) • Zone # 6 Hovley Lane — Hovley Court West Sub-zone (16 parcels) • zone # 6 Hovley �ane — Diamondback sub-zone (20 parcels) • Zone # 6 Hovley Lane — Palm Court Sub-zone (20 parcels) • Zone # 7— Waring Court (16 parcels) • Zone # 8— Palm Gate (37 parcels) • zone # 9— The Grove (105 parcels) • Zone #11 — Portola Place (23 parcels) • Zone #13 — Palm Desert Country Club (1,730 parcels) • Zone #14 — K& B at Palm Desert (163 parcels) • Zone #15 — Canyon Crest (67 parcels) • Zone #16 Shepard Lane — College View Estates II (32 parcels) • Zone #16 Shepard Lane — Sundance West (32 parcels) • Zone #16 Shepard Lane — College View Estates I(32 parcels) • Zone #16 Shepard Lane — Petunia l(32 parcels) • Zone #16 Shepard Lane — Sundance East (14 parcels) • zone #16 shepard �ane — The Boulders (16 parcels) 0 The District provides for the maintenance and operation of local landscaping and lighting Page 6 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 improvements and associated appurtenances located within the public right-of-ways and dedicated landscape easements. The improvements and the annual costs of those improvements are identified and budgeted separately for each zone, including the expenditures, deficits, surpluses, revenues, and reserves. The improvements provided and for which parcels are levied special benefit assessments within the District can be categorized as three (3) improvement types. 1. �ocal street lighting (residential street lighting associated with the properties within the zone and specific subdivisions). 2. Local landscaping improvements including parkways, perimeters, entryways, local medians, and internal landscaped amenities. 3. special zone services including tree trimming, graffiti and weed abatement and landscape maintenance of flood control areas (retention and detention basins). The costs associated with the improvements authorized by the provisions of the 1972 ACt are equitably spread among the benefiting parcels in proportion to the special benefit they receive. only parcels that receive special benefits from the improvements are assessed, and each zone consists of parcels that benefit from those specific improvements. �andscape improvements maintained by the District and associated with each zone were either installed as a condition of development or were installed for the benefit of the properties assessed. The landscape improvements associated with each zone may include, but are not limited to: open space areas, medians, parkways, slopes, retention or detention basin areas, and public right-of-ways or easements that provide special benefits to the parcels. These improvements may include, but are not limited to: turf, ground cover, shrubs and trees, irrigation systems, decorative lighting, water features, entry monuments, drainage systems, hardscapes and associated appurtenances. Similar to landscape improvements, street lighting improvements funded through District assessments were installed for the benefit of properties within each of the zones and the assessments provide for the maintenance, operation and energy costs related to those street light improvements. 0 The following table lists the zones and sub-zones within the District and a summary of the parcels for Fiscal Year 2005/06. BENEFIT ZONES Page 7 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 zone Number Zone Name Total Parcels Assessable Parcels Total EBU zone #2 Canyon Cove 225 222 222.00 zone #3 vineyards 147 132 133.20 Zone #4 Parkview Estates 175 172 Page 8 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 172.00 zone #5 Cook & Country Club: sub-zone#5 DM Desert Mirage 29 29 29.00 sub-zone#5 SC sandcastles 41 41 41.00 Page 9 sub-zone#5 PR Primrose 2 37 37 37.00 zone #6 Hovley Lane: FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 sub-zone#6 MM Monterey Meadows 40 40 40.00 sub-zone#6 HG The Glen 16 16 Page 10 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 16.00 sub-zone#6 HE Hovley Estates 17 16 16.00 sub-zone#6 51 Sonata I 16 16 16.00 sub-zone#6 52 Sonata II 94 94 94.00 Page 11 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 sub-zone#6 HC Hovley Collection 38 38 38.00 sub-zone#6 �1 La Paloma I 17 16 16.00 sub-zone#6 �2 La Paloma II 19 16 16.00 sub-zone#6 �3 La Paloma III 17 15 Page 12 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 15.00 sub-zone#6 SP Sandpiper Court 19 ES: 16.00 sub-zone#6 sw Sandpiper West 16 16 16.00 sub-zone#6 Hw Hovley Court West ES: ES: 16.00 Page 13 sub-zone#6 DB Diamondback 22 20 20.00 sub-zone#6 PC Palm Court 24 20 20.00 zone #7 Waring Court 16 16 16.00 zone #8 Palm Gate 37 37 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Page 14 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 37.00 zone #9 The Grove 105 105 105.00 zone #11 Portola Place 23 23 23.00 zone #13 Palm Desert Country Club 1,768 1,730 2,314.85 Zone #14 Page 15 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 K& B at Palm Desert 165 163 163.00 zone #15 Canyon Crest 71 67 67.00 zone #16 shepard �ane: sub-zone #16 Cv College View Estates II 32 32 32.00 Page 16 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 sub-zone #16 SD sundance west 32 32 32.00 sub-zone #16 Cvl College View Estates I 32 32 32.00 sub-zone #16 P1 Petunia l 32 32 32.00 sub-zone #16 SE sundance East 14 14 14.00 sub-zone #16 BD Page 17 The Boulders 16 16 16.00 Total District 3,368 3,287 3,873.05 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 0 II. SPECIFIC IMPROVEMENTS AND SPECIAL BENEFIT ZONES The boundaries of each zone, the location of improvements and special benefit received by the properties and property owners within each zone are described in this section of the Report. In any given fiscal year, City staff will determine the scope of work for each zone as assessment revenues allow. Any necessary reductions in the scope of work will likely include, but are not limited to; the frequency of mowing and edging turf areas; the application of fertilizers and aeration of turf; trimming and pruning of shrubs, trees and ground cover; trash pick-up in landscaping areas; and, weed and litter control. The allocation of special benefit and general benefit of the improvements provided within the District are summarized in the Method of Apportionment section of this Report and are identified in the budget for each zone. A description of the District improvements and the level of annual service each zone will receive are provided in the following: Zone #2 (Canyon Cove): zone #2 includes Tracts 11636-1, 2, 3, & 4 and Tract 23485, generally located south Page 18 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 of Deep Canyon Tennis Club, North of Haystack Road, west of Marrakesh Country Club, and East of Highway 74 Lane, Deer Grass Drive, The streets within the zone include Ambrosia street, sweetbrush �otus Court, Calliandra street, Aber street, and Alamo Drive. These parcels benefit from the maintenance and operation of street lighting encompassing the streets within the zone, the landscaped parkway along the East side of Highway 74 and the landscaped areas on the North side of Haystack Road, adjacent to the above mentioned tracts and installed as part of these residential developments. The interior local street lighting has been identified and allocated as 100% special benefit with no general benefit allocation. The parkway landscaping along Highway 74 has been identified as 100% special benefit to the parcels within the zone. However, it has been determined that the landscaped median on Haystack Road (although installed as part of the development) not only provides a special benefit to properties within Canyon Cove, but also provides a general benefit. The proportionate general benefit of this improvement has been identified and eliminated from the zone assessments. Although there is a general benefit component, the majority of the median landscaping on Haystack Road (83%) is a flood control channel and was required for development of the homes within Canyon Cove. Therefore, pursuant to Article XIIID section 5a (assessments used to fund flood control and drainage systems) the majority of the costs for this landscaped area could be considered exempt. However, in recognition of the general benefit this improvement area provides and the previous assessments applied to properties within the zone, it was determined that the City would fund a large portion of the costs associated with this landscaped median area. Refer to the budget section of this Report for details on the allocation of benefit and related assessments. 0 Zone #3 (Vineyards): zone #3 consists of the parcels in Tracts 12181-1 and 12181-2 on the west side of Portola Avenue. The streets within the zone include Martini Court, Heitz Court, Mondavi Court, Callaway Court, Stony Hill Court, Masson Street, Krug Avenue, Sebastian Way, and San Pasqual Avenue/Rutledge Way. Page 19 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 These parcels receive special benefits from the operation and maintenance of street lighting improvements within the zone boundaries and the landscaped area along the west side of Portola Avenue, from the northern boundary to the southern boundary of the two tracts. Both the street lighting and landscape improvements identified for this zone were installed as part of the residential development and the ongoing maintenance and operation of these improvements provide special benefits to properties within the zone. It has further been determined that these improvements were installed and are maintained solely for the benefit of properties within the zone and the improvements provide no measurable benefit to properties outside the zone. Any benefit conveyed to other properties or to the public at large (general benefit) is incidental. Therefore, both the interior tract street lighting and the parkway (perimeter) landscaping costs have been identified and apportioned 100% as a special benefit to the parcels within the zone. Zone #4 (Parkview Estates): zone #4 consists of the parcels in Tract 8237, south of Magnesia Falls Drive, North of Fred waring Drive, west of Deep Canyon Road, and East of Portola Avenue. These parcels receive special benefits from the operation and maintenance of street lighting along Primrose Drive, Desert Star Boulevard, Vanda Circle, Palmilla Circle, Myrsine Avenue, Gazania Place, Rutledge Avenue, Buttonwood Drive, Silktree Lane, Santolina Drive, Balsam �ane, and Erin street. The street lighting improvements were installed as part of the residential development and are considered a special benefit to the properties within the development (i.e., zone). The ongoing operation and maintenance of interior residential street lighting provides no measurable general benefit to properties outside the zone or to the public at large. To the extent that some streetlights associated with the zone are located on the perimeter of the residential development and provides direct illumination to parcels outside the zone, a portion of the maintenance costs has been identified as a general benefit. This zone has twenty interior streetlights and five perimeter streetlights resulting in an Page 20 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 allocation of the zone costs as 90% special benefit and 10% general benefit. zone #5 (Cook and Country Club): zone #5 consists of three (3) separate residential subdivisions identified as sub-zones. These three sub-zones are known and identified as the Desert Mirage (Tract 25639), sandcastles (Tract 21338-1), and Primrose 2(Tract 25436). Each of these sub-zones has specific local improvements maintained by the District that were installed as part of these residential developments. 0 These three subdivisions were originally part of a larger zone known as Cook and Country Club and were proportionately assessed for median landscaping in the area as well as their local (tract specific) improvements. In fiscal year 1997/98 it was determined that the median landscaping in the Cook and Country Club area was largely a general benefit and this portion of the assessment was eliminated. However, it was determined that the parcels within these three (3) sub-zones receive special benefit from tract specific improvements maintained by the District, and each parcel within the respective sub-zones should continue to be assessed proportionately for the cost of services associated with those local improvements. upon review of the specific street lighting improvements associated with each of these sub- zones, the street lighting facilities have been identified as interior tract streetlights. These streetlights provide little or no direct illumination to parcels outside the sub-zones and therefore the costs of maintaining these improvements are allocated as 100% special benefit with no general benefit. upon review, it has been determined that fifteen percent (15%) of the improvements within the Desert Mirage sub-zone are of a general benefit to those properties outside of the sub- zone. Therefore, this percentage of the costs of maintaining the sub-zone has been removed from the assessment and must be funded from other sources. The property owners in sub-zone known as Desert Mirage were balloted in Fiscal Year 2004/05 for an increase in their maximum assessment rates. The proposed levy increase would fund new maintenance costs required after the City of Palm Desert renovated Page 21 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 the improvements with water efficient landscaping and irrigation systems. Majority protest did not exist, therefore the City will move forward with the plans to renovate the improvements in the Desert Mirage sub-zone. Refer to the budget for zone 5 in section iv of this Report for specifics regarding the proposed assessment for the current fiscal year and the maximum assessment. Zone #6 (Hovley Lane): Parcels within this zone are located generally East of Monterey Avenue and west of Portola Avenue and includes parcels and tracts along Hovley �ane west. zone 6 includes the following subdivisions and sub-zones: • Monterey Meadows (Tracts 21791 and 22741) • The Glen (Tract 25217) • Hovley Estates (Tract 24591) • sonata 1 (Tract 23982) • sonata II (Tracts 24254 -1, 2, 3) • Hovley Collection (Tract 24603) • La Paloma 1 (Tract 24773-1) • La Paloma 2 (Tract 24773) • �a Paloma 3 (Tract 29045) • Sandpiper Court (Tract 27370) • Hovley Court west (Tract 29585) • sandpiper west (Tract 29579) • Diamondback Road (Tract 29893) • Palm Court (Tract 25373) 0 The parcels within each of the fourteen (14) sub-zones of zone 6(Hovley �ane) receive benefit from various improvements that were installed as part of the separate residential developments and are specific to each tract and subdivision. The assessment for each sub- zone funds and provides for the parkway landscaping improvements adjacent to each tract along Hovley Lane as well as specific in-tract improvements. The in-tract improvements may include street lighting; dry well and retention basin landscape maintenance; and landscaping of additional parkway areas. The improvements within zone 6 include street lighting on Clover Lane, Meadow Lane, Hovley Lane West, Centennial Circle, Posada Court, Via Fonda, sonata Court, Avenida Arcadia, Avenida solana, sandpiper Court, Avenida Rosario, sandpiper Court west Hovley Court, Diamondback Road, and Palm Court; landscaped parkways along Hovley Lane West, Monterey Avenue, Portola Avenue and landscaped Page 22 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 retention basins located within Hovley Estates, Hovley Collections, La Paloma 1, La Paloma 2, Sandpiper Court, and Sandpiper Court West. upon review of the specific street lighting improvements associated with each of these sub- zones, the street lighting facilities have been identified as tract specific streetlights. To the extent that some streetlights associated with the Glen, sonata I and Hovley west sub-zones are located on the perimeter of the development and provide direct illumination to parcels outside the subdivision, a portion of the maintenance costs fifteen percent (15%) have been identified as a general benefit component. Therefore, the cost of maintaining the street light improvements is allocated as 85% special benefit to properties within these sub-zones. similarly, it has been determined that a portion of the parkway landscape improvements associated with the Glen, sonata I and Hovley west sub-zones provide a general benefit to properties outside of these sub-zones. Therefore, fifteen percent (15%) of the costs of maintaining these landscaped areas has been removed from the assessments and will be funded from other sources. The landscape improvements associated with each of the remaining sub-zones provide no measurable general benefit to properties outside the zone or to the public at large, and therefore, their specific local landscaping improvements and the corresponding assessments have been identified entirely as a special benefit to parcels within the sub-zones. The property owners in the nine (9) sub-zones known as The Glen, Hovley Estates, sonata I, Sonata II, La Paloma I, Sandpiper Court, Sandpiper West, Hovley West and Hovley Collection, were balloted in Fiscal Year 2004/2005 for an increase in their maximum assessment rates. In conjunction with the assessment increase, the City proposed to renovate the existing improvements with more water efficient landscaping and modifications to the irrigation system. For seven (7) of the nine (9) sub-zones balloted, majority protest did not exist and the City will move forward with the plans to renovate the improvements in those sub-zones. However, majority protest existed in Hovley west and Hovley Collection, and the proposed assessment increase for these two sub-zones will not be imposed. without the additional maintenance funding, the City will not be able to renovate the improvements for these two Page 23 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 sub-zones, but will continue to maintain the existing improvements at a level of service compensatory with the available assessment revenues at the existing assessment rates. Refer 0 to the budgets for zone 6 in section iv of this Report for specifics regarding the proposed assessment for the current fiscal year and the maximum assessment. In Fiscal Year 2004/2005 the Palm Court sub-zone was annexed to zone 6 through property owner protest hearing proceedings. Upon conclusion of a noticed Public Hearing, it was determined that a majority protest did not exist. upon review of the specific improvements associated within this sub-zone, benefit conveyed to other properties or to the public at large (general benefit) has been determined by comparison to be incidental. Therefore, the costs of the on-going operation and maintenance of the improvements have been identified and apportioned 100% as a special benefit to the parcels within the sub- zone. Zone #7 (Waring Court): zone 7 consists of Tract 25304, North of Fred waring Drive and East of Phyllis 7ackson Lane. These parcels receive special benefit from the ongoing maintenance of landscaped parkways along Fred waring Drive and Phyllis 7ackson �ane adjacent to the tract. The improvements were installed as part of the residential development and it has been determined that the operation and maintenance of the landscape improvements provide no measurable general benefit to other properties outside the zone or to the public at large. Therefore, the local landscaping improvements associated with this zone and the costs of providing these improvements have been identified as 100% special benefit to parcels within zone 7. Zone #8 (Palm Gate): zone 8 consists of the parcels in Tract 24287 located East of Deep Canyon Road, and North of Fred Waring Drive, on Coral Bells Circle, Daylily Circle, and Moss Rose Drive. Page 24 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 These parcels receive benefit from the maintenance and operation of local street lighting at the entrances to the development at the corners of Deep Canyon Road and Coral Bells Circle, Daylily Circle, and Moss Rose Drive. These parcels also receive special benefit from the maintenance of the landscaped parkways adjacent to the development on Deep Canyon Road. Both the street lighting and landscape improvements identified for this zone were installed as part of the residential development and the ongoing maintenance and operation of these improvements provide special benefit to properties within the zone. It has been determined that these improvements were installed and are maintained solely for the benefit of properties within the zone and provide no measurable benefit to properties outside the zone or to the public at large. Therefore, both the interior tract street lighting and the parkway (perimeter) landscaping costs have been identified and apportioned 100% as a special benefit to the parcels within the zone. In conjunction with a proposed renovation and upgrade of the existing landscape improvements the property owners in Zone 8 were balloted in Fiscal Year 2004/05 for an 0 increase in their maximum assessment rates. Majority protest existed and the maximum assessment rate will not be increased over the amount previously approved for the zone. since the assessment increase was not approved the City will not move forward with the proposed renovations, but will continue to maintain the existing improvements at a level of service compensatory with the available assessment revenues. Refer to the budget for zone 8 in section iv of this Report for specifics regarding the proposed assessment for the current fiscal year and the maximum assessment. zone #9 (The Grove): zone 9 consists of the parcels in Tract 24984 south of Goleta Avenue and west of Deep Canyon Road. These parcels receive special benefits from the improvements and maintenance of street lighting at the entrance to the development at the corner of Deep Canyon Road and Page 25 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Royal Canyon Lane as well as interior street lighting on Kings Canyon Lane, Indian Canyon Lane, Hazel Canyon Lane, and Royal Canyon Lane. These parcels also receive special benefits from the improvements and maintenance of parkway landscaping adjacent to the tract on Deep Canyon Road, and interior landscaping, including an entryway median, parkway landscaping and palm tree trimming within the public right-of-ways on Royal Canyon Lane that were installed as part of the residential tract development. Both the street lighting and landscape improvements identified for this zone were installed as part of the residential tract development and the ongoing maintenance and operation of these improvements provide special benefit to properties within the zone. It has further been determined that these improvements were installed and are maintained solely for the benefit of properties within the zone and the improvements provide no measurable benefit to properties outside the zone or to the public at large. Therefore, both the tract street lighting and the landscaping costs (parkways and interior landscaping) have been identified and apportioned 100% as a special benefit to the parcels within the zone. As part of the overall landscaping costs for this zone, specialized maintenance (palm tree trimming) is budgeted separately as this service is not covered under the regular maintenance contract the City has with its landscape contractor. However, like other landscape maintenance within the zone this service benefits only the properties within the zone and has been identified as 100% special benefit. Zone #11 (Portola Place): zone 11 is generally located south of santa Rosa way and East of Portola Avenue and consists of the parcels in Tract 27692. These parcels receive special benefits from the servicing and maintenance of the landscaped parkways adjacent to the tract on Portola Avenue and santa Rosa way, and interior tract landscaping on olive Court installed as part of the residential development. 0 The developer (D & F Development) was conditioned to form the necessary District zone Page 26 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 for the public improvements that would be installed as part of subdivision tract 27692. In a letter to the City dated April 4, 1994, the developer (sole owner of the property at that time) requested inclusion of the parcels within the tract into the District and to be assessed annually for the cost of maintaining the improvements. This letter constitutes a 100% landowner petition pursuant to Article XIIID and supports a position that the assessments imposed prior to 7uly 1, 1997 were exempt from the requirements of Article XIID. Although the assessments for these improvements were identified as exempt in fiscal Year 1997/98 and not subject to the procedural requirements of a protest balloting procedure, the improvements and the related assessments for this zone were identified as 100% special benefit. It has been determined that the ongoing operation and maintenance of the improvements provide no measurable general benefit to other properties outside the zone or to the public at large. Therefore, these improvements, the corresponding assessments and the annual inflationary adjustment previously approved by landowner petition are in compliance with the substantive requirements of the proposition. However, any future increases to the assessments will require property owner ballot proceedings. Zone #13 (Palm Desert Country Club): zone 13 is located generally south of Hovley �ane East, North of Fred waring Drive, west of warner Trail, and west of washington and is commonly referred to as the Palm Desert Country Club area. The parcels within this zone receive special benefits from the servicing and maintenance of entryway landscaping on State Street and Washington Avenue, parkway landscaping along Fred waring Drive and local residential street lighting within the zone. Parcels within zone 13 were annexed into the City in Fiscal Year 1994/95. Prior to City annexation the local improvements within this zone were assessed and collected by the County through a County service Area (CSA). when the properties were annexed to the City, the City established this territory as zone 13 within the District and the CSA fund balance was transferred to the zone 13 account. For the first two years, the City used the fund balance to fully cover the annual cost of providing the improvements. In Fiscal Year Page 27 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 1996/97 the remaining fund balance was designated as reserves and the District levied its first annual assessment for the zone. Because the reserve fund balance was greater than the amount typically held in reserves, the City Council determined that a portion of the reserves would be used each year to offset the annual expenditures thereby allowing the annual assessments to remain fairly constant and also gradually reduce the reserve fund to normal levels. In Fiscal Year 1997/98, in compliance with Article XIIID, a property owner ballot proceeding was conducted to approve the existing annual assessment. At that time, the property owners approved the proposed assessment amount plus an annual inflation adjustment. The assessment amount approved by the property owners was based on the continued policy of utilizing reserve fund contributions to offset the actual expenses for the zone. 0 In Fiscal Year 1999/00, property owners within zone 13 were re-balloted for an increased assessment to cover the maintenance costs associated with the new landscaping improvements to be installed on Fred waring Drive. Property owners were balloted for an amount sufficient to cover the actual zone expenses, although a portion of the existing reserves continued to be used to reduce the annual assessments. Refer to the budget for zone 13 in section iv of this Report for specifics regarding the proposed assessment for the current fiscal year and the maximum assessment. The street lighting and landscape improvements assessed within this zone clearly provide special benefits to properties within the zone. It has been determined that the improvements were installed and are maintained solely for the benefit of properties within the zone and the improvements provide no measurable benefit to properties outside the zone or to the public at large. Therefore, both the street lighting and the landscaping costs (parkways and interior landscaping) have been identified and apportioned 100% as a special benefit to parcels within the zone. Zone #14 (K & B at Palm Desert): zone 14 is located generally North of Frank sinatra Drive, west of Portola Avenue, East of Monterey Avenue and south of Gerald Ford Drive. The zone includes the parcels in Tracts 28258 and 28258-1. Page 28 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 The properties within the boundaries of zone 14 benefit from street lighting within the development located on Drexell Drive, Heatherwood Drive, Emerson Drive and Jamerson Road, and Colebridge street, as well as landscaping associated with the retention basin area located on Heatherwood Drive and dry well areas within the subdivisions installed by the developer as part of the residential development. In conjunction with a proposed renovation and upgrade of the existing landscape improvements, the property owners in Zone 14 were balloted in Fiscal Year 2004/05 for an increase in their maximum assessment rates. Majority protest did not exist, and based on the approval of the new assessment rate, the City will move forward with the plans to renovate the improvements with more water efficient landscaping and modifications to the irrigation system. Refer to the budget for zone 14 in section iv of this Report for specifics regarding the proposed assessment for the current fiscal year and the maximum assessment. Zone #15 (Canyon Crest): Zone 15 consists of Tract 25102-1 and 25102 generally located east of Deep Canyon Road, south of the whitewater River Channel, north of Moss Rose Drive, and west of the Palm Desert High school. This zone was established and annexed to the District on March 11, 1999 pursuant to the Act and a property owner ballot proceeding. These parcels receive special benefit from the operation and maintenance of landscaped parkways along the east side of Deep Canyon Road from Magnesia Falls (whitewater Ri ve r Channel), south to the end of the development (approximately 100 feet north of Buttonwood Drive); perimeter landscaping along the whitewater River Channel (the 0 northern boundary of the development and District) from Deep Canyon Road eastward to the western boundary of the development (approximately 675 linear feet of the total 1275 feet is landscaped). The improvements for this zone were installed as part of the residential developments. It has been determined that the ongoing operation and maintenance of the landscape improvements provide no measurable general benefit to other properties outside the zone Page 29 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 or to the public at large. Therefore, the local landscaping improvements associated with this zone and the associated annual costs have been identified as 100% special benefit to parcels within zone 15. Refer to the budget for zone 15 in section iv of this Report for specifics regarding the proposed assessment for the current fiscal year and the maximum assessment. Zone #16 (Shepard Lane): zone #16 consists of six (6) separate residential subdivisions identified as sub-zones. These six sub-zones are known and identified as College view Estates I(Tract 29444), College view Estates II (Tract 30087), sundance west (Tract 30216), sundance East (Tract 30503), Petunia l(Tract 30025), and Boulders (Tract 30030). Each of these sub-zones has specific local improvements maintained by the District that were installed as part of these residential developments. There are several residential subdivisions within the area known as shepherd �ane. The parcels within each of the six (6) sub-zones of zone 16 (shepard �ane) receive benefit from various improvements that were installed as part of the separate residential developments and are specific to each tract and subdivision. Perimeter landscaping for the shepherd �ane residential developments includes parkway/perimeter landscaping on the west side of Portola Avenue between Frank Sinatra Dive and Gerald Ford Drive, as well as landscaping on the north side of Frank sinatra Drive and the south side of Gerald Ford Drive on either side of shepherd �ane. These improvements benefit the property development within the shepherd �ane area and each residential subdivision is assessed a proportional share of the costs associated with these landscaped areas as well as specific in-tract improvements. specific in-tract improvements include: Sub-Zone College View Estates I: • This Sub-zone's proportional benefit of parkway/perimeter landscaping along the west side of Portola Avenue adjacent to the residential subdivision (generally between Frank sinatra Dive and Gerald Ford Drive); • Parkway landscaping along both sides of shepherd �ane adjacent to the residential subdivision (generally between Frank sinatra Dive and Gerald Ford Drive); Page 30 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 • streetlights within the residential subdivision and/or adjacent to the subdivision on both the east and west sides of shepherd �ane and the west side of Portola Avenue installed as part of the residential subdivision. 0 Sub-Zone College View Estates II: • This sub-zone's proportional benefit of parkway/perimeter landscaping on both sides of shepherd �ane and the west side of Portola Avenue adjacent to the residential subdivision, installed as part of the development of properties therein; • street lights within and adjacent to the residential subdivision. sub-zone sundance west: • Two landscape easements located on the west side of shepherd �ane at Kokopelli Circle. • Two landscape easements located on the west side of shepherd �ane at Chinook Circle. • Parkway landscaping along shepherd �ane adjacent to the residential subdivision. specifically the parkway area on the west side of shepherd �ane which extends the length of Tract 30216; • streetlights within the residential subdivision and/or adjacent to the subdivision on both the east and west sides of shepherd �ane and the west side of Portola Avenue installed as part of the residential subdivision. sub-zone sundance East: • This sub-zone's proportional benefit of perimeter/parkway landscaping on the west side of Portola Avenue between Frank sinatra Dive and Gerald Ford Drive associated with the development; • Parkway landscaping on shepherd �ane adjacent to the residential development installed as part of the development of properties therein. • street lights within and adjacent to the residential subdivision. Sub-Zone Petunia l: • Three landscape easements identified as the parkway landscaping on the east side of shepherd �ane adjacent to the tract north and south of East Petunia Place and the parkway landscaping easement on the west side of Portola Avenue adjacent to the tract. • Two landscape easements identified as the parkway landscaping on the west side of shepherd �ane adjacent to the tract north and south of west Petunia Place. sub-zone The Boulders: Page 31 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 • Parkway landscaping on shepherd �ane adjacent to the residential development installed as part of the development of properties therein; 0 • This sub-zone's proportional benefit of parkway/perimeter landscaping on the west side of Portola Avenue between Frank sinatra Dive and Gerald Ford Drive, as well as landscaping on the north side of Frank sinatra Drive and the south side of Gerald Ford Drive on either side of shepherd �ane. • street lights within and adjacent to the residential subdivision. It has been determined upon review of the specific improvements, that a portion of the street lighting and parkway landscape improvements associated with the College view Estates I, College View Estates II, Sundance East, and Petunia l Sub-zones provide some general benefit to properties outside of these sub-zones. These improvements include the parkway/perimeter maintenance along Portola Avenue. A portion of the maintenance costs up to fifteen percent (15%) have been identified by the City as a general benefit component and has been removed from the assessments and will be funded from other sources. The improvements associated with the remaining sub-zones provide no measurable general benefit to properties outside the zone or to the public at large, and therefore, their specific local landscaping improvements and the corresponding assessments have been identified entirely as a special benefit to parcels within the sub-zones. 0 III. Method of Apportionment A. General The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in each zone of the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. Page 32 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 In addition, pursuant to Article XIIID section 4(with some exceptions) a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel and provides that only special benefits are assessable and the District must separate the general benefits from the special benefits. Therefore, in compliance with the new assessment requirements only assessments that are identified as either "Exempt Assessments" or "Special Benefit Assessments" are assessed. The costs of any improvements considered to be "General Benefit" have been eliminated from the District assessments. B. Benefit Analysis Each of the proposed improvements, the associated costs and assessments has been carefully reviewed by the City and has been identified and allocated based on benefit pursuant to the provisions of the 1972 Act and Article XIIID of the California Constitution. Each improvement and the associated costs have been identified as either "general benefits" (not assessed) or "special benefits". Although some existing assessments within the District qualified as exempt assessments pursuant to Article XIIID, section 5 of the Constitution and did not require a ballot proceeding under the provisions of section 4, the improvements associated with these assessments are considered a special benefit to the assessed properties and are in compliance with the substantive requirements of Article XIIID Section 4. The maximum assessment rates shown in this report are consistent with the provisions of Article XIIID and any new or increased assessments shall be subject to the provisions of section 4 therein. special Benefits The method of apportionment (method of assessment) is based on the premise that each of the assessed parcels within the District and zones receives benefit from the improvements maintained and financed by District assessments. specifically, the assessments associated with each zone are for the maintenance of local street lighting and landscaped improvements 0 installed as part of the original development of the parcels within the zones or were later installed for the benefit of those properties. The desirability and security of properties within each zone is enhanced by the presence of street lighting and well-maintained landscaping in close proximity to those properties. The landscape improvements provided by the District may include landscaped medians, Page 33 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 parkways, entryways, slopes and appurtenant facilities. Street lighting improvements may include energy costs and necessary maintenance to the facilities related thereto. The annual assessments outlined in this Report are proposed to cover the estimated costs to provide necessary service, operation, administration, and maintenance required each year to keep these improvements in a healthy, vigorous, and satisfactory condition. The special benefits associated with the local landscaping improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties within the Zones providing a positive representation of the area. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, and dust and debris control. • Increased sense of pride in ownership of property within the District resulting from well- maintained improvements associated with the properties. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels within the zones by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods. specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads and highways. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. • Reduced vandalism and other criminal acts and damage to improvements or property. • Improved traffic circulation and reduced nighttime accidents and personal property loss. • Increased promotion of business during nighttime hours in the case of commercial properties. u The preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels. General Benefits Page 34 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Prior to the passage of Proposition 218, some of the District assessments included maintenance of landscaped medians on various arterial streets within the City. However, since the maintenance of most arterial medians within the City were funded by the City's General Fund, it was determined that the existing assessments for these improvements were not a special benefit and in Fiscal Year 1997/98 the District assessments related to arterial medians were eliminated. In addition, any improvement and the associated costs that are considered a general benefit to properties outside the respective zones or to the public at large have been identified and eliminated from the annual assessments. In making this determination it should be noted that parkway, perimeter landscaping and interior landscaping within the City is either funded and maintained by individual property owners or through some type of association, except those maintained and funded through a special District. The City does not usually maintain these types of improvements from General Fund Revenues and like other similar improvements within the City, the ongoing maintenance of these improvements are a special benefit to the properties associated with the improvements. C. Assessment Methodology Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that fairly distributes the net amount to be assessed, among assessable parcels in proportion to the estimated benefits to be received by each such parcel from the improvements. The apportionment of costs used for each zone should reflect the composition of the parcels, and the improvements and services provided based on each parcel's estimated special benefit. Equivalent Benefit units: To assess benefits equitably, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Benefit unit method of assessment apportionment uses the single-family home as the basic unit of assessment. A single family home equals one Equivalent Benefit Unit (EBU). Every other land use is converted to EBUs based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home (SFR). Page 35 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 The EBU method of apportioning benefit is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of land use type, size and development. Assessed parcels within zones 2, 3, 4, 5, 6, 7, 8, 9, 11, 14, 15 and 16 are single-family residential parcels and the application of the EBu method of spread results in an equal assessment. The following table reflects the various property types and applicable EBUS that may be applied to properties within Zone 13. u LAND USE /EQUIVALENT BENEFIT UNITS (Zone 13) Property TypeLand use CodeEBU Type FactorMultiplier to Calculate EBUCommercialCOM6.00AcreageResidential and Commercial VacantVAC0.30Acreagesingle Family Residentia15FR1.00UnitsCondominiumsCON0.80UnitsSingle Family Vacant Lot5FV1.00LotExemptNON0.00Parcels Exempt parcels include easements and landscaped areas or common areas. The benefit formula applied to parcels in each zone is based on the preceding Equivalent Benefit unit (EBu) tables. Each parcel's EBu correlates the parcel's special benefit received as compared to the other parcels in the zone. Parcel Type EBU x Acres or Units = Parcel EBU Total Balance to Levy in Zone / Total EBU in Zone = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount D. Assessment Range Formula Page 36 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Any new or increase in assessments, require certain noticing and meeting requirements by law. The Brown Act defines the terms "new or increased assessment" to exclude certain conditions. These certain conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition was later confirmed by senate Bill 919 (the Proposition 218 implementing legislation). An assessment range formula for the District assessments has been confirmed through property owner ballot proceedings in compliance with Article XIIID, except those existing assessments within the District which qualified as exempt assessments pursuant to Article XIIID, section 5 of the Constitution and did not require a ballot proceeding under the provisions of Section 4. The assessment range formula shall be applied to the future assessments within the District. The following describes this assessment range formula: wherein, if the proposed assessment (levy per unit or rate) is less than or equal to, the prior year's maximum assessment plus the adjustments described in the following, then the proposed assessment is not considered an increased assessment. The purpose of establishing an assessment range formula is to provide for reasonable increases and 0 inflationary adjustment to the assessment amounts without requiring costly noticing and mailing procedures, which would be added to the District costs and assessments. If the proposed assessment is less than the maximum assessment approved in the previous fiscal year adjusted by a percentage no greater than three percent (3.0%), or the annual percentage increase of the Consumer Price Index (CPI), whichever is the lesser of the two, the assessment shall not be considered as an increase. Each year the City shall compute the percentage difference between the CPI on 7anuary 1, of each year and the CPI for the previous 7anuary 1, or a similar time period, as determined by the Bureau of �abor statistics for all urban consumers for the �os Angeles, Anaheim, and Riverside Area. This percentage difference shall then establish the range of increased assessments allowed based on CPI. should the Bureau of �abor statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for Page 37 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 determining fluctuations in the cost of living. If CPI is less than three percent (3.0%), then the allowable adjustment to the maximum assessment for each zone may be by CPI, or a lesser percentage. If CPI is greater than three percent (3.0%), then the allowable adjustment to the proposed assessment for each zone may be three percent (3.0%), or a lesser percentage. The fact that an assessment range formula is adopted for District assessments does not require that the adjustment be applied each year, nor does it restrict the assessments to the adjustment amount. zf the budget and assessments for a given zone do not require an increase or the increase is less than the allowable adjustment then the required budget and assessment shall be applied. If the budget and assessments for a given zone require an increase greater than the allowable adjustment then the proposed assessment is considered an increased assessment and mailed notices, as well as property owner protest ballots are required by Article XIIID to impose the assessment increase. For Fiscal Year 2005/06, the Bureau of �abor statistics has established CPI at 3.66% for the 7anuary 2004 to 7anuary 2005 period. Therefore, the previous maximum assessment for each zone within the District has been adjusted by 3.00% to establish the current maximum assessment allowed. 0 IV. DISTRICT BUDGETS A. Description of Budget Items The following describes the services and costs that are funded through the District, shown in the District Budgets. DIRECT COSTS: Maintenance Costs — Includes contracted labor, material and equipment required to properly maintain the landscaping, irrigation systems, drainage systems, fencing, and entry monuments within the zone. �andscape utilities— Includes utility costs for water required to irrigate landscaped areas and the utility costs for electricity required to run irrigation systems and ornamental lighting Page 38 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 for landscaped areas. �andscape Extras — Includes the replacement of any materials and equipment needed to make repairs to irrigation systems. Tree Pruning — Includes the cost of trimming and pruning trees located within the landscaped area. Street Lighting — Utility costs for electricity required to operate streetlights, as well as the maintenance of the streetlights. special District services — These are services provided to a specific zone that are outside the normal maintenance services provided by the District. These costs and services may include, but are not limited to the following: • specialized maintenance and equipment necessary for landscaped areas and appurtenant facilities associated with dry wells, retention basins and detention basins within the zone. • The additional cost of contracted labor, material and equipment required for trimming trees in the public right of way and landscaped areas. Maintenance Repairs — This item includes repairs that are generally unforeseen and not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism, storms, frost, etc. Also included may be planned upgrades that provide a direct benefit to the zone. replacing plant materials and/or renovation of irrigation or 0 ADMINISTRATION COSTS: These upgrades could include lighting systems. District Administration — The cost to particular departments and staff of the City, for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide administrative, Page 39 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 legal or engineering services specific to the District including required notices, mailings or property owner protest ballot proceedings. County Administration Fee — This is the cost to the zone for the County to collect District assessments on the property tax bills. County Per Parcel Fee — This is the cost to each zone for the County to collect assessments on the property tax bills. This charge is on a per assessment basis and is currently estimated at $0.16 per assessment. This cost is in addition to the County Administration Fee. Note: - The administrative costs of the District are borne by each zone in proportion to the aggregate costs of the entire District. Costs related to direct administration are identified as exempt, general and special benefits in the same proportion as the benefit finding for the Direct service costs. All costs related to the levy of assessments such as county fees and contract administration are applied to each zone regardless of any benefit findings (no general benefit). LEVY BREAKDOWN: Reserve Collection/(Transfer)— The Reserve Account item is provided for collection by the District of funds to operate the zone from the time period of 7uly 1(beginning of the fiscal year) through approximately 7anuary when the County provides the City with the first installment of assessments collected from the property tax bills. Negative amounts shown for these budget items are transfers from the reserve fund that are used to reduce the Balance to �evy. The Reserve Fund eliminates the need for the City to transfer funds from non-District accounts. other Revenues /General Fund Contribution — This item includes additional funds designated for the zone that are not from District assessments. These funds are added to the zone account to reduce assessments, and may be from either non-District or District sources including City General Fund Contributions and interest earnings. Balance to �evy — This is the total amount to be collected for the current fiscal year through assessments (for special benefits) or from other revenue sources (for general benefits). The Balance to �evy represents the sum of Total Direct and Administration Costs, Page 40 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 the Reserve Account/other Revenue source, the Beginning Balance, and the Contribution Replenishment. only those costs related to the improvements identified as special benefits are levied and collected on the tax roll. 0 DISTRICT STATISTICS: Total Parcels — The total number of parcels within the zone boundary. Total Parcels �evied — The total number of parcels within the zone that are assessed. Non-assessable lots or parcels may include parcels of land principally encumbered by public right-of-ways, easements, common areas, and/or parcels within the boundaries of the zone that currently do not benefit from the improvements due possibly to development restrictions. Total Equivalent Benefit Unit (EBU) — Equivalent Benefit Unit (EBU) is a numeric value calculated for each parcel based on the parcel's land use and size. The EBu shown in the zone budget, (section III B), represents the sum total of the parcel EBUS that receive special benefits from the improvements. Levy per EBU — This amount represents the rate being applied to each parcel's individual EBU. The �evy per Equivalent Benefit unit is the result of dividing the total Balance to �evy, by the sum of the zone EBUS, for the fiscal year. 0 B. District Budgets TABLE IV ZONE 2 CANYON COVE Page 41 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 ZONE 02 CANYON COVE Total General Special Budget Benefit Benefit DIRECT COSTS Page 42 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Maintenance Costs $25,000 $1,898 $23,102 �andscape utilities 32,000 2,429 29,571 Landscape Extras (Repairs/Materials/Equipment) 1,852 141 1,711 Tree Pruning 8,829 670 8,159 Street Lighting 250 Page 43 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 n 250 Special District Services � � � Annual Direct Costs (Subtotal) 67,931 5,138 62,793 Renovation/Capital Improvement Expenditures n n n Total Direct Costs 67,931 Page 44 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 5,138 62,793 ADMINISTRATION COSTS District Administration 6,971 529 6,442 County Administration Fee 25 0 25 County Per Parcel Fee 36 Page 45 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 0 36 Administration Costs (subtotal) 7,032 529 6,503 LEVY BREAKDOWN Total Direct and Admin. Costs 74,963 5,667 69,296 Reserve Collection/(Transfers) 0 0 0 Page 46 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 other Revenues/General Fund Contribution (55,249) (5,667) (49,582) Capital Improvement Project Collection/(Transfers) U U U Balance to Levy 19,714 U 19,714 DISTRICT STATISTICS Page 47 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Total Parcels 225 Total Parcels Levied 222 Total Equivalent Benefit Units 222.00 Levy per EBU $88.80 Page 48 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 RESERVE INFORMATION Beginning Reserve Balance Reserve Account Activity Anticipated Reserve Balance Page 49 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2004/05 86.2173 Maximum Assessment Rate FY 2005/06 $88.8038 CPI Applied: 3.00% Page 50 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 TABLE IV ZONE 3 VINEYARDS ZONE 03 VINEYARDS Total General Special Budget Benefit Benefit Page 51 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 DIRECT COSTS Maintenance Costs $3,000 $0 $3,000 �andscape utilities 1,100 � 1,100 Landscape Extras (Repairs/Materials/Equipment) 1,000 � 1,000 Page 52 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Tree Pruning 400 0 400 Street Lighting 700 0 700 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 6,200 0 6,200 Page 53 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 6,200 0 6,200 ADMINISTRATION COSTS District Administration 1,573 � 1,573 Page 54 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 County Administration Fee 25 � 25 County Per Parcel Fee 21 n 21 Administration Costs (subtotal) 1,619 � 1,619 LEVY BREAKDOWN Total Direct and Admin. Costs 7,819 � Page 55 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 7,819 Reserve Collection/(Transfers) .:� 0 .:� other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/(Transfers) 0 0 0 Balance to Levy 8,508 Page 56 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 0 8,508 DISTRICT STATISTICS Total Parcels 147 Total Parcels Levied 132 Total Equivalent Benefit Units Page 57 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 133.20 Levy per EBU $63.88 RESERVE INFORMATION Beginning Reserve Balance 2 ,161 Reserve Account Activity Page 58 .:' FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Anticipated Reserve Balance 2,850 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2004/05 62.0194 Maximum Assessment Rate FY 2005/06 $63.8800 Page 59 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 CPI Applied: 3.00% TABLE IV ZONE 4 PARKVIEW ESTATES Page 60 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 ZONE 04 PARKVIEW ESTATES Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $0 $0 Page 61 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 $0 �andscape utilities 0 0 0 Landscape Extras (Repairs/Materials/Equipment) 0 0 0 Tree Pruning 0 0 0 Street Lighting 2,500 250 2,250 Special District Services 0 Page 62 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 U 0 Annual Direct Costs (Subtotal) 2,500 250 2,250 Renovation/Capital Improvement Expenditures U U 0 Total Direct Costs 2,500 250 2,250 ADMINISTRATION COSTS Page 63 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 District Administration 1,417 142 1,275 County Administration Fee 25 � 25 County Per Parcel Fee 28 � 28 Administration Costs (subtotal) 1,470 142 1,328 LEVY BREAKDOWN Page 64 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 Total Direct and Admin. Costs 3,970 264 3,578 Reserve Collection/(Transfers) 112 U 112 other Revenues/General Fund Contribution (264) (264) U Capital Improvement Project Collection/(Transfers) U U Page 65 FY0506-PalmDesert-LLDs-EngineersReportFINAL-06.05.05 n Balance to Levy 3,818 � 3,818 DISTRICT STATISTICS Total Parcels 175 Total Parcels Levied Page 66