HomeMy WebLinkAboutRes 06-49 and 06-50 PD Highlands Utility Undergrounding AD 04-04CITY OF PALM DESERT
CITY MANAGERS OFFICE
STAFF REPORT
TO: Honorable Mayor and City Council
SUBJECT: PALM DESERT HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT 04-01
SUBMITTED BY: Patrick Conlon, Special Projects Administrator
DATE: April 13, 2006
ATTACHMENTS: 1) Preliminary Engineers Report
2) Resolution No. 06-49
3) Resolution No. 06-50
4) Project Timeline
RECOMMENDATION
By Minute Motion:
Staff recommends that the City Council adopt the following resolutions in connection
with the proposed formation of the Utility Undergrounding Assessment District No. 17
(Palm Desert Highlands) (the "District"):
1. Adopt Resolution No. 06-49entitled "A Resolution of the City Council of the City
of Palm Desert Declaring its Intention to Order Improvements for Proposed
Highlands Utility Undergrounding Assessment District No. 04-01 Pursuant to the
Municipal Improvement Act of 1913 and in Accordance with Article XIIID of the
California Constitution, To Comply with the Requirements of Division 4 of the
California Streets and Highways Code by Proceeding under Part 7.5 Thereof and
to Designate Such District an Underground Utility District Pursuant to Chapter
12.12 of the Municipal Code and Approving and Adopting a Modified Boundary
Map in Connection Therewith."
2. Adopt Resolution No. 06-50entitled "A Resolution of the City Council of the City
of Palm Desert Approving the Report of the Engineer in Connection with
Proposed Highlands Utility Undergrounding Assessment District No. 04-01,
Setting a Time and Place for Hearing Protests and Calling a Hearing Pursuant to
Section 12.12.020 of the Municipal Code."
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Staff Report
Palm Desert Highlands Utility Undergounding
April 13, 2006
Page 2 of 3
Background
The owners of certain property located within the Palm Desert Highlands neighborhood
have requested the City Council to initiate proceedings pursuant to the Municipal
Improvement Act of 1913 (Division 12 of the California Streets and Highways Code,
commencing with Section 10000) and Chapter 12.12 of the Palm Desert Municipal
Code (the "Municipal Code") for the conversion to underground service of overhead
electric and communication facilities in the Highlands area. On May 13, 2004, the City
Council adopted its Resolution No. 04-36 initiating proceedings for formation of an
assessment district in connection with the requested utility undergrounding.
Formation of the District is subject to the requirements of Proposition 218. This means
that assessment ballots must be mailed to the owners of record of the properties
proposed to be subject to the annual assessment at least 45 days prior to a public
hearing on the proposed assessments. Each ballot must be weighted in accordance
with the proposed assessment against the parcel covered by the ballot. If the weighted
ballots cast in opposition to the assessment do not exceed the weighted ballots cast in
favor of the assessment, the City Council may form the District and levy the
assessment.
It is necessary for the City Council to adopt the above resolutions to form the District.
The first resolution finds that the public interest, necessity and convenience require and
declares the City Council's intention to order the utility undergrounding improvements
(the "Improvements") and further briefly describes the Improvements. This resolution
orders MuniFinancial, as the assessment engineer, to make and file with the City Clerk
an engineer's report concerning the formation of the District and the levy of
assessments as required by the 1913 Act and Proposition 218. MuniFinancial has
prepared the Engineer's Report, which is on file in the office of the City Clerk. Further,
this resolution approves a modified boundary map establishing the boundaries of the
District. This resolution gives notice that bonds will be issued in order to pay for
Improvements and declares that the City intends to make a contribution of revenues as
a credit against the assessment.
On March 13, 2006 the City opened public bids for the above Assessment District. Two
large well known underground contractors bid on the project and the results were as
follows:
1) Herman Weissker, Inc. $ 4,711,744.43
(Bloomington, CA)
2) Par Electrical Contractors, Inc. $ 5,600,942.18
(Fontana, CA)
The low bid from Herman Weissker combined with the other Assessment District costs,
as shown on Exhibit B in the Preliminary Engineers Report will result in parcel
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Staff Report
Palm Desert Highlands Utility Undergounding
April 13, 2006
Page 3 of 3
assessments ranging from approximately $26,000 to $31,000. Forty condominium units
in Palm Desert Tennis Club will be assessed $2,531.15 each for their share of the utility
undergrounding. A complete list of parcel assessments is listed on Exhibit C in the
Preliminary Engineers Report.
The second resolution approves the Preliminary Engineer's Report and calls a public
hearing for Thursday, June 8, 2006 at 4:00 p.m. This resolution directs that a property
owner balloting procedure be conducted in connection with the proposed formation of
the District. This resolution also approves procedures for the completion, return and
tabulation of assessment ballots, which procedures are on file in the office of the City
Clerk.
It should be noted that this is the Preliminary Engineers Report. The assessments listed
are what will be shown on the ballots sent to the property owners within the District.
These assessments are "not to exceed costs" and when all the work is completed on
this project, the final Engineers Report will come back to the Council for final adoption.
Attached to this report is a project timeline indicating milestone dates for the project
completion.
Submitted by: Reviewed by:
� � I
Pat ick Conlon
Special Projects Administrator
Carlos Ortega
City Manager
G\CityMgrUane Stanley\Word Files1Pat ConlonlReports & Memos WDHightandsUndergounding4-13-O6.doc
RESOLUTION NO. 06-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA DECLARING ITS INTENTION TO ORDER IMPROVEMENTS FOR
PROPOSED HIGHLANDS UTILITY UNDERGROUNDING ASSESSMENT DISTRICT
NO. 04-01 PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND IN
ACCORDANCE WITH ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION, TO
COMPLY WITH THE REQUIREMENTS OF DIVISION 4 OF THE CALIFORNIA
STREETS AND HIGHWAYS CODE BY PROCEEDING UNDER PART 7.5 THEREOF
AND TO DESIGNATE SUCH DISTRICT AN UNDERGROUND UTILITY DISTRICT
PURSUANT TO CHAPTER 12.12 OF THE MUNICIPAL CODE AND APPROVING
AND ADOPTING A MODIFIED BOUNDARY MAP IN CONNECTION THEREWITH
RECITALS:
WHEREAS, on December 14, 2000, the City Council adopted its Resolution No. 00-135,
establishing a policy in connection with the initiation of special assessment proceedings by petition
of property owners for the purpose of financing the conversion of overhead utility facilities to
underground locations; and
WHEREAS, on April 6, 2004, a written petition of property owners (the "Petition") was
presented to the City Council requesting the conversion of overhead utility facilities within an area
commonly known as the Highlands. A copy of the Petition is on file in the Office of the City
Clerk; and
WHEREAS, on May 13, 2004, the City Council adopted its Resolution No. 04-36,
initiating proceedings, pursuant to Chapter 12.12 of the Palm Desert Municipal Code (the
"Municipal Code") and the Municipal Improvement Act of 1913 (Division 12 of the California
Streets and Highways Code, commencing with Section 10000) (the "1913 Act") for the
conversion to underground service of overhead electric and communication facilities in the
Highlands area and the formation of an assessment district in connection therewith; and
WHEREAS, by its Resolution No. 04-36, the City Council also established the
boundaries of the proposed district in accordance with a map entitled "Palm Desert Highlands
Utility Underground Assessment District" (the "2004 Map"); and
WHEREAS, the City Clerk has executed a Certificate of Sufficiency (the "Certificate")
with regard to the Petition, and has presented the Certificate and the Petition to the City Council;
and
WHEREAS, the City Council desires to continue proceedings pursuant to the 1913 Act
to form Highlands Utility Undergrounding Assessment District No. 04-02 (the "District"); and
WHEREAS, the City Council desires to approve and adopt a map entitled "Proposed
Boundaries of Highlands Utility Undergrounding Assessment District No. 04-01" (the "2006
Map") modifying the boundaries previously established by the 2004 Map; and
P6401-1034\859553.3 1
WHEREAS, the City Council desires to designate the District as an Underground Utility
District pursuant to Chapter 12.12 of the Municipal Code.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF PALM DESERT AS FOLLOWS:
Section 1. The above recitals are all true and correct and a substantive part of this
Resolution.
Section 2. The City Council hereby (i) finds that the public interest, necessity and
convenience require, and (ii) declares its intention to order, improvements
authorized by the Act (the "Improvements"). The Improvements are briefly
described in Section 5, below.
Section 3. The district of land to be benefited by the Improvements, below, and to be
specially assessed to pay the costs and expenses of such improvements, including
incidental expenses, shall be referred to as " Highlands Utility Undergrounding
Assessment District No. 04-01."
Section 4.
The 2006 Map of the District is hereby approved and adopted. The original 2006
Map of the District and one copy thereof shall be filed in the Office of the City
Clerk. The 2006 Map of the District shall govern for all details as to the extent of
the District.
A certificate evidencing the data and adoption of this resolution shall be endorsed
on the original 2006 Map of the District and on at least one copy thereof.
Within 15 days or sooner after adoption of the resolution fixing the time and place
of hearing on the formation or extent of the District, a copy of the 2006 Map of
the District shall be filed with correct and proper endorsements thereon in the
Office of the County Clerk and Recorder, County of Riverside, pursuant to
Section 3111 of the California Streets and Highways Code.
For a full and complete description of the exterior boundaries of the proposed
District, reference is hereby made to the 2006 Map, which will be on file in the
office of the City Clerk of the City and open to public inspection. The office of
the City Clerk is located at 73-510 Fred Warring Drive, Palm Desert, California
92260-2578.
Section 5. The proposed Improvements are briefly described as:
All work and equipment necessary to convert the existing overhead utility lines
within the District to underground service and the removal of all abandoned
power poles, lines, and associated equipment.
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Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
Such work and equipment shall include, but shall not be limited to, trenching,
installing the new utility vaults needed to receive the conduits and transformers,
laying the conduit lines into the trenches, re -paving the street, switching service to
the underground system and removing the existing overhead poles and wires.
This includes power lines owned by Southern California Edison, phone lines
owned by Verizon, cable television and fiber optic lines.
The public improvement portion of the undergrounding of utilities will terminate
at a service lateral located at the front of each property to be served in the District.
Each individual property owner will be responsible for the trenching, backfilling,
conduits, conductors and conversion panels needed from the service lateral to the
connection point at the house.
With respect to each lot or parcel for which a written request is accepted by the
City Clerk pursuant to Section 5896.15 of the Code, the Improvements shall
include (subject to applicable rules regulations, tariffs and ordinances) such
trenching, backfilling, conduits, conductors and conversion panels needed from
the service lateral to the connection point at house.
The City Council hereby declares its intention to comply with the requirements of
the Special Assessment Investigation, Limitation and Majority Protest Act of
1931, Division 4 of the Code (the "1931 Act") by proceeding under Part 7.5 of the
1931 Act.
The proposed Improvements are hereby referred to MuniFinancial, as Assessment
Engineer, to make and file with the City Clerk a report in writing in accordance
with Article XIIID, Section 4 of the California Constitution and Section 10204 of
the 1913 Act, which report shall also contain all of the information required by
Section 2961 of the 1931 Act and Section 12.12.030 of the Municipal Code.
To the extent permitted by Section 5896.14 of the Code, the City Council hereby
determines that it is in the public interest and more economical to do work on
private property to eliminate any disparity in level or size between the proposed
Improvements and private property than to adjust the work on public property to
eliminate such disparity.
Provision is hereby made for the issuance of improvement bonds, in one or more
series, pursuant to Chapter 7 of Division 12 of the Code, commencing with
Section 10600.
Notice is hereby given that serial bonds or term bonds or both to represent unpaid
assessments, and to bear interest at the rate of not to exceed twelve percent per
year, or such other amount authorized by law, payable semiannually, shall be
issued hereunder in one or more series in the manner provided by the
Improvement Bond Act of 1915 (commencing with Section 8500 of the Code)
P6401-1034\859553.3 3
Section 11.
Section 12.
Section 13.
(the "1915 Act"), and the last installment of bonds shall mature a maximum of 39
years from the second day of September next succeeding 12 months from their
date.
The City Council hereby determines and declares that the City will not obligate
itself to advance available funds from the City treasury to cure any deficiency
which may occur in the bond redemption fund.
The City Council hereby determines that the principal amount of bonds maturing
or becoming subject to mandatory prior redemption each year shall be other than
an amount equal to an even annual proportion of the aggregate principal amount
of the bonds, and the amount of principal maturing or becoming subject to
mandatory prior redemption in each year plus the amount of interest payable in
that year shall be an aggregate amount that is substantially equal each year, except
for the moneys falling due on the first maturity or mandatory prior redemption
date of the bonds which shall be adjusted to reflect the amount of interest earned
from the date when the bonds bear interest to the date when the first interest is
payable on the bonds.
With respect to the procedures for collection of assessments and the advance
retirement of bonds in connection with the proposed District, the City Council
proposes to proceed under the provisions of Part 11.1 of the 1915 Act
(commencing with Section 8670 of the 1915 Act).
Section 14. The City hereby designates the City Treasurer, or the designated agent of the City
Treasurer, to collect and receive the assessments.
Section 15.
Section 16.
Section 17.
Any surplus moneys remaining in the improvement fund after the completion of
the proposed Improvements and the payment of all claims from the improvement
fund shall be disposed of in accordance with Section 10427 of the 1913 Act.
In the opinion of the City, the public interest will not be served by allowing
property owners to take a contract to perform any of the work. Notwithstanding
the foregoing (and subject to applicable rules, regulations, tariffs and ordinances),
it shall be the responsibility of the owner of each lot or parcel in the District to
construct, reconstruct, relocate, or convert all electric or communication facilities
located upon such lot or parcel, unless a written request pursuant to Section
5896.14 of the Code is executed by the such owner and accepted by the City
Clerk.
The Improvements will be designed by Southern California Edison and Verizon
(collectively the "Public Utilities"). Either the Public Utilities or the City (or
some combination thereof) will construct the Improvements. Once completed,
the Improvements will become the property of the Public Utilities. The City
Council hereby declares its intention to enter into agreements with the Public
Utilities pursuant to Chapter 2 of the 1913 Act (commencing with Section 10100
P6401-1034\859553.3 4
of the 1913 Act), to the extent the Improvements are to be owned, managed or
controlled by the Public Utilities.
Section 18. Pursuant to Section 10205 of the 1913 Act, the City intends to make a
contribution of revenues as a credit against the assessment.
Section 19.
The City Engineer is hereby appointed and designated to perform the duties and
functions of the Superintendent of Streets in connection with the proposed District
pursuant to the 1913 Act.
P6401-1034\859553.3 5
RESOLUTION NO.
PASSED, APPROVED, AND ADOPTED THIS DAY OF , 2006.
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF PALM DESERT
I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, County of Riverside, State of
California do hereby certify that the foregoing Resolution No. was regularly adopted by
the City Council of said City of Palm Desert at a regular meeting of said council held on the
day of , 2006 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
Rachelle D. Klassen
City Clerk
City of Palm Desert
Jim Ferguson
Mayor
City of Palm Desert
P6401-1034\859553.3 6
RESOLUTION NO. 06-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA APPROVING THE REPORT OF THE ENGINEER IN CONNECTION
WITH PROPOSED HIGHLANDS UTILITY UNDERGROUNDING ASSESSMENT
DISTRICT NO. 04-01, SETTING A TIME AND PLACE FOR HEARING PROTESTS
AND CALLING A HEARING PURSUANT TO SECTION 12.12.020 OF THE
MUNICIPAL CODE
RECITALS:
WHEREAS, on April 13, 2006, the City Council adopted its resolution entitled "A
Resolution of the City Council of the City of Palm Desert, California, Declaring Its Intention To
Order Improvements for Proposed Highlands Utility Undergrounding Assessment District No.
04-01 Pursuant to the Municipal Improvement Act of 1913 and in Accordance with Article XIIID
of the California Constitution, to Comply with the Requirements of Division 4 of the California
Streets and Highways Code by Proceeding under Part 7.5 Thereof and to Designate Such District
an Underground Utility District Pursuant to Chapter 12.12 of the Municipal Code and Approving
and Adopting a Modified Boundary Map in Connection Therewith" (the "Resolution of
Intention"), declaring its intention to order improvements (the "Improvements") in connection
with the proposed Highlands Utility Undergrounding Assessment District No. 04-01 (the
"District"); and
WHEREAS, the Resolution of Intention referred the Improvements to MuniFinancial, as
assessment engineer, (the "Assessment Engineer") to make and file with the City Clerk a report
in writing in accordance with Article XIIID, Section 4 of the California Constitution and Section
10204 of the California Streets & Highways Code (the "Code"), which report shall also contain
all of the information required by Section 2961 of the Code and Section 12.12.030 of the Palm
Desert Municipal Code (the "Municipal Code"); and
WHEREAS, the Assessment Engineer has made a report entitled "City of Palm Desert
Preliminary Engineer's Report Highlands Utility Undergrounding Assessment District No. 04-
01" (the "Report") and has filed such report with the City Clerk; and
WHEREAS, the City Clerk has presented the Report to the City Council.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF PALM DESERT AS FOLLOWS:
Section 1. The above recitals are all true and correct and a substantive part of this
Resolution.
Section 2. The Report has been considered by the City Council, and such report is hereby
preliminarily approved as filed.
Section 3. The City Council hereby calls a public hearing (the "Hearing") pursuant to
Section 12.12.020 of the Municipal Code for Thursday, June 8, 2006, at 4:00
P6401-1034\859554.2
p.m., or as soon thereafter as feasible in the Council Chambers, 73-510 Fred
Waring Drive, Palm Desert, California to consider whether the public necessity,
health, safety, or welfare require the removal of poles, overhead wires, and
associated overhead structures within the District and the underground installation
of wires and facilities for supplying electric, communication, or similar or
associated service. At the Hearing all interested persons shall be given an
opportunity to be heard.
Section 4. The City Council further appoints the time and place of the Hearing as the time
and place for hearing protests to the proposed assessment.
Section 5.
Section 6.
The City Clerk is hereby directed to give notice of the Hearing in accordance with
Article XIIID, Section 4 of the California Constitution and Section 53753 of the
California Government Code by causing a notice of the Hearing and an
assessment ballot to be mailed by first class mail to the record owners of the
parcels in the proposed District not less than 45 days before the date of the
Hearing.
The City Council hereby approves the Procedures for the Completion, Return and
Tabulation of Assessment Ballots presented to the City Council at this meeting
and now on file in the office of the City Clerk and open to public inspection.
Section 7. The City Council hereby designates the Assessment Engineer, telephone number
(800) 755-6864, to answer inquiries regarding the protest proceedings.
P6401-1034\859554.2
RESOLUTION NO.
PASSED, APPROVED, AND ADOPTED THIS DAY OF , 2006.
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF PALM DESERT
I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, County of Riverside, State of
California do hereby certify that the foregoing Resolution No. was regularly adopted by
the City Council of said City of Palm Desert at a regular meeting of said council held on the
day of , 2006 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
Rachelle D. Klassen
City Clerk
City of Palm Desert
Jim Ferguson
Mayor
City of Palm Desert
P6401-1034\859554.2
CITY OF PALM DESERT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
PROCEDURES FOR THE COMPLETION,
RETURN, AND TABULATION OF
ASSESSMENT BALLOTS
I. Completion of Ballots
Who may complete a ballot
An assessment ballot may be completed by the
owner of the parcel to be assessed. As used in
these Procedures, the term "owner" includes the
owner's authorized representative. If the owner
of the parcel is a partnership, joint tenancy, or
tenancy in common, a ballot may be completed
by any of the general partners, joint tenants, or
tenants in common. Except as set forth below,
only one ballot may be completed for each
parcel.
• Proportional assessment ballots
If a parcel has multiple owners, any owner may
request a proportional assessment ballot. If the
ownership interest of the owner is not shown on
the last equalized secured property tax
assessment roll, such request must include
evidence, satisfactory to the City, of the owner's
proportional rights in the parcel. The City will
provide the proportional ballot to the owner at the
address shown on the assessment roll. Any
request for a ballot to be mailed to another
location must be made in writing and must
include evidence, satisfactory to the City, of the
identity of the person requesting the ballot. Each
proportional ballot will be marked to show the
date on which the ballot was provided, to identify
it as a proportional ballot and to indicate the
owner's proportional rights in the parcel. The
City will keep a record of each proportional ballot
provided to an owner.
Duplicate ballots
If an assessment ballot is lost, withdrawn,
destroyed or never received, the City will mail or
otherwise provide a duplicate ballot to the owner
upon receipt of a request in writing delivered to
the City Clerk. The duplicate ballot will be
marked to show the date on which the ballot was
mailed or provided and to identify it as a
P6401\1034\871169.2
duplicate ballot or a duplicate proportional ballot.
The same procedure applies to duplicate ballots
or duplicate proportional ballots which are lost,
withdrawn, destroyed, or never received.
• Marking and signing the ballot
To complete an assessment ballot, the owner of
the parcel must (1) stamp or mark the
appropriate box supporting or opposing the
proposed assessment, and (2) sign, under
penalty of perjury, the statement on the ballot
that the person completing the ballot is the
owner of the parcel or the owner's authorized
representative. Only one box may be stamped
or marked on each ballot. Ballots must be
completed in ink.
• Only assessment ballots provided by
the City will be accepted
The City will only accept ballots mailed or
otherwise provided to owners by the City.
II. Return of Ballots
• Who may return ballots
An assessment ballot may be returned by the
owner of the parcel or by anyone authorized by
the owner to return the ballot.
• Where to return ballots
Ballots may be mailed to the address indicated
on the ballot. The City has provided return
postage on the ballot.
Ballots may also be delivered in person to the
City Clerk at City Hall, 73-510 Fred Waring
Drive, Palm Desert, California 93550 (prior to
3:30 p.m. on the date scheduled for the public
hearing on the proposed assessment), or
delivered to the City Clerk at the public hearing
on the proposed assessment.
• When to return ballots
All returned ballots must be received by the City
Clerk prior to the time the City Council closes the
-1-
public input portion of the public hearing on the
proposed assessment. The public input portion
of the public hearing may be continued from time
to time. The City Clerk will endorse on each
ballot the date of its receipt.
The City Clerk will pick up mailed ballots at 3:30
p.m. on the date scheduled for the public hearing
on the proposed assessment. To ensure that
mailed ballots are received by the City Clerk
prior to the conclusion of the public input portion
of the public hearing, mailed ballots must be
received by the City prior to that time. Mailed
ballots received after 3:30 p.m. on the date
scheduled for the public hearing will only be
counted if the ballots are received by the City
Clerk prior to the conclusion of the public input
portion of the public hearing. The City makes no
representation as to whether the public input
portion of the public hearing will be concluded on
the date scheduled for commencement of the
public hearing or continued to a later date.
• Withdrawal of assessment ballots
After returning an assessment ballot to the City,
the person who signed the ballot may withdraw
the ballot by submitting a written statement to the
City Clerk directing the City Clerk to withdraw the
ballot. Such statement must be received by the
City Clerk prior to the close of the public input
portion of the public hearing on the proposed
assessment. When ballots for the assessment
are tabulated, the City Clerk will segregate
withdrawn ballots from all other returned ballots.
The City Clerk will retain all withdrawn ballots
and will indicate on the face of such withdrawn
ballots that they have been withdrawn.
If any ballot has been withdrawn, the person
withdrawing the ballot may request a duplicate
ballot.
• Changes to assessment ballots
In order to change the contents of a ballot that
has been submitted, the person who has signed
that ballot may (1) request that such ballot be
withdrawn, (2) request that a duplicate ballot be
issued, and (3) return the duplicate ballot fully
completed. Each of these steps must be
completed according to the procedures set forth
above.
P6401\1034\871169.2
III. Tabulation of Ballots
• Which assessment ballots will be
counted
Only ballots which are completed and returned in
compliance with these procedures will be
counted. Ballots received by the City Clerk after
the close of the public input portion of the public
hearing on the proposed assessment will not be
counted. Ballots which are not signed by the
owner will not be counted. Ballots with no boxes
marked, or with more than one box marked, will
not be counted. Ballots withdrawn in accordance
with these procedures will not be counted.
The City will keep a record of each proportional
or duplicate ballot mailed or otherwise provided
to an owner and will verify, prior to counting any
duplicate ballot, that only one ballot has been
returned for the parcel (or for the owner in the
case of proportional ballots). If a non -duplicate
ballot has been returned, the City will count the
non -duplicate ballot and disregard all duplicate
ballots. If only duplicate ballots have been
returned, the City will count the latest provided
duplicate ballot and disregard the earlier
provided duplicate ballots. If an owner returns
both a non -proportional ballot and a proportional
ballot, the City will count the proportional ballot
and disregard the non -proportional ballot.
• When and where ballots will be
tabulated
The tabulation of ballots will be performed, in
view of those present, at the public hearing
following the close of the public input portion of
the public hearing. The public hearing may be
continued from time to time for the purpose of
tabulating ballots. Ballots will not be unsealed
until the tabulation begins.
• How ballots will be tabulated
Ballots may be counted by hand, by computer or
by any other tabulating device.
Ballots will be tabulated by adding the ballots
submitted in opposition to the assessment and
adding the ballots submitted in favor of the
assessment. Ballots shall be weighted
according to the proportional financial obligation
of the affected property; provided, however, that
proportional ballots shall be weighted in
accordance with the respective ownership
-2-
interests of each proportional ballot submitted. If
one or more proportional ballots are returned for
a parcel and a non -proportional ballot is returned
for the parcel, the non -proportional ballot will
either be disregarded (if the same owner has
returned a proportional ballot) or treated as a
proportional ballot (if the same owner has not
returned a proportional ballot).
• Who will tabulate ballots
Ballots will be tabulated by the City Clerk or
some other impartial person designated by the
City Council who does not have a vested interest
in the outcome of the proposed assessment.
The City Clerk or other designated person may
be assisted by any of the staff and consultants of
the City.
• Results of tabulation
The results of the tabulation will be announced
following the completion of the tabulation and
entered in the minutes of the City Council
meeting. If ballots submitted in opposition to the
proposed assessment exceed the ballots
submitted in favor of the proposed assessment
(as tabulated above), the assessment will not be
imposed.
Disclosure of Ballots
During and after the tabulation, the assessment
ballots shall be treated as disclosable public
P6401110341871169.2
records and be equally available for inspection
by the proponents and opponents of the
proposed assessment.
IV. Resolution of Disputes
In the event of a dispute regarding whether the
signer of a ballot is the owner of the parcel to
which the ballot applies, the City will make such
determination from the last equalized
assessment roll and any evidence of ownership
submitted to the City prior to the conclusion of
the public hearing. The City will be under no
duty to obtain or consider any other evidence as
to ownership of property and its determination of
ownership will be final and conclusive.
In the event of a dispute regarding whether the
signer of a ballot is an authorized representative
of the owner of the parcel, the City may rely on
the statement on the ballot signed under penalty
of perjury that the person completing the ballot is
the owner's authorized representative and any
evidence submitted to the City prior to the
conclusion of the public hearing. The City will be
under no duty to obtain or consider any other
evidence as to whether the signer of the ballot is
an authorized representative of the owner and its
determination will be final and conclusive.
V. Public Record
During and after tabulation, all ballots are public
records.
-3-
CITY OF PALM DESERT
PRELIMINARY ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT No. 04-01
ARIL 13, 2006
Corporate Office
27368 Via Industria
Suite 110
Temecula, CA 92590
Tel:
Tel:
Fax:
INTENT MEETING: April 13, 2006
PUBLIC HEARING: June 8, 2006
(951) 587-3500
(800) 755-MUNI (6864)
(951) 587-3510
MuniFinancial
Regional Offices
Anaheim, CA
Industry, CA
Jacksonville, FL
Lancaster, CA
Oakland, CA
www.muru.com
Phoenix, AZ
San Diego, CA
Seattle, WA
Washington, DC
ENGINEER'S REPORT
HIGHLAND UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
TABLE OF CONTENTS
CERTIFICATIONS ENGINEER'S REPORT ii
GENERAL DESCRIPTION OF HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01 1
DESCRIPTION OF WORK 1
EXHIBIT A - PLANS AND SPECIFICATIONS A
EXHIBIT B - COST ESTIMATE B
EXHIBIT C - ASSESMENT ROLL C
EXHIBIT D - DEBT LIMIT REPORT D
EXHIBIT E - METHOD OF ASSESSMENT E
EXHIBIT F - ASSESSEMENT DIAGRAM F
EXHIBIT G - MAXIMUM ANNUAL ADMINISTRATIVE COST G
EXHIBIT H - RIGHT-OF-WAY AND EASEMENTS I{
EXHIBIT I - PUBLIC PROPERTIES
MuniFinancial City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
The undersigned respectfully submits the enclosed report as directed by the City Council.
Date: , 2006.
Willdan
Assessment Engineer
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment and
Assessment Diagram thereto attached, was filed with me on the day of
, 2006.
Clerk of the City Council,
City of Palm Desert, California
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment and
Assessment Diagram thereto attached, was approved and confirmed by the City Council for the City of
Palm Desert, California, on the day of , 2006.
Clerk of the City Council,
City of Palm Desert, California
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment and
Assessment Diagram thereto attached, was recorded in my office on the day of
, 2006.
City Engineer (Superintendent of Streets),
City of Palm Desert, California
MuniFinancial ii City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
\X'illdan/MuniFinancial, Assessment Engineer of work for Highlands Utility Undergrounding
Assessment District No. 04-01 (the "Assessment District"), writes this report, as prescribed by the City
Council of the City of Palm Desert in accordance with the Resolution of Intention, Resolution
No. and pursuant to the terms and provisions of Article XIIID of the State Constitution,
Part 7.5 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, which is
Division 4 of the Streets and Highways Code of the State of California, the Municipal Improvement Act
of 1913, which is Division 12 of the Streets and Highways Code of the State of California, and Chapter
28 of the Improvement Act of 1911.
The improvements, which are the subject of this report, are briefly described as follows:
GENERAL DESCRIPTION OF HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
Highlands Utility Undergrounding Assessment District No. 04-01 generally includes the properties
South of Skyward Way, East of Frontage Road, West of Alamo Drive, and North of Desert View Drive,
including properties along Davis Road and Beverly Drive.
The Assessment District is made up one hundred twenty-five (124) single-family residential detached
properties, forty (42) Palm Desert Tennis Club Condominium Properties, and one CV\XD property. All
but three of the properties are developed, two of the Palm Desert Club Properties are common area
parcels and are exempt, the CV'VD parcel can not be build on and is also exempt, and thirty-four of the
homes have existing underground utility service from overhead poles to the house connection.
DESCRIPTION OF WORK
The following is a description of the planned improvements for the entire district.
A. Undergrounding of Overhead Utility Lines
The undergrounding of overhead utility lines within the boundaries of the Highlands Assessment
District includes trenching, installing the new utility vaults needed to receive the conduits and
transformers, laying the conduit lines into the trenches, re -paving the street, switching service to the
underground system and removing the existing overhead poles and wires. This includes power lines
owned by Southern California Edison, phone lines owned by Verizon, and cable television and fiber
optic lines.
The proposed underground electric and communication improvements must be constructed within
public right-of-way, land, or easements owned by the City of Palm Desert or the serving utility.
B. Onsite Property Costs
The public improvement portion of the undergrounding of utilities will terminate at a service lateral
located at the front or rear of each property to be served in the district. Each individual property owner
will be responsible for the trenching and backfilling, along with the installation of conduits, conductors
and conversion panels needed to complete the connections from the service lateral to the connection
MuniFinancial 1 City of Palm Desert
point at the house. The estimated cost of this additional work is estimated at approximately $3,000 per
residence and will vary depending on the length and location of the service connection.
Each property owner will have the option to have this work completed by the City's contractor and have
the cost of this work included in their assessment lien. Alternatively, they can use their own contractor
and pay them directly. In this case, the assessment lien will include only the costs of the public
improvements.
BONDS
Bonds representing unpaid assessments, and bearing interest at a rate not -to -exceed twelve -percent (12-
percent) per annum, shall be issued in the manner provided by the Improvement Bond Act of 1915
(Division 10, Streets and Highways Code), and the last installment of the bonds shall mature not -to -
exceed thirty-nine (39) years from the second day of September next succeeding twelve (12) months
from the date.
This report includes the following attached exhibits:
EXHIBIT A - Plans and specifications for improvements to be constructed. Plans and
specifications are a part of this report, separately bound, and are available for review at the Office
of the City Clerk.
EXHIBIT B - An estimate of the cost of the improvements.
EXHIBIT C - An assessment roll, showing the amount to be assessed against each parcel of real
property within this Highlands Utility Undergrounding Assessment District No. 04-01. Each
parcel is described by an Assessor's Parcel Number or other designation. Each parcel is also
assigned an "assessment number" for the purposes of this proceeding.
EXHIBIT D - A debt limitation report showing the following:
1. The total amount of Prior Assessment Liens, as near as may be determined, and of the total
principal sum of all unpaid special assessments and special assessments required or proposed
to be levied under any completed or pending assessment proceedings, other than that
contemplated for this Highlands Utility Undergrounding Assessment District No. 04-01,
against the total area proposed to be assessed.
2. The total true value, as near as may be determined, of the parcels of land and the
improvements that are proposed to be assessed by this District.
EXHIBIT E - A statement of the method by which the Assessment Engineer determined the
amount to be assessed against each parcel based on the special benefits to be derived by each
parcel, respectively, from the improvements.
EXI-IIBIT F - A diagram showing all of the parcels of real property- within this Highlands Utility
Undergrounding Assessment District No. 04-01. The diagram corresponds to and is keyed to
Exhibit C by the assessment number.
EXHIBIT G - Proposed maximum annual administrative cost per parcel.
EXHIBIT H - A schedule showing the rights -of -way and easements to be acquired.
EXHIBIT I - A schedule showing the public property that will be included within the District.
MuniFinancial 2 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT A - PLANS AND SPECIFICATIONS
PLANS AND SPECIFICATIONS
The plans and specifications for the improvements for this District are voluminous and will not be
bound to this Report, but by this reference are incorporated as if attached to this Report. The plans and
specifications are on file in the office of the Special Projects Administrator of the City of Palm Desert.
The plans and specifications for this District consist of utility undergrounding plans.
MuniFinancial Exhibit A - Page 1 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT B - COST ESTIMATE
Eligible Cost (Bid) 3,796,292.90
Contingency @ 10% 379,629.29
Engineering 95,334.00
Inspection Fees 50,000.00
City Administration 27,957.00
Total Eligible Costs
Bond Cost (Bid) 651,703.53
Contingency @ 10% 65,170.35
Engineering 41,066.00
City Administration 12,043.00
Total Bond Costs
4,349,213.19
769,982.88
Private Cost (Bid) 263,748.00
Contingency @ 10% 26,374.80
SCE 815,853.00
Verizon 364, 975.00
Total Private Costs
Total Project Cost Estimate
Less: RDA Reimbursement
Total Funded by Bond Proceeds
Cost of Issuance
Reserve Fund (1)
Underwriter's Discount (2)
Original Issue Discount (3)
Costs of Issuance (4)
Capitalized Interest (5)
Total Bond Financing Costs
Par Amount of Bonds
Notes
1,470, 950.80
6,590,146.87
(3,530,000.00)
3,060,146.87
250,090.00
52,950.00
40,573.20
126,239.93
469,853.13
3,530,000.00
(1) Maximum Annual Debt Service (MADS)
(2) 1.50% ($15.00/bond) of the Par Amount of Bonds
(3) Represents Original Issue Discount (OID) to Bond Investors -
(See Price / Yield / Production Calculation)
(4) Includes Legal, FA, Printing and Other Miscellaneous Bond Costs
(5) Not Applicable
MuniFinancial Exhibit B - Page 1 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT C - ASSESSMENT ROLL
An assessment of the total amount of the costs and expenses of the improvements upon the
subdivisions of land within the Highlands Utility Undergrounding Assessment District No. 04-01, in
proportion to the estimated special benefit to be received by the subdivisions from the Improvements, is
set forth upon the following Assessment Roll filed with and made part of this Report.
The Assessment Roll lists the assessor's parcel numbers within this Highlands Utility Undergrounding
Assessment District No. 04-01 by assessment number. The assessment numbers appearing on the
Assessment Roll correspond with the subdivisions and parcels of land and their numbers shown on the
Assessment Diagram (Exhibit F).
MuniFinancial
Exhibit C - Page 1 City of Palm Desert
Assessor's Assessment Portion Assessed
Parcel Number Number District -Wide
628-163-001 1
628-163-002
628-163-003
628-163-004
628-163-005
628-163-006
628-163-007
628-163-008
628-163-009
628-171-011
628-172-011
628-172-022
628-173-001
628-173-002
628-173-003
628-173-004
628-173-005
628-173-006
628-173-007
628-173-008
628-173-009
628-173-010
628-173-011
628-181-001
628-181-002
628-181-003
628-181-004
628-181-005
628-181-006
628-181-007
628-181-008
628-182-001
628-182-002
628-182-003
628-182-005
628-182-006
628-182-007
628-182-008
628-182-009
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
S25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
Portion Assessed to
Properties with work
Private Property
$1,825.56
$1,825.56
$1,302.35
$3,389.52
$1,302.35
$1,302.35
$1,302.35
$1,302.35
$1,825.56
$1,825.56
$0.00
$3,389.52
$1,825.56
$1,302.35
$1,302.35
$1,302.35
S 1,302.35
$3,389.52
$1,302.35
$1,302.35
$1,302.35
$1,825.56
$1,825.56
$1,825.56
$1,825.56
$1,302.35
$1,302.35
$1,302.35
$1,302.35
$3,389.52
$1,825.56
$1,825.56
$3,389.52
$3,389.52
$1,302.35
$1,302.35
$3,389.52
$1,302.35
$1,825.56
Assessments as
Preliminarily
Approved
$27,137.10
S27,137.10
$26,613.89
$28,701.06
$26,613.89
$26,613.89
$26,613.89
$26,613.89
$27,137.10
$27,137.10
$25,311.54
$28,701.06
$27,137.10
$26,613.89
$26,613.89
$26,613.89
$26,613.89
$28,701.06
$26,613.89
$26,613.89
$26,613.89
$27,137.10
$27,137.10
$27,137.10
$27,137.10
$26,613.89
$26,613.89
$26,613.89
$26,613.89
$28,701.06
$27,137.10
$27,137.10
$28,701.06
$28,701.06
$26,613.89
$26,613.89
$28,701.06
$26,613.89
$27,137.10
MuniFinancial
Exhibit C — Page 2
City of Palm Desert
Assessor's Assessment Portion Assessed
Parcel Number Number District -Wide
628-182-010 40
628-182-011 41
628-182-012 42
628-182-013 43
628-182-014 44
628-182-015 45
628-182-016 46
628-182-017 47
628-182-018 48
628-182-019 49
628-182-020 50
628-191-001 51
628-191-002 52
628-191-003 53
628-191-006 54
628-191-007 55
628-191-008 56
628-191-009 57
628-191-010 58
628-191-011 59
628-191-012 60
628-192-001 61
628-192-002 62
628-192-003 63
628-192-004 64
628-192-005 65
628-192-006 66
628-192-007 67
628-192-008 68
628-192-009 69
628-192-010 70
628-192-011 71
628-192-012 72
628-192-013 73
628-192-014 74
628-192-015 75
628-192-016 76
628-192-017 77
628-192-018 78
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
$25,311.54
Portion Assessed to
Properties with work
Private Property
$1,302.35
$6,073.83
$ 6,073.83
$3,389.52
$1,302.35
$1,302.35
$3,389.52
$3,389.52
$1,302.35
$1,302.35
$1,302.35
$0.00
$1,302.35
$1,302.35
$1,302.35
$3,389.52
S1,302.35
$1,825.56
$3,389.52
$3,389.52
$3,389.52
$1,302.35
$1,302.35
$3,389.52
$1,825.56
$3,389.52
$3,389.52
$3,389.52
$3,389.52
$3,389.52
$1,825.56
$3,389.52
$3,389.52
$3,389.52
$3,389.52
$3,389.52
$3,389.52
$3,389.52
$3,389.52
Assessments as
Preliminarily
Approved
$26,613.89
$31,385.37
$31,385.37
$28,701.06
$26,613.89
$26,613.89
$28,701.06
$28,701.06
$26,613.89
$26,613.89
$26,613.89
$25,311.54
$26,613.89
$26,613.89
$26,613.89
$28,701.06
$26,613.89
$27,137.10
$28,701.06
$28,701.06
$28,701.06
$26,613.89
$26,613.89
$28,701.06
$27,137.10
$28,701.06
$28,701.06
$28,701.06
$28,701.06
$28,701.06
$27,137.10
$28,701.06
$28,701.06
$28,701.06
$28,701.06
S28,701.06
$28,701.06
$28,701.06
$28,701.06
MuniFinancial
Exhibit C - Page 3 City of Palm Desert
Portion Assessed to
Assessor's Assessment Portion Assessed Properties with work
Parcel Number Number District -Wide Private Property
628-192-019 79 $25,311.54
628-192-020 80 $25,311.54
628-192-021 81 $25,311.54
628-192-022 82 $0.00
630-190-058 83 $25,311.54
652-032-017 84 $25,311.54
652-032-018 85 $25,311.54
652-041-001 86 $25,311.54
652-041-002 87 $25,311.54
652-041-003 88 $25,311.54
652-041-004 89 $25,311.54
652-041-005 90 $25,311.54
652-041-006 91 $25,311.54
652-041-007 92 $25,311.54
652-041-008 93 $25,311.54
652-041-010 94 $25,311.54
652-041-011 95 $25,311.54
652-041-015 96 $25,311.54
652-041-016 97 $25,311.54
652-041-017 98 $25,311.54
652-041-018 99 $25,311.54
652-041-020 100 $25,311.54
652-051-001 101 $25,311.54
652-051-002 102 $25,311.54
652-051-003 103 $25,311.54
652-051-004 104 $25,311.54
652-051-005 105 $25,311.54
652-052-001 106 $25,311.54
652-052-002 107 $25,311.54
652-052-003 108 $25,311.54
652-052-004 109 $25,311.54
652-052-015 110 $25,311.54
652-052-016 111 $25,311.54
652-052-017 112 $25,311.54
652-053-001 113 $25,311.54
652-053-002 114 $25,311.54
652-053-003 115 $25,311.54
652-053-004 116 $25,311.54
652-053-005 117 $25,311.54
$3,389.52
$3,389.52
$1,302.35
$0.00
$0.00
$1,302.35
$1,302.35
$1,825.56
$1,302.35
$1,302.35
S1,825.56
$3,389.52
$1,302.35
$1,825.56
$3,389.52
$1,825.56
$3,389.52
$3,389.52
$1,825.56
$1,825.56
$1,825.56
$1,825.56
$3,389.52
$3,389.52
$1,302.35
$1,302.35
$3,389.52
$1,825.56
$2,008.12
$3,389.52
$1,825.56
$3,389.52
$1,825.56
$1,302.35
$3,389.52
$3,389.52
$3,389.52
$3,389.52
$3,389.52
Assessments as
Preliminarily
Approved
$28,701.06
$28,701.06
$26,613.89
$0.00
$25,311.54
$26,613.89
$26,613.89
$27,137.10
$26,613.89
$26,613.89
$27,137.10
$28,701.06
$26,613.89
$27,137.10
$28,701.06
$27,137.10
$28,701.06
$28,701.06
$27,137.10
$27,137.10
$27,137.10
$27,137.10
$28,701.06
$28,701.06
$26,613.89
$26,613.89
S28,701.06
$27,137.10
$27,319.66
$28,701.06
$27,137.10
$28,701.06
$27,137.10
$26,613.89
$28,701.06
$28,701.06
$28,701.06
$28,701.06
$28,701.06
MuniFinancial Exhibit C — Page 4 City of Palm Desert
Portion Assessed to Assessments as
Assessor's Assessment Portion Assessed Properties with work Preliminarily
Parcel Number Number District -Wide Private Property Approved
652-053-006 118 $25,311.54 $3,389.52 $28,701.06
652-053-007 119 $25,311.54 $1,302.35 $26,613.89
652-053-008 120 $25,311.54 $3,389.52 $28,701.06
652-053-009 121 $25,311.54 $6,073.83 $31,385.37
652-053-010 122 $25,311.54 $1,825.56 $27,137.10
652-053-011 123 $25,311.54 $6,073.83 $31,385.37
652-053-012 124 $25,311.54 $3,389.52 $28,701.06
652-053-013 125 $25,311.54 $1,825.56 $27,137.10
652-061-001 126 $2,531.15 $0.00 $2,531.15
652-061-002 127 $2,531.15 $0.00 $2,531.15
652-061-003 128 $2,531.15 $0.00 $2,531.15
652-061-004 129 $2,531.15 $0.00 $2,531.15
652-061-005 130 $2,531.15 $0.00 $2,531.15
652-061-006 131 $2,531.15 S0.00 $2,531.15
652-061-007 132 $2,531.15 $0.00 $2,531.15
652-061-008 133 $2,531.15 $0.00 $2,531.15
652-061-009 134 $2,531.15 $0.00 S2,531.15
652-061-010 135 $2,531.15 $0.00 $2,531.15
652-061-011 136 $2,531.15 $0.00 $2,531.15
652-061-012 137 $2,531.15 $0.00 $2,531.15
652-061-013 138 $2,531.15 $0.00 $2,531.15
652-061-014 139 $2,531.15 $0.00 $2,531.15
652-061-015 140 $2,531.15 $0.00 $2,531.15
652-061-016 141 $2,531.15 $0.00 $2,531.15
652-061-017 142 $2,531.15 $0.00 $2,531.15
652-061-018 143 $2,531.15 $0.00 $2,531.15
652-061-019 144 $2,531.15 $0.00 $2,531.15
652-061-020 145 $2,531.15 $0.00 $2,531.15
652-061-021 146 $2,531.15 $0.00 $2,531.15
652-061-022 147 $2,531.15 $0.00 $2,531.15
652-061-023 148 $2,531.15 $0.00 $2,531.15
652-061-024 149 $2,531.15 $0.00 $2,531.15
652-061-025 150 $2,531.15 $0.00 $2,531.15
652-061-026 151 $2,531.15 $0.00 $2,531.15
652-061-027 152 $2,531.15 $0.00 $2,531.15
652-061-028 153 $2,531.15 $0.00 $2,531.15
652-061-029 154 $2,531.15 $0.00 $2,531.15
652-061-030 155 $2,531.15 $0.00 $2,531.15
652-061-031 156 $2,531.15 $0.00 $2,531.15
MuniFinancial Exhibit C - Page 5 City of Palm Desert
Portion Assessed to Assessments as
Assessor's Assessment Portion Assessed Properties with work Preliminarily
Parcel Number Number District -Wide Private Property Approved
652-061-032 157 $2,531.15 $0.00 $2,531.15
652-061-033 158 $2,531.15 $0.00 $2,531.15
652-061-034 159 $2,531.15 $0.00 $2,531.15
652-061-035 160 $2,531.15 $0.00 $2,531.15
652-061-036 161 $2,531.15 $0.00 $2,531.15
652-061-037 162 $2,531.15 $0.00 $2,531.15
652-061-038 163 $2,531.15 $0.00 $2,531.15
652-061-039 164 $2,531.15 $0.00 $2,531.15
652-061-040 165 $2,531.15 $0.00 $2,531.15
$3,239,877.20 $290,122.80 $3,530,000.00
MuniFinancial
Exhibit C — Page 6 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT D - DEBT LIMITATION REPORT
We are not aware of any prior assessment liens for the properties located within Highlands Utility
Undergrounding Assessment District No. 04-01.
The total of the assessment liens for the I-Iighlands Utility Undergrounding Assessment District No. 04-
01 is equal to $3,060,147.
The gross property valuation (based on the 2005/06 County of Riverside Secured Tax Roll) for
properties located within Highlands Utility Undergrounding Assessment District No. 04-01, totals
$38,321,305.
CERTIFICATION OF ASSESSMENT ENGINEER
I, the undersigned Assessment Engineer, do hereby certify that the total amount of the principal sum of
the assessments proposed to be levied for the Assessment District, together with the principal amount
of all other assessments levied or proposed to be levied on the properties within the Assessment
District, as set forth above, does not exceed one-half (1/2) of the total true value of the parcels
proposed to be assessed for the Assessment District.
Wildan/MuniFinancial
Assessment Engineer
MuniFinancial Exhibit D - Page 1 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT E - METHOD OF ASSESSMENT
BACKGROUND
The law requires that assessments levied pursuant to the Municipal Improvement Act of 1913 be based
on the benefit that properties receive from the Improvements. However, the law does not specify the
method or formula that should be used to apportion the assessments in the Highlands Utility
Undergrounding Assessment District No. 04-01 proceedings. In addition, Articles XIIIC and XIIID of
the California Constitution require that only special benefits are assessable, that no assessment may
exceed the proportional special benefit received by the parcel assessed, and that publicly owned parcels
shall not be exempt from assessment unless clear and convincing evidence demonstrates that such
public owned parcels receive no special benefits from the improvements or services for which the
assessment is levied. Special benefit is a particular and distinct benefit over and above general benefits
conferred to the public at large on real property located within the District. General enhancement of
property value does not constitute special benefit.
It is necessary to identify the special benefit that the Improvements will render to the properties within
the Highlands Utility Undergrounding Assessment District No. 04-01. It is also necessary to identify-
and separate any portion of the Improvements, which provide a general benefit to the public at large
from the portion of Improvements that provide a special benefit to parcels within the District. Any cost
of Improvements, or portion thereof, that is considered general benefit has not been included as part of
the total assessment. It has been determined from the design plans, cost estimates, and boundaries of
the District that all of the Improvements, for the undergrounding of the utilities, provide a direct and
special benefit to the parcels within the District and there is no measurable general benefit to the public
at large.
The responsibility rests with the Assessment Engineer who is appointed for the purpose of analyzing the
facts and determining the method of apportionment of the assessment to the benefiting properties,
based on the amount of special benefit that each parcel receives, related to the District as a whole. For
these proceedings, the City has retained the firm ofWilldan/MuniFinancial as the Assessment Engineer.
The Assessment Engineer makes the recommendation for the method of apportionment at the public
hearing. The final authority and action rest with the City Council after hearing all testimony and
evidence presented at the public hearing and completing the tabulation of assessment ballots. Upon
conclusion of the public hearing, the City Council must make the final action in determining that the
assessment has been apportioned equitably based on the special benefit received by each parcel. Ballot
tabulation will then be completed, and if less than 50 percent of ballots returned and tabulated, weighted
by, assessment amount, are opposed to the assessment, then there is not a majority protest and the City
Council may form the District, adopt the Final Engineer's Report, and Order the Work to commence.
MuniFinancial Exhibit E - Page 1 City of Palm Desert
BENEFIT
The district is being formed to underground the existing overhead electrical and communication
facilities in the community generally referred to as the "Highlands" area. Undergrounding the existing
overhead utilities will improve the safety of motorists that drive in the neighborhood. The existing poles
are immovable objects that could cause damage and possible injury to the occupants of the vehicle, in
the event of an accident involving a utility pole. By removing the poles from the right-of-way and street
edge, the potential for vehicles to collide with them is removed. Undergrounding the existing overhead
utilities and removing the poles will provide improved safety for all drivers within the District.
The removal of overhead utility poles and lines provides an additional safety benefit in that it reduces
the potential of hazardous conditions in the event of natural disasters. Earthquakes, severe storms with
high winds, and other natural disasters can cause poles to fall and potentially impact property in the
District; and possibly cause live electric lines to be exposed. Downed electric lines pose a potential threat
of fire and potential injury due to electric shock. In addition, downed electric lines can restrict ingress
and egress of residents and emergency services.
In addition to the safety improvements provided by the undergrounding of utilities, removing the poles
and lines will eliminate an unusually heavy concentration of overhead electric and communication
facilities. This will improve the overall aesthetics within the District and the reliability of the utility
services received by properties in the District. Parcels that will have their utilities undergrounded will
benefit from an improved reliability of the utility services by receiving new upgraded utility lines and
cables, and appurtenant facilities related to the utility undergrounding, which reduces exposure to natural
phenomena that may cause potential damage and interruption in utility services. Undergrounding of
these utilities will bring this older neighborhood closer to modern day development standards. These
special benefits improve the physical and visual environment, as well as, the quality of utility services
provided.
The benefits of this undergrounding project are a direct and special benefit to the owners of property
within the District. Since residents of all of the lots within the district have to drive the streets, which
have the utilities proposed to be undergrounded, the owners of these lots receive all of the direct and
special benefits of the improvements. There is no measurable general benefit since the roads primary
function of the affected streets is to provide access for the residents within the District, and not to the
public at large.
METHOD OF ASSESSMENT
The method of assessment is determined by an analysis of the benefit a property receives rather than the
specific cost of providing improvements to an individual property. The benefit of undergrounding the
overhead utility system is based on safety, reliability, and visibility issues.
The District is made up of 124 single-family residential properties and 40 condominium properties. The
method of apportionment established for most districts formed under the 1913 Act utilizes a weighted
method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-
family home site as the basic unit of assessment. The distribution of electricity, other utilities, and the
underground wires and cables are constant no matter what size lot or house is located on each parcel.
Further, since all of the single-family lots have the same ability to use the electricity and each single-
family parcel benefits from the improved safety, each single-family residential property has been assigned
one EBU.
MuniFinancial Exhibit E - Page 2 City of Palm Desert
Since Condominium Parcels' utilities have already been undergrounded and each individual
Condominium Parcel does not have utilities poles residing on their properties, Condominium Parcels
only benefit from a portion of the improved aesthetics that are associated with the neighborhood as a
whole. Therefore, utilizing trip generation data outlined by the Institute of Transportation Engineers
Informational Report, Seventh Edition, Condominium Parcels have been assigned Equivalent Benefit
Units based on the typical trip generation of condominiums properties in relation to single-family
residential properties. The EBUs assigned to each Condominium Parcel are equal to the typical trip
generation (0.6) times one-half of the improved aesthetics benefit. Since the improved aesthetics is one
of three categories of special benefit received by properties within the District, the final EBU calculation
for Condominium Parcels will be equal to the following equation:
Trip Generation: -
EBU Equation:
Land 1 )se
Sin.le-Family Residential
Condominium
Aug. 1)ail
Trips Trip Ratio
9.57
5.86
1.0
0.6
0.6 * (1 /3) * (1 /2) = 0.10 EBUs
Onsite Improvements
Those lots that are not currently served by underground service from the existing pole locations to the
house lateral (90 parcels) will also need to pay for their onsite private property costs. This includes the
cost of trenching on private property and service conversion equipment. Each property owner will be
given the choice to pay for their improvements by financing the cost through assessment bonds to be
issued pursuant to these proceedings or by paying for the cost upfront in cash. Of the 124 single-family
parcels, signed a request form stating that they wanted the City to include this cost as part of
their assessment.
MuniFinancial Exhibit E - Page 3 City of Palm Desert
Conclusion
In conclusion, it is my opinion that the assessments for Highlands Utility Undergrounding Assessment
District No. 04-01 are allocated in accordance with the direct and special benefit that each parcel
receives from the Improvements.
\ -illdan
Assessment Engineer
City of Palm Desert
State of California
Signed by
Ken Steele
MuniFinancial Exhibit E - Page 4 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT F - ASSESSMENT DIAGRAM
A Diagram showing the Highlands Utility Undergrounding Assessment District No. 04-01, the
boundaries, and the dimensions of the subdivisions of land within the Highlands Utility
Undergrounding Assessment District No. 04-01, as they existed at the time of the passage of the
Resolution of Intention, is filed with and made a part of this Report and part of the assessment. Each of
the subdivisions of land, parcels, or lots will be given a separate number on the Assessment Diagram (to
follow after the resolution of intention), which corresponds with the assessment number shown on the
Assessment Roll (Exhibit C).
The recorded Boundary Map and Assessment Diagram in a reduced -scale format follows.
MuniFinancial Exhibit F - Page 1 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT G — MAXIMUM ANNUAL ADMINISTRATION COST ADD -ON
In addition to or as a part of the assessment lien levied against each parcel of land within the
Improvement District, each parcel of land shall also be subject to an annual administrative cost add -on
to pay costs incurred by the City, and not otherwise reimbursed, which result from the administration or
registration of any bonds and or/reserve or other related funds. The maximum annual total amount of
such annual administrative cost add -on for each parcel within the Improvement District will not exceed
$50.00. Each parcel's share of the administrative cost add -on shall be computed based on the parcel's
proportionate share of its annual assessment (not to exceed $50.00.)
MuniFinancial Exhibit G - Page 1 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT H — RIGHT-OF-WAY
There are no right-of-way and/or easements to be acquired in Highlands Utility Cndergrounding
Assessment District No. 04-01 by the City of Palm Desert. Each individual utility company will be
responsible for obtaining their own easements that may be needed to underground the utilities.
MuniFinancial Exhibit H - Page 1 City of Palm Desert
ENGINEER'S REPORT
HIGHLANDS UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT NO. 04-01
CITY OF PALM DESERT
EXHIBIT I — PUBLIC PROPERTIES
All streets in the boundaries of the district are public streets. There are no other public owned
properties within the boundaries of the district.
MuniFinancial Exhibit I - Page 1 City of Palm Desert
City of Palm Desert, California
Utility Undergrounding Assessment District
(Palm Desert Highlands)
Project Timeline
Date
Project Tasks
03/13/2006
Bids due back to the City / MuniFinancial / Willdan. Conference Call @ 4PM to
discuss bid results and run estimated bond numbers.
03/14-16/2006
City meets with property owner representatives to discuss findings.
Wk. of
03/20/06
MuniFinancial begins creating all resolutions and other documents to be
presented to the City Council. MuniFinancial begins creating the property owner
notices and ballots.
Wk. of
04/03/2006
MuniFinancial delivers: 1.) Preliminary Engineer's Report; and, 2) All resolutions
and documents necessary for the Resolution of Intent (ROI) meeting.
Agenda deadline for City Council meeting of 04/13/06
04/13/2006
ROI meeting: Council adopts two resolutions: 1.) Preliminary Approval of the
Engineer's Report; 2.) Resolution of Intent (setting the public hearing date, to
conduct property owner balloting for formation of the District and imposition of
new assessments subject to Proposition 218 proceedings).
04/14/2006
Property owner ballots and notices mailed: MuniFinancial mails documents to all
property owners subject to the new assessment at least 45 days prior to the
Public Hearing.
Wk. of
05/29/2006
MuniFinancial delivers: 1.) Resolutions to be adopted at the Public Hearing; 2.)
Final Amended Engineer's Report (if changes or modifications to the Preliminary
Report were requested by City staff or directed by Council action.) Bond
Professionals deliver 1) Resolutions to approve sale of bonds and hire all bond
professionals 2) deliver POS, Indenture and other bond documents as to form.
Agenda deadline for City Council meeting of 06/08/2006.
05/29/2006
Pursuant to Section 6061 of the Government Code, the City Clerk shall publish
the Resolution of Intention one time at least 10 days prior to the Public Hearing.
06/08/2006
Public Hearing: City Council holds Public Hearing regarding the District and
assessments. After the public hearing has been closed, the Ballots are tabulated
and the City Council may discuss and adopt the appropriate resolutions for the
District levying of assessments and issuance of bonds: 1.) A Resolution
Declaring the Results of the Protest Balloting Proceedings and the Establishment
of the Maximum Assessment; 2.) A Resolution Approving the Engineer's Report
(as submitted or amended); 3.) A Resolution Ordering the Levy and Collection of
Assessments. 4.) Resolutions Approving The Sale of Bonds and Approving All
Bond Documents As To Form (POS, Indenture, etc) 5.) A Resolution Hiring All
Bond Related Parties (Bond Counsel, Disclosure Counsel, Underwriter and
Financial Advisor). City Council approves Mayor to sign construction contract
subject to close of bond issue.
06/09/2006
Mail out notification of assessment amount and ability to prepay at a discount
prior to bond issuance. Begin 30 day cash collection period.
07/09/2006
End of cash collection period.
07/17/2006
Print and Mail Preliminary Official Statement (POS) to Investors
07/24/2006
Pre -Price Bonds
Del Rio Advisors, LLC
March 14, 2006
Page 1 of 2
City of Palm Desert, California
Utility Undergrounding Assessment District
(Palm Desert Highlands)
Project Timeline
07/25/2003
Price Bonds
Wk. of
07/31/2006
Mail Final Official Statement (OS) to Investors. Finalize and sign all bond
documents.
08/09/2006
Pre -Close Bond Issue
08/10/2006
Close Bond Issue (All Money Delivered)
08/14/2006
Agenda deadline for City Council meeting of 08/24/2006
08/24/2006
City Council awards construction contract(s)
08/25/2006
Notice to Proceed issued to Contractor(s)
09/20/2006
Construction Begins
04/01/2007
Underground substructures (conduits, vaults) complete. Begin Edison and
Verizon cabling and equipment.
04/15/2007
Verizon and Edison cable completed. Begin house service connections to new
underground phone and power system.
07/01/2007
Service conversions complete. Begin removal of overhead wires and poles.
10/01/2007
Pole removal complete. Project Closeout
Del Rio Advisors, LLC
March 14, 2006
Page 2 of 2