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HomeMy WebLinkAboutRes 07-3 and 07-3A Benefit Assessment District BAD No. 1 RESOLIITION NOS. 07-3 � 07-3A CITY OF PALM DESERT STAFF REPORT REQUEST: CONSIDERATION OF THE FORMATION OF THE CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 SUBMITTED BY: DAVID YRIGOYEN, DIRECTOR OF REDEVELOPMENT/ HOUSING DATE: JANUARY 11, 2007 MEETlNG DATE�- I` I '— O� CONTENTS: RESOLUTION NO. 07- 3 ,�,,/ - , RESOLUTION NO. 07- 3A LJ CONTINUED TO 1�_S C�� Recommendation: � P�fD TO 2N0 READING_, By Minute Motion, that the City Council: Adopt one of the following resolutions in connection with the proposed formation of the Benefit Assessment District No. 1: A. In the case of a maioritv protest in connection with the Benefit Assessment District No. 1, adopt Resolution No. 07- 3 declaring the results of the tabulation of assessment ballots in connection with the Bene�t Assessment District No. 1 and finding a majority protest exists. B. In the absence of a maioritv protest in connection with the . Benefit Assessment District No. 1, adopt Resolution^No 07- 3A , ordering modifications to the Engineer's Report in connection with the Benefit Assessment District No. 1, approving the Engineer's Report as so modified, ordering formation of such district and confirming a maximum assessment in connection with such district. Discussion: The owners of certain property located within the Section 29 area of the City of Palm Desert have requested the City Council to initiate proceedings pursuant to the Municipal Improvement Act of 1913 to form an assessment district for the purpose of acquiring, constructing and installing certain public infrastructure improvements. One of the proposed improvements is the acquisition by the City of an existing drainage basin, which is proposed to be improved and expanded so that it can also serve certain of the properties within the proposed Section 29 Assessment District as �an al+�m�ti�rP #� thP � developers providing on-site drainage. G1RDA�Mana HunHWPDATA\YRIGOYEMSTFRPTS\011107Sec 29 BAD Formation.pOC P6401-I 033\938260v2.doc Staff Report RESOLIITION NOS. 07-3 � 07-3A Consideration of Formation of the City of Palm Dese�t Benefit Assessment Dist. 1 Page 2 of 3 January 11, 2007 In order to provide financing for the ongoing maintenance and servicing of the drainage basin after it is acquired by the City, Staff recommends that the City Council undertake proceedings to form the City of Palm Desert Benefit Assessment District No. 1 (the "Benefit Assessment DistricY') pursuant to the Benefit Assessment Act of 1982, commencing with Section 54703 of the California Govemment Code (the "1982 AcY'). The 1982 Act provides for the annual levy of assessments to pay for the maintenance and servicing of certain public improvements, including drainage improvements. Staff recommends that the Council undertake proceedings to form the Benefit Assessment District concurrently with the proceedings to form the Section 29 assessment district to ensure that a mechanism to finance the ongoing maintenance of the drainage basin is in place prior to the City acquiring ownership of the drainage basin. In addition to including certain of the properties in the proposed Section 29 Assessment District, the proposed Benefit Assessment District will also include properties in the Monterey 170 Development. Properties in the Monterey 170 development currently use the existing drainage basin and currently finance the ongoing maintenance through a homeowners' association. On November 16, 2006, the City Council adopted a resolution of intention to form the Benefit Assessment District No. 1, to levy and collect assessments within the district, to set a public hearing on January 19, 2007 and to direct a property owner balloting procedure be conducted in connection with the proposed formation of the Benefit Assessment District. Such resolution also approved procedures for the completion, retum and tabulation of assessment ballots, which are on file in the office of the City Clerk. On November 16th, the City Council also adopted a resolution preliminarily approving the Engineer's Report prepared by the City's assessment engineer, MuniFinancial. The Assessment Engineer has presented a modification to the Engineer's Report to reflect a revised acreage for a property owner in the proposed Benefit Assessment District. The proposed modification does not increase any of the assessments. The Engineer's Report, as modified, among other things, describes (i) the proposed services to be financed by the proposed annual benefit assessment, (ii) the properties proposed to be subject to the proposed annual benefit assessment, (iii) the method of apportionment for calculating each parcel's proportional special benefits from the services; and the (iv) the proposed annual benefit assessment. Formation of the Benefit Assessment District is subject to the requirements of Proposition 218. In accordance with these requirements, the City mailed a notice of the January 11th public hearing, together with an assessment ballot, to the property owners within the proposed Benefit Assessment District more than 45 days prior to the date of the hearing. PG401-1033�938260v2.doc 2 RESOLDTION NOS. 07-3 b 07-3A Staff Report Consideration of Formation of the City of Palm Desert Benefit Assessment Dist. 1 Page 3 of 3 January 11, 2007 At the hearing all interested persons must be given the opportunity to hear and be heard regarding protests and objections to the formation of the Benefit Assessment District, the levy and collection of the proposed annual benefit assessment, and related matters. Each ballot is weighted in accordance with the proposed annual benefit assessment against the parcel covered by the ballot. In order to be counted, all ballots must be returned to the City prior to the close of the public input portion of the Benefit Assessment District hearing. If the weighted ballots cast in opposition to the proposed annual benefit assessment do not exceed the weighted ballots cast in favor of the proposed annual benefit assessment (i.e., there is not a majority protest) the City Council may proceed to form the Benefit Assessment District and impose the annual benefit assessment. The City Clerk and the Assessment Engineer will tabulate the ballots following the close of the public input portion of the hearing and determine whether or not a majority protest exists. In the event of a majority protest, Staff recommends that the City Council adopt Resolution No. 07-�� which finds that a majority protest exists. In the event of a majority protest, proceedings for the formation of the Benefit Assessment District and the imposition of the annual benefit assessment will terminate. In the absence of a majority protest, Staff recommends that the City Council adopt Resolution No. 07- 3n , which is necessary to form the Benefit Assessment District and impose the annual benefit assessment. Resolution No. 07- orders modifications to the Engineer's Report, approves the Engineer's Report as modified, orders formation of the Benefit Assessment District and confirms a maximum assessment in connection with the Benefit Assessment District to pay for the ongoing maintenance and servicing of the drainage basin. Submitted by: Approval: / David Y ' yen st McCarth Direct of RedevelopmenUHousing AC Redevelop t DY:AKS:mh Approval: Carlos L. O ega, ' y Manager Paul S. Gibson, Director of Finance P6401-1033�938260v2.doc 3 %III. PiJBLIC HEARINGS A. CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 (Continued from the meeting of January 11, 2007). �ITY COUNCIL �ETION: APPROVED ✓ DENIED REC VED OTHER-}�G�(:� O. - MEETIN ATE AYES: 1 � i tVOES: 7�BSENT: �"�BSTAIN: VERIFIED BY: �riginal on File th City Clerk's Office RESOLUTION NO. 07- 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING THE RESULTS OF THE TABULATION OF ASSESSMENT BALLOTS IN CONNECTION WITH PROPOSED CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 AND FINDING THAT A MAJORITY PROTEST EXISTS THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The City Council, by its Resolution entitled "A Resolution of the City Council of the City of Palm Desert, Califomia Declaring Its Intention to Form the City of Palm Desert Benefit Assessment District No. 1, to Levy and Collect Annual Assessments within Such District Commencing in Fiscal Year 2007-08, to Conduct a Property Owner Balloting on the Matter of the Proposed Assessments Connected Therewith and to Appoint a Time and Place for the Public Hearing on These Matters," (the "Resolution of Intention") declared its intention to form an assessment district designated the "City of Palm Desert Benefit Assessment District No. 1" (the "District") and to levy and collect an annual assessment (the "Benefit Assessment") against nonexempt properties in the District commencing with fiscal year 2007-08 to pay for the cost and expenses associated with the ongoing administration, operation, maintenance and servicing (the "Services") of an existing drainage basin and appurtenant facilities constructed in a portion of Section 29, Township 4 South, Range 6 East SBM in the City of Palm Desert, together with any future expansions, enlargements or improvements thereto, which drainage basin and appurtenant facilities will be owned by the City of Palm Desert and will serve certain of the properties to be developed in the development known as the Section 29 Development and properties in the existing development known as Monterey 170. Section 2. MuniFinancial, the Engineer of Work selected by the City Council, has prepared and filed with the City Clerk a report in connection with the proposed District, and the levy of the Benefit Assessment in accordance with Article XIIID of the California Constitution and the Benefit Assessment Act of 1982, commencing with Section 54703 of the California Government Code (the "Engineer's Report"), and the City Council did, by previous resolution, preliminarily approve such Engineer's Report. Section 3. The Resolution of Intention directed the City Clerk to give notice in accordance with law of a public hearing on the Benefit Assessment and to include with such notice the assessment ballot required pursuant to Article XIIID, Section 4 of the California Constitution and Section 53753 of the Califomia Govemment Code. Section 4. On January 11, 2007, following notice duly given in accordance with law, the City Council opened a public hearing and continued such hearing until January 25, 2007, and on such dates the City Council held a full and fair public hearing on the Resolution of Intention, the Engineer's Report, the levy and collection of the proposed P6401-I033\938239v2.doc RES. NO. 07-3 Benefit Assessment and the proposed Services in connection with the District and protests and objections thereto (the "Hearing"). Section 5. At the Hearing, (i) all interested persons were afforded the opportunity to hear and be heard regarding protests and objections to the formation of the District and the levy and collection of the proposed Benefit Assessment, and all related matters, and (ii) the City Council heard and considered all oral and written protests. Section 6. The City Clerk, together with such assistants as she deemed necessary, tabulated all properly completed and returned assessment ballots submitted and not withdrawn in connection with the Benefit Assessment. Section 7. The City Council hereby finds and determines that (i) a majority protest exists as defined in Section 4(e) of Article XIIID of the California Constitution, and (ii) the City Council shall not form the District as described in the Resolution of Intention. RESOLUTION NO. 07- 3 PASSED, APPROVED, AND ADOPTED THIS 25th DAY OF JANUARY 2007. STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss. CITY OF PALM DESERT I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, County of Riverside, State of California do hereby certify that the foregoing Resolution No. 07- 3 was regularly adopted by the City Council of said City of Palm Desert at a regular meeting of said council held on the 25th day of January 2007 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAINED: Richard S. Kelly Mayor Rachelle D. Klassen City Clerk City of Palm Desert P6401-I033\938239v2.doc 2 RESOLUTION NO. 07- 3A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ORDERING MODIFICATIONS TO THE ENGINEER'S REPORT IN CONNECTION WITH THE CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1, APPROVING THE ENGINEER'S REPORT AS SO MODIFIED, ORDERING FORMATION OF SUCH DISTRICT AND CONFIRMING A MAXIMUM ASSESSMENT IN CONNECTION THEREWITH THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. Pursuant to the provisions of the Benefit Assessment Act of 1982, commencing with Section 54703 of the Califomia Government Code (the "Act"), the City Council of the City of Palm Desert (the "City"), by resolution, proposed the formation of an assessment district designated as the "City of Palm Desert Benefit Assessment District No. 1" (the "District") and the levy and collection of an annual assessment against nonexempt properties in the District commencing with Fiscal Year 2007-08 to pay for the cost and expenses associated with the ongoing administration, operation, maintenance and servicing (the "Senrices") of an existing drainage basin and appurtenant facilities constructed in a portion of Section 29, Township 4 South, Range 6 East SBM in the City, together with any future expansions, enlargements or improvements thereto, which drainage basin and appurtenant facilities will be owned by the City and will serve certain of the properties to be developed in the development known as the Section 29 Development and properties in the existing development known as Monterey 170. Section 2. As required by Section 54716 of the Act, the City Council has caused a written report, entitled "City of Palm Desert Engineer's Report for the Formation of Benefit Assessment District No. 1, Parcel Map No. 24255 (Monterey 170) / Assessment District 2004-2 (Section 29) Fiscal Year 2007-2008," to be prepared by the Assessment Engineer, MuniFinancial (the "Engineer's Report"). The City Council, by its resolution entitled "A Resolution of the City Council of the City of Palm Desert, California lnitiating Proceedings for the Formation of City of Palm Desert benefit Assessment District No. 1 and the Levy and Collection of Annual Assessments Related Thereto Commencing with Fiscal Year 2007-08 and Accepting and Approving an Engineer's Report in Connection Therewith" preliminarily approved the Engineer's Report and the Engineer's Report is on file in the office of the City Clerk and available for public inspection. Section 3. In the time and manner required by Article XIIID of the Cafifornia Constitution and Section 53753 of the California Government Code, the City Clerk caused to be mailed to the record owner of each assessable parcel in the District an assessment ballot on which to indicate the owner's support for or opposition to the proposed assessment. PG401-1033\937825��5.doc RES. N0. 07-3A Section 4. On January 11, 2007, following notice duly given in accordance with law, the City Council opened a public hearing and continued such hearing until January 25, 2007, and on such dates the City Counci{ held a fufl and fair public hearing regarding the Engineer's Report and the imposition of the proposed assessment. At such public hearing, the Assessment Engineer presented to the City Council certain proposed modifications to the Engineer's Report. Such modifications result in no increase in the total amount of the assessment and no increase in the amount of the assessment against any individual parcel within the District. The City Council hereby orders such modifications to the Engineer's Report to be made. A copy of the Engineer's Report as modified shall be on fi{e in the o�ce of the City Clerk and open for public inspection. Section 5. As set forth in the Engineer's Report, as modified, the proposed annual assessment for any fiscal year (the "Annual Assessment") is an amount that is less than or equal to the maximum assessment for that fiscaf year (the "Maximum Assessment"). The proposed Fiscal Year 2007-08 Maximum Assessment against a parcel was determined by apportioning the total maximum costs of the Services for Fiscal Year 2007-08 among the assessable parcels in the District based on the special benefit received by each parcel. The Maximum Assessment is the product of the maximum assessment rate (the "Maximum Assessment Rate") times each parcel's proportional special benefit. Each fiscal year, commencing Fiscal Year 2008-09, the Maximum Assessment Rate will automatically increase for inflation. The annual inflationary adjustment will not cause the Maximum Assessment Rate for any fiscal year to increase above the prior year's Maximum Assessment Rate by more than the greater of three percent (3%) or the annual percentage change in the Consumer Price Index of All Urban Consumers, for the Los Angeles-Orange-Riverside Area. Reference is made to the Engineer's Report, as modified, for a more complete description of the proposed District, Services, Maximum Assessment Rate, Maximum Assessment, Fiscal Year 2007-09 Maximum Assessment and Annuaf Assessment. Section 6. All interested persons were afforded the opportunity to hear and be heard regarding protests and ob}ections to the formation of the District and the levy and collection of the proposed Annual Assessment. The City Council considered all oral and written statements, protests and communications made or filed by interested persons. Pursuant to Article XIIID of the California Constitution and Section 53753 of the California Government Code, at the conclusion of the input portion of the public hearing, the City Clerk caused to be tabulated those assessment ballots submitted and not withdrawn prior to the conclusion of the public input portion of the public hearing. In tabulating the assessment ballots, each ballot was weighted according to the amount of the proposed Fiscal Year 2007-08 Maximum Assessment against the parcel. The City Council hereby finds that a majority protest does not exist as defined in Section 4(e) of Article XIIID of the California Constitution. All protests and objections to the formation of the District and the levy and collection of the proposed Annual Assessment are hereby overruled by the City Council. Section 7. Based upon its review of the Engineer's Report, as modified, and other reports and information, the City Council hereby finds and determines that (i) the 2 P�i401-I U3�\937S25�S.doc RES. NO. 07-3A land within the proposed District will be specially benefited by the proposed Senrices, (ii) the proposed District includes all of the lands so benefited, (iii) the amount to be assessed for Fiscal Year 2007-08 upon the lands within the proposed District in accordance with the Engineer's Report, as modified, is apportioned by a formula and method which fairly distributes the amount among all assessable lots or parcels in proportion to the estimated special benefits to be received by each such lot or parcel from the Services, and (iv) only special benefits are assessed and no assessment is imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Section 8. The City Council hereby declares that the Engineer's Report, as modified, as a whole and each part thereof, is hereby finally approved and confirmed. Section 9. The City Council hereby orders formation of the District and the exterior boundaries thereof are as shown by a diagram in the Engineer's Report, as modified, and such diagram of the District is incorporated herein by this reference. Section 10. The City Council hereby confirms the Maximum Assessment, which includes an annual inflationary adjustment to the Maximum Assessment Rate, as more fuliy described in the Engineer's Report, as modified,. Each annual aggregate amount of the approved Annual Assessment for each fiscal year shall not exceed the estimated annual cost of providing the Services for such fiscal year. The revenue derived from the Annual Assessment shall not be used to pay the cost of any service other than the Services. The City Council shall annually determine the cost of these Services and, by resolution, determine the amount of the Annual Assessment. Section 11. Each Annual Assessment shall be collected in the same manner, and be subject to the same penalties and priority of lien as, other charges and taxes fixed and collected by, or on behalf of the City, except that if, for the first year the Annuai Assessment is levied the real property on which the Annual Assessment is levied has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches thereon, prior to the date on which the first installment of county taxes would become delinquent, the confirmed Annual Assessment shall not result in a lien against the real property but shall be transferred to the unsecured roll. Section 12. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents which they may deed necessary or advisable in order to effectuate the purposes of this Resofution and any actions previously taken by such officers are hereby ratified and confirmed. 3 P6401-1033'�937825v5.doc RES. N0. 07-3A RESOLUTION NO. 07- 3A PASSED, APPROVED, AND ADOPTED THIS 25th DAY OF JANUARY 2007. STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss. CITY OF PALM DESERT I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, County of Riverside, State of California do hereby certify that the foregoing Resolution No. 07- 3A was regularly adopted by the City Council of said City of Palm Desert at a regular meeting of said council held on the 25�' day of January 2007 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Richard S. Kelly Mayor Rachelle D. Klassen City Clerk City of Palm Desert 4 PG401-1033;937825v5.doc CITY OF PALM DESERT CNC�INI-:ER'S RCPOR"1' FOR"1�HI-: PORI�I�ITION OF BENEFI'I':�SS�SS;�fENT llIS"TRICT NO. ] Parcel I�1ap No. 2-�255 (�fontereti� 170) / ;�ssessment District 2004-02 (Section 29) FISC.aI.YF�1R 2007/2008 CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 Parcel Map No.24255 (Monterey 170) / Assessment District 2004-02 (Section 29) Intent Meeting: November 16,2006 Public Hearing: January 11,2007 �MuniFinancial Corporate Office Offrce Locations 27368 Via lndustria Anaheim,CA Pensacola,FL Suite 110 Lancaster,CA Phoenix,AZ Temecula,CA 92590 Los An�eles Regional Office Sacramento,CA Tel: (909)587-3500 Oakland,CA Seattle,WA Tel: (800)755-MUNI(6864) Fax: (909)587-3510 www.muni.com ENGINEER'S REPORT AFFIDAVIT Formation of the City of Palm Desert Benefit Assessment District No. 1 Parcel Map No. 24255 (Monterey 170) / Assessment District 2004-02 (Section 29) and establishment of Annual Assessments for said District "I'he District includcs parcels of land�vithin thc subdivisions known as Parcel �fap No. 2-�255 (�1on[cre�� 170) / ;-lssessment I�istrict 200-1-02 (Secuon 29) City of Palm Desert, County of Riverside, State of California 7'his Report, �vhich includes the enclosed budget, assessments, descripu�ns and diagrams, outlines the proposed formation of Benefit �ssessment District No. 1, I'arcel I�fap No. 2-}255 (��fontere}' 170) / Assessment District 200-1-02 (Section 29). The�rc�posed District includes lots, parcels, and subdivisions of land within the subdivisions kno�vn as Parcel nfap No. 2-F25� (Afontereti� 170) / ,-lssessment District 200�-02 (Secaon 29), as the same existed at the ume of the �assage of thc Resolution of Intendon. Referencc is hereb}� made to the Ri��erside Counn �is�essor's maps for a detailed description of the lines and dimensions of parcels �vithin the District. �I'he undersigned respectfull}� submits the enclosed Report as ciirected b}� the Cin• Council. l�ated this da��of , 2007. lfunirinancial .�sscssment F.nginccr On 13ehalf of the Cin� of Palm Desert 13ti•: Richard Kopeck�• R. C. 1-:. # 1 G7�2 TABLE OF CONTENTS INTRODUCTION...................................................................................................... 1 PART I —PLANS AND SPECIFICATIONS............................................................4 :-�. Iicnefitin� Properties �vithin the District..........................................................-1 F3. I�uncling authorized by the 1982 �1ct...................................................................� C. I�escription c>f Impro�-ements and Sen�ices.....................................................t PART II—METHOD OF APPORTIONMENT.....................................................6 �1. General............................................................................................................................G B. Benefit ;lnaly�sis ...........................................................................................................C, C. �lssessment 1�lethodolog}�........................................................................................� D. :lssessment Range ��ormula...................................................................................8 PART III —DISTRICT BUDGET...........................................................................10 PART IV—DISTRICT DIAGRAMS........................................................................11 PART V—ASSESSMENT ROLL.............................................................................]3 Ln�,nncer's Report Cih-of PaLn llesert I3enefit .�ssessment District �c>. 1 INTRODUCTION Pur�uant to the pro�•isions �f the Renefit,�ls3rs.rme�rt .�li! of 1982, Geing Chcrpter G.�F oj thr Calif0i711U C;ovrr�tment Code, rommearr�r� wilh Secliar 5-F703 (hereafter referred to as the "1982 ��ct"), and in compliance �vith the substanti�•e and procedural requirements of the C,alifornia Slule Coiutitution .�lrti�/e X/III� (hereaftcr rcferred ro as the"California Constitution"), the City�Council c�f the Cit�• c�f Palm I�csert, Count}' oF Iti�•ersidc, State of California (hereafter referred t� as "Cin''), pr�poses to form and le�•�� special benefit assessments for the district designated as: City of Palm Desert Benefit Assessment District No. 1 (hereafter referred to as "District"), �vhich includes lots and �arcels of land �vithin the subdi��isions kno�vn as �iontere}• 170 and the �roposed subdivision kno�vn as Secrion 29, �vithin the Cin' limits of Palm Descrt. 'I�he areas to be included in the I�istrict are also kno�vn as I'arcel 1�1ap No. 2-�255 (;�tontere�- 170) / Assessment District 200-�-02 (Secaon 29). '1'his Cngineer's Report (hereaftcr referred to as "Rcp�rt") has bcen prepared in conncction �vith the formauon of said I�istrict and thc let�y� and collecuon of annual assessments related thereto cc>mmencing in fiscal �•ear 2007/2f)O8, as required pursuant to:-lrticle -�, Section �-�7l G of the 1982 .1ct. 11�e (;in• Council proposes to form the District, and lev�- and collect annual assessments on thc Counn- tax rolls ro pro�•ide ongoing funding for the costs and expenses required to sen•ice and maintain the existing drainage basin improvements, faciliues and expansions theret� associated �c�ith properdcs in the District that are currentlti� developed, and those properties that arc m be de�•eloped within the l�istrict (the "ser��ices"). 'l�he serrices to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substanti�•e and procedural proc�isions of the CaGfornia Constirution. "1'his Report describes the District, the sen•ices, and the proposed assessments t<� bc levied against properties in connecuon �vith the special benefits that the properdes �vill receive from the maintenance and sen�icing of the District impro�•emenrs and facilities commencin�; in fiscal �ear 2007/20O8. The formauon of this District and the assessments described herein �vill �ro�-ide a funciinK source (annual assessments) for the conunued operation, maintenance and ser��icing of thc draina,�e basin,including expansions thcrero. "I'he semices and assessments described in this Report are based on the current and planned d«•cl�pment of pro�erdes �vitliin the District and represent an esumare of the direct expenciitures, incidental expenses, and funci balances that will be necessarti� to operate, maintain and �er�•ice the drainage basin that provides special benefits to properties within the I�istrict. The structure �f the District (organization), the pro�osed services, the methc>d of apportionment, and assessments described hcrein are based on the current and prop�sed de��elopment within the District; and b�� reference the plans and specifications for rhe drainage basin and expansion thereto are made part of this Report. Munt1'inui��rol Puqe 1 �:ngincer'� Report (:in-of 1'alm Uescrt Bencfit _�ssessment I�istrict �;o. 1 Thc ��-c�rd "parcel," for the pur�oscs of this Kep�rt, rcfers to an indiridual propertt� assigned its o�vn ,-lssessor's Parccl Number (.-�PN) b}' the Riverside Counn- .�ssessor's Office. llle Riverside (:ounh� .-luciitor-Controller uses �lssessor's Parcel Numbers and specific I�und Numbers ro idciiufj•properties ro be assessed on the tax roll for the special benefit assessments. :1s part of this District formation, the Citt• of Palm llesert shall conduct a Properh� O�vner 1'rotest Ballot �roceeding for the proposcd Ic��• of a new assessment pursuant to the pro�•isions of the Culiforniu Constitution, ,�l rticle XIIIL� Sertion �. In conjunetion �vith this ballc�t proceeciing, the City Council �vill conduct a noticed public hearing ro consider public tesumonies, comments and �vritten protcsts regarding the formation of the I�istrict and le��- of assessments. .�t the Public hearing, properh� owner protest ballots recei��ed �vill be opened and tabulated to detcrmine �vhether a majorit�� prorest exists (ballots shall be �veighted based on assessmcnt amounts),and bti� resolution the Cin� Council�vill confirm the results of the ballot tabulation. I f a majorin• J�rotcst cxists, proceedings for the le��� of District assessments shall be abandoncd. If tabulation uf the ballots inciicates that a majorin• protest does not exist for the proj�c�sed assessments and the assessment range formula presented and described herein, the Citt• Council ma�� ap�ro�•e thc Rcport (as submittcd or amended), order the Forrnaaon of the I�istrict, and a�pro�•e the le��� and collection of assessments. In such case, the assessments f�r fiscal ti-ear 2007/2008 shall be submitted to the Ri��crside Counh• �luditor-Controller for inclusion on thc properh� tax roll for each parccl. rach subsequent fiscal �•ear, a Report shall be prepared and presented to the (:itt• Council describing an�� changes to the proposed sen-ices, the annual budget and assessments for that fiscal ��ear, and the Cin' Council shall hold a noticed public hearing regardin� these matter� pri�r to a�pro�-ing and ordering the proposed le«- of assessments. If the proposed asscssments f�r the I)istrict exceed the ma�cimum assessment described herein (as approved b}• the propern• ��vners), the ne�v or increased asse.sment must be confirmed through another propern' o�vner protest ballot proceeding before such an asscssment ma}' be imposed. It should be noted that an increased assessment to an indi�>idual properR• resulting from changes in de�•elopment or land use does not consutute an incrcased assessmcnt. "I'his Report consists o}fivc (5) parts: Part I Plans and Specifications: ,1 description of the District boundaries and tlie pro�oscd impro�•ements associated �vith the District. Part II The Method of Appottionment: :1 discussion of benefits the services provide to �roperties �vithin the District and the method of calculaung each propern's propordonal special benefit and annual assessment. This section also identifies and outlines an �lssessment Range f��rmula that pr���ides for an annual adjustment to the I�iaximum �lsscssment Rate that cstablishes limits on future assessments, but also proc�ides for rcasonable cost adjustments due to inElati�ri �sithout the addcd expense of additional propern• o�vner protest ballot proccedings. MuaiFbrn�r�ra! Pn�e 2 1�:nKincer'� Report Citt•of I'alm L)escrt 13encfit .�ssessment District tio. 1 Part III The District Budget: .1n csumatc of the annual costs to operatc, maintain and sen•ice thc drainage basin im�ro�•ements and faciliues installed and construcred to support current and proposed de�•elopment �vithin the llistrict. "I'his budget includes an estimate of anucipared ciirect maintenance c�sts and incidental expenses including, but not limited ro administration c��enses and the collecuon of appropriate fund balances to establish an initial I�iaximum :1sse�sment Rate to be appro�•ed b}• the propern� owners �f record. '1'hc spccial bencfit assessments are bascd �n the ��•erall operation, maintenance anci sen•icing costs minus an�• costs that are consiciered gcneral benefit or not assessed as special bencfit. "I'he proposed asscssments for the first fiscal ��ear (2007/200H), and each subsequent �•ear shall be based on the esumated net annual cost of ��eraung, maintaining and sen•icing the District unpro�•ements for that fiscal �•ear. Thc proposed I�ia�imum .�ssessments Rate (Kates per Equiralcnt 13enefit C'nit) identified in the budget of this Report cstablishes the initial nlaximum ,�sscssment Rate for the District in fiscal ��ear 2l)07/200$ and shall be adjusted annuallti� bti• the �lsscssment Range Formula dcscribcd in the meth�d of apportionment. Part IV District Diagram: A Diagram sho�vinK the cxterior boundaries of the I�istrict is pro�•idcd in this Report and includes all parcels that �vill receive special benefits from the sen•ices. Parcel identificadon, the lines and ciimensions of each lot, parce] and subdi��ision of land �vithin the l�istrict, are inclusi�•e of all parcels as sho�vn on the Ki��erside Count}• Assess�r's Parcel nfaps as theti� existed at the ume of the pas�age of the Resolution of Intenaon, and shall include all subseyuent subdirisions, lot line adjustments or parcel changes therein. Keference is }ierebt• made to the Riverside Counn' �lssessor's maps for a detailed descripdon of the lines and dimensions of each lot and parcel of land�vithin the District. Part V Assessment Ro1L• .� lisun�; of the proposed assessment amount to be presented to thc propern� �wners of record in the protest ballot proceeciings rcyuired pursuant to the pro��isions of the Calif�rnia Consutuuon. Z�he proposed assessment amount for each parcel is based on the parcel's propordonal special benefit as oudined in the method of appordonment and the proposed initial I�Iaxirrium �lssessment Rates. Mttat7'rit��m�a! Puge 3 I-�.iigincer's Rcpc>rt Cin•oE Paltn llesert 13encfit .lsscssmcnt llistrict �o. 1 PART I - PLANS AND SPECIFICATIONS A. Benefiting Properties within the District "11�e territ�n• �vithin the District consists of all lots, parcels and subdi��isions �f land within the subdi��ision known as I�Ionterc�• 170 and thc proposed subdi�•isic>n known as Section 29,which encompasses an area of land totaling approa:imateh� four hundred sixn• acres (-�GO acres). "I'he subdi�•isions are generall��located: • North of Gerald Ford; � tiouthwest of Interstate 10; • �t'est of the Porrola .���enue; and, � F.ast of;�fontcre�� .1�•enue. Z'hc parcels �vithin the District at the time of the Rcsoluaon oE Intenuon are idcntiticd on the Riversidc Count�� rlssessor's Securcd Roll (as of)une 200G) and the :lsses�c>r's I'arccl I�fap as: 13ook G53, Pagcs 25, 2G, 81, 82, 8� and 8G; Book G53, Pa�e 25, Parccls 012, 032,03-4, U3G, 038, 039,0-�2 thmugh 0-IG, OSU, O�1,053, OS-�,0�5,O�7, l)58,OGO and 073; L3o�k G�3,all I'arcels on Page 2G exce�t 1'arcels 021 and 029;and Book G53, all 1'arcels on I'ages 81, 82, 8� and 8G. B. Funding authorized by the 1982 Act ,1s generall}' defined b�• the Benefit �lssessment �ct of 1982 and applicable to this District, the Cit�- mati� impose a benefit assessment to financc thc maintcnancc, operation and sen•icing costs associated�vith the drainage basin described below. C. Description of Services "lhe purpose of this District is ro fund the acti�riaes necessart• to operate, maintain and sen-ice the drainage basin constructed in a pora�n of Secdon 29;1'o�vnship -1 South, Range G F,ast SBI�1 and ro be enlargec3 in connecuon with current and new de�•elopment �f properdes. Thc maintcnance, operaaon and sen•icing of these impro�•cments ma�' includc but are not limited to all materials, equipment, labor, and incidental e�enses dcemed necessar�• ro keep the drainage basin in saasfacrort� conciidon. The maintenance of che impro�•ements and relared acd�7des shall be funded enarel�� through the L�istrict assessments."I1ie I�istrict sen�ices are generall�•described as: Mumtl'i�ran�rn! Page 4 i-:nginccr's Itepor[ Cin•of Pal�n Ucscrt Benefit_�ssessment llistrict \o. 1 � llrainage basin maintenance that ma�' include but is not limited to inspection, repair, remo��al and re�lacement, and sen�icing of drainage basins, inlets, catch basins, manholcs, oudcts, dr�•�vells, pumps, filtcrs and storm drain pipcs installcd in connection �vith the de�•elopment �f benefiting propertics as well as an�� off-site impro�•ements and facilides directlt- associated �vith the aforementioned infrastructure that is deemed necessar�� ro sen�ice or protect the properues; • .�ll appurtenant, equipment, materials and ser�•ice contracts related to the operation, maintenance and ser�-icing of the aForementioned impro��ements and facilities; Detailed maps and descripa�ns of the locadon and e�tent of the specific un�m�•emetits t� be maintained b�� thc District are on file in the (�ffice of Public��'orks and b�� reference arc made part of this Report. The annual cost to provide the sen7ces detemuncd to be of special benefit shall be allocated ro each property� in propordon to the special benefits received from those�•arious ser�•ices. Drainage Basin Maintenance "11�e drainage basin maintenance ma�� include, but is not lunited to: �raciing of access perimeter roads, repair of erosion of slopes to access roads, debris clearance, ancl�ormat repairs, dust control through the applicadon of soil stabilizaaon agents, wccd abatement, mosyuito and vector control, storm drain inlets and oudets, pumps, filters and pipes. "I1�e annual assessments for this District are intended ro support the draina�e basin and the maintenance program that �vill adequatel�� regulate and contr�l storm �vater runoff resuldng from current and pro��sed de��elopment �vithin the I�istrict. 71�is maintenance �rogram ma5• include but is not limited to: inspecdon and documentaaon of the s��stem; cleaning, sen-icinK or repair of the faciliaes and equi�ment; and the partial remo�•al, replacement or re}iabilitation of equipment and faciliaes. '17�e drainage basin will co�•er an area �f ap�r�ximatel�� -} acres. 1he Public «'orks Department shall authorize and schedule all operational aca��ides and maintenance of the drainage basin. .1 �or[ion of the sen�ices described abo�•e might not be performed on an annual basis but rather as a result of an extraordinar}•e�•ent, such as replacement of the anchormats and c>ther maj�r facilit�� repairs, and the funds necessan• for these acri��iaes are collecred as �art of the annual assessments. The monies collected each �•ear for these extraorciinan� sen-ices shall be accumulaced in a s�ecial fund of the District (Reserve Fund). "I11e monies accumulated for these acu��iaes shall be spent as needed to perform the ser�rices deemed necessar�• bt• thc Cin•. This process of pro�-idin� a reserve shall connnue until such ame the District is ciissol�•ed; or the Cin- deternzines that such funding procedures reyuire mociificauon. Changes in the process of pro��ic_Wlg a reserve that �vould result in an increase to the annual assessment rate must be presented ro the properh� o�vnrrs for appro�•al prior t� imposing such an incrcasc. Mua�7'�nnnnr�! Pnqr� Ln�ineer's Rcport Citt•of I'alm I�cscrt Benefit :\sscssmcnt 1>iscrict �o. 1 PART II - METHOD OF APPORTIONMENT A. General "l�e 1982 :1ct permits the establishment of assessment districts b}' agencies for the purpose c�f pro�>idin� for the maintenance, operadon and ser�ricin� oE drainage and flood control unpro�•ements as well as streets, roads and appurtenant facilities. Thr 19H2 .1ct further reqiures that the cost of these impro�•ements be ]e��ied accorciing ro benefit rather than asscssed valuc: "1 be amonnt oj tGr a.rse.rsment imposed o�r u�rp�ur��rl of propert}�.rhal!�e reluted to tGr be�re�t to the�ar��el tvhi��b wi!l(�e derit�ed from 1/�e�ror.�i.cion al the.ren.�ice". H'urthermore: '`l he annual u�r��ute amo��nt of the assessmr�rt sha!l not e.t•ieed!be estimated u�urual co3t o� �ro�rding tGe �err.rir, P.1'['Pp� IIICII �IIP /egi.rlatire body ma}�, Gy re.rolution, determrne 1ba1 !be e.rlimuled ro.rt oj wor,� ur�thorrtied ... i.r grevter tGa�r �un l�e cona�e�trently rai.cec!/�rom a .ci�r�le u�rnua!ur.re�sme�rt und order that tGe e��timuter!ro.rt shul!Ge raised Gy a�r ar.reesm��nt le��red and ��a!le�ted i�r ln.rtu!lme�rt.r.... The rrt�enne derrr.�ed from!Ge asse.rsment.cba!l not be u.re�d to pa}�tl�e ��ost of anp servire othrr thu�r the.remrie for rvbi�l�the u��.ces.rmen!wu.r lea�ied. 'lhe method of appornonment described in this Report for allocaaon �f special benefit assessments ualizes commonh�accepted engineering prac[ices and is in compliance�vith the pro�-isions of the 1982 �1ct and the Califomia Consatuuon. The formulas used for calculating assessments reflects the composidon of parcels �vithin the District anci the unpro�-ements and ser�rices provided, to fairh• apportion the costs based �n the special benefits to each parcel. B. Benefit Analysis I�ach of the proposed sen-ices,and the associared costs and assessments ha��e been carefull� re��ic�ved,idcnafied and allocated based on special benefit pursuant to the pro�-isions of thc 1�)f32 �-1ct and the Califomia Constitudon. The drainage basin impro��ements associated�vith this District are necessan' and essenrial requirements for ea:isting devel�pment, and the c�rderl}�de��elopment of future properties�vithin the I�istrict to their full�otenual,consi�tent �vith the condiaons for de�•clopment of the properaes,protecaon of downstream pro�crucs �vhich would be negau��elt� affected bt- increased storm runoff from the developed pmperries �vithout the basin, and the applicable pordons of the (;in•General Plan. .-1s such, the �ngoin� operation, ser�-icing and maintenance of those impro��ements would otherwise be the ciirect financial obligation of each indi��idual propem� o�vner. Since d�e c�isring parccls and proposed nc�v de�•clopment to be asscssed arc ciirecd}' serned b}' the drainage basin, each parcel has a direct im•estment in the proper maintenance of the �•anou� unpm�•ements that is o�-er and abo�•e ant- general bene6ts that ma�� be conferred b�• such impro�•cments and scnrices. The construction and installadon of these impro�-cments are onl�� necessan• for the properties �vithin the I)istrict. .�s such, these impro�•ements �vere not required nor Munt7'tnan�•in/ PnQe G Gn�incer's Report Citt•of I'alm I�csrrt Bcnefit .\sscssmcnt llistrict i�c�. 1 necessaril}'desired bt-an�•properues �r developments outside the District boundar�•and am� public access or use of the impro�•ements b}� others is incidental. "11-ierefore, it has been determined that the ongoing maintenance, ser�ncing and operation of the District improt�ements pro�7de no measurable general benefit to properties outsidc the District<>r m the pubGc at large, but cicarl�• pro�-id� distinct and special benefits to �roperaes �vithin the District. C. Assessment Methodology :111 costs associared�vith the sen-ices shall be fairl��distributed among the parcels based upon the s�ecial benefit recei��ed b}• each parcel. �lddiuonall}', in compliance �vith the Califc>mia Consdtuaon ,�rticle XIIII� Secdon �, each parcel's assessment ma�� not exceed the reasonable cost of the proporrional special benefit conferred to that parcel. "l�c bencfit formula used to detcrcnine the assessment obligaaon is therefore based upun both the services that benefit the parcels �vithin the District as �vell as the gross acrca�e of each propern�as comparcd to other parcels that benefit from those s�n•ices. "Ihe method of aJ�pordonment established for this District and described hercin,reflects thc pro�orrional special benefit each propern� recei�•es from the ser��ices based on the gros. acreage of that parccl as compared ro the total gross acreage of all properties �vithin the District except those that retain runoff on-site and do not recci��e anti� special benefit from those ser��ices. Equivalent Benefit Units In order cu assess benefits eyuitablt� it is necessar}• ro relate each pro�crn�'s proporaonal special benefits ro the special benefits of all other J�roperries�vithin the District.The method �f apporuonment estabGshed for this district, formed under the 1982 Benefit .1ct,�vill utilize a weighted method �f appordonment l:nown as an Cqui��alent Bcnefit L'nit (I?F3U) methodolog��.This proporaonal weighting ma5-be based on se��eral factors that mat�include, but are not Wnited ro: the ttpe of de��elopment (lanci use), de�•elopment-status (dc�•eloped versus undeveloped), size of the propert}�, locaaon of the propern-, de��elopmcnt plans or restrictions, �•ehicular trip generation, street frontage, densicies or �ther propern• related factors. Generall�• for most districts the calculation of each parcel's proporaonal special benefit can be reasonabl��detennined by�ap�l�7ng one or more of these facrors. Since the drainage basin �vill be constructed to retain runoff from the properties within the Disu-ict and thc cost of maintenance is direcd�� related ro the size of the basin,each parcePs proportional special bene6t has been based on the parcePs gross acreage as c�mpared tc� the total gross acreage of all other parcels�vithin the District except those that retau� runoff on- site and do not receive ant•special benefit from those sen�ces.CTenerall}',storm water runc�ff occurs from the entire parcel beFore and after development. '11ius the gross size of a parccl prior to de�•elopment pro��ides a relad��e comparison ro the amount of runoff the parccl �t�ill contribute ro the drainage basin and thus the cost of maintenance. '11�erefore, it has bcen determuled that far this District, each parcel's proJ�ortional benefit (L.yui�•alent I3enefit L'nits) shall be cqual ro the parcel's gross acrcagc beforc dc�•elopment (roundcd to hv� dccunal places). Exempt Parcels — This land use identifies propertics that are n�t asscssed and arc assi�ned 0.00 CB['. "I�his land use classification mav include but is not limited to: Muair7nan�rul Pnqe' ]-?r�ginrer'ti Rcport Citt•of Palm I�esert Benefit .lssessment District \o. 1 � I.ots or parcels identificd as public streets and �ther road�va�s (tl'picall�• not assi�ned an AI'N b�� the Counn�) �vhich are otherwise included in the gross acrcage of the �arcel prior to de��elopment; • I�edicatec� �ublic easements includin� upen s�ace areas, uulin� rigltts-�f-�vat�, grcenbelts, parkwati�s, parks or othcr �ublicl}� owned pr�pertics that arc part of thc llistrict impro�-ements or mati-pro��idc othcr benefits to �ri�-ate properues �vithin thc l�istrict; • Pri��ate pr�perues that cannot be developed independentl�� from an adjac�nt �ropert}•, .uch as common areas, sliver parccls or bifurcated lots or properucs with �•erti� restricu��e de��clopment use but are included in the gross acrea�e prior tc> dc�•elopmcnt; • Pareels o�vned b}- the school district, Coachella �'allet� 1t'ater Disrricc and pri��ace c�e�•elopers that �vill not be assessed as part of this benefit assessment district, sincc the runoff generated b}- thesc properties shall bc capturcd and retaincd �nsire throu�h the construction and Krading of the sites. '1'hcse n�pes of �arcels are considcred to recci�•e little or no benefit fr�m thc improvements and are therefom exempred frum assessment, but shall be re�•ietved annuall�• b�� the assessment engineer to c�nfirm the parcels' current devel�pment s[aRis. C'�o��ernment o�vned properues or public properties are not necessarilt- excmpt properucs and shall bc subject to special bencfit asscssmcnt unless it yualifies for an excmpt status. "Ihe follo�ving formula is used t�calculate each parcel's CBU (proporuonal benefit). Total Budget/ Total EBU (Gross Acres)= Assessment Rate per EBU (Patcel's Acreage / Total Net Acreage) x Total EBU = Parcel's EBU Assessment Rate per EBU x Parcel's EBU = Parcel Levy Amount For all subseyucnt parccl subdi�•isions that result in a final map of buildable residential lots, the number of f�:BU. a�si�;ned tc> such locs shall be calculated bS� tal:in� the CBC.' initiall�� calculated for the ori�;inal I'arcel (iclentified at the time of this Report) and apportioning the original assigneci �:f3Us equally ro thc ne�v buildable residcntial lot(s) �r b}' equi��alent gross acreage for non-residenual lots created b}- a subdi��sion map. The corresponding assessment shall be le��ied against the applicable corresponding .-�sses,�r's Parcel Number(s). D. Assessment Range Formula �1n5�new or increased asscssment requires ccrtain nodcing and meednK rcquiremcnts b��law. Pri�r tu the passage of Pro�ositi�n 218 (California Consdtudon �lrticles XIIIC and �IIII�), Iegislaa�•e changes in the liro�vn :1ct defined a "new or increased assessment" ro exclude certain condid�ns. "I11ese condirions included ��an�• assessment that d�es not exceed an asscssment Formula or range of assessments Prc��ousl�• adopred b�• the aKencti• �r a�pr���ed b}' thc voters in thc area �vherc thc assessment i� unposed." "Ihis definition and condiu�ns �vere later confirmed through Senatc Bill 919 (Proposidon 2l$imrlementing]cKislaaon). The purpose of establishing an ,-lssessment Range I�ormula is to pro��ide for reasonablc inaeases and inflarionar�� adjustment to annual assessmcnts without reyuiring costl��noricing Munt1''iin�mrn! P�{qe 8 I�n�inccr's Report Cin•of Palm I�esert Benefit _�ssessment District No. 1 and mailing procedures, �vhich could add to the llistrict costs and assessments. �1s part of the District formati�n, the nc>tice and assessment ballots presented ro the properh' o�vners for appro��al, includes a maximum assessment amount for fiscal }-ear 2007/2008 (initial maximum asscssment), identificaaon of the corresponding �faximum �sse�smcnt Ratc and a summar}•of thc.lssessment Ran�;e }�'ormula described herein. The .'�ssessment Ran�e rormula for this llistrict shall be applied ro all funuc asscssments and is generall}�defined: • If the proposed annual assessment (le��• per CI3L� for the upcoming fiscal t�ear is less than or cyual ro thc adjusted I�faximum .�ssessment Rate, then thc �roposcd annual assessmcnt is not considered an incrcased assessment. • '111e I�1a�cimum Assessment Rate is equal to the (Initial) I�4aximum ,lssessment Rate established for fiscal }�ear 2007J2008 adjustrd annuall�• b�• the greater of three percent (3°%) or, the annual percentage change in the Consumer Price Index (CI'I) of ".�ll L�rban Consumers" for the I.os.�ngcles-Orangc-Ri�•erside.-�rea. Heginning in the second fiscal�•ear (fiscal��ear 2Q08/2009) and each fiscal�•ear thereafter,thc I�iaximum ��ssessment Rate �vill be recalculated and a new niaximum .�ssessment Rate established for che fiscal ti•ear urilizing the.lssessment �ange Formula described abo��c. "I��c adjusted ;�4aximum .�ssessment Rate shall be calculated independent of the District's annual budget and proposed assessment. The annual percentage change in CPI shall be based c>n a�•ailable data pro��icied by the U.S. L�epartment of Labor; Bureau of Labor Statisdcs at the timc the annual Report is prepared. Should thc Iiureau of Labor Stausucs re��ise such index or discontinue the preparation of such index, the Cin� shall use the revised index or comparable s}�stem as approved b�• the Cin' Council for determining flucruauons in the cost of living. �1n�• proposed annual assessment (rate per CBL') less than or equal to the calculated (adjustec� �laxirnum�lssessment Rate is not considered an incrcased assessment,c�•cn if thc proposed assessment is preater than the assessment applied in the prior fiscal t�car. '1'o impose a ne�v or increased assessment other than the annual infladonar�• adjustment pro�•ided b}' the preceding ,�ssessment Range Formula, the Cin• must comply �vith thc pro�•isions of the California Consdtudon �lrticle XIIID Section �c, that requires a �ublic hearing and certain protest procedures including mailed norice of the public hearin� and pro�ert�- o�vner protest balloring. Propert}' o�vncrs, through thc balloring process, must appro�•e a prop�scd ne�v or increased assessment before such an assessment ma�� bc imposed. r1s part of the District formaaon, �ropert}' owners shall be balloted for a s�ecial benetit assessment necessar�� for the annual operarion and maintenance of the: I�istrict improvements. This Report establishes an assessment amount for each of the existin� properties within thc District and this amount is used to determine if majorit�•protest exists in che ballot ta6ulation. These assessments are based on the iniaal I�taximum :\s.es.ment Rate and method of apportionment described in this Report. "I�he notice and ballot presented to the propern� rnvncrs idendfies the uuaal I�faxirrium �lssessment Ratc and the .lssessment Range Formula described above. In tabula[ing the ballots, the ballots �vill be �veighred accorc.iing to each �arcel's le�-r amount, �vhich is based on the irudal I�iaximum �lssessment Rate. MuntT'inun�zu/ P���r 9 I•:nginccr's lteport Cin•of Palm llesert Benefit _�sscssment I�istrict I�o. 1 PART III - DISTRICT BUDGET BENEFIT ASSESSMENT DISTRICT BUDGET DIRECT COSTS TOTAL I.abor xnd '�faintenance S �2,5(1q.(111 '�fatenals �7,OOO.UO L'nl�ncs 1,Sl;i.(10 ADMINISTRATION Cin _�dministration(��•crhead 11,200.Qf) I'rofessional fees for.ldmin�stradon S,OOQ.Uf) Counn•.�dministranon Fcc 1,OOO.QO RESERVE FUND (8.5%of Direct Cost) 12,83G.11 BALANCE TO LEVY 181,0�39.11 Parccls f x�tied 2G I Total EBUs (CTross .�cres) ��4.35 LEVY PER EBU $ 398.48 Mua1T'rnun�in/ Puqr lU I:nginecr's Rcj�c>rt (:it� of Palm I)escrt BeneFt :\ssessment I�istrict \o. 1 PART IV - DISTRICT DIAGRAMS 'l�he �arcels �vithin Benefit .-lssessment llistrict No. 1, Parcel I�4ap No. 2-}255 (,�Iontere�� 170) / .lssessment District 2(x)�-02 (Secdon 29) consist of lots, parcels and subciivisions of land located in the planned residenual de��elopment lcnow-n as Section 29 and I�Ionterey 170. '17�e I�istrict co�•rrs a�prosimateh- four huncired sixt� acres (-�GO acres) in the Cin'of Palm Desert. "l�c follo�ving llistrict Diaj;ram is bascd on the Ri��erside Counn',lssessor's I�iaps and the Ri�•crsidc Counn� ,�ssessor's informauon and idenafies all the parcels of land�vithin the proposed I�istrict, as thc same etisted at the time this Report �vas prcparcd. '11ie combinauon of this map and tlie .-�ssessment Koll contained in this Report consritute the District .-lssessment Diagram. "l�he I�faa:imum .-�ssessmcnt Rate, assessmcnt range formula and the proposed assessment amount for each c�f the existing parcels�vitlun the District as described herein,shall be presented ro the�ropern• o�L�ners of record for approval or protest in acmrdance �vith the pro�-ision+ of the Califonua Consdtunon. MumT�inumr��l Pn�e 11 N V d y � V ^ j� � �t F ry p W¢� a W W W � �� N �R;�� � �� " ��� �� � � ����� � �=3� � � � ��,�� a �°�� � <� ���� � � v � �a�� � W N � ���� � I � Z � H � ����� 3 < � � � ��� � w � ���� � a � W � ���y�� XX� � �a Q � � o � ����� �� ° a Z -- �z� � U N � w N � � z ��Q � � � v�a V 0 V sos �A� = ~ � �No az� � w o ��� O�� (n � � °�k' �`�� w w � �t�i N e' � v � cnw r� A�a � a Z u Z �� � m W � � � e H � w W � � W m � � o o e� � � , � a ,, � ��i � �� ` r c c � � �c s � L•'.nKinecr's Report Cin•of I'alm I�csert Rencfit _\ssecsment I�istrict \o. 1 PART V -ASSESSMENT ROLL Parcel idenufication for each lot or parcel �vithin the l�iscrict is based on the .-lssessment I�iaj�ram presented hcrein and is based on a�•ailablc parcel maps and property data from thc Ri��erside Counn� .-�ssessor's C)fficc at thc time the 1-:nKinecr's Report �yas preparcd. .�1 lisang of the proposed lots and parcels ro be assessed�vithin this l�istrict along�vith the assessment amounts is pro�Rded herein. Nc�n-assessable lots or parcels mav include, but are not limited ro public streets and other road�va�-s (tt�icallt� not assigned an :1PN b�• the Count}•); deciicared public easements, open space areas, right- of wa��s, comm�n areas; bifurcated lots, and an�• other propern• that can not be de�•eloped �r has litde <>r no ��alue. These t}pes of parcels are considered to recci��e litde or no benefit from the im�ro�•ements and are therefore exempted from assessment. I E am� parcel submitted for collecdon is identified b�- the Counn�.luditor-Controller ro be an in��alid parcel number for the fiscal ��ear, a corrected parccl number and/or ne�v parcel numbers �vill be idenafied and resubmitted ro the Counn' .�ludiror-Controller. "!he asscssment amount tc� be le�•icd and c�llected for the resubmitted parcel or parccls shall be based on the method of apporaonment and assessment rate described in this Report as appro��ed b�- the Cin• Council. Therefore, if a sin�lc J�arcel is subcii��ided ro multiple parcels, the assessment amount applied to each of the ne�v parcels shall be recalculated and applied accorciing to the approved method of appordonment and assessment rate rather than a proportionatc sharc�f the�riginal assessmcnt. The following is a list of the parcels and proposed assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Assessor Owner EBU Asaeesment Parcel No. 653-250-032 PALM DESERT ASSOC 5.35 $2,131.40 653-250-034 LBNCC PALM DESERT 4.88 $1,942.70 653-250-036 LINGKOGIN INC&CHARLESON HSU 10.�9 $4,022.64 653-250-038 C V W D 0.00 $0.00 653-250-039 MONTEREY GATEWAY PARTNERS 7.06 $2,813.2$ 653-250-042 G8G PROP 3.14 $1,252.24 653-250-043 BEDROSIAN PALM DESERT 3.61 $1,436.66 653-250-044 MIRABEL HOLDINGS 11.42 $4,550.14 653-250-045 PROMONTORY DEV 4.88 $1,942.70 653-250-046 CITY OF PALM DESERT O.00 $O.00 653-250-050 CITY OF PALM DESERT 0.00 $0.00 653-250-051 MONTEREY 170 0.0� $�.�0 653-250-053 MONTEREY 170 �.�� $�.�0 653-250-054 CVWD 0.0� $0.00 653-250-055 PERRY D KOON 8 ELIZABETH S KOON 3.44 $1,372.32 653-250-057 DESERT GATEWAY SELF STORAGE 3.43 $1,368.04 653-250-058 PALM DESERT ASSOC 1.04 $415.98 653-250-060 SPYDER BUSINESS CENTER 4.99 $1,989.88 653-250-073 BERDAN PARCEL C NFT PARCEL C O.00 $O.00 653-260-016 PONDEROSA HOMES II INC 3.23 $1,286.56 653-260-018 LOWES HIW INC 22.25 $8,864.3$ 653-260-022 MACLEOD COUCH LAND CO 25.38 $1�,112.34 MuntT'i�m�f�ial 1'age 13 F.n�,nnccr's Rcport (;in•oFPalm I�cscrt Bcnefit .lsscssment District I�c�. 1 Assessor Owner EBU Aasesament Parcel No. 653-260-023 MACLEOD COUCH LAND CO 3.75 $1,492.40 653-260-024 MC PROPERTIES 26.81 $10,682.82 653-260•025 PALM SPRING UNIFIED SCHOOL DISTRICT O.00 $O.00 653-260-033 PONDEROSA HOMES II INC 45.16 $17,994.64 653-260-035 PONDEROSA HOMES II INC 0.37 $145.80 653-260-036 DESERT LAND HOLDINGS 86.95 $34,646.98 653-260-041 DESERT WELLS 237 20.36 $8,113.9� 653-260-042 DESERT WELLS 237 18.58 $7,402.00 653-810-001 EUGENE L AHLGREN&MARYANN AHLGREN 0.66 $261.60 653-810-002 ROBYN S RITCHEY 8 ROBERTA G RITCHEY 0.52 $205.84 653-810-003 OLIFORD 0.50 $197.26 653-810-004 STEPHEN R QUISENBERRY 8 STEVEN J PITCHERSKY 0.50 $197.26 653-810-005 STEPHEN R QUISENBERRY 8 STEVEN J PITCHERSKY 0.50 $197.26 653-810-006 NORTH SPHERE ASSOC 1.31 $523.20 653-810-007 TIMOTHY L ELLENZ 1.30 $518.90 653-810-008 GEORGE L GONZALEZ 8 THERESA L HESSE GONZALEZ 2.13 $849.12 653-810-010 GEORGE TACKETT&SERGEY ZAMD 0.56 $223.00 653-810-011 RANDALL WERNER 8 PEGGY AMES 0.50 $197.26 653-810-012 NEAL COLLINS 8 CHARISE KARJALA COLLINS 0.50 $197.26 653-810-013 EDMUND CELAYA V 8 MARY A CELAYA �.50 $197.26 653-810-014 DINAH 19 0.56 $223.00 653-810-015 DINAH 20 1.01 $403.12 653-810-016 WJM VENTURES I 8 PAULINE L JOHNSTON 0.56 $223.00 653-810-017 WJM VENTURES I 8 PAULINE L JOHNSTON 0.50 $197.26 653-810-018 DONALD EUGENE CARRAHER&MICHELE RENEE CARRAHER 0.50 $197.26 653-810-019 DARMON REAL ESTATES INV INC BERKELEY CERESA DEV 0.50 $197.26 653-810-020 DARMON REAL ESTATES INV INC 0.62 $248.72 653-810-021 PVJ ASSOC 1.02 $407.40 653-810-022 MONTEREY 170 0.94 $373.10 653-810-023 PRES MONTEREY I 1.�� $398.82 653-810-024 PRES MONTEREY I 0.59 $235.86 653-810-025 PRES MONTEREY I 0.47 $188.68 653-810-026 PRES MONTEREY I �.99 $394.54 653-810-027 PRES MONTEREY I 0.56 $223.00 653-810-028 PRES MONTEREY I 0.46 $184.40 653-810-029 PRES MONTEREY I 0.43 $171.54 653-810-030 PRES MONTEREY I 0.55 $218.70 653-810-031 PRES MONTEREY I 0.62 $248.72 653-810-032 PRES MONTEREY I 0.8� $317.34 653-810-033 PRES MONTEREY I 0.81 $321.64 653-810-034 PRES MONTEREY I 1.19 $476.02 653-810-035 PRES MONTEREY I 0.67 $265.88 653-810-U36 PRES MONTEREY I 0.89 $355.94 653-810-037 PRES MONTEREY I 0.54 $214.42 653-810-038 PRES MONTEREY I 0.54 $214.42 653-820-001 WAL MART REAL ESTATE BUSINESS TRUST 12.81 $5,103.36 653-820-002 RJ VENTURES 3.�2 $1,2�5.�6 653-820-003 RJ VENTURES 4.24 $1,689.68 653-820-004 RJ VENTURES 4.77 $1,899.82 653-820-005 RJ VENTURES 2.34 $93�.6� 653-820-006 RJ VENTURES 1.46 $583.24 Munt1~rnanrinl Pnge 1�7 1-:ngincer's Rrport (:in•of Palm I)cscrt Bcncfit .lsscsstnent District \c�. 1 Assessor Owner EBU Assessment Parcel No. 653-820-007 RJ VENTURES 1.72 $686.16 653-820-008 RJ VENTURES 1.04 $415.98 653-820-009 RJ VENTURES 1.36 $540.34 653-820-010 RJ VENTURES 1.36 $540.34 653-820-011 DESERT GATEWAY �.82 $325.92 653-820-012 DESERT GATEWAY 1.0� $398.82 653-820-013 E 8 M SKYLINE INV 1.22 $484.60 653-820-014 DESERT GATEWAY 0.43 $171.54 653-820-015 SAMS REAL ESTATE BUSINESS TRUST 15.2� $6,055.40 653-820-016 WAL MART REAL ESTATE BUSINESS TRUST 9.21 $3,670.98 653-820-017 DESERT GATEWAY 0.93 $368.80 653-820-018 DESERT GATEWAY Q.93 $36$.$0 653-820-019 DESERT GATEWAY 1.30 $518.90 653-820-020 DESERT GATEWAY 1.01 $403.12 653-820-021 DESERT GATEWAY 1.21 $48�.30 653-820-022 RJ VENTURES 1.00 $398.82 653-820-023 RJ VENTURES 1.29 $514.62 653-820-024 RJ VENTURES �.96 $381.6$ 653-820-025 RJ VENTURES 1.43 $570.36 653-820-026 SAMS REAL ESTATE BUSINESS TRUST 2.17 $$66.2$ 653-820-027 WAL MART REAL ESTATE BUSINESS TRUST 0.50 $197.26 653-820-028 SAMS REAL ESTATE BUSINESS TRUST �,98 $789.08 653-850-001 RILINGTON DOLCE 0.22 $87.06 653-850-002 RILINGTON DOLCE �.22 $87.06 653-850-003 RILINGTON DOLCE �.22 $87.06 653-850-004 RILINGTON DOLCE 0.22 $87.06 653-850-005 RILINGTON DOLCE 0.22 $$7.06 653-850-006 RILINGTON DOLCE �.22 $87.06 653-850-007 RILINGTON DOLCE 0.22 $87.06 653-850-008 RILINGTON DOLCE Q.22 $$7.Q6 653-850-009 RILINGTON DOLCE 0.22 $87.06 653-850-010 RILINGTON DOLCE 0.22 $87.06 653-850-011 RILINGTON DOLCE 0.22 $87.06 653-850-012 RILINGTON DOLCE 0.22 $87.06 653-850-013 RILINGTON DOLCE 0.22 $87.06 653-850-014 RILINGTON DOLCE �.22 $87.�6 653-850-015 RILINGTON DOLCE �.22 $87.�6 653-850-016 RILINGTON DOLCE 0.22 $87.06 653-850-017 RILINGTON DOLCE Q.22 $$7.Q6 653-850-018 RILINGTON DOLCE 0.22 $87.06 653-850-019 RILINGTON DOLCE �.22 $87.06 653-850-020 RILINGTON DOLCE �.22 $87.06 653-850-021 RILINGTON DOLCE 0.22 $87.06 653-850-022 RILINGTON DOLCE 0.22 $87.06 653-850-023 RILINGTON DOLCE 0.22 $87.06 653-850-024 RILINGTON DOLCE 0.22 $87.06 653-850-025 RILINGTON DOLCE 0.22 $87.06 653-850-026 RILINGTON DOLCE 0.22 $87.06 653-850-027 RILINGTON DOLCE �.22 $87.06 653-850-028 RILINGTON DOLCE 0.22 $87.06 653-850-029 RILINGTON DOLCE 0.22 $87.06 MuntT'iiran�in! PqKr 1� E:ngineer'� Report Cit�•of Palm 1)cscrt I3enefit .�sscssment District I�o. 1 Assessor Owner EBU Aseessment Parcel No. 653-850-030 RILINGTON DOLCE 0.22 $87.�6 653-850-031 RILINGTON DOLCE 0.22 $$7.�6 653-850-032 RILINGTON DOLCE �.22 $$7.�6 653-850-033 RILINGTON DOLCE 0.22 $$7.06 653-850-034 RILINGTON DOLCE 0.22 $$7.06 653-850-035 RILINGTON DOLCE 0.22 $87.06 653-850-036 RILINGTON DOLCE 0.22 $87.06 653-850-037 RILINGTON DOLCE 0.22 $$7.06 653-850-038 RILINGTON DOLCE �.22 $$7.06 653-850-039 RILINGTON DOLCE 0.22 $87.06 653-850-040 RILINGTON DOLCE �.00 $0.00 653-850•041 RILINGTON DOLCE 0.00 $0.00 653-851-001 RILINGTON DOLCE 0.22 $87.06 653-851-002 RILINGTON DOLCE 0.22 $87.06 653-851-003 RILINGTON DOLCE 0.22 $87.06 653-851-004 RILINGTON DOLCE �.22 $87.06 653-851-005 RILINGTON DOLCE 0.22 $87.06 653-851-006 RILINGTON DOLCE 0.22 $87.06 653-851-007 RILINGTON DOLCE 0.22 $87.�6 653-851-008 RILINGTON DOLCE 0.22 $87.06 653-851-009 RILINGTON DOLCE �.22 $87.06 653-851-010 RILINGTON DOLCE 0.22 $87.06 653-851-011 RILINGTON DOLCE 0.22 $87.06 653-851-012 RILINGTON DOLCE 0.22 $87.06 653-851-013 RILINGTON DOLCE �.22 $$].Q6 653-851-014 RILINGTON DOLCE 0.22 $87.06 653-851-015 RILINGTON DOLCE 0.22 $87.06 653-851-016 RILINGTON DOLCE 0.22 $87.�6 653-851-017 RILINGTON DOLCE 0.22 $87.06 653-851-018 RILINGTON DOLCE �.22 $87.06 653-851-019 RILINGTON DOLCE �.22 $87.�6 653-851-020 RILINGTON DOLCE �.22 $87.�6 653-851-021 RILINGTON DOLCE �.22 $87.06 653-851-022 RILINGTON DOLCE 0.22 $87.�6 653-851-023 RILINGTON DOLCE 0.22 $87.�6 653-851-024 RILINGTON DOLCE 0.22 $87.06 653-851•025 RILINGTON DOLCE �.22 $87.�6 653-851-026 RILINGTON DOLCE �.22 $87.06 653-851-027 RILINGTON DOLCE 0.22 $87.06 653-851-028 RILINGTON DOLCE 0.22 $87.06 653-851-029 RILINGTON DOLCE 0.22 $87.06 653-851-030 RILINGTON DOLCE 0.22 $87.�6 653-851-031 RILINGTON DOLCE 0.22 $87.06 653-851-032 RILINGTON DOLCE 0.22 $87.06 653-851-033 RILINGTON DOLCE �.22 $87.06 653-851-034 RILINGTON DOLCE 0.22 $87.06 653-851-035 RILINGTON DOLCE �.22 $87.06 653-851-036 RILINGTON DOLCE 0.22 $87.06 653-851-037 RILINGTON DOLCE 0.0� $�.�0 653-851-038 RILINGTON DOLCE �.0� $0.0� 653-852-001 RILINGTON DOLCE 0.22 $87.06 Mun���ii�nniiul Pr��e 1G H:n�;uieer's Rcport Cin•of I'alm l�escrt Bcnefit .�sscssment District '�o. 1 Asaessor Owner EBU Asaessment Parcel No. 653-852-002 RILINGTON DOLCE �.22 $87.06 653-852-003 RILINGTON DOLCE 0.22 $87.06 653-852-004 RILINGTON DOLCE 0.22 $$7.�6 653-852-005 RILINGTON DOLCE 0.22 $87.06 653•852-006 RILINGTON DOLCE 0.22 $87.06 653-852-007 RILINGTON DOLCE 0.22 $87.06 653-852-008 RILINGTON DOLCE Q.22 $$7.Q6 653-860-001 RILINGTON DOLCE 0.22 $87.06 653-860-002 RILINGTON DOLCE 0.22 $87.06 653-860-003 RILINGTON DOLCE 0.22 $87.06 653-860-004 RILINGTON DOLCE 0.22 $87.06 653-860-005 RILINGTON DOLCE �.22 $87.�6 653-B60-006 RILINGTON DOLCE 0.22 $87.06 653-860-007 RILINGTON DOLCE 0.22 $87.06 653-860-008 RILINGTON DOLCE Q.22 $$7.Q6 653-860-009 RILINGTON DOLCE 0.22 $87.06 653-860-010 RILINGTON DOLCE 0.22 $87.06 653-860-011 RILINGTON DOLCE 0.00 $0.00 653-860-012 RILINGTON DOLCE 0.00 $�.�0 653-861-001 RILINGTON DOLCE 0.22 $87.06 653-861-002 RILINGTON DOLCE 0.22 $87.�6 653-861-003 RILINGTON DOLCE 0.22 $87.�6 653-861-004 RILINGTON DOLCE 0.22 $87.06 653-861-005 RILINGTON DOLCE �.22 $$7.�6 653-861-006 RILINGTON DOLCE 0.22 $87.06 653-861-007 RILINGTON DOLCE �.22 $87.06 653-867-008 RILINGTON DOLCE 0.22 $87.06 653-861-009 RILINGTON DOLCE 0.22 $87.06 653-861-010 RILINGTON DOLCE �.22 $87.06 653-861-011 RILINGTON DOLCE 0.22 $87.06 653-861-012 RILINGTON DOLCE �.22 $87.06 653-861-013 RILINGTON DOLCE 0.22 $87.06 653-861-014 RILINGTON DOLCE �.22 $87.06 653-861-015 RILINGTON DOLCE �.22 $87.06 653-861-016 RILINGTON DOLCE 0.22 $87.06 653-861-017 RILINGTON DOLCE 0.22 $87.06 653-861-018 RILINGTON DOLCE O.ZZ $87.06 653-861-019 RILINGTON DOLCE 022 $87.06 653-861-020 RI�INGTON DOLCE 0.22 $87.06 653-861-021 RILINGTON DOLCE �.22 $87.06 653-861-022 RILINGTON DOLCE 0.22 $87.06 653-861-023 RILINGTON DOLCE �.22 $87.06 653-861-024 RILINGTON DOLCE 0.00 $0.00 653-861-025 RILINGTON DOLCE 0.00 $�.�0 653-861-026 RILINGTON DOLCE 0.00 $0.00 653-862-001 RILINGTON DOLCE 0.22 $87.�6 653-862-002 RILINGTON DOLCE 0.22 $87.06 653-862-003 RILINGTON DOLCE 0.22 $87.06 653-862-004 RILINGTON DOLCE �.22 $87.�6 653-862-005 RILINGTON DOLCE 0.22 $87.06 653-862-006 RILINGTON DOLCE 0.22 $87.�6 MunrFi�run�i�,! !'uqe 1- }�:nginccr's Report Cth•of Palm llescrt Benefit .\ssessincnt District I�o. 1 Assessor Owner EBU Assesament Parcel No. 653-862-007 RILINGTON DOLCE 0.22 $87.06 653-862-008 RILINGTON DOLCE 0.22 $87.06 653-862-009 RILINGTON DOLCE 0.22 $87.06 653-862-010 RILINGTON DOLCE 0.22 $87.06 653-862-011 RILINGTON DOLCE �.22 $87.06 653-862-012 RILINGTON DOLCE �.22 $$7.06 653-862-013 RILINGTON DOLCE �.22 $$7.06 653-862-014 RILINGTON DOLCE O.00 $O.00 653-862-015 RILINGTON DOLCE 0.00 $�.00 653-863-001 RILINGTON DOLCE �.22 $87.06 653-863-002 RILINGTON DOLCE 0.22 $87.06 653-863-003 RILINGTON DOLCE 0.22 $87.06 653-863-004 RILINGTON DOLCE �.22 $$7.06 653-863-005 RILINGTON DOLCE �.22 $87.06 653-863-006 RILINGTON DOLCE �.22 $87.06 653-863-007 RILINGTON DOLCE �.22 $$7.06 653-863-008 RILINGTON DOLCE 0.22 $87.06 653-863-009 RILINGTON DOLCE 0.22 $87.06 653-863-010 RILINGTON DOLCE 0.22 $87.�6 653-863-011 RILINGTON DOLCE 0.22 $87.06 653-863-012 RILINGTON DOLCE 0.22 $87.06 653-863-013 RILINGTON DOLCE 0.22 $87.06 653-863-014 RILINGTON DOLCE 0.22 $87.�6 653-863-015 RILINGTON DOLCE 0.22 $87.�6 653-863-016 RILINGTON DOLCE 0.22 $87.06 653-863-017 RILINGTON DOLCE �.�� $�.�� 653-863-018 RILINGTON DOLCE 0.00 $0.00 653-864-001 RILINGTON DOLCE 0.22 $87.06 653-864-002 RILINGTON DOLCE �.22 $87.�6 653-864-003 RILINGTON DOLCE 0.22 $87.06 653-864-004 RILINGTON DOLCE �.22 $$7.06 653-864-005 RILINGTON DOLCE �.22 $$7.06 653-864-006 RILINGTON DOLCE 0.22 $87.06 653-864-007 RILINGTON DOLCE 0.22 $87.06 653-864-008 RILINGTON DOLCE �.22 $87.06 653-864-009 RILINGTON DOLCE 0.22 $87.06 653-864-010 RILINGTON DOLCE 0.22 $87.06 653-864-011 RILINGTON DOLCE �.22 $87.06 653-864-012 RILINGTON DOLCE 0.22 $87.�6 653-864-013 RILINGTON DOLCE 0.22 $87.06 653-864-014 RILINGTON DOLCE �.22 $$7.06 653-864-015 RILINGTON DOLCE 0.0� $�.0� 653-865-001 RILINGTON DOLCE 0.00 $0.00 TOTAL 269 454.35 5181,047.46 Munt�innmial Puqe 18 FoR TI IE FIRM: J. Matthew Wilcox e-mail: Matt.Wilcox(a?greshamsavage.com GRESHAM SAVAGE NOLAN & TILDEN A PROFESSIONAL CORPORATION LAWYERS • FOUNDED 1910 550 E. HOSPITALITY LANE, SUITE 300 SAN BERNARDINO, CALIFORNIA 92408-4205 (909) 890-4499 • FACSIMILE (909) 890-9877 www.greshamsavage.com January 10, 2007 VIA FACSIMILE f 760/340-66981, E-MAIL 1David.Erwinebbklaw.coml AND GOLDEN STATE OVERNIGHT David Erwin, Esq. Best, Best & Krieger LLP 74-760 Highway 111, Suite 200 Indian Wells, CA 92210 Re: REQUEST FOR CONTINUANCE Benefit Assessment District No. 1 Section 29 Drainage Benefit Assessment District Palm Desert, CA Dear Mr. Erwin: Our Firm represents Wal-Mart Real Estate Business Trust, a Delaware statutory trust, and Sam's Real Estate Business Trust, a Delaware statutory trust (collectively, "Wal-Mart"), owners of a portion of Parcel 29 of Parcel Map No. 24255. We are writing to you on behalf of Wal-Mart, and on behalf of the rest of the owners of Parcel 29, RI Ventures, LLC, a California limited liability company, and Desert Gateway, LP, a California limited partnership (collectively, with Wal-Mart, the "Parcel 29 Owners"). In connection with its initial acquisition of Parcel 29 from Monterey 170, LLC, a California limited liability company ("Monterey"), and as partial consideration for such acquisition, Wal-Mart entered into a Storm Drain Maintenance Agreement with Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., a non-profit mutual benefit corporation ("Gateway"), to provide for the maintenance and operation of an approximately 3.0 acre storm drain retention basin ("Retention Basin") for the benefit of Parcel 29, as well as certain other Parcels owned by Monterey, as outlined in the Storm Drain Agreement. Notably, the Parcel 29 Owners also shared in the cost of the land for the Retention Basin, as well as the cost of constructing the Retention Basin. We have recently learned that Monterey, Gateway, or its affiliates, may be working with . the City of Palm Desert to establish a Benefit Assessment District to acquire the Retention Basin, and to expand the Retention Basin to serve other property and, to establish a separate Benefit Assessment District to provide for the maintenance of the expanded Retention Basin (collectively, the "Assessment Districts"). We understand that this matter is currently scheduled GRESHAM SAVAGE NOLAN TILDEN J. Matthew Wilcox David Erwin, Esq. Best, Best & Krieger LLP January 10, 2007 Page 2 for consideration by the Palm Desert City Council at its regularly scheduled meeting on Thursday, January 11, 2007. It is the opinion of the Parcel 29 Owners that they have a vested interest in the Retention Basin and a specific economic interest in the maintenance of the Retention Basin pursuant to the Storm Drain Agreement. The Parcel 29 Owners believe that they can resolve this issue with Monterey and Gateway, but need additional time to further discuss the matter with them. The purpose of this letter is to request that the City of Palm Desert continue its consideration of the formation of the Assessment Districts in order to provide additional time for the Parcel 29 Owners to work out an amicable resolution with Monterey and Gateway. Please feel free to call me should you have any questions or need anything further. Very truly yours, ilcox, for GRESHAM SAVAGE NOLAN & TILDEN JMW/cam cc: Tom Noble (via e-mail only [noblecompanyllc@aol.com]) Paul Gibson, Finance Director/City Treasurer, City of Palm Desert (via Certified Mail/Return Receipt Requested) Bill Carver (via e-mail only [carvermgmt@msn.com]) Stanley G. Rothbart (via e-mail only [stan@rothbartdev.com]) W581/82-PALM DESERT_(CATE♦EDRAL_CITY)—148458.1