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HomeMy WebLinkAboutFY 2010-11 - Annual Bdgt 4 Presidents Plaza III CITY OF PALM DESERT DEPARTMENT OF PUBLIC WORKS STAFF REPORT REQUEST: APPROVAL OF THE PRESIDENT'S PLAZA III BUSINESS IMPROVEMENT DISTRICT ANNUAL BUDGET FOR FISCAL YEAR 2010/2011 SUBMITTED BY: Ryan Stendell, Senior Management Analyst DATE: June 24, 2010 ATTACHMENTS: Resolution No.2010-56 Resolution No.2oio-5� Management Plan for Fiscal Year 2010/2011 Recommendation Waive further reading and adopt: 1. Resolution N0.2010-56, approving the President's Plaza III Business Improvement District Annual Budget for Fiscal Year 2010/2011. 2. Resolution No.2oio-5� ordering the levy and collection of assessments for Fiscal Year 2010/2011. Executive Summary The attached resolutions will allow the City Council to approve the annual budget for the President's Plaza III Property and Business Improvement District. Approval of the attached resolutions will also allow the City of Palm Desert to levy and collect the annual assessments for Fiscal Year 2010/2011. Backqround The President's Plaza III Business Improvement District was re-established in 2006 for a five-year term and budget. The District is entering its final year of the five-year term. The District includes properties located on the south side of Highway 111 and on the north side of EI Paseo, between Highway 74 and Sage Lane. The City collects annual assessments to pay for services such as landscape maintenance, street sweeping, and parking lot lighting within the common parking lot areas. Each fiscal year the City Council reviews and approves a budget, which was set at the first year of the district. Staff Report PresidenYs Plaza III Budget FY 2010/2011 June 24, 2010 Page 2 of 2 The only modification to the budget is the allowed three percent cost of living adjustment, which was built into the budget at the beginning of the five-year cycle. The attached resolutions will approve next fiscal year's budget and allow the City to levy and collect the annual assessments for Fiscal Year 2010/2011. Staff recommends approval of the attached resolutions. Fiscal Analvsis The assessment and collection of the full levy amount funds the on-going maintenance of the President's Plaza III Business Improvement District and associated staff costs relieving the City from any financial burden. Submitted By: Departm t d: ������� Ryan Stendell Mark Gree ood, P.E. Senior Management Analyst Director of Public Works �' " � Paul S. Gibson, Director of Finance CI.j,Y�OT7NCILA ON APPROVED � D� �,�_� R�CEIVED pTHER �;_,_� , p ro � � �� �S � /ll� ��;��,._ ; �r��% o�2CV0-`� ' MEETI�TG DATE •o�G ^, Jo n . Wohlmuth, City Manager AYESs��E/�'}� � � c�i rf� NOES: ABSENI: ►" < { ABSTAIN: �' � VERIFIED BY: " t� Original on File wit6 Ci erk'a Offfce 68-2571 RESOLUTION N0. 2010-56 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE MANAGEMENT DISTRICT PLAN FOR THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT ASSESSMENT DISTRICT, FISCAL YEAR 2010111 The City Council of the City of Palm Desert (hereafter referred to as the "City Council") does resolve as follows: WHEREAS, in Fiscal Year 2010/11 the City Council pursuant to the provisions of Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the "Code"), and in accordance with the provisions of the California Constitution Article XIIID conducted proceedings for the formation of the President's Plaza III Business Improvement District (hereafter referred to as the "District"), and the levy of annual assessments connected therewith; and, WHEREAS, on June 8, 2006 the City Council held a full and fair public hearing regarding the formation of the District and the establishment of annual assessments and the maximum assessments required to pay the maintenance and services of landscaping, lighting, refuse coilection and all appurtenant facilities and operations related thereto for a five year period beginning July 1, 2006 and entling June 30, 2011 pursuant to the Code; and, WHEREAS, upon conclusion of the public hearing of June 8, 2006 the City Council tabulated the property owner assessment protest ballots returned and by resolution confirmed that majority protest did not exist and by resolution approved the Management District Plan, appointed an Advisory Board for the District, ordered the formation of the District, and ordered the levy and collection of the first annual assessments; and, WHEREAS, pursuant to the Code, the City Council appointed the President's Plaza III Committee as the Advisory Board for the District and this Advisory Board shall cause to be prepared an annual Management District Plan (hereafter referred to as the "Report") each fiscal year for which assessments are to be levied and collected, said Report shall be filed with the City Clerk and shall contain: any proposed changes to the District boundary; the improvements and activities to be provided; the estimated costs and method of assessment; the amount of any surplus or deficit; and contributions from other sources; and, 1 68-2571 RESOLUTION N0. 2�1�-5h WHEREAS, pursuant to the Code, the Advisory Board has caused to be prepared a Report in connection with the District describing the proposed improvements, services, expenditures and assessments to be levied for Fiscal Year 2010/11, and filed with the City Clerk of the City of Palm Desert and the City Cierk has presented to the City Council such Report entitled "Management District Plan for the President's Plaza III Property and Business Improvement Assessment District, Fiscal Year 2010/11"; and, WHEREAS, The City Council has carefully examined and reviewed the Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Report; and, NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT,AS FOLLOWS: Section 1 The above recitals are true and correct. Section 2 The Management District Plan as presented, consists of the following: A. A Description of the District boundaries and all properties benefiting from the improvements and services. B. A Description of Improvements and services to be provided by the District. C. The Annual Budget (Estimates of Costs antl Expenses of Services, Operations and Maintenance), D. The District Roll containing the Levy of Assessments for each Assessor Parcel within the District, Section 3 The Report as presented, is hereby approved and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of and final approval of the Report and appointment of the District Advisory Board. 2 68-2571 RESOLUTION N0. 2010-56 PASSED,APPROVED, AND ADOPTED this day of 2010. STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss. CITY OF PALM DESERT I, , 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 , 2010 by the following vote: AYES: NOES: ABSENT: ABSTAINED: � CINDY FINERTY, Mayor City of Palm Desert RACHELLE D. KLASSEN, City Clerk City of Palm Desert 3 68-2571 RESOLUTION N0. 2oio-5� RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT ASSESSMENT DISTRICT, FISCAL YEAR 2010/11 The City Councii of the City of Palm Desert, California (hereafter referred to as the "City Council") hereby finds, determines, resolves and orders as follows: WHEREAS, on June 8, 2006 the City Council called and duly held a public hearing and property owner protest ballot proceedings for the President's Plaza III Property and Business Improvement Assessment District (hereafter referred to as the "DistricY') pursuant to the provisions of Property and Business Improvemenf District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the "Code") and the California Constitution Article XIIID, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments and a maximum annual assessment over a five year period beginning July 1, 2006 and ending June 30, 2011, for the costs and expenses associated with the maintenance and operation of landscaping, lighting, refuse collection and all appurtenant facilities related thereto; and, WHEREAS, the landowners of record within the District as of the close of the Public Hearing held on June 8, 2006 did cast their ballots resulting in the approval of the District formation and annual levy of assessments related thereto; and, WHEREAS, the City Council, pursuant to the Code did by previous Resolutions formed the District, and approved a Management District Plan in connection with the formation of the District and appointed an Advisory Board that shall cause to be prepared an annual report regarding the District for the City Council's approval; and, WHEREAS, the Advisory Board has held a meeting for reviewing and approving the proposed budget for Fiscal Year 2010/11 and has prepared a Report in connection with the District for Fiscal Year 2010/11, and filed with the City Clerk of the City of Palm Desert and the City Clerk has presented to the City Council such Report entitled "Management District Plan for the PresidenYs Plaza III Property and Business Improvement Assessment District, Fiscal Year 2010/11;"and, WHEREAS, The City Council has carefully examined and reviewed the Report as presented, and by previous resolution has approved said Report. 1 68-2571 RESOLUTION N0. Zolo-s� NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT,AS FOLLOWS: Section 1 The above recitals are true and correct. Section 2 The City Council desires to levy and collect the annual assessment for President's Plaza III Property and Business Improvement Assessment District for Fiscal Year 2010/11 pursuant to the provisions of the Code. Section 3 Based upon its review of the Management District Plan, a copy of which has been presented to the City Council and filed with the City Clerk, the City Council hereby finds and determines that: A. The territory of land within the District will receive special benefits from the operation, maintenance and servicing of the improvements and appurtenant facilities located within the boundaries of the District. B. District includes all of the lands so benefited; and C. The net amount to be assessed upon the lands within the District in accordance with the proposed budget for the fiscal year commencing July 1, 2010 and ending June 30, 2011 is apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefits to be received by each parcel from the improvements and services. D. The Assessments so described in the Management District Plan are consistent with the assessments so approved by the property owners within the District. Section 4 The Report and assessments as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed. Section 5 The City Council hereby orders the improvements to be made, and the levy and collection of annual assessments to pay for those improvements to be presented to the County Auditor/Controller of Riverside for Fiscal Year 2010/11. The County Auditor/Controller shall enter on the County Tax Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer, Section 6 The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fur�d for the President's Plaza III Property and Busin�ss Improvement 2 68-2571 RESOLUTION N0. Zoio-5� Assessment District, and such money shall be expended only for the improvements describetl in the Management District Plan. Section 7 The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2010 and ending June 30, 2011. Section 8 The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution. 3 68-2571 RESOLUTION N0. 2oio-5� PASSED,APPROVED,AND ADOPTED this day of 2010. STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss. CITY OF PALM DESERT i, , 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 , 2010 by the following vote: AYES: NOES: ABSENT: ABSTAINED: , CINDY FINERTY, Mayor City of Palm Desert RACHELLE D. KLASSEN, City Clerk City of Palm Desert 4 CITY OF PALM DESERT MANAGEMENT DISTRICT PLAN PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT ���� � ��' � w- _ , a�,� r,. ,�, rv:;,� ���:>. �, �r � FISCAL Y�►R 2010/2011 Public Hearing: June 24, 2010 ���� �%P W I L L DA N e uending � Y ��- �� ; : Financial Services reach Corporate Office O�ce Locations 27368 Via lndustria Oakland,CA Phoenix,AZ Suite 110 Sacramento, CA Orlando, FL Temecula, CA 92590 Tel:(951)587-3500 Tel:(800)755-6864 Fax:(951)587-3510 www.willtlan.comlfinancial City of Pa/m Deserf PresidenYs P/aza Ill PBJD Marragement District Ptan FY2009/2010 TABLE OF CONTENTS OVERVIEW .............................................................................................. 2 Introduction 2 Formation 2 DESCRIPTION OF THE DISTRICT ...................................................................... 4 District Boundary 4 Improvements and Activities 4 Special Benefits of the Improvements and Activities 5 METHOD OF APPORTIONMENT........................................................................ 7 Method of Apportionment Rationale 7 Parking Lot Improvements and Services 7 Method of Apportionment Calculations 7 Apportionment of Direct Costs 7 Apportionment of Indirect(AdministrationlReserve)Costs 8 Total Annual Assessment 8 Annual Budget Adjustments 9 DESCRIPTION OF BUDGET ITEMS IN TABLE 4..................................................... 'I O Direct Benefit Costs 10 Indirect Benefit Costs(Administration/Reserves) 10 Levy Breakdown 11 District Statistics 11 District Budget 12 APPENDIX A—ASSESSMENT DIAGRAM ........................................................... 14 APPENDIX B—ASSESSMENT ROLL................................................................ 15 ��WILLDAN ��`P�r'�g Page 1 ynur Financial Services reaci, City of Palm Desert Presrdent's Plaza!!!PB/Q Management District Plan FY2010/2091 Overview Introduction The City of Palm Desert ("City") formed and established the PresidenYs Plaza III Property and Business Improvement Assessment District ("District") beginning in Fiscal Year 2001/2002 to provide improvements and activities that confer special benefits upon real property within the boundaries of the District. The District was established and levied pursuant to Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Cotle ("Act"). Pursuant to the Act, property owners within the District submitted a signetl petition requesting formation of the District. The District was successfully formed for a term of five years and a maximum assessment was approved by the property owners through an assessment ballot proceeding, conducted according to provisions of the California Constitution Article XIIID ("Proposition 218"). Fiscal Year 2005/2006 was the fifth year of the term of the District. Under the provisions of the Act, the property owners within the District may renew the District for a maximum term of ten (10) years. Pursuant to the Cotle, and the provision of the California Constitution, the property owners within the District approved the continuation of the District and assessment for an additional five years and on June 8th, 2006 the City authorized the funding for improvements and activities authorized within the District for a periotl of five years (Fiscal Years 2006/2007 through 2010/2011). This Management District Plan ("Plan") describes the District, improvements antl activities, method of apportionment, the proposed assessments for the current fiscal year, and the maximum assessment proposed for the five-year duration of the renewed District. The proposed assessments are based on the estimated cost to provide the improvements, activities, and operations that provide a direct and special benefit to properties within the District. The costs of improvements, activities, and operations include all expenditures, deficits, surpluses, revenues, and reserves. The word "property,"for the purposes of this Plan, refers to real property situated within the District, antl identified as an individual property or parcel assigned its own Assessor's Parcel Number (APN) by the County of Riverside Assessor's Office. The County of Riverside Auditor/Controller uses APNs to identify on the tax roll parcels and properties assessed for taxes, special assessments, and fees and charges. Formation A written petition of the property owners within the District, representing more than 50 percent of the proposed assessment to be levied was submitted to the Palm Desert City Council to initiate formation proceetlings. The City Council initiated proceedings for the formation of the District by adopting a resolution expressing its intention to form the District. The resolution of intention referenced the Engineer's Report and the Management District Plan, and noticetl the time and place of a public hearing on the formation of the District and levy of assessments. Within not less than forty-five (45) days and not more than ninety (90) days of adopting the resolution of intention, the City Council held a public hearing on the matter of formation, and W I L LDAN �`P"°`�� P�g�2 ;,�. Financial Services r�ae;; Gity of Palm Desert PresidenYs Plaza lll PBID Management Drstiict Plan FY2010/2091 caused notice to the property owners pursuant to Section 54954.6 of the Government Code. Public notices and assessment ballots (property owner protest ballots) were mailetl to each property owner at least 45 days prior to the public hearing pursuant to Articie XIIID of the California Constitution. At the public hearing the City Council provided the public and property owners with an opportunity to provide oral protests and written protests prior to the adoption of the Engineer's Report and the Management District Plan. Pursuant to the Califomia Constitufion Artic%XlllD, the City Clerk or its designated alternate tabulated property owner assessment ballots receivetl from property owners and determined that majority protest did not exist. Pursuant to the Act, the City Council appointed an Owner's Association ("Association") for the District. This Association shall make yearly recommendations to the City Council on the expenditures of revenue derived from the levy of assessments and on the classification of properties as applicable. This Association shall cause to be prepared a report each fiscal year for which assessments are to be levied and collected. Said annual report shall be filed with the City Clerk and shall contain: any proposed changes to the district boundary; the improvements and activities to be provided that year; the estimated costs for that year; the method of assessment; the amount of any surplus or deficit; and contributions from other sources. The City Council may approve the report as submitted or as modifietl. W I LLDAN � ��`�n�'Rc Page 3 , ur '�'�� Financial Services rc�cr, City of Palm Desert President's PJaza lIl PBID Management District P/an F!'2090/2011 Description of the District District Boundary The District consists of all parcels locatetl in the commercial business area known as the PresidenYs Plaza III within the City of Palm Desert, County of Riverside. The District includes sixteen (16) assessed commercial parcels. The boundary of the District and the parcels therein are generally located South of Palm Desert Drive at Highway 111; North of EI Paseo; West of Sage Lane; and East of Old Highway 74, antl includes the Palm Desert Parking Lot—a lease parcel to the City of Palm Desert located South of Highway 111; East of New Highway 74; and West of Old Highway 74. Improvements and Activities In an effort to enhance and improve business opportunities and the appearance of the area known as the President's Plaza III, the Agency provided funds for the renovation and capital improvement of the parking lot and landscaped areas related to this commercial business center. In conjunction with this renovation, PresidenYs Plaza III Property and Business Improvement District was formed in 2001 to provide and ensure the continued operation and maintenance of the improvements after the renovations had been completed. In 2006, the property owners renewed the District for another five (5) year term; therefore, the assessments generated will continue this maintenance. In December 2005, the District paid for the slurry sealing, re-striping and repair of the parking lot through reserve funds that had been accumulatetl during the first five years of the term of the District. It has been determinetl that all the properties within the District receive special and distinct benefits from the improvements and activities to be funded through the assessments. The improvements include the necessary activities, services, operations, administration, and maintenance required to keep the improvements in satisfactory condition including all necessary labor, material, and equipment. The services may include, but are not limited to, regular maintenance, repair, removal or replacement of all or any part of the improvements including removal of trimmings, rubbish, debris and other solid waste; and, providing for the growth, health and beauty of landscaping and lighting including cultivation, trimming, spraying, fertilizing or treating for disease or damage as well as supplying necessary irrigation and electrical energy. The specific improvements and activities inclutle: • Parking lot landscaped areas: including, but not limited to, ground cover, shrubs, trees, plants, irrigation and drainage systems and associated appurtenant facilities; • Parking lot lighting facilities: including, but not limited to, bulbs, fixtures, poles, wiring, and electrical energy; and, • Debris removal: inclutling, but not limited to, regular mechanical sweeping of the parking lot. ��WI LLDAN � �fe�`°'r� Page 4 ;;�:. Financial Services cac�, Cify of Paim�esert PresidenYs Plaza 111 PB/D Management Disfrrct P/an FY20f0/2491 The costs associatetl with the improvements are equitably spreatl among the benefiting parcels within the District utilizing the methotl of apportionment described in the Method of Apportionment section of this Report. The total funtls collectetl shall be dispersed and used for the services and operations provided to the District. Special Benefits of the Improvements and Activities Assessed properties within the District receive special benefits from one or more of the improvements and activities funded through the District assessments. Specifically, lighting and landscaping amenities within the parking lot, and regular sweeping of the parking lot. The special benefits of lighting (parking lot lights) are the convenience, safety, and security of property, improvements, and goods. Specifically: 1. Enhancetl deterrence of crime and the aid to police protection; 2. Increased nighttime safety for patrons and employees; 3. Improved visibility for pedestrians and motorists; 4. Improved ingress antl egress to property; 5. Reduced vantlalism and other criminal acts and damage to improvements or property; 6. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 7. Increasetl promotion of business activities and opportunities during nighttime hours; and, 8. The special enhancement to the value of property, which results from the above benefits. The benefits associated with lantlscaped islands and medians within the parking lot are specifically: 1. Improved aesthetic appeal of the parking area and nearby parcels; 2. Improved dust control; 3. Enhancetl adaptation of the urban environment within the natural environment; 4. Improved traffic circulation; 5. A positive representation of the businesses within the District; 6. Centralized locations for refuse collection facilities; and, 7. The special enhancement to the value of property, which results from the above benefits. W I LLDAN I ��tenr,'rnr Pa��5 y0'ut Financial Services reac=, Cify of Patm Desert PresrdenYs Plaza ll!PBID Management Disfriet Plan FY2010/2091 Parking lot sweeping is an essential and necessary activity for all properties—particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service are: 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. Improved dust control; 3. The special enhancement to the value of property, which results from the above benefits. The on-going operation and maintenance of the landscaping, lighting and sweeping improvements provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100%special benefit to parcels within the District. ��W I LLDAN � a`ten�'�� P�g�s y�;t,r Financial Services reacr� City of Palm Qeseot PresidenYs P1aza I//PBlD Management Drstrict Plan FY2D10/2p�1 Method of Apportionment Method of Apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method, which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. Parking Lot lmp�ovements and Se�vices All assessed parcels within the President's Plaza III PBID have use of, and access to, a centralized parking facility (lot) that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used antl accessed by all properties within the District, each parcel's benefit is based on the size of such parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel's benefit for the parking lot improvements shall be based on the approximate size, in square feet, of each parcel. Method of Apportionment Calculations The Total Direct Costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel's lot size in square feet. In addition to a parcel's Total Direct Cost, each parcel is assessetl for District administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned in the same manner as Total Direct Costs. Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share of the Total Direct Costs and Total Indirect Costs. Appo�tionment of Di�ect Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) are based on the estimated annual costs to maintain the lantlscaping, lighting, and mechanical sweeping of the parking lot within PresidenYs Plaza III. The Total Direct Costs are divided by the sum of the square footage of all parcels within the District in order to establish a rate per parcel square foot. This rate multiplied by each parcel's square footage equals the parcel's proportionate share of the parking lot maintenance costs (rounded to the nearest even penny). The rate provided in Table 1 is for Fiscal Year 2010/2011 onlv. Please refer to the District Budqet(Table 4) for future assessment rates, lota/Direct Cost/Tota/Square Footaqe=Rate pe�Squa�e Foot Rate x Pa�cel Squa�e Footage=Direct Cost Assessment Component WI LLDAN �`P��'`r P���' 5 �:- , Financial Services reuc;, City of Palm Desert President s Pfaza 1tt PBID Management Qistrict Plan FY2010/2091 Table 1: Direct Cost Proposed Assessment and Rate Proposed Direct Costs Proposed Rate(per Square for FY 2010-2011 Foot)for FY 2010-2011 Fifth Fiscal Year Maximum $ 22,960 $ .0506 Appo�tionment of lndi�ect(Administration/Rese�ve)Costs To ensure the improvements, activities, and services provided and fundetl through the District are continued, each parcel will be assessetl for administrative and reserve costs (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Funtl. The Reserve Fund Coliection is proposed to be slightly over thirty-one percent(31.36%) of the annual Total Direct Costs of the District. Similar to the method of apportionment for Total Direct Costs, the DistricYs indirect costs are apportionetl to each parcel based on each parcel's lot size in square feet. The rate provided in Table 2 is for Fiscal Year 2010/2011 only. Please refer to the District Budqet (Table 4) for future assessment rates. Total lndi�ect Cost/Tota/Squa�e Footage=Rate pe�Square Foot Rate x Pa�ce/Squa�e Footage=lndi�e�t Cost Assessment Component Table 2: Indirect Cost Proposed Assessment and Rate Proposed Rate(per Proposed Indirect Costs for Square Foot)for FY 2010-2011 FY 2010-2011 Fifth Fiscal Year Maximum $ 13,034 $ 0.0288 Tota/Annua/Assessment Each parcel's Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Intlirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in Fiscal Year 2010/2011. The rate provided in Table 3 is for Fiscal Year 201012011 only. Please refer to the District Budqet (Table 4) for future assessment rates. W I LLDAN �f�n``'�; P���� } t,r Financial Services r�aa, City af Palm Desert PresidenYs Plaza ttt PBID Management District Plan FY2010/2091 Direct Cost Rate t lndirect Cost Rate=Tofal Rate pe�Squa�e foot Total Rate x Pa�ce/Squa�e Footage= Total Pa�celAssessment Table 3: Total Cost Proposed Assessment and Rate Proposed Rate(per Proposed Direct Costs for Square Foot)for Flfth Fiscal Year FY 2010-2011 FY 2010-2011 Direct Costs Maximum $ 22,960 $ 0.0506 Indirect Costs $ 123,034 $ 0.0288 Total Costs Maximum $ 35,994 $ 0.0793 Annua/BudgetAdjustments For the five years of the term of the PBID renewal, annual assessments may be adjusted by the President's Plaza III PBID owners' association up to three percent (3%) per year. Actual annual adjustments may range from zero percent(0%)to three percent(3%). Adjustments may differ from year to year depending on the service needs identified by the owners' association. In any event, assessments will not exceed the levels illustrated by the District Budget(Table 4). Any annual budget surplus or deficit will be accrued into the following year's PBID budget. Assessments will be set accordingly, within the constraints of the annual adjustment, to atljust for surpluses or deficits that are carried forward. W I LLDAN I �:<te��;;�Q P���s y�ar Financial Services �eac�r City of Palm Qesert PresidenYs P/aza!I/PBID tNarragement District Plan FYZt110/2099 Description of Budget Items In Table 4 Direct Benefit Costs Sweeping Services: Weekly cleaning of the parking lot and gutters using a contracted, mechanized service. Landscape Cont�act Maintenance.� Includes all regularly scheduled labor, material (e.g. pipe, fertilizer, insecticides), and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities. All landscaping improvements within the District are contracted for maintenance and service on a regular basis. The frequency and specific maintenance and operations required within the District will be determined by City staff. Lighting Repai�and Maintenance:This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vantlalism antl storms, as well as planned upgrades, which coultl inclutle replacing lighting materials or renovation of lighting systems. Landscape Repai�and Maintenance:This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades, which coultl include replacing plant materials or renovation of irrigation systems. Landscape Utilities-Wate��Utility cost to furnish water for required landscape irrigation. Strest Lighting Utilities - E/ect�ic: The furnishing of electricity required for the operation and maintenance of the lighting facilities. The City contracts for the furnishing of its electricity for street lighting, which includes normal maintenance antl bulb replacement. This cost does not include repairs or replacement of damaged facilities due to vandalism, accidents or storms. Landscape Utilities -Electric:Utility cost for furnishing of electricity requiretl for the operation of the irrigation systems and landscape maintenance. Indirect Benefit Costs (Administration/Reserves) District Administration: The cost to all departments and staff of the City, for providing the coortlination of District services, operations and maintenance of the District, response to public concerns and education, and procedures associated with the levy and collection of assessments. This cost also includes contracting with professionals to provide additional administrative, legal, or engineering services specific to the District. CountyAdministration Fee.�This is the actual cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number. County Pe�Pa�cel Fee:This is the cost to the District for the County to collect assessments on the property tax bills. This charge is on a per assessment basis, at$0.39 per assessment, and is in addition to the County Administration Fee. WILLDAN � y�=�rr;,,,, Pay� �o Financial Services e��� Crty of Patm Desert PresidenYs Plaza lll PBID Manayement District PJan FY2tI10/2099 Ope�afing Rese�ve Fund Col%tion: The Operating Reserve Fund provides for coliection of funds to operate the District, for each fiscal year, from the time period of July 1 through January when the County provides the City with the first instaliment of assessments collected from the property tax bills. The Operating Reserve Fund eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of FY 2006107 through FY 2010/2011. The Operating Reserve Fund may also be usetl to offset any unforeseen costs such as repairs, legal fees, revenue deficits, or increased costs due to inflation or contractual agreements that are greater than originally planned. The Operating Reserve Fund Collection amount is slightly less than five percent (4.48%) of the annual Total Direct Costs of the District in Fiscal Year 201012011. Pa�king Lot Maintenance Fund Col%tion:The Parking Lot Maintenance Fund provides funds for the sealing and re-striping of the parking lot after the fourth year of the renewal term of the District. The parking lot's total surface area is approximately 184,000 square feet. During December 2005, the District's cost of sealing and re-striping the parking lot was $27,200 (15.5 cents per square foot multiplied by 175,520 square feet of surface area) and its cost of repairs within the parking lot was $24,300 (for 8,500 square feet of surface area); for a total cost of $51,500. The cost of sealing and re-striping the parking lot's total surface area of 184,000 square feet would have been approximately $28,520 (15.5 cents per square foot multiplied by 184,000 square feet of surface area). lnsu�ance:This line item supports insurance costs for the operation of the District. Levy Breakdown Tofa/Dist�ictCosts:This is the sum total of all butlgeted Direct and Indirect costs. District Statistics TotalPa�cels:The total number of parcels within the District. Tota/Parcels to Levy.•The total number of parcels within the District that will be assessed. Non- assessed lots or parcels include easements, common areas, and parcels within the boundaries of the District that currently do not benefit from the improvements and which are not included in the Total Parcels to Levy. Total Parcels Squa�e Footage.• This is the sum total of the assessed parcels' square footage applied to each assessed parcel within the District. Levy Rate pe�Di�ect Costs pe�Square Foot.•This amount represents the Rate for Direct Costs being applietl to each assessed parcel's individual lot square footage. The Levy Rate per Direct Costs is the result of dividing the estimatetl Total Direct Costs for that year by the sum of the District's Total Parcels Square Footage. The rate is calculatetl to four decimal places. Levy Rate pe�lndi�ect Costs per Squa�e Foof.� This amount represents the Rate for Indirect Costs being applied to each assessed parcel's individual lot square footage. The Levy Rate per Intlirect Costs is the result of dividing the estimated Total Indirect Costs for that year by the sum of the District's Total Parcels Square Footage. The rate is calculatetl to four decimal places. ��W I LLDAN � ��t�°°`�°� Pa�e" �.�. Financial Services reac�, City af Palm Desert PresidenYs Plaza tt!PB/D Management District Plan FY2010/2Q11 Total Levy Rate pe� Squa�e Foot.� This amount represents the Rate being applied to each assessed parcel's individual lot square footage. The Levy Rate per Square Foot is the result of dividing the estimated Total District Costs for that year by the sum of the DistricYs Total Parcel Square Footage. The rate is calculated to four decimal places. District Budget The District Budget shown on the following table (Table 4), lists the estimated costs of providing the various improvements and services within the District. The costs and the resulting rates for Fiscal Year 2006/2007 through Fiscal Year 201012011 are based on the estimated costs to provide the improvements and services for each year. Direct Costs, District and County Administration Costs, and Insurance Costs are adjusted for the three percent(3%) inflation factor. The owners' association, appointed by the City Council, will annually review the District costs and make recommendations for any changes or adjustments to the budget. Changes to the budget could result in changes to the annual assessment, but the resulting total assessment may not exceed the maximum rates established in this Report without first obtaining property owner approval through assessment ballots. ��WILLDAN � ��er�r"; p���'z ,�� Financial Services ea�� City of Palm L?esert Presrdent s Ptaza 11l PBID Management District P/an FY2010/2011 Table 4:Five Year Budget Actual Proposed Maximum Proaosed Assessment for Fiscal Years Assessment Budget Item FY 2010-2011��� 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011��� Direct Cosfs Sweeping Services $ 4,502 $ 4,000 $ 4,120 $ 4,244 $ 4,371 $ 4,502 Landscape Contract Maintenance $ 5,065 4,500 4,635 4,774 $ 4,917 5,065 Lighting Repair 8�Maintenance $ 1,351 1,200 1,236 1,273 $ 1,311 1,351 Landscape Repair&Maintenance $ 3,939 3,500 3,605 3,713 $ 3,825 3,939 LandscapeUtilities-Water $ 2,251 2,000 2,060 2,122 $ 2,185 2,251 Street Lighting Utilities-Electric $ 5,290 4,700 4,841 4,986 $ 5,136 5,290 Landscape Utilities-Electric $ 563 500 515 530 546 563 Subtotal Direct Costs $ 22,960 $ 20,400 $ 21,012 $ 21,642 $ 22,292 $ 22,960 Indirect Costs DistrictAdministration $ 3,939 3,500 3,605 3,713 3,825 3,939 County Administration Fee $ 197 175 180 186 191 197 County Per Parcel Fee $ 9 8 8 8 9 9 Operating Reserve Fund Collection $ 1,000 1,000 1,000 1,000 1,000 1,000 Parking Lot Maintenance Fund Collection $ 6,200 6,200 6,200 6,200 6,200 6,200 Insurance $ 1,688 1,500 1.545 1,591 1,639 1,688 Subtotal Indirect Costs $ 13,034 $ 12,383 $ 12,538 $ 12,699 $ 12,864 $ 13,034 Lew Breakdown Total District Costs $ 35,994 32,783 33,550 34,341 35,155 35,994 Balance to Levy $ 35,994 $ 32,783 $ 33,550 $ 34,341 $ 35,155 $ 35,994 District Statistics Total Parcels $ 16 16 16 16 16 16 Total Parcels To Levy $ 16 16 16 16 16 16 Total Parcels Square Footage $ 453,956 453,956 453,956 453,956 453,956 453,956 Levy Rate per Direct Costs per Sq Ft $ 0.0506 $ 0.0450 $ 0.04640 $ 0.0476 $ 0.0492 $ 0.0506 Levy Rate per Indirect Costs per Sq Ft $ 0.0288 $ 0.0272 $ 0.0278 $ 0.0280 $ 0.0284 $ 0.0288 Total Levy Rate per Square Foot $ 0.0793 $ 0.0722 $ 0.0740 $ 0.0758 $ 0.0776 $ 0.0793 Operatinq Reserve Fund Balance Previous Balance $ 4,000 - 1,000 2,000 3,000 4,000 Ending Balance $ 5,000 1,000 2,000 3,000 4,000 5.000 Parkinq Lot Maintenance Fund Balance Previous Balance $ 24,800 - 6,200 12,400 18,600 24,800 Ending Balance $ 31,000 6.200 12.400 18,600 24,800 31,000 Maximum annual assessments for direct costs,district and county administration,and insurance are adjusted by 3%from the previous Fiscal Year for Fiscal Years 2007-08 through 2010-2011.The PBID Advisory Board will determine the amount of any actual increase for those years which may not exceed 3%per year. ���FY 2010-2011 Actual and Maximum Proposed Assessments are the same. Sources:City of Palm Desert;Willdan Financial Services WILLDAN :�`�"�'�; pa�� ',� ,.�;� Financial Services r�•acn City of Palm i?esert President s Pdaza 11!PBl!? Managenaent Distrrct Plan FY201D/2091 Appendix A Assessment Diagram The Assessment Diagram for the District is on the following page and is inclusive of all parcels identified on the County of Riverside Assessor's Parcel Maps as Book 627, Page 192. The Assessment Diagram will be kept on file with the City Cierk of the City of Palm Desert. WILLDAN � ��tPr�'�s — P�,�� '4 yOUr Financial Services reac�� Crty of Palm Desert President's Plaza ld!PBt� Management Distriet Plan FY20fO12011 Appendix B Assessment Roll Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor's Map for the year in which this Report is prepared. The Assessment Roll, which includes a listing of parcels assessed within this District, along with their assessment amounts, is shown in Table 5 on the following page. 1�N+'�WILLDAN ��`�n�`°; P�,�� 'S y ct,r , Financial Services eacrr i — QO CO DO DO ct o0 N a0 � N N N c.0 O CO O � �p = � OO O 00 M I� 00 00 � O LC> O 67 O� OO 1� � N CO O� a0 CD CO M M Cfl M N a0 O M � y = � I� CO O� �' `� �' M M Ln N CO OO C.O N M O O) � N G> N OO 00 C.O 6) O7 O7 6� OO � CO Cfl M 1� � I� 00 O) C�J fi� ,� E Q � �' N N M M M � N M � �7' M 0. R N � L y o � � U d r2 G.. y N � � ` O y � � m +. Q LL cfs En � � �s �r �r � �s cfr �r c-fr E+-r �s cfr cfs cfr Q ry y Cv •D (, � �. +. 4? � L a0 I� OO 6� � O N OO t!� � M � oO 1� O� y C �•. 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SAID public hearing wili be held on Thursday, June 24, 2010, at 4:00 p.m. in the Council Chambers at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. Written comments concerning ali items covered by this public hearing notice shall be accepted up to the date of the hearing. PUBLISH: Desert Sun Rachelie Klassen, City Clerk June 14, 2010 Palm Desert City Council J-�� �� � /C� � �� �� Martinez, Gioria l - �-0 �S /��`�/1�� / ����C{' /l1 . f'���//� From: Stendell, Ryan Sent: Thursday, June 10, 2010 2:40 PM To: Martinez, Gioria Subject: RE: Publishing's for Monday June 14, 2010 Actually Charlene emailed, she is going to squeeze it in on Sunday. 1 forgot they aren't doing Monday or Tuesday. From: Martinez, Gloria Sent: Thursday, June 10, 2010 2:23 PM To: Stendell, Ryan Subject; RE: Publishing's for Monday June 14, 2010 The Desert Sun does not publish on Monday or Tuesday. Will Wednesday be okay? From: Stendell, Ryan Sent:Thursday, )une 10, 2010 12:50 PM To: legais@thedesertsun.com Cc: Martinez, Gloria Subject: Publishing's for Monday June 14, 2010 Please publish the following three notices for Monday June 14, 2010. Thank You, Ryan Stendell Senior Management Analyst City of Palm Desert (7G0) 346-OG11 ext.386 rstendell@ciqrofRalmdesert ora « File:AA_10-11_Legal_Notice.doc» «File: PPI_10-11_Legal_Notice.doc» « File: PPIII 10-11_Legal_Notice.docx » — 1