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HomeMy WebLinkAboutC30480 Initiate and Preparation the Re-formation of Alessandro Alley Private Business Improvement DistrictContract No. C30480 CITY OF PALM DESERT _r L DEPARTMENT OF PUBLIC WORKS CITY COUNCIL STAFF REPORT REQUEST: CONSIDERATION OF APPROVAL TO CONTRACT WITH WILLDAN FINANCIAL SERVICES TO INITIATE AND PREPARE THE RE-FORMATION OF THE ALESSANDRO ALLEY PRIVATE BUSINESS IMPROVEMENT DISTRICT SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works CONTRACTOR: Willdan Financial Services 27368 Via Industria, Suite 110 Temecula, CA 92590 DATE: January 13, 2011 CONTENTS: Consultant Proposal Copy of Previous 5-Year Management Plan Recommendation By Minute Motion: Authorize the Mayor to enter into an agreement with Willdan Financial Services in the amount of $14,750 for re-forming the Alessandro Alley Private Business Improvement District (PBID); and Appropriate $14,750 to Fund No. 288, Alessandro Alley PBID, which will be reimbursed throughout the life of the PBID. Background The City currently operates three PBIDs within its commercial areas. PBIDs are funding mechanisms for maintenance and operations in large business districts. Services provided range from landscape maintenance, trash collection, lighting maintenance, street sweeping, pavement maintenance, or other ancillary services. Each PBID is setup in 5 year increments and must be re-formed at the conclusion of each term. The money appropriated for the formation is recovered through the life of the PBID. The three PBID areas all include some form of shared parking, trash service, and/or water and landscaping that would make coordination between property owners very cumbersome and difficult. The presence of the PBIDs allows each property owner to impose a fee on their property assessed through their tax bill. In return, the City handles the coordination of utilities, landscape maintenance, and trash service. The Alessandro Alley PBID was initially set up five years ago in anticipation of the improvements being made by the Palm Desert Redevelopment Agency. Due to the timing and project constraints, the project has not moved forward. Although the district has been formed, property owners have never been levied for the yearly amounts. With construction Staff Report Alessandro Alley Private Business Improvement District January 13, 2011 Page 2 of 2 getting ready to commence on the Alessandro Alley improvements, the PBID needs to be in place in order for the property owners to pay for future maintenance. Staff conducted an informal survey and determined that a significant number of the property owners are committed to the PBID for funding future maintenance costs associated with the Alessandro Alley Project. The requested appropriation of $14,750 allows the formation and balloting process to be completed. Willdan financial assists staff through this process and upon completion will legally create the funding district that will allow assessments to be charged through property taxes. Fiscal Analysis Although the City initially funds the re-formation, the PBID has a built-in administration charge and collects an annual pro-rata share from each property owner to reimburse the City for its expense Prepared By: Ryan Stendell Department Head: Mark Greenwood, P.E Senior Management Analyst Director of Public Works CITY COUNCIGACTION APPROVED ✓ DENIED Paul S. Gibson, Director of Finance RECEIVED OTI111,R. Approved By: MEETING DATE I - 13-�01' AYES: oer4t i NOES: _NGne ABSENT: n M. Wohlmuth, City Manager ABSTAIN: bn ' VERIFIED BY: f_6 Original on File with City Clerk's Office WI LLRAN extending yvur *""Financial Services reach September 13, 2010 Mr. Ryan Stendell Via Electronic Mail: Senior Management Analyst rstendellAcityofpalmdesert.org City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Re: Proposal to Provide Property and Business Improvement District (PBID) Renewal Formation Services to the City of Palm Desert Dear Mr. Stendell: As a follow up to our previous conversations, Willdan Financial Services ("Willdan") is pleased to submit this proposal to assist the City of Palm Desert ("City") in re-forming and renewing the property - based business improvement districts known as Alessandro Alley PBID and President's Plaza III PBID. Given our previous experience assisting the City with the formation and/or renewal of these PBIDs and others in the City, as well as our ongoing administration of those PBIDs, we feel that we are ideally suited to undertake this project and support City staff. The following points also highlight our strengths: • Experienced Project Team: The project team we have assembled for the City includes Mr. Jim McGuire, Senior Project Manager, as project manager. Ms. Jennie Carter, Senior Analyst, will provide analytical support under Mr. McGuire's guidance, and I will serve as the principal -in - charge. Client responsiveness and high quality work products are our primary goals when performing projects. Our team approach ensures that your project has the necessary depth of experience and has high priority from start to finish. • Depth of Experience: Willdan is a leading public sector financial consulting firm in the State of California. Our past business improvement district projects include both Northern and Southern California clients, ranging from large urban centers to developing suburban commercial downtowns. • Firm Stability and Support: In our 20-year history, we have helped hundreds of public agencies and nonprofit organizations successfully address a broad range of financial challenges. With a staff of over 60 employees, we have the firm resources to ensure that your project will be adequately staffed, regardless of circumstances that may impact your project plans in the future. Willdan is responsive to our clients' needs. We appreciate this opportunity to present our proposed scope of work for your review and hope that we may be of service to you in the near future. If you have any questions regarding this proposal, please contact me at (800) 755-6864, or directly at (951) 587-3528, or via email at cfisher(aDwilldan.com. Sincerely, Willdan Financial Services Chris Fisher, Group Manager Financial Consulting Services Group Enclosure C nino eying I (Aeo.Echrucal i Ervirw n rents) I Susta nability I Fi-nnciai I HorrHard Security 951.587.3500 1 800.755.6864 1 fax: 951.587.3510 1 27368 Via Industria, Suite 110, Temecula, CA 92590 www.wilidan.com WILLDAN Financial services Oft bcope of Services We want to ensure our scope of work is responsive to the City's needs and specific issues and circumstances for each PBID and we will work in concert with the City to adjust our scope as needed during the course of the project. Below is our proposed scope of work described in detail by task applicable to both the Alessandro Alley PBID and the President's Plaza III PBID. Willdan will initiate the planning process designed to identify issues relevant to the practical needs, economic development of the area within each PBID and consensus on specific implementation strategies. It is during this task that we will work with the City to identify area needs and issues, develop a detailed list of improvement activities and estimated annual costs over the term of each PBID to ensure that each district is self sufficient and accomplishes the goals and objectives of both the City and stakeholders. Willdan will prepare a detailed property informational profile. We will use data from the existing PBIDs that we currently maintain as part of the annual assessment process, and as necessary, we will gather updated information from the County Assessor data, including current secured roll data and parcel maps, to prepare a detailed database of properties and ownership information within the proposed boundaries of the PBIDs. Willdan will work with City staff to identify the improvements, activities and management functions to be supported and funded by the PBID assessments. While it is our understanding that the City is not planning on any significant changes to the boundaries or the previous services and activities incorporated in the existing PBIDs, Willdan will work with the City staff to identify possible modifications or expansion of the PBIDs and the various functions of each. Willdan will work with the City to identify and develop the costs associated with any possible modifications or expansion of the PBID boundaries, as well as services and activities that could be incorporated into the new Management District Plan. For this task, Willdan will provide technical support to the City regarding possible modifications, but the process to actively engage input from stakeholders and to build a consensus on those possible changes or modifications is outside our proposed scope of services and fee. However at the City's request, Willdan will assist City staff with efforts to engage and gather input from stakeholders on the possible changes (such as our participation in property owner workshops) based on our hourly fee schedule. u� p Ell n - � � v _ e u ` '' O_ In conjunction with City staff, Willdan will establish a program budget that will identify the costs to support desired improvements, services and activities that will be supported by the PBID assessments. We will work with staff to develop an annual service program of activities and develop a budget to finance both the program costs and administrative expenses for each PBID. Property and Business Improvement District (PBID) Renewal Formation Services 1WILLDAI'�J rinancial Services Sk �a Lia ' �� r ri d reL .Faun Willdan will work with the City to finalize the boundaries of the PBIDs (including any proposed expansion or modifications to the current boundaries based on the improvements and services to be provided). Once the boundaries are finalized, Willdan will prepare an updated Assessment Diagram. Ta 0: . Prepare Optional _.. �'r'� �§. Spreaf Fora %glee While we do not anticipate any significant changes to the current method of apportionment for either PBID, Willdan will identify, analyze and prepare optional assessment spread formulas for review and consideration if there are significant changes to the boundaries or services being provided, or as current case law dictates. If necessary, we will present up to two (2) assessment scenarios representing variations in assessment spread methodologies that are consistent with changes in the improvements and services to be provided and those necessary to ensure a defensible special benefit nexus based on current case law. e s', y w.a 6 $ rj 8;:« � .6 "ia' F;:« $ w 3 r.w a 8. q '4 ` a -k ;i� Yw:- ' n Fvl a " # C" �; a'�".�,` r %.. BEd. District P",a , With City staff input, Willdan will prepare the required Property Owner Petition, Engineer's Report, Management District Plan, Assessment Diagram and Resolutions, in accordance with the procedural requirements and provisions of PBID law and the California Constitution. p��yr'�tc�7�1 We will prepare the Petition to be accompanied by the Management District Plan that the City will need to circulate amongst the property owners within the boundaries of each respective PBID for property owner signature. In order to move forward with any PBID renewal, a petition must be signed by the property owners representing at least 50% of the total proposed assessment for that PBID. In accordance with the requirements of the California Constitution (Proposition 218), Willdan will prepare a detailed and certified Engineer's Report that will include designation of benefit (special versus general), the assessment methodology, method of assessment spread, assessment rates and proposed inflator (if any), assessment district boundary diagram and the assessment roll, which will indicate the proposed assessment for each property within the district. We will also be responsible for coordinating the proper recording of the assessment diagram, including gaining signatures of the City Clerk and the County Recorder. (Generally the Engineer's Report will be incorporated as part of the Management District Plan, but may be provided as a separate document.) In accordance with the Property and Business Improvement District Law of 1994, and the Government Code, Willdan will prepare the Management District Plan. The plan shall include the following items: A map of the district in sufficient detail to locate each parcel of property within the PBID; The name of the proposed PBID; a A description of the boundaries of the PBID; Property and Business Improvement District (PBID) Renewal Formation Services W1LLDAN Financial Services • The improvements and activities proposed for each year of operation of the PBID and the maximum cost thereof; • The total annual amount proposed to be expended for PBID programs, improvements and services for each year of operation of the PBID; • The proposed source or sources of financing, including the proposed method and basis for levying the assessment in sufficient detail, to allow each property owner to calculate the amount of the assessment to be levied against his or her property; • The time and manner of collecting the assessments; • The specific number of years in which assessments will be levied. The Management District Plan may set forth specific increases in assessments for each year of operation of the PBID; • The proposed time for implementation and completion of the Management District Plan; • Proposed rules and regulations to be applicable to the PBID including how, and by whom, the PBID will be governed; • A list of the properties to be assessed, including the assessor's parcel numbers (APNs), and a statement of the method or methods by which the expenses of the district will be imposed on benefited real property, in proportion to the benefit received by the property, to defray the cost thereof, including operation and maintenance; and • Other items or matters required to be incorporated therein by the City Council. Res, Willdan will draft necessary resolutions for the Intent Meeting and the Public Hearing. These drafts will be provided to the City prior to the agenda deadlines for the scheduled City Council meetings for review and comment by the City attorney. Based on previous discussions, we anticipate that for this task, a City staff member will be responsible for coordinating the collection of the necessary signatures on the petition. Some property owners may have to be contacted by mail or telephone or both. Willdan can assist the City in coordinating the circulation of the petitions, but will not be responsible for the actual circulation. It has been our experience that the City or key stakeholders within the PBID are best suited to perform this task and have the highest potential of gathering the necessary signatures on the petitions. "n e -' vne has, Mt Willdan will guide the City through the technical requirements of implementing the PBID renewal. Proposition 218 requires that any new or increased assessment be submitted to the property owners who are proposed to pay the assessment through a mailed ballot proceeding. Willdan will develop a draft of the notices and ballots to be mailed to each property owner within each PBID for the City's review and comment prior to mailing. These drafts of the notices and ballots shall be designed specifically for each PBID, but will contain all the information mandated by the provisions of the California Constitution and Statutes. Upon the City's approval of the drafts, Willdan will print and mail the notices and ballots to the property owners of record at least 45- days prior to the scheduled Public Hearing. As a final task, we will attend the Public Hearing and as needed, assist the City Clerk with the tabulation of the property owner ballots received. Property and Business Improvement District (PBID) Renewal Formation Services WZWILLDAN Financial Services For this project (renewal of both PBIDs), we anticipate that most of the discussions and correspondence to complete the tasks above will be addressed through e-mails and conference calls, and our scope of services includes our attendance at up to two (2) City Council meetings (the Public Hearing for each PBID). While we anticipate performing Tasks 1 through 6 concurrently for the Alessandro Alley PBID and the President's Plaza III PBID, we fully understand that the renewal process for the Alessandro Alley PBID needs to be expedited to ensure the district is in place before many of the improvements are constructed. Therefore, Tasks 7 through 10 for the President's Plaza III PBID renewal may occur two or three months after those same tasks are completed for the Alessandro Alley PBID. We expect that the entire formation process for both PBIDs will take approximately four (4) to six (6) months, but this timeframe may be expanded depending on outreach efforts (if any), circulation of the petition, and scheduling adjustments for the City Council meetings that may be required. Willdan will rely on the validity and accuracy of the City's data and documentation to complete our analysis. Property and Business Improvement District (PBID) Renewal Formation Services WILLDAN Financial Services J Jim McGuire, Senior Project Manager, will serve as project manager, and organize and direct all work tasks and review interim work products. He will ensure the project is completed on time and within budget. Mr. McGuire will be the City's day-to-day contact and will be present at key meetings. He is one of Willdan's lead technical advisors for special district formations, Proposition 218 re -engineering evaluations, fiscal analyses, cost recovery studies and long-term strategic planning for maintenance districts. Jennie Carter, Senior Analyst, will provide analytical support. She will be responsible for data gathering and report drafting, with ongoing review of work products provided by Mr. McGuire. Ms. Carter will also be responsible for coordinating with City staff to ensure that tasks associated with data gathering and exchange of information proceeds smoothly. Chris Fisher will serve as technical advisor. He will oversee the quality of work products, assure timely completion of the project, and provide for adequate staff resourcing. Furthermore, Mr. Fisher will also direct all work tasks and review interim work products. Additional analytical support staff may be assigned to this project as needed to ensure that all data is collected, interpreted, researched, and entered into our assessment models correctly. Budget Based on the Scope of Services previously outlined, we propose a fixed fee of $27,500 for the formation/renewal process of both the Alessandro Alley PBID and President's Plaza III PBID. A breakdown of the fee by PBID is provided in the table below. Notes: • Our fee will not be contingent on the outcome of the formation/renewal of either PBID. • Our fee does not include direct expenses associated with the project, including mailing costs and travel. Those expenses will be invoiced to the City at our cost. • Our fee includes attendance at up to two (2) meetings as described in our Scope of Services. • Telephone conference calls are not considered meetings. • We will invoice the City monthly based on effort and expenses as the projects progress with a final invoice at the completion of each PBID formation/renewal process. Property and Business Improvement District (PBID) Renewal Formation Services 0 WILLDAN Financial Services Hourly/ Rates Additional services may be authorized by the City and will be billed at our then -current hourly overhead consulting rates. Our current hourly rates are: Wlh�i� IF « « Position HCltiriy Rate -L Group Manager ....... ..__----- P r i I I f, P a Co IS1 Ita it "$200 � __ ............ ........... Senior Project Maria ger _.. .... __. ........I $165 Project Manager S345) Semor PrOject rtnalvsf .... _.. ........ ..... ........... Senior Analvs! .... $120 Ana!W DO i'�{a",! A .�uix.`.} Cst 31'. _ ..___ ..._.... __. - $ ) Al f......... Property Owner Services Representative .........._� ! $55 sus)pon c t <ff `o ) ...... ... .... _ _ J Property and Business Improvement District (PBID) Renewal Formation Services MANAGEMENT DISTRICT PLAN ►. 1 i Y wfa III i (lr r r DISTRICT Public Hearing: June 24, 2010 NA/WILLDAN extending your Financial Services reach 27368 Via Industria Suite 110 Oakland, CA Phoenix, AZ Temecula, CA 92590 Sacramento, CA Orlando, FL Tel: (951) 587-3500 Tel: (800) 755-6864 Fax:(951) 587-3510 www.willdan.com TABLE OF CONTENTS OVERVIEW.....................................................................................................................1 Introduction 1 District Formation Process 2 DESCRIPTION OF THE DISTRICT........................................................................................3 Description of the District Boundary 3 Description of the Improvements and Activities 3 Special Benefits of the Improvements and Activities 4 METHOD OF APPORTIONMENT.........................................................................................5 Method of Apportionment Rationale 5 Parking Areas Improvements and Services 5 Method of Apportionment Calculations 5 Apportionment of Direct Costs 5 Apportionment of Indirect (Administration / Reserve) Costs 6 Total Annual Assessment 7 Annual Budget Adjustments 8 DESCRIPTION OF BUDGET ITEMS......................................................................................9 Direct Benefit Costs 9 Indirect Benefit Costs (Administration / Reserves) 9 Levy Breakdown 10 District Statistics 10 District Budget 11 APPENDIX A: DISTRICT BOUNDARY MAP....................................................................... A-1 APPENDIX B: DISTRICT ASSESSMENT ROLL.................................................................. B-1 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010/11 Overview Introduction The City of Palm Desert ("City") has established the Alessandro Alley Property and Business Improvement District ("District"). The purpose of the District is to provide funding for the annual operation and maintenance of certain improvements that confer special benefits upon real property within the boundaries of the District. The District is proposed to have a maximum term of five years beginning in Fiscal Year 2006/07 and ending in Fiscal Year 2010/11. Once the term of the District has expired, the property owners within the District have the ability to renew the District for up to another ten-year term as provided by current California law, The City of Palm Desert Redevelopment Agency ("Agency") currently is in the process of installing and constructing various improvements to the parking areas included within the boundaries of the proposed District. The installation and construction of the improvements will be fully funded by the Agency. The annual operation and maintenance of these improvements are proposed to be funded through District assessments. The assessments are proposed to be levied on the District parcels that benefit from the annual operation and maintenance of these improvements. The District has been established and levied pursuant to the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code ("Act"). Pursuant to the Act, a majority of property owners, weighted by assessment dollars within the District, submitted a signed petition requesting formation of the District. The District has been formed, and a maximum assessment approved, by the property owners through an assessment ballot proceeding, conducted according to provisions of the California Constitution Article XIIID ("Proposition 218"). Pursuant to the Act, the Council may propose to annually levy and collect assessments to provide funding for improvements and activities authorized within the District for a period of five years (Fiscal Years 2006/07 through 2010/2011), This Management District Plan ("Plan") describes the proposed District, improvements and activities, method of apportionment, special benefit analysis, boundaries of the District, the proposed budgets, and the maximum assessment to be approved for the five-year duration of the District. The proposed assessments are based on the estimated cost to provide the improvements, activities, and operation that provide a direct and special benefit to properties within the District. The costs of improvements, activities, and operation 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, and identified as an individual property or parcel assigned its own Assessment Parcel Number by the County of Riverside Assessor's Office. The County of Riverside Auditor/Controller uses Assessment Numbers to identify, on the tax roll, parcels and properties assessed for special district benefit assessments. Willdan Financial Services Page 1 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010/11 District Formation Process A written petition of the property owners within the District, representing more than 50 percent of the proposed District assessment to be levied, was submitted to the City Council to initiate formation proceedings. 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 contained the original Management District Plan and the time and place of a public hearing on the establishment 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 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 mailed to each property owner at least 45 days prior to the public hearing pursuant to Article XIIID of the California Constitution. At the public hearing, the City Council provided the public and property owners an opportunity to provide oral protests and written protests prior to the adoption of the Management District Plan and the final Engineer's Report. Pursuant to the California Constitution Article XIIID, the City Clerk or its designated alternate tabulated property owner assessment ballots received from property owners and determined that majority protest did not exist. Pursuant to the Act, the City Council shall appoint an Owner's Association ("Association") for the District. This Association shall make 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 modified. Willdan Financial Services Page 2 City of Palm Desert Alessandro Alley Property and Business Improvement District Final Management District Plan Fiscal Year 2010/11 Description of the District Description of the District Boundary The District consists of all parcels located in the commercial business area known as the Alessandro Alley within the City of Palm Desert, County of Riverside. The District includes twenty- two (22) assessable commercial parcels. The boundaries of the District are in the southwest area of the City and the parcels therein are generally located North of Highway 111 and Palm Desert Drive North; generally South of San Gorgonio Way; adjacent to and South of Alessandro Alley; adjacent to and West of Las Palmas Avenue; and generally East of Monterey Avenue. Description of the Improvements and Activities In an effort to enhance and improve business opportunities and the appearance of the area known as the Alessandro Alley, the Agency currently is providing funds for the renovation and capital improvement of the parking areas and landscaped areas related to this commercial business center. In conjunction with this renovation, Alessandro Alley Property and Business Improvement District has been formed to provide and ensure the continued operation and maintenance of the improvements after the renovations have been completed. 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 all necessary activities, services, operation, 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 include: • Parking area landscaped areas: including but not limited to ground cover, shrubs, trees, plants, irrigation and drainage systems and associated appurtenant facilities. • Parking area lighting facilities: including but not limited to bulbs, fixtures, poles, wiring, and electrical energy. Debris removal.- including but not limited to regular mechanical sweeping of the parking areas. The costs associated with the improvements are equitably spread among all benefiting parcels within the District utilizing the method of apportionment described in the Section, "Method of Apportionment", of this Plan. The total funds collected shall be dispersed and used for only the services and operations provided to the District. Willdan Financial Services Page 3 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010111 Special Benefits of the Improvements and Activities All assessed properties within the District receive special benefits from one or more of the improvements and activities funded through the District assessments. In specific, the lighting & landscaping amenities within the parking areas, also, the regular sweeping of the parking areas. The special benefits of lighting (parking area lights) are the convenience, safety, and security of property, improvements, and goods. Specifically: 1. Enhanced 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 and egress to property; 5. Reduced vandalism 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; Increased promotion of business activities and opportunities during nighttime hours. The benefits associated with the improvements within the parking areas are specifically: Improved aesthetic appeal of the parking area and nearby parcels; Improved dust control; 10. Enhanced adaptation of the urban environment within the natural environment; 11. Improved traffic circulation; 12. A positive representation of the businesses within the District; 13. Centralized locations for refuse collection facilities. Parking area 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; Improved dust control. 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. Willdan Financial Services Page 4 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010119 Method of Apportionment Method of Apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method that 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 Areas Improvements and Services All assessed parcels within the Alessandro Alley PBID have use of, and access to, parking facilities (parking spaces) that provides access, parking, and delivery areas for the businesses and parcels within the District. The parking spaces are located alongside the assessed parcels within the PBID and are adjacent to Alessandro Alley. Although the parking spaces are not in a centralized facility, they can be used and accessed by all properties within the District. However, it can be reasonably expected that parking facilities closest to each assessed parcel will be used for access to each such parcel. In determining the method of apportionment for these improvements, each parcel's benefit is based on access to the parking areas adjacent to, and associated with, each parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel's benefit for the parking areas improvements shall be based on the approximate front footage adjacent to the parking areas. The parcels within the District front Alessandro Alley and the parking areas are on only one side (north side of the property). To ensure a reasonable and equitable apportionment of special benefit, parcels are only assessed for their front footage along the north side of their property adjacent to the parking areas. Method of Apportionment Calculations The Total Direct Costs of the parking areas improvements and services are apportioned to each parcel within the District based on each parcel's front footage adjacent to the parking areas in linear feet. In addition to a parcel's Total Direct Cost, each parcel is assessed for District administration expenses, a reserve fund collection, and a parking areas maintenance fund. 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. Apportionment of Direct Costs The Total Direct Costs estimated for parking areas improvements and services (maintenance)are based on the estimated annual costs to maintain the landscaping, lighting, and mechanical sweeping of the parking areas within Alessandro Alley. This Total Direct Cost, divided by the sum Willdan Financial Services Page 5 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010111 of the linear front footage of all parcels within the District, establishes a rate per parcel linear foot. This rate multiplied by each parcel's front footage equals the parcel's proportionate share of the parking areas maintenance costs (rounded to the nearest even penny). Originally, the plans proposed for construction of improvements were for a beginning date of fall 2007 and completion by early 2008. Currently the improvements have not yet been completed and assessments will not be collected for Fiscal Year 2010/11. The rates provided below are the maximum allowable and actual proposed assessment rates for Fiscal Year 2010/11 only. Please refer to the District Budget (Table 4) for future assessment rates. Direct Cost Rate Calculation Total Direct Cost / Total Front Footage = Rate per Linear Foot Rate x Parcel Front Footage = Direct Cost Assessment Component Table 1 lists the proposed FY 2010/11 direct costs and costs per linear foot. Table 1: Direct Cost Proposed Assessment and Rate Proposed Direct Proposed Rate Costs for FY (per Front Footage) 2010-11 for FY 2010-11 Fourth Fiscal Year Maximum $ 15,645 $ 8.900 Fourth Fiscal Year Actual* $ - $ - *District will not be levied for FY 2010-11 Apportionment of Indirect (Administration / Reserve) Costs To ensure the improvements, activities, and services provided and funded through the District are continued, each parcel will be assessed for administrative and reserve costs. These include all expenses related to the administration of the District as well as the collection of money towards a Parking Areas Maintenance Fund and an Operating Reserves Fund. Fiscal Year 2010/11 will not be levied due to the improvements not being complete. For Fiscal Year 2010/11, the Reserve Fund Collections are proposed to be under twenty-seven percent (26.50%) of the annual Total District Costs. Similar to the method of apportionment for Total Direct Costs, the District's indirect costs are apportioned to each parcel based on each parcel's front footage. The rate provided below is the maximum allowable rate for Fiscal Year 2010/11 only. Please refer to the District Budget (Table 4) for future assessment rates. Willdan Financial Services Page 6 City of Palm Desert Alessandro Alley Property and Business Improvement District Final Management District Plan Fiscal Year2010111 Indirect Cost Rate Calculation Total Indirect Cost / Total Front Footage = Rate per Linear Foot Rate x Parcel Front Footage = Indirect Cost Assessment Component Table 2 lists the proposed FY 2010/11 indirect costs and costs per linear foot. Table 2: Indirect Cost Proposed Assessment and Rate Proposed Proposed Rate Indirect Costs (per Front Footage) for FY 2010-11 for FY 2010-11 Fourth Fiscal Year Maximum $ 10,692 $ 6.087 Fourth Fiscal Year Actual $ - $ - *District will not be levied for FY 2010-11 Total Annual Assessment Each parcel's Total Annual Assessment is the sum of its proportionate share of the District's Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in fiscal year 2010/11. The rates provided below are the maximum allowable and actual proposed assessment rates for Fiscal Year 2010/11 only. Please refer to the District Budget (Table 4) for future assessment rates. Total Cost Rate Calculation Direct Cost Rate + Indirect Cost Rate = Total Rate per Linear Foot Total Rate x Parcel Front Footage = Total Parcel Assessment Willdan Financial Services Page 7 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010/11 Table 3 lists the proposed FY 2010/11 total costs and costs per linear foot. Table 3: Total Cost Proposed Assessment and Rate Proposed Direct Proposed Rate Costs for FY (per Front Footage) First Fiscal Year 2010-11 for FY 2010-11 Direct Costs Maximum $ 15,645 $ 8.900 Direct Costs Actual* $ - $ - Indirect Costs $ 10,692 $ 6.087 Total Costs Maximum $ 26,337 $ 14.992 Total Costs Actual" $ - $ "District will not be leviedfor FY 2010-11 Annual Budget Adjustments For the initial five years of the PBID, annual assessments may be adjusted by the Alessandro Alley PBID 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 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 adjust for surpluses or deficits that are carried forward. Willdan Financial Services Page 8 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year2010/11 Description of Budget Items In Table 4 Direct Benefit Costs • Landscape 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. The landscape maintenance area is approximately 10,000 square feet. • Landscape Pruning: Includes all regularly scheduled labor, material, and equipment required to properly maintain and ensure the satisfactory condition of all trees including palm trees, 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. There will be approximately 45 trees to be maintained. • Landscape Water.- Utility cost to furnish water for required landscape irrigation. The landscape maintenance area is approximately 10,000 square feet. • Lighting., 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 and bulb replacement. This cost does not include repairs or replacement of damaged facilities due to vandalism, accidents or storms. There will be approximately 30 street lights to be serviced. • Sweeping Services: Weekly cleaning of the parking areas and gutters using a contracted, mechanized service. • Landscape Repairs/Lighting: 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 could include replacing plant and lighting materials or renovation of irrigation and lighting systems. Indirect Benefit Costs (Administration / Reserves) • District Administration: The cost to all departments and staff of the City, for providing the coordination 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. Willdan Financial Services Page 9 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010/11 Operating Reserve Fund. The Operating Reserve Fund provides for collection 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 installment 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 2009/10 through FY 2010/11. Parking Areas Maintenance Fund., The Parking Areas Maintenance Fund provides funds for the sealing and re -striping of the parking areas after the fourth year of the term of the District. These funds are proposed to be held in reserve until such time as the sealing and re -striping are required and there are sufficient funds to pay for their costs. • Insurance: This line item supports insurance costs for the operation of the District. Levy Breakdown • Total District Costs: This is the sum total of all budgeted Direct and Indirect costs. District Statistics • Total Parcels: The total number of parcels within the District. • Total Parcels to Levy. The total number of parcels within the District that will be assessed. There are currently no exempt parcels within the District; however, non - assessed lots or parcels may include easements, common areas, and parcels within the boundaries of the District that do not benefit from the improvements. • Total Front Footage (Parking Areas): This is the sum total of the parcel front footage applied to each parcel within the District. • Levy Rate per Direct Costs: This amount represents the Rate being applied to each parcel's individual front footage for Direct Costs. The Levy Rate per Direct Costs is the result of dividing the estimated Total Direct Costs for that year by the sum of the District's Total Front Footage. The rate is calculated to three decimal places. • Levy Rate per Indirect Costs: This amount represents the Rate being applied to each parcel for Administrative Costs, the Operating Reserve Fund and the Parking Areas Maintenance Fund. The Levy Rate per Indirect Costs is the result of dividing the estimated Total Indirect Costs for that year by the sum of the District's Total Front Footage. The rate is calculated to three decimal places. • Total Levy Rate for District Costs: This is the sum total of the Levy Rate per Direct Costs and the Levy Rate per Indirect Costs. The rate is calculated to three decimal places. Willdan Financial Services Page 10 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year 2010/1 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 2006/07 through Fiscal Year 2010/11 are based on the estimated costs to provide the improvements and services for each year, adjusted for the three percent (3%) inflation factor. The 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 the Plan without first obtaining property owner approval through assessment ballots. Willdan Financial Services Page 11 City of Palm Desert Alessandro Alley Property and Business Improvement District Final Management District Plan Fiscal Year2010111 Table 4: Five Year Budget Actual Proposed Assessment Maximum Proposed Assessment for Fiscal Years Budget Item FY 2010-11(1) 2006-07 2007-08 2008-09 2009-10 2010-11 Direct Benefit Costs Landscape Maintenance Costs $ $ 4,500 $ 4,635 $ 4,774 $ 4,917 $ 5,065 Landscape Pruning $ 2,250 2,318 2,387 2,459 2,532 Landscape Water $ 1,700 1,751 1,804 1,858 1,913 Lighting $ 2,250 2,318 2,387 2,459 2,532 Sweeping Services $ 1,500 1,545 1,591 1,639 1,688 Landscape Repairs/Lighting $ 1,700 1,751 1,804 1,858 1,913 Subtotal Direct Costs $ $ 13,900 $ 14,317 $ 14,747 $ 15,189 $ 15,645 Administration/Insurance District Administration 3,000 3,090 3,183 3,278 3,377 Insurance 300 309 318 328 338 Subtotal Administrative Costs $ $ 3,300 $ 3,399 $ 3,501 $ 3,606 $ 3,714 Reserve Funds Parking Areas Maintenance Fund 3,500 3,605 3,713 3,825 3,939 Operating Reserve Fund 2,700 2,781 2,864 2,950 3,039 Subtotal Reserve Fund Costs $ $ 6,200 $ 6,386 $ 6,578 $ 6,775 $ 6,978 LevyBreakdown Total District Costs 23,400 24,102 24,825 25,570 26,337 Balance to Levy $ $ 23,400 $ 24,102 $ 24,825 $ 25,570 $ 26,337 District Statistics Total Parcels 22 22 22 22 22 22 Total Parcels To Levy 22 22 22 22 22 22 Total Front Footage (Parking Areas) 1,756.68 1,756.68 1,756.68 1,756.68 1,756.68 1,756.68 Levy Rate per Direct Costs $ - $ 7.920 $ 8.160 $ 8.400 $ 8.640 $ 8.900 Levy Rate per Indirect Costs $ $ 3.520 $ 3,640 $ 3.740 $ 3.860 $ 3.980 Total Levy Rate for District Costs $ $ 13.320 $ 13.720 $ 14.140 $ 14.560 $ 14.992 Oyeratinq Reserve Fund Balance Previous Balance 2,700 - 2,700 5,481 8,345 11,296 Ending Balance 2,700 2,700 5,481 8,345 11,296 14,335 Parking Lot Maintenance Fund Balance Previous Balance 3,500 - 3,500 7,105 10,818 14,643 Ending Balance 3,500 3,500 7,105 10,818 14,643 18,582 Maximum annual assessments for direct benefit costs, administrative costs and reserve fund collection are adjusted by 3% from the previous Fiscal Year for Fiscal Years 2007-08 through 2010-11, The PBID Advisory Board will determine the amount of any actual increase for those years which may not exceed 3% per year. "' FY 2010-11 Improvements have not yet been completed therefore district will not be levied Sources: City of Palm Desert; Willdan Financial Services Willdan Financial Services Page 12 City of Palm Desert Alessandro Alley Property and Business lmpro vement District Final Management District Plan Fiscal Year2010/11 Appendix A: District Assessment Diagram The Alessandro Alley Property and Business Improvement District consists of the parcels shown on the following District Assessment Diagram. The Assessment Diagram is based on the County of Riverside's Assessor's Maps and identifies all the parcels of land within the proposed District. Z�f- miry o _ oil y F4 fig° a1 ► 8�i#� Q i t 1# � s W� I ill! X 0 dV) 95 LO Ewa ¢ a a kIZZ-1 Fri — W Cl- ©X Z Ell 4 t7 sw S t i Cie _ a LJ OD z ca o Ll � - o w jI1Y A3�33NC7A+ Willdan Financial Services A_ 9 City of Palm Desert Alessandro Alley Property and Business Improvement District Final Management District Plan Fiscal Year 2010/11 Appendix B: District 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 the Engineer's Report is prepared. A listing of parcels assessed within this District, along with the assessment amounts, is included on the following page. 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