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Home My WebLink AboutC30490 Initiate and Preparation the Re-formation of the Presidents Plaza III Private Business Improvement DistrictContract No. C30490 CITY OF PALM DESERT DEPARTMENT OF PUBLIC WORKS .-I M. CITY COUNCIL STAFF REPORT REQUEST: CONSIDERATION OF APPROVAL TO CONTRACT WITH WILDAN FINANCIAL SERVICES TO INITIATE AND PREPARE THE RE-FORMATION OF THE PRESIDENTS PLAZA III PRIVATE BUSINESS IMPROVEMENT DISTRICT SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works CONTRACTOR: Willdan Financial Services 27368 Via Ind ustria, Suite 110 Temecula, CA 92590 DATE: January 13, 2011 CONTENTS: Consultant Proposal Copy of Previous 5-Year Management Plan Recommendation By Minute Motion: 1. Authorize the Mayor to enter into an agreement with Willdan Financial Services in the amount of $12,750 for re-forming the Presidents Plaza III Private Business Improvement District (PBID); and 2. Appropriate $12,750 to Fund 282, Presidents Plaza III 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 requested appropriation of $12,750 allows for the re-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. Staff Report Presidents Plaza III Private Business Improvement District January 13, 2011 Page 2 of 2 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: Department Head: Ryan Stendell Mark Gr enwood, P.E Senior Management Analyst Director of Public Works Paul S. Gibson, Director of Finance Approved By: M. Wohlmuth, City Manager CITY COUNCIL ACTION APPROVED ..ice DENIED RECEIVED OTI-I ER R. MEETING DATE AYES- Et )f r o 0nen � 1�F e ,�/A7z: n NOES: IA L(V ABSENT: r1 _n ABSTAIN: `-'n e- VERIFIF.D BY: Original on File with City Clerk's Office WI LLDAN extenci`n your *""Financial Services reach September 13, 2010 Mr. Ryan Stendell Via Electronic Mail: Senior Management Analyst rtendell(a)cityofpalmdesert.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(d�willdan.com. Sincerely, Willdan Financial Services ( C� Chris Fisher, Group Manager Financial Consulting Services Group Enclosure Fn� w erring :�:f�.c(�n I c = .� i�r�c;nt� i i St�:Ai zui al iiii'Y . Financial I Hcr , i and sectdnly 951.587.3500 1 800.755.6864 1 fax: 951 .587.3510 1 27368 Via Industria, Suite 110, Temecula, CA 92590 1 www.willdan.com , WILLDAN Financial services Scope 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. ing, P- 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. 5 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 �WILLQAN Financial Services & t:isI,`.: E`-sa".nF'u'a 35k y-"t.,``x 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. JIF 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. p . t o EE gi a : ks R l-,ko , '-, r1aq: rn . s; D. W'C `1 , 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. 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 description of the boundaries of the PBID; Property and Business Improvement District (PBID) Renewal Formation Services WI LLDAN 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. 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. t'1 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 ,A/W I LLDAN Financial Services Meetings/Project Schedule 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 a -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. Data to be Supplied by City 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 W I LLDAN Financial Services Staffing and Budget Staffing 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 IA/WI LLDAN 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: Position Principal c f;3i3 t31, .,,t $200 I Seik,,r oJH£'i Manager - $165 — Pro,(i Manager a€ age � 41 45 ` C ;grkr PrCtfo;"t Analyst $130 i Senior Army li ( 1 ., .... ..-....._..__ .......... y r � ,, I M0 ........ An,' lyst Assiz r wt ' 75 � Property Owlior Service,,,_; -._-....-.. _. ....... 7 Property and Business Improvement District (PBID) Renewal Formation Services CITY OF PALM DESERT MANAGEMENT DISTRICT PLAN PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010/2011 Public Hearing: Corporate Office 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-6864 Fax:(951) 587-3510 June 24, 2010 WILLDAN extending your Financial Services I reach Office Locations Oakland, CA Phoenix, AZ Sacramento, CA Orlando, FL www.willdan.com/financial City of Palm Desert TABLE OF CONTENTS President's Plaza 111 PBlD Management District Plan FY200912010 OVERVIEW.............................................................................................. Introduction Formation DESCRIPTION OF THE DISTRICT...................................................................... District Boundary Improvements and Activities Special Benefits of the Improvements and Activities 2 2 4 4 5 METHODOF APPORTIONMENT........................................................................ Method of Apportionment Rationale 7 Parking Lot Improvements and Services 7 Method of Apportionment Calculations 7 Apportionment of Direct Costs 7 8 Apportionment of Indirect (Administration/Reserve) Costs Total Annual Assessment 8 9 Annual Budget Adjustments DESCRIPTION OF BUDGET ITEMS IN TABLE 4..................................................... 1 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 W I LLDAN Page r s�xr Financial Services City of Palm Desert President's Plaza !lt PBID Management District Plan FY201012011 Overview Introduction The City of Palm Desert ("City") formed and established the President's 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 Code ("Act"). Pursuant to the Act, property owners within the District submitted a signed 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 Code, 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 period of five years (Fiscal Years 2006/2007 through 2010/2011). This Management District Plan ("Plan") describes the District, improvements and 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, and 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 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 referenced the Engineer's Report and the Management District Plan, and noticed 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 WILLDAN Paget Wy��r Financial Services e�'� City of Palm Desert President's Plaza 111 PBfD Management District Plan FY201012011 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 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 California Constitution Article X110, 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 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 modified. W I LLDAN x "'� Page 3 Financial Servic reach City of Palm Desert Presidents Plaza Ill PBID Management District Plan FY201012011 Description of the District District Boundary The District consists of all parcels located in the commercial business area known as the President's 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 El Paseo; West of Sage Lane; and East of Old Highway 74, and 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, President's 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 accumulated during the first five years of the term of the District. It has been determined 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 include: • 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: including, but not limited to, regular mechanical sweeping of the parking lot. WILLDAN `r""' Page ,_t Financial Services rcoch City of Palm Desert President's Plaza 111 PBID Management District Plan FY201012011 The costs associated with the improvements are equitably spread among the benefiting parcels within the District utilizing the method of apportionment described in the Method of Apportionment section of this Report. The total funds collected 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. 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; 7. Increased 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 landscaped 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. Enhanced 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. (WILLDAN I Page Financial Services ev City of Palm Desert President's Plaza 111 PBID Management District Plan FY201012011 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 �`" �g Page s Financial Services v City of Palm Desert President's Plaza 111 PBID Management District Plan FY201012011 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 Improvements and Services 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 and 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 assessed 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. Apportionment of Direct Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) are based on the estimated annual costs to maintain the landscaping, lighting, and mechanical sweeping of the parking lot within President's 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 only. Please refer to the District Budget (Table 4) for future assessment rates. Total Direct Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Direct Cost Assessment Component W I L L DAN x�era�"' Page Financial Services I rcach City of Palm Desert President's Plaza N PBID Management District Plan FY201012011 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 Apportionment of Indirect (A dministration/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 (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 Fund. The Reserve Fund Collection 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 District's indirect costs are apportioned 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 Budget (Table 4) for future assessment rates. Total Indirect Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = indirect 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 Total Annual Assessment Each parcel's Total Annual Assessment is the sum of their proportionate share of the 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 2010/2011. The rate provided in Table 3 is for Fiscal Year 2010/2011 onlv. Please refer to the District Budaet (Table 4) for future assessment rates. Oe WILLDAN Page Financial Services rcaui City of Palm Desert Presidents Plaza 111 PBID Management District Plan FY201012011 Direct Cost Rate f Indirect Cost Rate = Total Rate per Square Foot Total Rate x Parcel Square Footage = Total Parcel Assessment Table 3: Total Cost Proposed Assessment and Rate Proposed Rate (per Proposed Direct Costs for Square Foot) for Fifth 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 Annual Budget Adjustments 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 adjust for surpluses or deficits that are carried forward. WILLDAN �r'' Page e'er Financial Services F ch City of Palm Desert President's Plaza 111 PBID Management District Plan FY201012011 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 Contract 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 Repair 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 could include replacing lighting materials or renovation of lighting systems. Landscape Repair 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 could include replacing plant materials or renovation of irrigation systems. Landscape Utilities -Water:- Utility cost to furnish water for required landscape irrigation. Street Lighting Utilities - Electric: 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. Landscape Utilities - Electric: Utility cost for furnishing of electricity required 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 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. County Administration 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 Per Parcel 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 Page 10 y'.ur Financial Services reacii City of Palm Desert President's Plaza 111 P&D Management District Plan FY201012011 Operating Reserve Fund Collection: 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 2006/07 through FY 2010/2011. The Operating Reserve Fund may also be used 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 2010/2011. Parking Lot Maintenance Fund Collection: 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). 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. 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 Square Footage: This is the sum total of the assessed parcels' square footage applied to each assessed parcel within the District. Levy Rate per Direct Costs per Square Foot.' This amount represents the Rate for Direct Costs being applied to each assessed parcel's individual lot square footage. 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 Parcels Square Footage. The rate is calculated to four decimal places. Levy Rate per Indirect Costs per Square Foot.' This amount represents the Rate for Indirect Costs being applied to each assessed parcel's individual lot square footage. 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 Parcels Square Footage. The rate is calculated to four decimal places. WILLDAN Page 11 Financial Services rrUc7 City of Palm Desert President's Plaza Ill P810 Management District Plan FY201012011 Total Levy Rate per Square 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 District's 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 2010/2011 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 Page 12 Financial Services re -eta City of Palm Desert President's Plaza 11i P81D Management District Plan FY2O1O12011 Table 4: Five Year Budget Actual Proposed Maximum Proposed Assessment for Fiscal Years Assessment Budget Item FY 2010-2011 "1 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011(') Direct Costs 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 & 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 Landscape Utilities - 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 District Administration $ 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 Levy 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 Operating 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 Parking 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. (11 FY 2010-2011 Actual and Maximum Proposed Assessments are the same. Sources: City of Palm Desert, Willdan Financial Services y`,'ur ;r; Page 13 WILLDAN Financial Services reaci Presidents Plaza 111 PBtD Management District Plan FY201012011 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 Clerk of the City of Palm Desert. WILLDAN Grr"'=; Papa 14 Financial Services c; City of Palm Desert Appendix B Assessment Roll President's Plaza Ill PBID Management District Plan FY201012011 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. WILLDAN I " r .'" 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