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HomeMy WebLinkAboutResolution 2011-64 through 2011-67 Alessandro Alley Business Improvement District Fiscal Year 2011 / 2012CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE THE MANAGEMENT DISTRICT PLAN AND ENGINEER'S REPORT, ORDER THE FORMATION/RENEWAL AND THE LEVY AND COLLECTION OF ASSESSMENTS, AND APPROVAL TO DECLARE THE RESULTS OF THE PROPERTY OWNER PROTEST PROCEEDINGS FOR THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2011-2012 SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: July 14, 2011 CONTENTS: Preliminary Management District Plan Preliminary Engineer's Report Resolution No. 2011- 64 Resolution No. 2011- 65 Resolution No. 2011- 66 Resolution No. 2011- 67 Recommendation Waive further reading and adopt: 1. Resolution No. 2011- 64 approving the final Management District Plan for the Alessandro Alley Property and Business Improvement District for Fiscal Year 2011-2012 and appointment of an owner's association; 2. Resolution No. 2011- 65 approving the final Engineer's Report for the Alessandro Alley Property and Business Improvement District for Fiscal Year 2011-2012; 3. Resolution No. 2011- 66 ordering the formation of the Alessandro Alley Property and Business Improvement District and the levy and collection of assessments for said District for Fiscal Year 2011-2012; and 4. Resolution No. 2011- 67 declaring the results of a property owner protest proceeding for the Alessandro Alley Property and Business Improvement District and approving certain related actions. Staff Report Alessandro Alley Formation of PBID July 14, 2011 Page 2 of 2 Background Total Balllots Cast $21,649.72 YES Total $ 9,105.22 NO Total $12,544.50 The Alessandro Alley Property and Business Improvement District (District) was v approved on July 1, 2006. The District was established to fund the maintenance of the proposed Alessandro Alley improvements. The City's Redevelopment Agency is H currently in the process of completing the design and engineering for the improvements. 4 too N The attached resolutions allow the City Council to declare its intention to re-form the o 1 District pursuant to state law. Once the improvements are complete, the District a , property owners will be assessed for the maintenance of the improvements. W o The District includes properties located on the north side of Highway 111 between Las a Palmas and 300 feet east of Monterey Avenue. The proposed alley improvements include the addition of parking spaces, landscaping, lighting, and block walls along alley. The District is in the final year of the five-year term and proceedings to re-form the Q) +� District must take place in order to levy the assessment. Staff has surveyed the property owners to see if interest in the district still exists and believes there to be ample support 4, for the District to be re-formed. Staff recommends that the City Council open the public hearing and take testimony from o c all interested parties. At the conclusion of the public hearing staff will count the ballots b ow and return to declare the results. y N Fiscal Analysis ?I m xb The assessment and collection of the levy amount funds the on -going maintenance of ^ a the Alessandro Alley Business Improvement District costs. in ,0 Prepared By: Departm Flyan Stendet Mark Green ood, P.E.,_ \ Senior Manalyst Director of ublic Works � CITY COUNCIL'A, TION APPROVED ��//°° DENIED OTHER Paul S. Gibs Tr��r of Finance NIEETI TE Afro a . AYES: D /Ii NOES: A13SENT: h M. Wohlmuth, City ManagWSTAIN: VERIFIED BY: Original on File with City (erk's Office 4) 0 +W O N H �C 0 N az° it, aH co ;j 60 O q N •rl 4! Aa a� H m �o w -W E4 a, x * 3 r ALESSANDRO ALLEY PROPERTY AND BuSINESS IMPROVEMENT r• DISTRICT MANAGEMENT DISTRICT PLAN FISCAL YEARS 2011/2012 To 2015/2016 Intent Meeting: May 26, 2011 Public Hearing: July 14, 2011 N4/WILLDAN Financial Services Corporate Office 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-6864 Fax: (951) 587-3510 Office Locations Oakland, CA Sacramento, CA www.willdan.com/fitiandal Phoenix, AZ Orlando, FL TABLE OF CONTENTS Overview........................................................................................................1 Introduction...........................................................................................................1 District Renewal 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 Method of Apportionment Calculations................................................................. 5 Annual Budget Adjustments.................................................................................. 7 Description of Budget Items in Table 4..................................................9 DirectBenefit Costs.............................................................................................. 9 Indirect Benefit Costs (Administration / Reserves) .............................................. 10 LevyBreakdown.................................................................................................. 10 DistrictStatistics.................................................................................................. 10 DistrictBudget..................................................................................................... 11 Appendix A — Assessment Diagram....................................................A-1 Appendix B — Assessment Roll............................................................ B-1 Willdan Financial Services City of Palm Desert Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 Overview Introduction The City of Palm Desert ("Cif') formed and established the Alessandro Alley Property and Business Improvement District (the "District") beginning in Fiscal Year 2006/2007 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 (the "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 2010/2011 is the last 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. The renewal process is the same as that of the original formation. Therefore, the preparation of this updated Management District Plan is the first step in satisfying these requirements. Pursuant to the Act, the City proposes 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 2011 /2012 through 201512016). The City of Palm Desert Redevelopment Agency ("Agencf') 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. 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 renewed 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 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 PBID Renewal Management District Plan Fiscal Year 201112012 District Renewal 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 renewal proceedings. The City Council initiated proceedings for the renewal of the District by adopting a resolution expressing its intention to renew 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. 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 renewal, and caused notice to the property owners pursuant to Section 54954.6 of the Government Code. Public notices and assessment ballots (proper 0 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. U'Iilldan Financial Services Page 2 City of Palm Desert Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 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 Senwes Page 3 City of Palm Desert Special Benefits of the Activities Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 Improvements and All 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 areas, and 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; 7. Increased promotion of business activities and opportunities during nighttime hours. The benefits associated with the improvements within the parking areas are specifically: 8. Improved aesthetic appeal of the parking area and nearby parcels; 9. 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 is: 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. 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. WINdan Financial Setwees Page 4 City of Palm Desert Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 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 of the linear front footage of all parcels within the District, establishes a rate per WIdIdan Financial Services Page 5 City of Palm Desea Alessandro Alley PBID Renewal Management Distfict Plan Fiscal Year 201112012 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 jenny). 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 2011/12 direct costs and costs per linear foot. Table 1: Direct Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Front Footage) for FY 2011-12 for FY 2011-12 First Fiscal Year Maximum S 16 114 S 9 180 First Fiscal Year Actual S 16 11.3 S 9 180 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. 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 2011/12 only. Please refer to the District Budget (Table 4) for future assessment rates. 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 2011/12 indirect costs and costs per linear foot. WINdan Finanaal Services Page 6 City of Palm Desert Alessandro Alley PBID Renewal Management Distnet Plan Fiscal Year 201112012 Table 2: Indirect Cost Proposed Assessment and Rate Proposed Proposed Rate Indirect Costs (per Front Footage) for FY 2011-12 for FY 2011-12 First Fiscal Year Maximum S 7 187 5 4 100 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 the first fiscal year of renewal (FY 2011/12). The rates provided below are the maximum allowable and actual proposed assessment rates for Fiscal Year 2011/12 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 Table 3 lists the proposed FY 2011/12 total costs and costs per linear foot. Table 3: Total Cost Proposed Assessment and Rate First Fiscal Year Proposed Direct Costs for FY 2011-12 Proposed Rate (per Front Footage) for FY 2011-12 Direct Costs Maximum S 16 114 S 9 180 Direct Costs Actual S 16 114 S 9 180 Indirect Costs S 7 187 5 4 100 Total Costs Maximum 5 27 127 S 15 440 Total Costs Actual S 27 127 5 15 440 Annual Budget; Adjustments For the five years of this PBID renewal, annual assessments may be adjusted by the Alessandro Alley PBID Association up to three percent (3%) per year. Actual annual WIdIdan Financial Services Page 7 City of Palm Desert Alessandm Allay PBID Renewal Management District Plan Fiscal Year 201112012 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 Alessandm Alley PBID Renewal Management Distrut Plan Fiscal Year 201112012 Description of Budget Items in Table 4 Direct Benefit Costs Includes all regularly scheduled labor, material (e.g. pipe, fertili.Zer, 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. 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. t Utility cost to furnish water for required landscape irrigation. The landscape maintenance area is approximately 10,000 square feet. 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. Weekly cleaning of the parking areas and gutters using a contracted, mechanized service. . ,t Alt 111e I:/Ia i �4`,°;dfo' LQ 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 Willdan Financial Semites Page 9 City of Palm Desert Alessandm Alley PBID Renewal Management District Plan Fiscal Year 201112012 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) 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. 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 2011/2012 through FY 2015/2016. 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 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. ti1_c7ic __ This line item supports insurance costs for the operation of the District. Levy Breakdown This is the sum total of all budgeted Direct and Indirect costs. District Statistics Willdan Financial Services Page 10 City of Palm Desert Alessandro Alley PBID Renewal Management Distfict Plan Fiscal Year 201112012 The total number of parcels within the District. 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. This is the sum total of the parcel front footage applied to each parcel within the District. 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. 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. 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. 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 2011 /2012 through Fiscal Year 2015/2016 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. WIMIdan Financial Services Page 11 City of Palm Desert Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 Table 4: Five Year Budget Actual Proposed Maximum Proposed Assessment for Fiscal Years Assessment Budget Item FY 2011-2012 "1 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Drrect Bereft Costs Landscape Maintenance Costs S 5 217 S 5 217 S 5 373 $ 5 534 S 5 700 S 5 871 Landscape Pruning 2 608 2 603 2 687 2 767 2 850 2 936 Landscape Vdater 1 971 1 971 2030 2091 2 164 2 218 Lighting 2 608 2 608 2 687 2 767 2 850 2 936 Sweeping Services 1 739 1 739 1 791 1 845 1 900 1 957 Landscape Repairs 1ighting 1 971 1 971 2030 2091 2 154 2 218 Subtotal Direct Costs S 16 114 S 16 114 S 16 597 S 17 095 S 17 608 5 18 136 Adrrir,rstratre«''rsw,ranee District Administration 3 478 3 478 3 582 3 690 3 300 3 914 Insurance 348 348 368 369 380 391 Subtotal Administrative Costs 5 3 826 S 3 826 S 3 940 S 4 059 S 4.180 S 4 306 Reserve Funds Parking Areas Maintenance Fund 4 057 4 067 4 119 4 306 4 434 4 567 Operating Reserve Fund 3 130 3.130 3 224 3 321 3 420 3 523 Subtotal Reserve Fund Costs 5 7 187 5 7 187 S 7 403 S 7 625 S 7 854 S 8 090 Le: y Breakdov,n Total District Costs 27 127 27 127 27 941 28 779 29 642 30 532 Balance to Levy S 27 127 5 27 127 S 27 941 5 28779 S 29 642 S 30 532 D;stnct Statstvcs Total Parcels 22 22 22 22 22 22 Total Parcels To Levy 22 22 22 22 22 22 Total Front Footage (Park,nq Areas; 1 75668 1 75668 1 756 68 1 756 68 1 75668 1 76668 Levy Rate per Direct Costs S 9 180 S 9 180 S 9 440 S 9 740 S 10 020 S 10 320 Levy Rate per Indirect Costs S 4 100 S 4 100 S 4 220 S 4 340 S 4 480 S 4 600 Total Levy Rate for District Costs 5 15 440 S 15140 Si 15 900 5 16 380 S 16 880 $ 17 380 operating Reserve Fund Ba'ance Previous Balance - 3 130 6 354 9 675 13 095 Ending Balance 3 130 3 130 6 354 9 675 13 095 16 618 Parking Lot Melaitenance Fund Ba'ance Previous Balance - - 4 057 8 237 12 541 16 975 Ending Balance 4 057 4 067 8 237 12 541 16 975 21 542 L`axirnum annual assessments for direct kenefit tests, admin strati.e ccsts and reser: e fund ccHectic n are adjusted by _?Ii� from the pre. icus Fiscal ear for Fiscal': ears 2012-12 through 2C 1`--2C1^. -he PBIC 4d: iscry Beard ill determine the amount V ar) actual increase for these ±ears v. high may not exceed 2% per year. F', 2C 11-12 4ctuai Proposed 4ssessment has direct costs assessed for only cne-half cf the fiscal year. Sources: City of Palm Cesert::t;illdan Financial Ser. ices Wltlldan Financial Services Page 12 City of PaZm Desert Appendix A —Assessment Diagram Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 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. Willdan Financial Seyroices -1 GIGIm I � 17 Lil City of Palm Desert Appendix B —Assessment Roll Alessandro Alley PBID Renewal Management Distnet Plan Fiscal Year 201112012 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. 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Reference is hereby made to the Riverside County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of 32011. Willdan Financial Services Assessment Engineer On Behalf of the City of Palm Desert By: Richard Kopecky R. C. E. # 16742 WINdan Financial Semmes TABLE OF CONTENTS Overview.........................................................................................................1 Introduction...........................................................................................................1 District Formation / Renewal Process................................................................... 2 Description of the District.............................................................................3 DistrictBoundary ................................................................................................... 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 Method of Apportionment Calculations................................................................. 5 Annual Budget Adjustments.................................................................................. 8 Description of Budget Items In Table 4........................................................9 DirectBenefit Costs.............................................................................................. 9 Indirect Benefit Costs (Administration / Reserves) .............................................. 10 LevyBreakdown.................................................................................................. 10 DistrictStatistics.................................................................................................. 11 DistrictBudget..................................................................................................... 11 Appendix A — Assessment Diagram.........................................................A-1 Appendix B — Assessment Roll................................................................ B-1 Villdan Financial Sernees Page ii City of Palm Desert Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 Overview Introduction The City of Palm Desert ("Ci�1') formed and established the Alessandro Alley Property and Business Improvement District (the "District') 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 (the "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 commencing with Fiscal Year 2006/2007. 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 2010/2011 is the last 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. The renewal process is the same as that of the original formation. Therefore, the preparation of this updated Engineer's Report is the first step in satisfying these requirements. Pursuant to the Act, the City proposes 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 2011 /2012 through 201512016). The City of Palm Desert Redevelopment Agency ("Agency") has installed and constructed 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. This Engineer's Report ("Keport') 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 Report, refers to real property situated within the District, and identified as an individual property or parcel assigned its own Assessment 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 Alessandiv Alley PBID Renewal Engineers Report Fiscal Year 201112012 District Formation / Renewal 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. 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 34934.6 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 PBID Renewal Engineer's Report Fiscal Year 201112012 Description of the District 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 Report. The total funds collected shall be dispersed and used for only the services and operations provided to the District. Willdan Financial Services Page 3 GO of Palm Desert Special Benefits of the Activities Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 Improvements and All 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 areas, and 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; 7. Increased promotion of business activities and opportunities during nighttime hours. The benefits associated with the improvements within the parking areas are specifically: 8. Improved aesthetic appeal of the parking area and nearby parcels; 9. 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 is: 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. 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 Gi , of Palm Desert Alessand?v Alley PBID Renewal Engineer's Report Fiscal Year 201112012 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 of the linear front footage of all parcels within the District, establishes a rate per Willdan Financial Services Page 5 City of Palm Desert Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 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). For the initial year of the PBID, FY 2011/12, the actual annual assessment may be lower than the Maximum allowable annual assessment as illustrated by the District Budget (Table 4). This adjustment would be based on the parking areas improvements construction schedule. The plans proposed for construction of improvements are for a beginning date in Summer 2011. If the District's activities become effective during only a portion of the District's first fiscal year, only one-half of the District's Direct Costs would be collected for the FY 2011/12 assessment. The rates provided below are the maximum allowable and actual proposed assessment rates for Fiscal Year 2011/12 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 2011/12 direct costs and costs per linear foot. Table 1: Direct Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Front Footage) for FY 2011-12 for FY 2011-12 First Fiscal Year Maximum S 15 114 S 9 180 First Fiscal Year Actual S 18 11. S 9 180 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. 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 WINdan Financial Services Page 6 City of Palm Desert Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 is the maximum allowable rate for Fiscal Year 2011/12 only. Please refer to the District Budget (Table 4) for future assessment rates. 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 2011/12 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 2011-12 for FY 2011-12 First Fiscal Year Maximum S 7 187 S 4 100 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 the first fiscal year of renewal (FY 2011/12). The rates provided below are the maximum allowable and actual proposed assessment rates for Fiscal Year 2011/12 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 Table 3 lists the proposed FY 2011/12 total costs and costs per linear foot. T.Ylilldan Financial Senwes Page 7 City of Palm Desert Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 Table 3: Total Cost Proposed Assessment and Rate First Fiscal Year Proposed Direct Costs for FY 2011-12 Proposed Rate (per Front Footage) for FY 2011-12 Direct Costs Maximum S 16 114 S 9 180 Direct Costs Actual S 16 114 S 9 180 Indirect Costs S 7 187 S 4 100 Total Costs Maximum S 27 127 S 15440 Total Costs Actual S 27 127 S 15 440 Annual Budget Adjustments For the five years of this PBID renewal, 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 Alessandyn Alley PBID Renewal Engineer's Report Fiscal Year 201112012 Description of Budget Items In Table 4 Direct Benefit Chests Includes all regularly scheduled labor, material (e.g. p pe, fertiliser, 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. 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. Utility cost to furnish water for required landscape irrigation. The landscape maintenance area is approximately 10,000 square feet. 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. Weekly cleaning of the parking areas and gutters using a contracted, mechanized service. Y 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 WIVIdan Financial Services Page 9 City of Palm Desert Alessandro Alley PBID Renewal Engineers Report Fiscal Year 201112012 storms, as well as planned upgrades which could include replacing plant and lighting materials or renovation of irrigation and lighting systems. Indirect Benefit; Casts (Adinin stratidn / Reserves) 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. 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 2011/2012 through FY 2015/2016. 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 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. This line item supports insurance costs for the operation of the District. Levy Breakdown This is the sum total of all budgeted Direct and Indirect costs. Willdan Financial Senoices Page 10 City of Palm Desert Alessandro Alley PBID Renewal Engineer c Report Fiscal Year 201112012 District Statistics The total number of parcels within the District. 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. This is the sum total of the parcel front footage applied to each parcel within the District. 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. 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. 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. 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 2011/2012 through Fiscal Year 2015/2016 are based on the estimated costs to provide the improvements and services for each year, adjusted for the three percent (3%) inflation factor. VVIdan Financial Services Page 11 City of Palm Desert Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 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. Table 4: Five Year Budaet Actual Proposed Maximum Proposed Assessment for Fiscal Years Assessment Budget Item FY 2011-2012 1'I 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Direct Bereft Costs Landscape Maintenance Costs 5 5 217 S 5 217 S 5 373 S 5 531 S 5 700 S 5 871 Landscape Pruning 2 608 2 608 2 687 2 767 2 850 2 936 Landscape' ater 1 971 1 971 2030 2 091 2 164 2 218 Lighting 2 608 2 608 2 687 2 767 2 860 2 936 Svieeping Services 1 739 1 739 1 791 1 845 1 900 1 957 Landscape Repairs Lighting 1 971 1 971 2 030 2 091 2 164 2 218 Subtotal Direct Costs S 16 114 5 16 114 S 16 597 S 17 095 S 17 608 S 18 136 Adma,,stratran/ rs�rar,ce District Administration 3,478 3 478 3 582 3 690 3 800 3 914 Insurance 348 348 358 369 380 391 Subtotal Administrative Costs S 3 826 S 3 826 S 3 940 5 4 059 5 4 180 5 4 306 Reserve Fi,nds Parking Areas lilaintenance Fund 4 057 4 067 4 179 •1 306 4 434 4 567 Operating Reserve Fund 3 130 3 130 3 224 3 321 3 420 3 523 Subtotal Reserve Fund Costs S 7 187 S 7 187 S 7 403 S 7 626 S 7 854 S 8 090 Le': � Breakdot'rn Total District Costs 27 127 27 127 27 941 28 779 29 642 30 532 Balance to Le,y 5 27 127 S 27 127 S 27 941 S 28 779 S 29 642 S 30 532 D,strrct Stat�stcs Total Parcels 22 22 22 22 22 22 Total Parcels To Levy 22 22 22 22 22 22 Total Front Footage (Park ng Areas; 1 75668 1 756 68 1 75668 1 75668 1 75668 1 756 68 Lean; Rate per Direct Costs 5 9 180 S 9 180 S 9 440 S 9 740 5 10 020 S 10 320 Levy Rate per Indirect Costs S 4 100 S 4 100 S 4 220 5 4 340 S 4 480 S 4 600 Total Levy Rate for District Costs S 15 "0 S 15 440 S 15 900 S 16 380 S 16 880 S 17 330 Ooerating Rese-,e F, rd Balance Previous Balance - 3 130 6 364 9 676 13 095 Ending Balance 3 130 3 130 6 364 9 675 13 095 16 618 Pa,'K-nc Lot ,�farrtenarce Furd Balance Previous Balance - - 4 057 8 237 12 641 16 975 Ending Balance 4 057 4 057 8 237 12 641 16 975 21 542 Maximum arruai assessments for direct tenef3 costs. administraty a costs and reserve fund collection are adjusted Cy, 3 % from the previous Fiscal " ear for Fiscal 'ears ZC12-13 throuoh 701E-2CH —he PBIC wit isory Board •gill determine the amount of any actual increase for those years :;hich may not exceed, 3% per year. FF 2C11-12 4-ctual Proposed +assessment has direct costs assesses for enh one-half of the fiscal year Sources. City of Palm Cesert, Icilldar Financial Services WX—Zn Financial Services Page 12 City of Palm Desert Appendix A —Assessment Diagram Alessandro Alley PBID Renewal Engineers Report Fiscal Year 201112012 The Alessandro Alley Property and Business Improvement District consists of the parcels shown on the following 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. WINdan Financial Sermes A-1 t N z w :2 w 0 (r LL 0- 02 U) (f) w (/) Fr w < z o U) Z:D Oo Z < w >- U) F- 0 w n- W X0 o a- Q- X n. 0 z U) U) w a z z D z V a L� �z City of Palm Deserl Appendix B —Assessment Roll Alessandro Alley PBID Renewal En*neer's Repoe Fiscal Year 201112012 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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N r- r- r- r. r- d0000©doodC?d9Ca9dodaoC?o r-r-r-r-r-r r-r-r--r-r-r-r-r-r-r- Q = W W W W W W W W W W Co W CND W totto co W W W W W -t to (D r- 0D G i d N M K �n CD r- OD 62 o N EO r r r r r r r r r N N N @ Rv 0 RESOLUTION NO. 2011- 64 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL MANAGEMENT DISTRICT PLAN FOR THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2011/2012 AND APPOINTMENT OF AN OWNER'S ASSOCIATION RECITALS WHEREAS, pursuant to the provisions of Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the "Act"), property owners within the Alessandro Alley Property and Business Improvement District (hereafter referred to as the "District"), representing more than 50 percent of the proposed assessment to be levied have presented to the City Council a written petition for the formation of the District; and, WHEREAS, the City Council pursuant to the Act, did by previous resolution order the Assessment Engineer, Willdan Financial Services, (hereafter referred to as "Engineer") to prepare and file a Management District Plan (hereafter referred to as "Report') in connection with the formation of the District, and the establishment of maximum assessments to pay the maintenance and services of landscaping, lighting, street sweeping and all appurtenant facilities and operations related thereto; and, WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Palm Desert and the City Clerk has presented to the City Council such report entitled "Management District Plan for the Alessandro Alley Property and Business Improvement District, Fiscal Year 2011/2012; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and finds that the levy has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Report; and, NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1: The above recitals are true and correct. Section 2: The Report as presented, is hereby approved and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. RESOLUTION NO. 2011. 64 Section 3: Pursuant to the Act, the City Council hereby appoints the Alessandro Alley Owner's Association as the Owner's Association for the District. This Owner's Association consists of at least one member that is a business licensee within the District who is not also a property owner within the District. This Owner's Association shall cause to be prepared a report for each subsequent 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. Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of and final approval of the Report and appointment of the District Owner's Association. PASSED, APPROVED, AND ADOPTED this 14th day of July, 2011, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JEAN M. BENSON, MAYOR 2 RESOLUTION NO. 2011- 65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO APPROVE THE FINAL ENGINEER'S REPORT FOR THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, FISCAL YEAR 2011/2012 RECITALS WHEREAS, the City Council has retained Willdan Financial Services for the purpose of assisting with the Annual Levy of the Alessandro Alley Property and Business Improvement District (hereafter referred to as the "District"), and to prepare and file an Engineer's Report (hereafter referred to as the "Report") with the City Clerk in accordance with the provisions of California Constitutional Articles X111C and X110; and, WHEREAS, there has now been presented to this City Council the final Engineer's Report as required by California Constitutional Articles X111C and XI10; and, WHEREAS, this City Council has carefully examined and reviewed the Report as presented, and is satisfied with the District, each and all of the budget items and documents as set forth therein, and is satisfied that the levy amounts have been spread in accordance with the special benefit received from the improvements, operation, maintenance and services to be performed within the District, as set forth in said Report; and, NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1: Engineer's Report: The City Council hereby orders Willdan Financial Services to prepare and file with the City Clerk the Engineer's Report concerning the levy of assessments for the District for the fiscal year commencing July 1, 2011, and ending June 30, 2012, in accordance with California Constitutional Articles X111C and X111D. Section 2: Proposed improvements and any substantial changes in existing improvements: The improvements within the District include: landscaping, lighting, and street sweeping. The Engineer's Report describes all the improvements and any substantial changes in existing improvements. Section 3: That the "Engineer's Report" as presented, consists of the following: a) A Description of Improvements. b) The Annual Budget (Costs and Expenses of Services, Operations and Maintenance). c) The Method of Apportionment. RESOLUTION NO. 2011- 65 Section 4: The "Engineer's Report" as presented is hereby approved and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. Section 5: That the City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation of the Report. PASSED, APPROVED, AND ADOPTED this 14th day of July, 2011, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JEAN M. BENSON, MAYOR 2 RESOLUTION NO. 2011- 66 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA ORDERING THE FORMATION OF THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT AND THE LEVY AND COLLECTION OF ASSESSMENTS FOR SAID DISTRICT FOR FISCAL YEAR 2011/2012 RECITALS WHEREAS, pursuant to the to the provisions of Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the "Act"), property owners within the proposed District, representing more than 50 percent of the proposed assessment to be levied have presented to the City Council a written petition for the formation of the Alessandro Alley Property and Business Improvement District (hereafter referred to as the "District"), and the levy and collection of assessments; and, WHEREAS, the City Council, pursuant to the Act did by previous Resolutions initiate proceedings and order the preparation of a Management District Plan in connection with the formation of the District, and the establishment of maximum assessments over the next five years to pay the maintenance and services of landscaping, lighting, street sweeping and all appurtenant facilities and operations related thereto; and, WHEREAS, the City Council, pursuant to the Act did by previous Resolution appoint an Owner's Association consisting of at least one member that is a business licensee within the District who is not also a property owner within the District, and this Owner's Association shall cause to be prepared an annual report regarding the District for the City Council's approval; and, WHEREAS, the City Council called and duly held a property owner protest proceedings for the District pursuant to the provisions of the Act and the California Constitution Articles X111C and XIIID, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments and a maximum annual assessment over the next five years for the costs and expenses associated with the maintenance and operation of landscaping, lighting, street sweeping and all appurtenant facilities related thereto; and, WHEREAS, the protest proceeding was conducted, with ballots presented to qualified property owners of the District for receipt by the City Clerk on July 14, 2011, weighted according to the proportional financial obligation of the affected property, and the tabulation of said protest ballots returned by the property owners indicated approval of the assessment and maximum assessment allowed over the next five years; and, RESOLUTION NO. 2011- 66 NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1: The above recitals are true and correct. Section 2: The City Council desires to form the Alessandro Alley Property and Business Improvement District and to levy annual assessments for a duration of not more than five years pursuant to the provisions of the Act. Section 3: The City Council hereby declares pursuant to the Act and the method of apportionment described in the Management District Plan, that said annual assessments shall not exceed the maximum assessment approved by the property owners and shall commence with the first fiscal year beginning July 1, 2011 and ending June 30, 2012 to pay the costs and expenses of operating, maintaining and servicing said improvements located within the District. Section 4: Following notice duly given, the City Council has held a full and fair Intent Meeting and Public Hearing in connection therewith; the levy and collection of assessments, and considered all oral and written statements, protests and communications made or filed by interested persons. The City Clerk has tabulated the ballots and determined that the property owners have approved the annual levy and collection of assessments and a maximum assessment over the next five years as outlined in the Management District Plan, in full compliance with California Constitution Articles X111C and X111D. Section 5: Based upon its review of the Management District Plan, a copy of which has been presented to the City Council and which as been filed with the City Clerk, the City Council hereby finds and determines that: i.) The territory of land within the District will receive special benefits from the operation, maintenance and servicing of the improvements and appurtenant facilities located within the boundaries of the District. ii.) District includes all of the lands so benefited; and iii.) The net amount to be assessed upon the lands within the District in accordance with the proposed budget for the fiscal year commencing July 1, 2011 and ending June 30, 2012 is apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefits to be received by each parcel from the improvements and services. iv.) The Assessments so described in the Management District Plan are consistent with the assessments so approved by the property owners within the District. K RESOLUTION NO. 2011- 66 Section 6: The Report and assessments as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed. Section 7: The City Council hereby orders the proposed improvements to be made, and the levy and collection of annual assessments to pay for those improvements to be presented to the County Auditor/Controller of Riverside commencing with Fiscal Year 2011/2012. The County Auditor/Controller shall enter on the County Tax Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer. Section 8: The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the Alessandro Alley Property and Business Improvement District, and such money shall be expended only for the improvements described in the Management District Plan. Section 9: The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2011 and ending June 30, 2012. Section 10: The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 14th day of July, 2011, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JEAN M. BENSON, MAYOR 3 RESOLUTION NO. 2011 -67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING THE RESULTS OF A PROPERTY OWNER PROTEST PROCEEDING FOR THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT AND APPROVING CERTAIN RELATED ACTIONS RECITALS WHEREAS, The City Council called and duly held a property owner protest proceeding for the Alessandro Alley Property and Business Improvement District (hereafter referred to as the "District") pursuant to the provisions of Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the "Act') and the California Constitution Articles X111C and XIIID, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments and a maximum annual assessment over the next five years for the costs and expenses associated with the maintenance and operation of landscaping, lighting, street sweeping and all appurtenant facilities related thereto; and, WHEREAS, the landowners of record within the District as of the close of the Public Hearing held on July 14, 2011 did cast their ballots, the results of which are illustrated below: Total Ballots Cast Yes Total No Total $ NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1: The above recitals are true and correct. Section 2: The protest proceeding was conducted, with ballots presented to qualified property owners of the District for receipt by the City Clerk on July 14, 2011, weighted according to the proportional financial obligation of the affected property. Section 3: The results of the tabulation of the valid property owner protest ballots returned by the property owners within said District, prior to the conclusion of the Public Hearing and property owner protest proceeding held for the District on July 14, 2011, is hereby confirmed and made public record. Section 4: The tabulation of the valid property owner protest ballots returned by the property owners within said District indicates approval of the assessment and maximum assessment allowed over the next five years. Therefore the City Council is hereby authorized to take the necessary steps to levy the assessments as approved. RESOLUTION NO. 2011- 67 Section 5: The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council which shall constitute the official declaration of the result of such property owner protest proceeding. Section 6: This Resolution shall become effective immediately upon its adoption. Section 7: The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED, AND on this 14th day of June, 2011, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JEAN M. BENSON, MAYOR ire