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HomeMy WebLinkAboutResolution 2011-36 through 2011-38 Initiate Proceedings Alessandro Alley Property and Business Improvments DistrictCITY OF PALM DESERT DEPARTMENT OF PUBLIC WORKS CITY COUNCIL STAFF REPORT REQUEST: CONSIDERATION OF APPROVAL TO INITIATE PROCEEDINGS FOR THE FORMATION OF THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENTS. DISTRICT SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: May 26, 2011 CONDITIONS: Resolution No. 2011- 36 Resolution No. 2011- 37 Resolution No. 2011- 38 Preliminary Management District Plan Preliminary Engineers Report Recommendation Waive further reading and adopt: 1. Resolution No. 2011- 36 initiating proceedings for the formation of the Alessandro Alley Property and Business Improvement District, and the levy and collection of assessments for Fiscal Year 2011/2012 pursuant to the provisions of Part 7 of Division 18 of the California Streets and Highways Code; 2. Resolution No. 2011-37 describing proposed improvements and services and approving the management district plan and preliminarily approving the engineer's report for Fiscal Year 2011/2012 regarding the proposed formation/renewal of the Alessandro Alley Business Improvement District, pursuant to the provisions of Part 7 of Division 18 of the California Streets and Highways Code; and 3. Resolution No. 2011- 38 declaring the City's intention to form the Alessandro Alley Business Improvement District and to levy and collect assessments therein, and calling for an assessment ballot proceeding to submit to the qualified property owners within such district the question of levying assessments for such district commencing in Fiscal Year 2011/2012. Staff Report Alessandro Alley PBID May 26, 2011 Page 2 of 2 Background The Alessandro Alley Property and Business Improvement District (District) was 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 currently in the process of completing the design and engineering for the improvements. The attached resolution allows the City Council to declare its intention to re-form the District pursuant to state law. Once the improvements are complete, the District property owners will be assessed for the maintenance of the improvements. The District includes properties located on the north side of Highway 111 between Las 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 5-year term and proceedings to re-form the 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 for the District to be re-formed. Staff recommends that the City Council approve the attached resolutions to initiate the re-formation process. If the resolutions are approved, a public hearing will be scheduled for June 23, 2011, to open and count the ballots received. Fiscal Analysis The assessment and collection of the levy amount funds the on -going maintenance of the District costs. i Prepared By: 4W Ryan Stendell Senior Management Analyst Mark Green ood, P.E., Director of ublic Works CITY COUNCILACON APPROVED DF,NYF.D Paul S. Gibson, Director of Finance RECEIVED OTHER. al: M. Wohlmuth, City Manager NIEETI D TE �c AYES: NOES: ABSENT: ABSTAIN: VEMFIEI2 BY: Original on File with Cite I Office RESOLUTION 2011-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS FOR THE FORMATION OF THE ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, AND THE LEVY AND COLLECTION OF ASSESSMENTS, PURSUANT TO THE PROVISIONS OF PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, FOR FISCAL YEAR 2011/2012 RECITALS WHEREAS, The City Council desires. to initiate proceedings for the formation/renewal of Alessandro Alley Property and Business Improvement District (hereafter referred to as the "District") pursuant to the provisions of the 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 levy and collection of assessments by the County of Riverside for the City of Palm Desert to pay for the Improvements and Activities as described in the Engineer's Report and the Management District Plan; and WHEREAS, Pursuant to the Act, a written petition of the property owners within the District, representing more than 50 percent of the proposed assessment to be levied, has been presented to the City Council; and WHEREAS, The City Council has retained Willdan Financial Services for the purpose of assisting with the formation/renewal of the District and establishment of the assessments, and to prepare and file a Management District Plan with the City Clerk in accordance with the Act; and in accordance with the requirements of the California Constitution, Article XIIID to prepare and file an Engineer's Report with the City Clerk; NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. The above recitals are true and correct. 2. The City Council hereby orders Willdan Financial Services to prepare and file with the City Clerk the Engineer's Report and the Management District Plan concerning the formation/renewal and establishment of assessments for the District in accordance with the Act. 3. Proposed improvements: The improvements and activities within the District include: maintenance of parking lot landscaped areas, maintenance and operation of parking lot lighting facilities, and debris removal; and are more specifically RESOLUTION 2011- 36 described in the Engineer's Report and the Management Plan attached hereto and incorporated herein by reference. 4. Boundaries and Designation:_ The District consists of all parcels located in a commercial business area within the City of Palm Desert located North of Highway 111 and Palm Desert Drive North, South of San Gorgonio Way, adjacent to and South of Alessandro Alley, adjacent to and West of Las Palmas Avenue and East of Monterey Avenue. The territory is within the City of Palm Desert, within the County of Riverside, State of California. The proposed district is designated as: "Alessandro Alley Property and Business Improvement District." PASSED, APPROVED, AND ADOPTED THIS DAY OF .2011. AYES: NOES: ABSENT: ABSTAIN: JEAN M. BENSON, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA RESOLUTION 2011- 37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DESCRIBING PROPOSED IMPROVEMENTS AND SERVICES AND APPROVING THE MANAGEMENT DISTRICT PLAN AND PRELIMINARILY APPROVING THE ENGINEER'S REPORT, REGARDING THE PROPOSED FORMATION/RENEWAL OF THE ALESSANDRO ALLEY BUSINESS IMPROVEMENT DISTRICT, PURSUANT TO THE PROVISIONS OF PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, FOR FISCAL YEAR 2011/2012 RECITALS WHEREAS, The City Council pursuant to the provisions of the 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"), did by previous Resolution, initiate proceedings for the formation/renewal of the Alessandro Alley Property and Business Improvement District (hereafter referred to, as the "District"), pursuant to the provisions of the Act, and did order the preparation of a Management District Plan and an Engineer's Report for said District, and WHEREAS, The City Council has retained Willdan Financial Services, for the purpose of assisting with the formation/renewal of the District and establishment of the assessments, and to prepare and file a Management District Plan with the City Clerk in accordance with the Act; and an Engineer's Report in accordance with the requirements of the California Constitution, Articles XIIIC and XIIID, and WHEREAS, Willdan Financial Services has presented to the City Council the Management District Plan, which is incorporated herein by reference, and WHEREAS, The City Council has carefully examined and reviewed the Management District Plan and Engineer's 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 assessments have been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed within the District, as set forth; NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS: 1. The above recitals are true and correct. 2. That the Management District Plan as presented, consists of the following: A. A Description of Improvements and services to be provided by the District RESOLUTION 2011- 37 B. The Annual Budget (Estimates of Costs and Expenses of Services, Operations and Maintenance); C. The District Roll containing the Levy of Assessments for each Assessor Parcel within the District; and, D. A Boundary Map for the boundaries of the District. 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. D. A Boundary Map for the boundaries of the District. PASSED, APPROVED, AND ADOPTED THIS DAY OF , 2011. AYES: NOES: ABSENT: ABSTAIN: JEAN M. BENSON, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA RESOLUTION 2011- 38 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING THE CITY'S INTENTION TO FORM THE ALESSANDRO ALLEY BUSINESS IMPROVEMENT DISTRICT AND TO LEVY AND COLLECT ASSESSMENTS THEREIN, AND CALLING FOR AN ASSESSMENT BALLOT PROCEEDING TO SUBMIT TO THE QUALIFIED PROPERTY OWNERS WITHIN SUCH DISTRICT THE QUESTION OF LEVYING ASSESSMENTS FOR SUCH DISTRICT, COMMENCING FISCAL YEAR 2011/2012 RECITALS WHEREAS, The City Council pursuant to the provisions of the 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"), did by previous Resolution, initiate proceedings for the formation of the Alessandro Alley Property and Business Improvement District (hereafter referred to as the "District"), pursuant to the provisions of the Act, and did order the preparation of a Engineer's Report and Management District Plan for said District; and WHEREAS, The City Council has retained Willdan Financial Services for the purpose of assisting with the formation/renewal of the District and establishment of the assessments, and to prepare and file an Engineer's Report and Management District Plan with the City Clerk in accordance with the Act; and in accordance with the requirements of the California Constitution, Article XIIID; and WHEREAS, Willdan Financial Services has presented to the City Council the Engineer's Report and the Management District Plan, which are incorporated herein by reference; and WHEREAS, The City Council has, by previous resolution, approved the Engineer's Report and the Management District Plan, which contain a full and detailed description of the improvements and services, the boundaries of the District, the estimated costs of improvements and services, and the proposed assessments upon assessable lots and parcels within the District. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. The above recitals are true and correct. 2. The City Council hereby declares its intention to form/renew the District for a period of five years and to levy and collect assessments within the District, pursuant to the Act, to pay the annual costs of the services and improvements, as described in the RESOLUTION 2011- 38 Engineer's Report and the Management District Plan. The City Council has determined at this time to call for an assessment ballot proceeding. 3. Calling an assessment ballot proceeding: Pursuant to California Constitution Article XIIID, an assessment ballot proceeding is hereby called on behalf of the District on the matter of establishing assessments for a five-year term on the properties within the District. 4. The assessment ballot proceeding for the District on the matter of authorizing the levy of the assessments, pursuant to California Constitution, Article XIIID, Section 4 consists of a ballot, included with the mailed notice required by Government Code Section 54954.6, distributed by mail, to the property owners of record within the District as of the close of the Intent Meeting. Each property owner may return the ballot by mail or in person to the City Clerk not later than the conclusion of the Public Hearing on July 14, 2011. The Public Hearing is scheduled to begin on July 14, 2011 at 4:00 p.m., at the City Council Chambers, 73-510 Fred Waring Drive, Palm Desert. At the close of the Public Hearing, the City shall open and tabulate the ballots to determine if a majority protest exits. The ballots shall be weighted according to the proportional financial obligation of the affected property. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. 5. District Boundaries: The territory of the District is located North of Highway 111 and Palm Desert Drive North, South of San Gorgonio Way, adjacent to and South of Alessandro Alley, adjacent to and West of Las Palmas Avenue and East of Monterey Avenue as described in the Engineer's Report and the Management District Plan, which are incorporated herein by reference. The District is designated as "Alessandro Alley Property and Business Improvement District." 6. Description of Services and Improvements: The improvements and activities within the District include: maintenance of parking lot landscaped areas, maintenance and operation of parking lot lighting facilities, and debris removal; and are more specifically described in the Engineer's Report and the Management Plan attached hereto and incorporated herein by reference. 7. Proposed Assessment Amounts: The proposed assessments are detailed in the Engineer's Report and the Management District Plan, which also detail the assessment range formula. 8. Notice of Public Hearing(s): The City Council hereby declares its intention to conduct a Public Hearing concerning the levy of assessments for the District in accordance with Government Code, Section 54954.6 and California Constitution, Article XIIID, Section 4(e). Notice is hereby given that a Public Hearing on these matters will be held by the City Council on July 14, 2011 at 4:00 P.M., in the City Council Chambers, located at 73-510 Fred Waring Drive, Palm Desert. RESOLUTION 2011- 38 9. Notice. Property owners will be provided an assessment ballot and notice of the public hearing at least 45 days prior to the public hearing. Completed ballots must be received by the City Clerk prior to the conclusion of the Public Hearing, after which they will be opened and tabulated. In addition to the ballots, District property owners may file a written protest regarding the District formation with the City Clerk prior to the conclusion of the hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the public hearing, all interested persons shall be afforded the opportunity to hear and be heard. 10. The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. PASSED, APPROVED, AND ADOPTED THIS DAY OF , 2011. AYES: NOES: ABSENT: ABSTAIN: JEAN M. BENSON, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA CITY OF PALM DESERT ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT RENEWAL MANAGEMENT DISTRICT PLAN FISCAL YEARS 2011 /2012 To 2015/2016 Intent Meeting: May 26, 2011 Public Hearing: July 14, 2011 Corporate O,fice 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-6864 Fax: (951) 587-3510 WILLDAN Financial Services Office Locations Oakland, CA Sacramento, CA www. willdan. coml financial Phoenix, AZ Orlando, FL TABLE OF CONTENTS Overview........................................................................................................1 Introduction...........................................................................................................1 DistrictRenewal 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 Methodof 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 ("Ciy') 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 ("Agencgl') 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. VVIdan 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 (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 Pahw Desert Alessandm Alley PBID Renewal Management Dutnet 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 Services Page 3 City of Palm Desert Alessandro Alley PBID Renewal Management Distvict Plan Fiscal Year 201112012 Special Benefits of the Improvements and Activities All assessed properties within the District receive special benefits from one or more of the improvements and activities funded through the District assessments. 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 City of Palm Desert Alessandro Alley PBID Renewal Management Distrzct 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 paces) 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 I IdUan Financial Services Page 5 City of Palm Desee Alessandro Alley PBID Renewal Management District 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 penny). 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 8 9 180 First Fiscal Year Actual S 16 114 5 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. Wltlldan Financial Seances Page 6 City of Palm Desert Alessaiadro Alley PBID Reiiewal Management District 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 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. 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 15 440 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 Willdan Financial Services Page 7 City of Palm Desert Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 adjustments may range from zero percent (0%) to three percent (39/6). 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. VdUan Financial Services Page 8 City of PaZm Desert Alessandro Alley PBID Renewal Management Distfict Plan Fiscal Year 201112012 Description of Budget Items in Table 4 Direct Benefit Costs Includes all regularly scheduled labor, material (e.g. Poe, fertilizer, insecticides), and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities. All landscaping improvements within the District are contracted for maintenance and service on a regular basis. The frequency and specific maintenance and operations required within the District will be determined by City staff. The landscape maintenance area is approximately 10,000 square feet. 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. 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 SeMiees Page 9 City of Palm Desert Alessandno Alley PBID Renewal Management Distfict 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 (/ost-,s (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. This line item supports insurance costs for the operation of the District. Levy Breakdown I(.�t: 11 l l)/IriIz i ("-,,�f, This is the sum total of all budgeted Direct and Indirect costs. District Statistics WIdUan Financial Services Pale 10 City of Palm Deseit Alessandro Alley PBID Renewal Management District 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. sJJ. 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. Wlilldan Finandal Serroiees Page 11 City of Palm Desert Alessandro Alley PBID Renewal Management District Plan Fiscal Year 201112012 Table 4: Five Year Budaet Actual Proposed (Maximum Proposed Assessment For Fiscal Years Assessment Budget Item FY 2011-2012 I'' 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Direct Berefrt Costs Landscape Pdaintenance Costs 5 5 217 S 5 217 S 6 373 S 6 534 S 5 700 S 5 871 Landscape Pruning 2 608 2 608 2 687 2 767 2 850 2 536 Landscape 'Rater 1 971 1 971 2030 2091 2 154 2 218 Lighting 2 608 2 608 2 687 2 767 2 850 2 936 Sweeping Services 1 739 1 739 1 791 1 846 1 900 1 967 Landscape Repairs Lighting 1 971 1 971 2 030 2091 2 154 2 213 Subtotal Direct Costs 5 16 114 S 16 114 S 16 597 5 17 095 5 17 608 5 18 136 Adm i,nrstratror,;9rsurarce District Administration 3 478 3 473 3 582 3 690 3 800 3 914 Insurance 348 343 363 369 360 391 Subtotal Administrative Costs S 3 826 $ 3 826 S 3 9-10 S 4 069 S 4.180 S 4 306 Reser; a Furds Parking Areas Ivlaintenance Fund 4 057 4 067 4 179 4 305 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 S ? 187 S 7 403 S 7626 S 7854 S 8 090 Le,,, Breakdavr Total District Costs 27 127 27 127 27 941 28 779 29 642 30 532 Balance to Levy S 27 127 S 27 127, S 27 941 $ 28 779 S 29 642 5 30 532 Ustr;ct 3tafst'cs Total Parcels 22 22 22 22 22 22 Total Parcels To Levy 22 22 22 22 22 22 Total Front Footage iParlcng Areas; 1 75668 1 756 68 1 756 68 1 756 68 1 756 68 1 76668 Lest' Rate per Direct Costs 5 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 5 4 220 5 4 340 S 4 480 S 4 600 Total Levy Rate for District Costs 5 15 440 S 15 440 S 15 900 5 16 380 S 16 880 5 17 380 Ogeratnig 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 Park -ng Lot fifa-rtenarce Fund Ba!arce Precious Balance - - 4 067 8 237 12 641 16 975 Ending Balance 4 057 4 057 8 237 12 641 16,976 21 542 Vaximum annual assessments for direct tenefit tests. admimstrati:e costs and reser, e turd ccl;ection are adjusted Cy 2"% from the preaicus Fiscal ear for Fiscal rears 2C12-Q through 2c1°-2C1c. T.^e PBIC 4d': mcry Board v+ill determine the amount of ary actual increase for those years',.Nch may not exceed ?% per vear F, 2C11.12 4ctual Propcsed assessment has direct costs assessed for only cne-half cf the fiscal year. Scurces: City of Palm Cesert::°eilldan Financial Ser> ices llilldan Financial Seivees Page 12 City of Palm 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. [Y/illdan Financial Sewices A-1 v H V lY F-- O z ul 2 uJ O X LLa O2 mU) wW auj ¢z 0(n z� �m 00 mz 0 d w� Oa as aX a w J d O a 0 z U) w J a c d0 d N Q City of Palm Desert Appendix B —Assessment Roll Alessandro Alley PBID Renewal Management District 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. A listing of parcels assessed within this District, along with the assessment amounts, is included on the following page. Willdan Financial Semes B-1 a ,O = O O O (D O O O O O O CV 0 0 0 0 0 0 0 0 00 CO O r `t -t It "t (n tP O r-- --t -t (n tV (0 -t -t -t -t CO CO (D N -t O r y (D (D (D -t G) to -t CD tD in In h- w (.CV (D (D N (V O in tD h-- CV N cV CV 00 r (n CN CV N M• N N N tV In In N In N N H M M 0) 't co M M M mm N N (D 0) m m m m 00 en[V M EO •- E E r rNr Nr rr r M1- x a c 96 O` y N N d .tea U. 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CD NIn(Dr<rtOM1-or N p y M -t -'t -t -t -t (n (D O r r N N N N N M M m M -ct -7 o a o 0 0 0 o a o o O o 0 0 0 0 0 0 0 o O o Q U E r r r r .- - -t -y -} N N N CV N" N, (V ," P- h h M1- M1- M1- M1- M1- M1- M1- h 0) 0) CSi a) 0) 0) 0) m a) m 0) m o 0 0 0 o O o a o (? o 0 0 0 0 0 o O o 0 o c CV N CV CY N CV CV CV CV (V N N N N N N N N CV CV CV t11 CD (D (D (D (D to CO (D CD to (D to CD to (D to co to (D tD CD (D r r N M -t in (D t-- CO 0) O N M (o O M1- OO O O C' J Ec r r r r .- r r r N 04 N N W CITY OF PALM DESERT ALESSANDRO ALLEY PROPERTY AND BUSINESS IMPROVEMENT DISTRICT RENEWAL ENGINEER'S REPORT FISCAL YEARS 2011 /2012 TO 2015/2016 Intent Meeting: May 26, 2011 Public Hearing: July 14, 2011 A/WILLDAN Financial Services Coporate Ofce 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-6864 Fax: (951) 587-3510 0 Locations Oakland, CA Sacramento, CA xxw.willdan.com/finaneial Phoenix, AZ Orlando, FL ENGINEER'S REPORT AFFIDAVIT City of Palm Desert Alessandro Alley Property and Business Improvement District City of Palm Desert Riverside County, State of California This Report describes the District and defines improvements, budget and method of assessment apportionment, and the parcels proposed to be levied for Fiscal Year 2011/12 as they existed at the time of the passage of the Resolution of Intention. 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 , 2011. Willdan Financial Services Assessment Engineer On Behalf of the City of Palm Desert Richard Kopecky R. C. E. # 16742 Villdan Finanaal Sewices 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 Willdan Financial Services Page ii City of Palm Desert Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 Overview Introduction The City of Palm Desert ("Ciy') 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 (`Report') 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. Villdan Financial Services Page 1 City of Palm Desert Alessanelm Alley PBID Renewal Ei,#neer's 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. W illdan Financial Services Page 2 City o f 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 Semes Page 3 City 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 City of Palm Desert Alessandro Alley PBID Renewal En ,gineers 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 Alessandn Alley PBID Renewal En neer'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 16 114 S 9 180 First Fiscal Year Actual S 16 114 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 WIilldan Financial Semites Page 6 City of Palm Desert Alessandro A14 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. U%illdan Financial Services Page 7 City of Palm Desert Alessandro Alley PBID Renewal Engineers 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 15 440 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 (39/o) 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 Semces Page 8 City of Palm Desert Alessandro Alley PBID Renewal Engineer's Report Fiscal Year 201112012 Description of Budget Items In Table 4 Direct Benefit Costs Includes all regularly scheduled labor, material (e.g. pipe, fertili.Zer, insecti(ides), 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. f_rr. 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. art. R'>n R ;e t; 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 Services Page 9 City of Palm Desert Alessandm Alley PBID Renewal Engineer's 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 Crests (Administration / Reserves) h' ar�r.>rAt�7: r,z,re;,t: 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 Services Page 10 City of Palm Desert District Statistics .t t..il e; � lii...... The total number of parcels within the District. /r - I,Pi' F edlx t IS i'=: 1_i `i 3 , Alessandro Alley PBI D Renewal Engineer's Report Fiscal Year 201112012 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. Willdan Finanaal Services Page 11 GO of Palm Dere,2 Aleccandno 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': 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Direct Bereffrt Costs Landscape Maintenance Costs 5 5 217 S 5 217 5 5 373 S 5 634 S 5 700 S 5 871 Landscape Pruning 2 608 2 608 2 687 2 767 2 850 2 936 Landscape iNater 1 971 1 971 2030 2 091 2 154 2 218 Lighting 2 608 2 608 2 687 2 767 2 850 2 936 Sweeping Services 1 739 1 739 1 791 1 846 1 900 1 957 Landscape Repairs'Lighting 1 971 1 971 2 030 2091 2 164 2 218 Subtotal Direct Costs S 16 114 S 16 114 S 16 597 S 17 095 5 17 608 5 18 136 Adm.r,strat�o^%insGrarce District Administration 3 478 3 478 3 682 3 690 3 800 3 914 Insurance 348 348 368 369 380 391 Subtotal Administrati•,e Costs S 3 826 S 3 826 S 3 940 S 4 059 5 4 180 S 4 306 Reser,9 F,rds Parking Areas IJaintenance Fund 4 057 4 057 4 179 4 305 4 434 4 667 Operating Reserve Fund 3 130 3 130 3 224 3 321 3 420 3 523 Subtotal Reserve Fund Costs S 7 187 5 7 187 S 7 403 S 7 626 S 7 854 S 8 090 Levy Breakdov;„ Total District Costs 27 127 27 127 27 941 28 779 29 642 30 532 Balance to Le••,- S 27 127 5 27 127 S 27.941 S 28 779 S 29 642 S 30 532 Ustrct Statistics Total Parcels 22 22 22 22 22 22 Total Parcels To Le,,y 22 22 22 22 22 22 Total Front Footage (Park,rg Areas; 1 75668 1 756 68 1 75668 1 75668 1 75663 1 756 68 Lev,; 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 5 4 220 5 4 340 5 4 480 S 4 600 Total Levy Rate for District Costs S 15 "0 5 15 440 S 15 900 S 16 380 S 16 880 S 17 330 Ooeratirrg Reser,e F rd Ba�ance Previous Balance - 3 130 6 354 9 675 13 095 Ending Balance 3 130 3 130 6 364 9 575 13 095 16 618 Parc:ry Lot hfarterarce Pond Baiarce Previous Balance - - 4 057 8 237 12 541 16 975 Ending Balance 4 057 4 057 3,237 12 541 16 975 21 54 1.laximum arruai assessments for direct tenefd tests. administrative costs and reserve fund cc llecticr are adjusted ty ?°l, from the pre •; ices Fiscal "ear for Fiscal - ears 2012-12 through 2CIE-2C1-.—he PBIC wtlascr, Bcard ;;ill determine the amount of any actual increase fcrthose ;ears ;.hick may not exceed 2% per ;Near. Fv 2C11-12 actual Proposed i ssessment has direct tests assessec for only one-half of the fiscal year. SOUrCeS. City of Palm Cesert: ;Vdldan Finarcial Ser. ices Willclan Financial Services Page 12 City of Palm Desert Appendix A — Assessment Diagram The Alessandro Alley Property and Business shown on the following Assessment Diagrx County of Riverside's Assessor's Maps and proposed District. Alessandm Alley PBID Renewal Engineer's Report Fiscal Year 201112012 Improvement District consists of the parcels i. The Assessment Diagram is based on the identifies all the parcels of land within the Willdan Financial Services A-1 C) w F- V) ❑ w 2 w 0 X LL 0 U) (n w U) EE w < z 00) z :D 5 00 Z ❑< w U) 0 n- W o M of 0 CL w 0 W 0 z U) U) w S. IN z z 0 z M w v) :i� City of Palm Desert Appendix B —Assessment Roll Alessandro Alley PBID Renewal Engineer's Report 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. WIVIdan Financial Services B_ 1 7 `. O O CD W CD CD O CD O O N CD O CD. CDC7 0 0 0 W w O r w = -T "T -t -t In W O M1- "T It In N W „t -t -T -t w w tD N `t O W cD cD -t tt a) W 't W W - In In r co W W co N N O In W M1- O CN aa) m m -t co f+W-) M m m In CIJ C" N cV W m �CN D m m OWD w a? cV aIn N) Eo r r c„ r 04 E r r r X C N to ° N �aa LL O CD O W O O O O CO. 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