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HomeMy WebLinkAboutResolution 2011-42 through 2011-44 Initiate Proceedings President's Plaza III Property and Business Improvments DistrictCITY OF PALM DESERT PUBLIC WORKS DEPARTMENT CITY COUNCIL STAFF REPORT REQUEST: CONSIDERATION OF APPROVAL TO INITIATE PROCEEDINGS FOR THE FORMATION OF THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENTS DISTRICT SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: May 26, 2011 CONDITIONS: Resolution No. 2011- 42 Resolution No. 2011- 43 Resolution No. 2011- 44 Preliminary Management District Plan Preliminary Engineers Report Recommendation Waive further reading and adopt: Resolution No. 2011- 42 initiating proceedings for the formation of the President's Plaza III 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. 2011-43 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 President's Plaza III 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- 44 declaring the City's intention to form the President's Plaza III 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. Staff Report Presidents Plaza III PBID May 26, 2011 Page 2 of 2 Background The President's Plaza III Business Improvement District was re-established in 2006 for a 5-year term and budget. The District includes properties located on the south side of Highway 111 and on the north side of El Paseo, between Highway 74 and Sage Lane. The City collects annual assessments to pay for services such as landscape maintenance, street sweeping, and parking lot lighting within the common parking lot areas. Each fiscal year the City Council reviews and approves a budget that is set at the first year of the district. The District is concluding its 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 President's Plaza III Business Improvement District costs. Prepared By: -145, yan Stendell Senior Management Analyst Paul S. Gibson, Director of Finance roval: n M. Wohlmuth, City Manager Depa Mark Greenw�od, P.E., Director of Public Works CITY COUNCIL'),46TION APPROVED DENIED RECEIVED OTHER MEET ' D TE AYES: NOES: ABSENT: ABSTAIN: VERIFIED BY: Original on File with City WrWs Office RESOLUTION 2011- 42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS FOR THE FORMATION OF THE PRESIDENT'S PLAZA III 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 President's Plaza III 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 described in the Engineer's Report and the Management Plan attached hereto and incorporated herein by reference. RESOLUTION 2011- 42 4. Boundaries and Designation: The District consists of all parcels located in a commercial business area within the City of Palm Desert located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Highway 74 Pines to Palms Highway. The territory is within the City of Palm Desert, within the County of Riverside, State of California. The proposed district is designated as: "President's Plaza III 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- 43 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 PRESIDENT'S PLAZA III 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 President's Plaza III 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 OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. The above recitals are true and correct. 2. That the Management District Plan as presented, consists of the following: RESOLUTION 2011- 43 A. A Description of Improvements and services to be provided by the District 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- 44 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING THE CITY'S INTENTION TO FORM THE PRESIDENT'S PLAZA III 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 President's Plaza I I I 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, 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- 44 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 South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Highway 74 Pines to Palms Highway as described in the Engineer's Report and the Management District Plan, which are incorporated herein by reference. The District is designated as "President's Plaza III 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- 44 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 PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT RENEWAL MANAGEMENT DISTRICT PLAN FISCAL YEARS 2011 /2012 To 2015/2016 Intent Meeting: Public Hearing: Corporate Office 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-6864 Fax: (951) 587-3510 May 26, 2011 July 14, 52011 WILLDAN Financial Services Ofce Locations Oakland, CA Sacramento, CA wwwwilldan. corn/financial Phoenix, AZ Orlando, FL Table of Contents OVERVIEW............................................................................................ 2 Introduction District Renewal Process 2 2 DESCRIPTION OF THE DISTRICT.............................................................. 4 District Boundary 4 Improvements and Activities 4 Special Benefits of the Improvements and Activities 5 METHOD OF APPORTIONMENT................................................................ 7 Method of Apportionment Rationale 7 Parking Lot Improvements and Services 7 Method of Apportionment Calculations 7 Apportionment of Direct Costs 7 Apportionment of Indirect (Administration/Reserve) Costs 8 Total Annual Assessment 8 Annual Budget Adjustments g DESCRIPTION OF BUDGET ITEMS IN TABLE 4.......................................... 10 Direct Benefit Costs 10 Indirect Benefit Costs (Administration/Reserves) 11 Levy Breakdown 12 District Statistics 12 District Budget 12 APPENDIX A — ASSESSMENT DIAGRAM ............................................... A-1 APPENDIX B — ASSESSMENT ROLL ..................................................... B-1 Overview Introduction The City of Palm Desert ("Cit, f') formed and established the President's Plaza III Property and Business Improvement Assessment District ("District") beginning in Fiscal Year 2001/2002, and renewed 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 renewed 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). This Management District Plan ("Plan") describes the District, improvements and activities, method of apportionment, the proposed assessments for the current fiscal year, and the maximum assessment proposed for the five-year duration of the renewed District. The proposed assessments are based on the estimated cost to provide the improvements, activities, and operations that provide a direct and special benefit to properties within the District. The costs of improvements, activities, and operations include all expenditures, deficits, surpluses, revenues, and reserves. The word "property," for the purposes of this Plan, refers to real property situated within the District, and identified as an individual property or parcel assigned its own Assessor's Parcel Number (APN) by the County of Riverside Assessor's Office. The County of Riverside Auditor/Controller uses APNs to identify on the tax roll parcels and properties assessed for taxes, special assessments, and fees and charges. District Renewal Process A written petition of the property owners within the District, representing more than 50 percent of the proposed assessment to be levied was submitted to the Palm Desert City Council to initiate 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 (pro pery oxner 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 Engineer's Report and the Management District Plan. 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. IV i/X/a/i I /u,rn./a/.Serr/l, �,; Description of the District District Boundary The District consists of all parcels located in the commercial business area known as the President's Plaza III within the City of Palm Desert, County of Riverside. The District includes sixteen (16) assessed commercial parcels. The boundary of the District and the parcels therein are generally located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Old Highway 74, and includes the Palm Desert Parking Lot — lease parcel to the City of Palm Desert located South of Highway 111; East of New Highway 74; and West of Old Highway 74. Improvements and. Activities In an effort to enhance and improve business opportunities and the appearance of the area known as the President's Plaza III, the Agency provided funds for the renovation and capital improvement of the parking lot and landscaped areas related to this commercial business center. In conjunction with this renovation, President's Plaza III Property and Business Improvement District was formed in 2001, and renewed in 2006, to provide and ensure the continued operation and maintenance of the improvements after the renovations had been completed. Should the District be renewed by the property owners for another five (5) year term, the assessments generated will continue this maintenance. In December 2005, the District paid for the slurry sealing, re -striping and repair of the parking lot through reserve funds that had been accumulated during the first five years of the term of the District. It has been determined that all the properties within the District receive special and distinct benefits from the improvements and activities to be funded through the assessments. The improvements include 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 lot landscaped areas: including, but not limited to, ground cover, shrubs, trees, plants, irrigation and drainage systems and associated appurtenant facilities; • Parking lot lighting facilities: including, but not limited to, bulbs, fixtures, poles, wiring, and electrical energy; and, • Debris removal: including, but not limited to, regular mechanical sweeping of the parking lot. I1'/4lf;172 l lr,//,',ha/ S't1ric;,, I'7, , The costs associated with the improvements are equitably spread among all benefiting parcels within the District utilizing the method of apportionment described in the Method of Apportionment section of this Plan. The total funds collected shall be dispersed and used for only the services and operations provided to the District. 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 lot, and regular sweeping of the parking lot. The special benefits of lighting (parking lot lights) are the convenience, safety, and security of property, improvements, and goods. Specifically: 1. Enhanced deterrence of crime and the aid to police protection; 2. Increased nighttime safety for patrons and employees; 3. Improved visibility for pedestrians and motorists; 4. Improved ingress and egress to property; 5. Reduced vandalism and other criminal acts and damage to improvements or property; 6. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 7. Increased promotion of business activities and opportunities during nighttime hours; and, 8. The special enhancement to the value of property which results from the above benefits. The benefits associated with landscaped islands and medians within the parking lot are specifically: 1. Improved aesthetic appeal of the parking area and nearby parcels; 2. Improved dust control; 3. Enhanced adaptation of the urban environment within the natural environment; 4. Improved traffic circulation; 5. A positive representation of the businesses within the District; 6. Centralized locations for refuse collection facilities; and, 7. The special enhancement to the value of property which results from the above benefits. If'r%l,- nl i 111r:/r/,r'✓l_S"zrtAC Parking lot sweeping is an essential and necessary activity for all properties —particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service are: 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. Improved dust control; 3. The special enhancement to the value of property which results from the above benefits. The on -going operation and maintenance of the landscaping, lighting and sweeping improvements provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District. Y.VP Method of Apportionment Method of Apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. Parking Lot Improvements and Services All assessed parcels within the President's Plaza III PBID have use of, and access to, a centralized parking facility (lob that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used and accessed by all properties within the District, each parcel's benefit is based on the size of such parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel's benefit for the parking lot improvements shall be based on the approximate size, in square feet, of each parcel. Method. of Apportionment t'Ja.lc;ulations The Total Direct Costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel's lot size in square feet. In addition to a parcel's Total Direct Cost, each parcel is assessed for District administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned in the same manner as Total Direct Costs. Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share of the Total Direct Costs and Total Indirect Costs. Apportionment of Direct Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) are based on the estimated annual costs to maintain the landscaping, lighting, and mechanical sweeping of the parking lot within President's Plaza III. These Total Direct Costs, divided by the sum of the square footage of all parcels within the District, establishes a rate per parcel square foot. This rate multiplied by each parcel's square footage equals the parcel's proportionate share of the parking lot maintenance costs (rounded to the nearest even penny). The rate provided in Table 1 is for Fiscal Year 2011 /2012 only. Please refer to the District Budget able 4) for future assessment rates. Total Direct Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Direct CostAssessment Component 1��'�,IPl �IllJlLicai S )It,2'.� /'ii;' Table 1: Direct Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Square Foot) for for FY 2011-12 FY 2011-12 First Fiscal Year Maximum S 23 619 S 00520 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 (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Fund. Similar to the method of apportionment for Total Direct Costs, the District's indirect costs are apportioned to each parcel based on each parcel's lot size in square feet. The rate trovided inT_ able 2 is for Fiscal Year 2011/2012 onlv. Please refer to the District Budget able 4) for future assessment rates. Total Indirect Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Indirect Cost Assessment Component Table 2: Indirect Cost Proposed Assessment and Rate Proposed Proposed Rate Indirect Costs (per Square Foot) for for FY 2011-12 FY 2011-12 First Fiscal Year Maximum S 13 126 S 0 0296 Total Annual Assessment Each parcel's Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in the first fiscal year of this renewal (FY 2011/2012). The rate provided in Table 3 is for Fiscal Year 2011/2012 only. Please refer to the District Budget (Table 4) for future assessment rates. Direct Cost Rate + Indirect Cost Rate = Total Rate per Square Foot Total Rate x Parcel Square Footage = Total Parcel Assessment IJ'r%l:l�riz I In�rnri<il.l�r�r'i<<�r I ; ., l r /Ill l'1311' h ._ I Table 3: Total Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Square Foot) for First Fiscal Year for FY 2011-12 FY 2011-12 Direct Costs Maximum S 23 649 S 0 0620 Indirect Costs S 13 425 S 0 0296 Total Costs Maximum S 37 074 S 0 0816 Annual Budget Adjustments For the five year term of this PBID renewal, annual assessments may be adjusted by the President's Plaza III PBID owners' association up to three percent (3%) per year. Actual annual adjustments may range from zero percent (0%) to three percent (39/6). Adjustments may differ from year to year depending on the service needs identified by the owners' association. In any event, assessments will not exceed the levels illustrated by the District Budget (Table 4). Any annual budget surplus or deficit will be accrued into the following year's PBID budget. Assessments will be set accordingly, within the constraints of the annual adjustment, to adjust for surpluses or deficits that are carried forward. Description of Budget Items in Table 4 Direct Benefit Costs Weekly cleaning of the parking lot and gutters using a contracted, mechanized service. Includes all regularly scheduled labor, material (e.g. pipe, fertik!tier, 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. This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades which could include replacing lighting materials or renovation of lighting systems. This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades, which could include replacing plant materials or renovation of irrigation systems. Utility cost to furnish water for required landscape irrigation. "�'I' "d f ','a d 111C 1 a _ F'E'�Aa"=c'- 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. Utility cost for furnishing of electricity required for the operation of the irrigation systems and landscape maintenance. 11 11" 'atl I i11a1', i i rl 1( 0'A (':' /' , I r i 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. This is the actual cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number. This is the cost to the District for the County to collect assessments on the property tax bills. This charge is on a per assessment basis, at $0.50 per assessment, and is in addition to the County Administration Fee. 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 Lot Maintenance Fund provides funds for the sealing and re -striping of the parking lot after the fourth year of this renewal term of the District. The parking lot's total surface area is approximately 184,000 square feet. During December 2005, the District's cost of sealing and re -striping the parking lot was $27,200 (15.5 cents per square foot multiplied by 175,520 square feet of surface area) and its cost of repairs within the parking lot was $24,300 (for 8,500 square feet of surface area); for a total cost of $51,500. The cost of sealing and re -striping the parking lot's total surface area of 184,000 square feet would have been approximately $28,520 (15.5 cents per square foot multiplied by 184,000 square feet of surface area). This line item supports insurance costs for the operation of the District. UIj:'O Levy Breakdown t This is the sum total of all budgeted Direct and Indirect costs. District Statistics The total number of parcels within the District. The total number of parcels within the District that will be assessed. Non -assessed lots or parcels include easements, common areas, and parcels within the boundaries of the District that currently do not benefit from the improvements and which are not included in the Total Parcels to Levy. This is the sum total of the assessed parcels' square footage applied to each assessed parcel within the District. This amount represents the Rate for Direct Costs being applied to each assessed parcel's individual lot square footage. The Levy Rate per Direct Costs is the result of dividing the estimated Total Direct Costs for that year by the sum of the District's Total Parcels Square Footage. The rate is calculated to four decimal places. This amount represents the Rate for Indirect Costs being applied to each assessed parcel's individual lot square footage. The Levy Rate per Indirect Costs is the result of dividing the estimated Total Indirect Costs for that year by the sum of the District's Total Parcels Square Footage. The rate is calculated to four decimal places. This amount represents the Rate being applied to each assessed parcel's individual lot square footage. The Levy Rate per Square Foot is the result of dividing the estimated Total District Costs for that year by the sum of the District's Total Parcel Square Footage. The rate is calculated to four decimal places. District Budget The District Budget shown on the following table (Table 4), lists the estimated costs of providing the various improvements and services within the District. The costs and the resulting rates for Fiscal Year 2011/2012 through Fiscal Year 2015/2016 are based on the 11 /i71/if 1111/:ru,hI/i ,'17/, ,,, 1'., r Ll estimated costs to provide the improvements and services for each year. Direct Costs, District and County Administration Costs, and Insurance Costs are adjusted for the three percent (3%) inflation factor. The owners' association, appointed by the City Council, will annually review the District costs and make recommendations for any changes or adjustments to the budget. Changes to the budget could result in changes to the annual assessment but, the resulting total assessment may not exceed the maximum rates established in this Plan without first obtaining property owner approval through assessment ballots. 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 D•rect Costs Sweeping Services Landscape Contract Maintenance Lighting Repair & Maintenance Landscape Repair & Maintenance Landscape Utilities - V./ater Street Lighting Utilities - Electric Landscape Utilities - Electric Subtotal Direct Costs irdrrect Costs District Administration County Administration Fee County Per Parcel Fee Operating Reserve Fund Collection Parking Lot Maintenance Fund Collection Insurance Subtotal Indirect Costs Le>, Breakdocr Total District Costs Balance to Leiy D-Strct Statstcs Total Parcels Total Parcels To Lecy Total Parcels Square Footage Levy Rate per Direct Costs per So Ft Levy Rate per Indirect Costs per So Ft Total Le ,; Rate per Square Foot Ooeratng Reser„e Fund Balance Precious Balance Ending Balance Park.nq Lot Ala,^te.,arce F,,nd Ba:'ar,ce Precious Balance Ending Balance S 4 637 S 4 637 S 4 776 S 4 919 S 5 067 S 5 219 5 217 5 217 5 373 5 534 5 700 5 871 1 391 1 391 1 433 1 476 1 520 1 566 4 057 4 057 4 179 4 305 4 434 4 567 2 319 2 319 2 388 2 460 2 534 2 610 5 449 5 449 5 612 5 780 5 954 6 132 580 580 597 615 633 652 S 23 649 S 23 649 S 24 359 S 25 089 $ 25 342 S 26 617 4 057 4 057 4 179 4 305 4 434 4 567 203 203 209 215 222 228 8 9 10 10 10 10 1 030 1 030 1 000 1 000 1 000 1 000 6 386 6 386 6200 6200 6200 6 200 1 739 1 739 1 791 1 845 1 900 1 95 T S 13 423 S 13 425 S 13 389 S 13 674 S 13 76fi S 13 963 37 072 37 074 37 747 38 664 39 608 40 680 S 37072 S 37074 S 37 747 S 38 664 S 39 608 S 40 560 16 16 16 16 16 16 16 16 16 16 16 16 453 956 453 956 453.956 453 956 453 956 453 956 S 0 0620 S 00520 S 0 0536 S 0 0554 5 00570 S 00588 S 0 0296 S 0 0296 S 0 0296 S 0 0300 S 0 0304 S 0 0308 S 0 0816 S 0 0016 S 00832 S 0 0852 $ 0 0874 S 00394 - - 1 030 2030 3 030 4 030 1 030 1 030 2030 3 030 4 030 5 030 - - 6 386 12 586 18 786 24 986 6 386 6 386 12 566 18.786 24 986 31 186 I laximum arrual assessments for direct cc sts. district and county administratid n, and msurar ce are adjusted i;y _'": from the pre. icus Fiscal rear far Fiscal `ears 2C12-t' tnrou9h 22 tE-2(:18. —he PBIC Advisory Board erin determire the amount cf any actual ircrease forthose %,bict, may not exceed 2% per year. F ' 2C 11-12 .Actual and I.'aximum Prop csed .Assessments are the same. Sources: "1% cf Palm Cesert- 51dAdar Financial Ser, ices il'11,-Ji1�7 i`Ih�flh`Lr7�.5 17Y�'t',i 1'1:' J 11 a Appendix A Assessment Diagram The Assessment Diagram for the District is on the following page and is inclusive of all parcels identified on the County of Riverside Assessor's Parcel Maps as Book 627, Page 192. The Assessment Diagram will be kept on file with the City Clerk of the City of Palm Desert. Willdan Fin�,mcial Serticvs A{4,cA-1 F- U) 0 F- z w Z> w 0 w a_ U- 2 0— (1) U) U) LLJ w W z Z :) 0 0 z C13 < 0 } W F- Ow as r Appendix B Assessment Roll Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor's Map for the year in which the Engineer's Report is prepared. The Assessment Roll, which includes a listing of assessor parcels assessed within this District, along with their assessment amounts, is shown in Table 5 on the following page. V O -j 0 lD m m CAI (.O O" N O O CD C.O N T 0 W T to kn Id, m to CV I--- CO CD in SD r--- N-. I- N m r--- Lni M tD �T N r- M 'n m O M N m m (D N-. N-. N-. r 'n Cl) CD N 'T " m -t N^- e- oocor--mma)a)minr--N---Tooter--.m o E O E !' fV CV M M Cl)T CV M r -t M1h X Oa to O Cl) 1O y CV 2 Q. LL Q �. O -t 0 (D CO CO N (D O N N O O (D LO N M O -A C4 r cn in N-- m O -t In CV N-. oo w Ln tD r-- r-- (n t--- LD M-t to<y-N M1- min a]O N a) O i W t-- r— 1-. (D in M CO N „t N DO -t I - 10 U) 4 CO O F-- m m m m m in N- N-- K co tD N- m O O N N M cn c--i r CV M r -Y' N-- Q a LL Q fn U) UJI V) Cn GA Ln t!3 W) U3 {n U3 En to w U3 U111 r-D.a0000000000CD0000 y o v o 0 0 0 o a o 0 0 0 0 0 0 0 0 Q oMoCD00 W tT omM-t00—eqm ct) (� O M -r co to M T -t (D M T- N M M `T in +. aa)a)(nMc Mr--inr- -tali-tmLn m Q p 0 T o m r r r in M to CP r- -t -t r 0 Cl) y W. r M T r T T M -t -t "t .- M -t N CD to T T r r r rn �� CAP y }}0'0'0,0 0/0 / �r{y 00��0 d VJ VI YJ U) 4J U) W W Q Q W ` QQQ<CQ�S�"_3t�Q1�d 7 (D(D J J J J J J(D 0 0 J J J .. ==wwwwww===ww==w c!r if) TooQ000TTu,00inLno r. r o cD r- co m o -t o N -t O in co M r N r r r r r CV N r r a) O r r r M M M M M c'M M M M M M M M M M M N-- r--- N-- P - t- - P'- N-. N-. r'- I--- r--� r -- r -- r+- J n rn - U U 2 w 0 m U) = U — c>>0— wa w 0 >_ ^ O W Il Q 1w-OIL-m06— U�'0 F-0 01 <QFw0'i-LUJ =HUQ� HH C)C�`Z _�MU=~U a` wLIJ 0 a�Ya w0wWw� J J J w �, ` [Y w [[ w J 2 J _1 C �uiC) a� Qaoow0 OC o°�acrU) 0< ,Wwoocro OOcnowWmU)n0m cwnw0twn Q< J r.y w Q J = J Q Q J N oowN==wLL UwLL.ow yQom-torNM-tc+-,-tintDr--coma y y O O r [V N CV N N M M M M t+'-i M M -t y V C7 O 0 0 0 0 C7 0 0 0 0 0 0 0 0 Q y E cN cV N N cV CV 6V N N CV CV cV CV N N y4, = mmmmmmmmmmrnmmmmm Q Z T r r r r r r r r r T r r r r r N-- N- tl- r.- r- r'- N- P- N-- CV N""(V N. N. N"N. N. N a% (D w tD tD CD w tD CD tD w Co CD (D co tD CD E O r N M -t in cD P- co m O T eN- f' T in w eo �•• Q Z o H Cit$ of Padn Dcscrt President's Plaza 111 PB1D Renciw-a1 Prchiniiian_ En;; ineer's Report F3 20111/20I2 Apportionment section of this Report. The total funds collected shall be dispersed and used for only the services and operations provided to the District. 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 lot, and regular sweeping of the parking lot. The special benefits of lighting (Parking IN lights) are the convenience, safety, and security of property, improvements, and goods. Specifically: 1. Enhanced deterrence of crime and the aid to police protection; 2. Increased nighttime safety for patrons and employees; 3. Improved visibility for pedestrians and motorists; 4. Improved ingress and egress to property; 5. Reduced vandalism and other criminal acts and damage to improvements or property; 6. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 7. Increased promotion of business activities and opportunities during nighttime hours; and, 8. The special enhancement to the value of property which results from the above benefits. The benefits associated with landscaped islands and medians within the parking lot are specifically: 1. Improved aesthetic appeal of the parking area and nearby parcels; 2. Improved dust control; 3. Enhanced adaptation of the urban environment within the natural environment; 4. Improved traffic circulation; 5. A positive representation of the businesses within the District; 6. Centralized locations for refuse collection facilities; and, 7. The special enhancement to the value of property which results from the above benefits. Parking lot sweeping is an essential and necessary activity for all properties —particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service are: Cin of'P.-Ihn DCSert Pre side•nt%; Plazir III PBID Rerrria;d Prelirninarl-Bn{>incer'.ti Rcporr FY 2011,/2w 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. Improved dust control; 3. The special enhancement to the value of property which results from the above benefits. The on -going operation and maintenance of the landscaping, lighting and sweeping improvements provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District. I',lrl,ui 1'IG':112(/di.Sci'Pic Pi 0 Cin oi'Palm Desert Method of Apportionment President's Plaza Ill 11BID Renewal Preliminary Eit,-ince r s Report hY 2011/2012 Method of apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. Parking Lot Improvements and Services All assessed parcels within the President's Plaza III PBID have use of, and access to, a centralized parking facility (lot) that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used and accessed by all properties within the District, each parcel's benefit is based on the size of such parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel's benefit for the parking lot improvements shall be based on the approximate size, in square feet, of each parcel. Method of apportionment Calculations The Total Direct Costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel's lot size in square feet. In addition to a parcel's Total Direct Cost, each parcel is assessed for District administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned in the same manner as Total Direct Costs. Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share of the Total Direct Costs and Total Indirect Costs. Apportionment of Direct Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) are based on the estimated annual costs to maintain the landscaping, lighting, and mechanical sweeping of the parking lot within President's Plaza I11. These Total Direct Costs, divided by the sum of the square footage of all parcels within the District, establishes a rate per parcel square foot. This rate multiplied by each parcel's square footage equals the parcel's proportionate share of the parking lot maintenance costs (rounded to the nearest even penny). The rate provided in Table 1 is for Fiscal Year 2011 /2012 only Please refer to the District Budget (Table 4) for future assessment rates Total Direct Cost/ Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Direct CostAssessment Component t',,- City o1'Pabn Desert President's Plain III PBID Reacu'al Prc6minan- End; hwcr'.s Report F1 2011/201 Table 1: Direct Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Square Foot) for for FY 2011-12 FY 2011-12 First Fiscal Year Maximum S 23 549 S 0 0520 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 (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Fund. Similar to the method of apportionment for Total Direct Costs, the District's indirect costs are apportioned to each parcel based on each parcel's lot size in square feet. The rate provided in Table 2 is for Fiscal Year 2011/2012 only. Please refer to the District Budget (Table 4) for future assessment rates. Totallndirect Cost/ Total Square Footage = Rate pet Square Foot Rate x Parcel Square Footage = Indirect Cost Assessment Component Table 2: Indirect Cost Proposed Assessment and Rate Proposed Proposed Rate Indirect Costs (per Square Foot) for for FY 2011-12 FY 2011-12 First Fiscal Year Maximum S 13.425 S 00296 Total Annual Assessment Each parcel's Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in the first fiscal of this renewal (FY 2011/2012). The rate provided in Table 3 is for Fiscal Year 2011/2012 only. Please refer to the District Budget (Table 4) for future assessment rates Direct Cost Rate + Indirect Cost Rate = Total Rate per Square Foot Total Rate x Parcel Square Footage = Total Parcel Assessment II `/'1�r IN i'J'7/;W,hItI �1 ; ,, S Cin o111abn De,,wrt President's Pkiza Ill PBID Renewal Prelir"Man-Gnaineeis Rcport FY 2011,/2012 Table 3: Total Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Square Foot) for First Fiscal Year for FY 2011-12 FY 2011-12 Direct Costs Maximum S 23 649 S 0 0620 Indirect Costs S 13 426 S 0 0296 Total Costs Maximum S 37 074 S 0 0816 Annual Budget Adjustments For the five years of the term of the PBID renewal, annual assessments may be adjusted by the President's Plaza III PBID owners' association up to three percent (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 owners' association. In any event, assessments will not exceed the levels illustrated by the District Budget (Table 4). Any annual budget surplus or deficit will be accrued into the following year's PBID budget. Assessments will be set accordingly, within the constraints of the annual adjustment, to adjust for surpluses or deficits that are carried forward. Cin cat Pa6tt Desert Presrilcrnt's Plain 111 PBID Renewal Preliminan- End; incer's Repurr FY"2011/2012 Description of Budget Items In Table 4 Direct Benefit- Costs r Weekly cleaning of the parking lot and gutters using a contracted, mechanized service. t's'fw 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. This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades which could include replacing lighting materials or renovation of lighting systems. This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades, which could include replacing plant materials or renovation of irrigation systems. If Z !1, t' 1, ,I ) ,"I',I , ..'114 tt,,'P", Utility cost to furnish water for required landscape irrigation. 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. Utility cost for furnishing of electricity required for the operation of the irrigation systems and landscape maintenance. Cin oflW111 Desert Pr('Siclent's Plaza III PBID Renewal Preliminai.ti Eg4,incer :s Report FY 2011/2012 Indirect Bene.fit 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. (_ I,T;I;, .ifl I:t!?idt "11;f,f, Jf'.'f.': This is the actual cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number. This is the cost to the District for the County to collect assessments on the property tax bills. This charge is on a per assessment basis, at $0.50 per assessment, and is in addition to the County Administration Fee. 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 Lot Maintenance Fund provides funds for the sealing and re -striping of the parking lot after the fourth year of this renewal term of the District. The parking lot's total surface area is approximately 184,000 square feet. During December 2005, the District's cost of sealing and re -striping the parking lot was $27,200 (15.5 cents per square foot multiplied by 175,520 square feet of surface area) and its cost of repairs within the parking lot was $24,300 (for 8,500 square feet of surface area); for a total cost of $51,500. The cost of sealing and re -striping the parking lot's total surface area of 184,000 square feet would have been approximately $28,520 (15.5 cents per square foot multiplied by 184,000 square feet of surface area) . This line item supports insurance costs for the operation of the District. II, I/144W I sr,,1u rr l 5c'�T/rf,, I�,,,;,- l City ot'Pahn Desen 11resiclent's Plaza HI PBID Renra:ll I'rcliminarz Enlrincer'.s RtPort FJ 2011 /2012 estimated costs to provide the improvements and services for each year. Direct Costs, District and County Administration Costs, and Insurance Costs are adjusted for the three percent (3%) inflation factor. The owners' association, appointed by the City Council, will annually review the District costs and make recommendations for any changes or adjustments to the budget. Changes to the budget could result in changes to the annual assessment but, the resulting total assessment may not exceed the maximum rates established in this Report without first obtaining property owner approval through assessment ballots. Table 4: Five Year Budget Actual Proposed Maximum Proposed Assessment for Fiscal Years Assessment Budget Item FY 2011-2012 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 D-recf Cos: Sweeping Services Landscape Contract Maintenance Lighting Repair & Maintenance Landscape Repair & Maintenance Landscape Utilities - Water Street Lighting Utilities - Electric Landscape Utilities - Electric Subtotal Direct Costs ;ncr sect Costs District Administration County Administration Fee County Per Parcel Fee Operating Reserve Fund Collection Parking Lot Maintenance Fund Collection Insurance Subtotal Indirect Costs Le:°r Breakdoerr Total District Costs Balance to Le y D-suct Statstcs Total Parcels Total Parcels To Levy Total Parcels Square Footage Levy Rate per Direct Costs per Sq Ft Ley Rate per Indirect Costs per Sq Ft Total Le,,,; Rate per Square Foot Clperatng Reser; a F,;rd Ba'ance Pre.ious Balance Ending Balance Farkxg to: Alanfecarce Ford Ba'arce Previous Balance Ending Balance S 4 637 S 637 S 4 776 5 4 919 5 5 067 S 6 219 5 217 5 217 5 373 5 534 5 700 5 371 1 391 1 391 1 433 1 476 1 520 1 566 4 057 4 057 4 1?9 4 305 4 434 4 667 2 319 2 319 2 388 2 460 2 534 2 610 5 449 5 449 5 612 5 780 5 954 6 132 580 580 597 615 633 652 S 23 649 S 23 649 S 24 369 5 25 089 S 25 842 5 26 617 4 05' 4 057 4 179 4 305 4 434 4 567 203 203 209 215 222 228 8 9 10 10 10 10 1 030 1 030 1 000 1 000 1 000 1 000 6 386 6 386 6200 6200. 6200 6200 1 739 1 739 1 791 1 845 1 900 1 957 S 13 423 S 13 425 S 13 389 S 13 574 S 13 766 S 13 963 37 072 37 074 37 747 38 664 39 608 40 580 5 37 072 $ 37 074 5 37 747 S 38 664 5 39608 5 40 580 16 16 16 16 16 16 16 16 16 16 16 16 463 966 453 956 453 956 463 956 453 956 453 956 s 00520 S 00620 5 0 0638 S 0 0554 S 0 0570 S 00688 S 00296 S 0 0296 5 00296 5 00300 S 0 0304 S 0 0308 S 0 0816 5 00816 5 0 0832 5 0 0852 5 0 0874 5 0 0894 - - 1 030 2030 3 030 4 030 1 030 1 030 2 030 3 030 4 030 5 030 - - 6 386 12 686 18 786 24 986 6 386 6 386 12 586 18 786 24 986 31 186 I'axnum arnuai assessments fdr direct costs. district and ccun4 admimstration. and insurance are adjusted ty ?% from the pre: ious Fiscal ear fcr Fiscal ears 2C12-t3 thrcuoh 2115-Ul; —he PS C —�d:!scry Beard ;: iil deternre the amount cf ary actual increase forthese years 'r, NO play not exceed ?*� per near - 2C 11.12 -ctual arc taaxanum Prcpcsed-ssessmrents are v e same. Sources. Cm of Palm Cesert; iohdar Financial Ser:tces la ur I rr /YI, IfI/ it 07 Cin o1 Pabn Desert President's Plaza 111 PRID Rcncival Prcliminan- En,;rincer'.s RcPor-t Ff`2011/2012 Appendix —AssessmentDiagram The Assessment Diagram for the District is on the following page and is inclusive of all parcels identified on the County of Riverside Assessor's Parcel Maps as Book 627, Page 192. The Assessment Diagram will be kept on file with the City Clerk of the City of Palm Desert. II%"7 iar, w 1 iiw// /d/ S erli (" �� z u r. i1 J J _ J c F- L) I- U) 0 F- z w 2 w 0 cr a w� OU) �U) ww Wz o� zm ::)0 mz 0a w� cn ~ Ow a. a 00 it CL a I J a- U) f— z w O U) w w a Cin ofgdni Desert Presitknt''.s P/t x III PBID Renei+;t1 Prelimimin-Eu{>mcer'.s Report Fi 2011/2012 Appendix B Assessment Roll Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor's Map for the year in which this Report is prepared. The Assessment Roll, which includes a listing of assessor parcels assessed within this District, along with their assessment amounts, is shown in Table 5 on the following page. !1' ll,lrtz 1';/h tr id 1, 4,r7i��_; m V O -t O tD CO CO N w O N N O O Lo (0 N T Q -- (D T to in r- O) O -t to N r- CO W ,n tD h- M1- E r-Nrnh ,nM T -t' N h`', O'i O M w C Oo tD r- r- r- m u3`M tD- c� �-o N,n oD -t r- co 00 0o r-- rn m a)Drs rntD .n r-- r- -T m cn M1- cr, o E O E N NMMMTNMT�# r` X O i17 C M N O �a U. Q U3 v3 O --r O (.D CO CO N tD O cV D tD M (c+Tininr--mc)-tinc�CD CD (.0N h-wwin(or- -7 r- N M M1- in (I') -t tD -T cV r- M ,) cV srn(flh- h- r- cOr-LDM(ncv n u-)CD-t r-- CO CO P', a) a!; a) a) C7) in I-, r- �r CO LD r-- m o N C'V M M u a rh (-3 C M Q O` N N a CD y LL Q (nwU3U3wk"cnV3U)U3(t3(s3wU3ento rn 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD 0 0 y a o 0 0 0 0 0 0 0 0 0 0 0 0 0 o a V O M O O CO (D -T r' O co M -t CO --' CV 00 (D d OO M -t OD in M T -t W M r--. N -t M M -t in O a) (n M M a7 00 h. in r- T -t CO -t M tr) O7 Q Q O r O M T T in M in (.P t- -t (� LL T Cl) r -- T T M -cl' 't -f Cr'i "f N W ,n -.t f T T T T r y 000000 } 0 0} 0 Q� Wy W W W W W Q�,�LLJWw Q ==aan.aaa 7 (D( J J J J J J(D C)� J J(D 0 J ,a I= W W W W W W=_=W WS=W Ln ,n--CD00000TT(noo,nif) o Qn O -t O C i g 00 in co c-, •'- N T --'- CV CV T T O O -- T M M M M M M M M M M M (` r h- r--.r-.r- r- r-. Ih. r- ti r. h- r- r- r-- r- m n c,o 3?>0� wa W 0 > O -= J 0 =tL W W0E-mcz C)U= WZ O a` - na.�o COD) rn WW�0 cl-jy c W0�LIJ W W JJJ, J=J WwoQ5LLa<nOOWO =O w�=COdOQ wo0'J� C ooQQwoYQ0 m�co Uj �t�aet E�tc`ca `¢o oca cif - �garYa N o0w��==wU- F-c=�wu-0W N N 0 tD m -r O T N M -t M --t in w 1- co (n CD Q y y� O O T (V N N N. m M M M m M -t y u O O O O OO O O O O O O O CJ O OO O ya E cV cV c, I N N (V CV CV cV cV (V (V N 6V N cV '• Q +i T T T T T 7 -T -T T T T T T -T T T r- r-- r- r-- r - r-. r-- r- r-- r- M1- r-�- ram- r- ram- r- AA�� N N (V " N CV N N N" N N N N CV N -y tow tP (D W tD tD (D W (.D tD (D CD (D (D W w EO +- N M K to w h- OD m OT rT- -N- r� r in (DD 76 Z F- CITY OF PALM DESERT PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT RENEWAL ENGINEER'S REPORT FISCAL YEARS 2011/2012 TO 2015/2016 I/I 41' ' '''''"\\,„\;:**; 0 Intent Meeting: May 26, 2011 Public Hearing: July 14, 2011 WI LLDAN Financial Services Corporate Office Office Locations 27368 Via Industria Oakland, CA Phoenix,AZ Suite 110 Sacramento,CA Orlando,FL Temecula,CA 92590 Tel: (951) 587-3500 Tel: (800) 755-6864 Fax: (951) 587-3510 n'wu'.wi//dan.corn/financial ENGINEER'S REPORT AFFIDAVIT City of Palm Desert President's Plaza III 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 By: Richard Kopecky R. C. E. # 16742 • itp n/7',rli;r llerw7 1'��ezdrt/'. !;%es,z Ill 1'Rl/) Kennte%e/ 1_`rrorneer'.,Rdif,r1 Table of Contents OVERVIEW 2 Introduction 2 District Formation / Renewal Process 2 DESCRIPTION OF THE DISTRICT 4 District Boundary 4 Improvements and Activities 4 Special Benefits of the Improvements and Activities 5 METHOD OF APPORTIONMENT 7 Method of Apportionment Rationale 7 Parking Lot Improvements and Services 7 Method of Apportionment Calculations 7 Apportionment of Direct Costs 7 Apportionment of Indirect(Administration/Reserve)Costs 8 Total Annual Assessment 8 Annual Budget Adjustments 9 DESCRIPTION OF BUDGET ITEMS IN TABLE 4 10 Direct Benefit Costs 10 Indirect Benefit Costs (Administration/Reserves) 11 Levy Breakdown 12 District Statistics 12 District Budget 12 APPENDIX A-ASSESSMENT DIAGRAM A-1 APPENDIX B -ASSESSMENT ROLL B-1 I!i/7I in I'/Nan(ial S trrr i,($ I City of Palm Desert ('resident's Plaza III PBID Renewal Prelimmary Enwineer's Report FY2011/2012 Overview Introduction The City of Palm Desert ("Cif') formed and established the President's Plaza III Property and Business Improvement Assessment District ("District") beginning in Fiscal Year 2001/2002 to provide improvements and activities that confer special benefits upon real property within the boundaries of the District. The District was established and levied pursuant to Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code (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 2001/2002, and renewed for another five year period 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 2015/2016). This Engineer's Report ("Report') describes the District, improvements and activities, method of apportionment, the proposed assessments for the current fiscal year, and the maximum assessment proposed for the five-year duration of the renewed District. The proposed assessments are based on the estimated cost to provide the improvements, activities, and operations that provide a direct and special benefit to properties within the District. The costs of improvements, activities, and operations include all expenditures, deficits,surpluses,revenues,and reserves. The word "property," for the purposes of this Report,refers to real property situated within the District, and identified as an individual property or parcel assigned its own Assessor's Parcel Number (APN) by the County of Riverside Assessor's Office. The County of Riverside Auditor/Controller uses APNs to identify on the tax roll parcels and properties assessed for taxes, special assessments,and fees and charges. District Formation / Renewal Process A written petition of the property owners within the District, representing more than 50 percent of the proposed assessment to be levied was submitted to the Palm Desert City Council to initiate formation proceedings. The City Council initiated proceedings for the formation of the District by adopting a resolution expressing its intention to form the District. The resolution of intention referenced the Engineer's Report and the Management District Plan, and noticed the time and place of a public hearing on the formation of the District and levy of assessments. Iriarn I inamial.SerrAt, 2 City ofPalm Desert President's Plaza 111 PBID Renewal Preliminary Engineer's Report FY20II/2012 Not less than forty-five (45) days and not more than ninety (90) days of adopting the resolution of intention, the City Council held a public hearing on the matter of formation, and caused notice to the property owners pursuant to Section 54954.6 of the Government Code. Public notices and assessment ballots (properly 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 Engineer's Report and the Management District Plan. 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. 11'7//tlaii ( whimhal.Sercire, 3 Gil of Palm Desert President's Plaza III PBID Renewal Preliminary Engineer's Report FY-201I/2012 Description of the District District Boundary The District consists of all parcels located in the commercial business area known as the President's Plaza III within the City of Palm Desert, County of Riverside. The District includes sixteen (16) assessed commercial parcels. The boundary of the District and the parcels therein are generally located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Old Highway 74, and includes the Palm Desert Parking Lot — lease parcel to the City of Palm Desert located South of Highway 111; East of New Highway 74; and West of Old Highway 74. Improvements and Activities In an effort to enhance and improve business opportunities and the appearance of the area known as the President's Plaza III, the Agency provided funds for the renovation and capital improvement of the parking lot and landscaped areas related to this commercial business center. In conjunction with this renovation, President's Plaza III Property and Business Improvement District was formed in 2001, and renewed in 2006, to provide and ensure the continued operation and maintenance of the improvements after the renovations had been completed. Should the District be renewed by the property owners for another five (5) year term,the assessments generated will continue this maintenance. It has been determined that all the properties within the District receive special and distinct benefits from the improvements and activities to be funded through the assessments. The improvements include 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 lot landscaped areas: including, but not limited to, ground cover, shrubs, trees, plants, irrigation and drainage systems and associated appurtenant facilities; • Parking lot lighting facilities: including, but not limited to, bulbs, fixtures, poles,wiring,and electrical energy;and, • Debris removal: including, but not limited to, regular mechanical sweeping of the parking lot. The costs associated with the improvements are equitably spread among all benefiting parcels within the District utilizing the method of apportionment described in the Method of It"illd m I'inrinrzal.Verrire; l':IT,4 City of Palm Desert President's Plaza 111 PBID Renewal Preliminary Engineer's Report FY-2011/2012 Apportionment section of this Report. The total funds collected shall be dispersed and used for only the services and operations provided to the District. 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 lot,and regular sweeping of the parking lot. The special benefits of lighting (parking lot lights) are the convenience, safety, and security of property,improvements,and goods. Specifically: 1. Enhanced deterrence of crime and the aid to police protection; 2. Increased nighttime safety for patrons and employees; 3. Improved visibility for pedestrians and motorists; 4. Improved ingress and egress to property; 5. Reduced vandalism and other criminal acts and damage to improvements or property; 6. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 7. Increased promotion of business activities and opportunities during nighttime hours;and, 8. The special enhancement to the value of property which results from the above benefits. The benefits associated with landscaped islands and medians within the parking lot are specifically: 1. Improved aesthetic appeal of the parking area and nearby parcels; 2. Improved dust control; 3. Enhanced adaptation of the urban environment within the natural environment; 4. Improved traffic circulation; 5. A positive representation of the businesses within the District; 6. Centralized locations for refuse collection facilities;and, 7. The special enhancement to the value of property which results from the above benefits. Parking lot sweeping is an essential and necessary activity for all properties—particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service are: ll%illlan I'lnn wadi.Senrite., 5 City of Palm Desert President's Plaza III PB17)Renewal PreInninary Engineer's Report FY2011/2012 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. Improved dust control; 3. The special enhancement to the value of property which results from the above benefits. The on-going operation and maintenance of the landscaping, lighting and sweeping improvements provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District. • • it""Vidan f'inanciral h City-of Palm Desert President's Plaza III PBID Renewal Preliminary Enr;ineer'.s Report FY 2011/20I2 Method of Apportionment Method of Apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. Parking Lot Improvements and Services All assessed parcels within the President's Plaza III PBID have use of, and access to, a centralized parking facility (lot) that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used and accessed by all properties within the District, each parcel's benefit is based on the size of such parcel. Therefore,it has been determined that a fair and reasonable reflection of each parcel's benefit for the parking lot improvements shall be based on the approximate size,in square feet,of each parcel. Method of Apportionment Calculations The Total Direct Costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel's lot size in square feet. In addition to a parcel's Total Direct Cost, each parcel is assessed for District administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned in the same manner as Total Direct Costs. Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share of the Total Direct Costs and Total Indirect Costs. Apportionment of Direct Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) are based on the estimated annual costs to maintain the landscaping,lighting,and mechanical sweeping of the parking lot within President's Plaza III.These Total Direct Costs,divided by the sum of the square footage of all parcels within the District, establishes a rate per parcel square foot. This rate multiplied by each parcel's square footage equals the parcel's proportionate share of the parking lot maintenance costs (rounded to the nearest even penny). The rate provided in Table 1 is for Fiscal Year 2011/2012 only. Please refer to the District Budget(Table 4) for future assessment rates. Total Direct Cost/Total Square Footage=Rate per Square Foot Rate x Parcel Square Footage =Direct Cost Assessment Component Cit_i ofPa/m Desert President's Plaza III PBID Renewal Preliminary Engineer's Report FY 2011/2012 Table 1: Direct Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Square Foot)for for FY 2011-12 FY 2011-12 First Fiscal Year Maximum S 23.649 $ 0 0520 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 (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Fund. Similar to the method of apportionment for Total Direct Costs, the District's indirect costs are apportioned to each parcel based on each parcel's lot size in square feet. The rate provided in Table 2 is for Fiscal Year 2011/2012 only. Please refer to the District Budget (Table 4) for future assessment rates. Total Indirect Cost/Total Square Footage =Rate pet Square Foot Rate x Parcel Square Footage =Indirect Cost Assessment Component Table 2: Indirect Cost Proposed Assessment and Rate Proposed Proposed Rate Indirect Costs (per Square Foot)for for FY 2011-12 FY 2011-12 First Fiscal Year Maximum S 13.425 $ 0 0296 Total Annual Assessment Each parcel's Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in the first fiscal of this renewal (FY 2011/2012). The rate provided in Table 3 is for Fiscal Year 2011/2012 only. Please refer to the District Budget (Table 4) for future assessment rates. Direct Cost Rate +Indirect Cost Rate = Total Rate per Square Foot Total Rate x Parcel Square Footage = Total Parcel Assessment Ili///a,i I whottrzu/.Bemire.; P S City ofPa/n Desert President's Plaza III PBID Renewal Preliminary Engineer's Report FY2011/2012 Table 3: Total Cost Proposed Assessment and Rate Proposed Proposed Rate Direct Costs (per Square Foot)for First Fiscal Year for FY 2011-12 FY 2011-12 Direct Costs Maximum S 23 649 $ 0 0520 Indirect Costs S 13.425 $ 0 0296 Total Costs Maximum $ 37.074 $ 0 0816 Annual Budget Adjustments For the five years of the term of the PBID renewal, annual assessments may be adjusted by the President's Plaza III PBID owners' association up to three percent (3%) per year. Actual annual adjustments may range from zero percent (0%) to three percent (3%). Adjustments may differ from year to year depending on the service needs identified by the owners' association. In any event, assessments will not exceed the levels illustrated by the District Budget(Table 4). Any annual budget surplus or deficit will be accrued into the following year's PBID budget. Assessments will be set accordingly, within the constraints of the annual adjustment, to adjust for surpluses or deficits that are carried forward. If''///data /',rr" 9 Cin,of Palm Desert President's Plaza 1I1 PBID Renewal Preliininary-Engineer's Report FY2011/2012 Description of Budget Items In Table 4 Direct Benefit Costs �tre'epin r tic°tt-ti.es: Weekly cleaning of the parking lot and gutters using a contracted,mechanized service. Landscape Contract Maintenance: Includes all regularly scheduled labor, material (e.g. pipe, fertilizer, insecticides), and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities. All landscaping improvements within the District are contracted for maintenance and service on a regular basis.The frequency and specific maintenance and operations required within the District will be determined by City staff. L;,;'htin,+; Repair dnd!'faintctranc e: This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades which could include replacing lighting materials or renovation of lighting systems. Landscape Repair and Maintenance: This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades, which could include replacing plant materials or renovation of irrigation systems. L.rrrdscape 1:.tditie+ -Water: ater: Utility cost to furnish water for required landscape irrigation. Sheet Lightin I 'ti/h ie , - Electric: The furnishing of electricity required for the operation and maintenance of the lighting facilities. The City contracts for the furnishing of its electricity for street lighting,which includes normal maintenance and bulb replacement. This cost does not include repairs or replacement of damaged facilities due to vandalism, accidents or storms. Landscape 1`tilities -Lleett-ic: Utility cost for furnishing of electricity required for the operation of the irrigation systems and landscape maintenance. IV Vida,/ I ii i,ictu/.Se rvic e,k 1'tuV 10 City of Palm Desert President's Plaza III PBID Renewal Preliminary Engineer's Report FY'2O1l/2012 Indirect Benefit Costs (Administration/Reserves) �Lytrle't :1drlrtr)tStratum: 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. (:otrntl. sttlnunistration Fee: This is the actual cost to the District for the County to collect District assessments on the property tax bills.This charge is based on a flat rate per fund number. Comm 's Pet 1'.arc•e1 Tee: This is the cost to the District for the County to collect assessments on the property tax bills. This charge is on a per assessment basis, at$0.50 per assessment, and is in addition to the County Administration Fee. Operating. Rest ri e Fund(.°r,lleetiun: 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. Parking Lot liainteri.uiec fund Collection; The Parking Lot Maintenance Fund provides funds for the sealing and re-striping of the parking lot after the fourth year of this renewal term of the District. The parking lot's total surface area is approximately 184,000 square feet. During December 2005, the District's cost of sealing and re-striping the parking lot was $27,200 (15.5 cents per square foot multiplied by 175,520 square feet of surface area) and its cost of repairs within the parking lot was $24,300 (for 8,500 square feet of surface area); for a total cost of$51,500. The cost of sealing and re-striping the parking lot's total surface area of 184,000 square feet would have been approximately$28,520 (15.5 cents per square foot multiplied by 184,000 square feet of surface area). Irr4 urarMCC: This line item supports insurance costs for the operation of the District. Li7//r/an I'inarn(id/.Sert'iCe.c I'tl(e II City of Palm Desert President's Plaza 1I1 PBID Renewal Prelirninar Engineer's Report PT 201I/2012 Levy Breakdown Twat District This is the sum total of all budgeted Direct and Indirect costs. District Statistics l irta/Parcel,: The total number of parcels within the District. I of al Parcel, to Ler v: The total number of parcels within the District that will be assessed. Non-assessed lots or parcels include easements, common areas, and parcels within the boundaries of the District that currently do not benefit from the improvements and which are not included in the Total Parcels to Levy. Mid/Parcel, Square InntaLre: This is the sum total of the assessed parcels' square footage applied to each assessed parcel within the District. Lcr y Rate per Direct ('n,,is per Square fot: This amount represents the Rate for Direct Costs being applied to each assessed parcel's individual lot square footage.The Levy Rate per Direct Costs is the result of dividing the estimated Total Direct Costs for that year by the sum of the District's Total Parcels Square Footage. The rate is calculated to four decimal places. Let:)-Rate per Indirect Costs per Square Fnnt.: This amount represents the Rate for Indirect Costs being applied to each assessed parcel's individual lot square footage. The Levy Rate per Indirect Costs is the result of dividing the estimated Total Indirect Costs for that year by the sum of the District's Total Parcels Square Footage.The rate is calculated to four decimal places. Total Lc r) Rate per Square knot: This amount represents the Rate being applied to each assessed parcel's individual lot square footage. The Levy Rate per Square Foot is the result of dividing the estimated Total District Costs for that year by the sum of the District's Total Parcel Square Footage. The rate is calculated to four decimal places. District Budget The District Budget shown on the following table (Table 4), lists the estimated costs of providing the various improvements and services within the District. The costs and the resulting rates for Fiscal Year 2011/2012 through Fiscal Year 2015/2016 are based on the ll"i///aar .Se rri e. 12 City of Palm Desert President's Plaza III PBID Renewal Prelitninary Engineer's Report FY 2011/2012 estimated costs to provide the improvements and services for each year. Direct Costs, District and County Administration Costs, and Insurance Costs are adjusted for the three percent (3%) inflation factor. The owners' association, appointed by the City Council, will annually review the District costs and make recommendations for any changes or adjustments to the budget. Changes to the budget could result in changes to the annual assessment but, the resulting total assessment may not exceed the maximum rates established in this Report without first obtaining property owner approval through assessment ballots. Table 4: Five Year Budget Actual Proposed Maximum Proposed Assessment for Fiscal Years Assessment Budget Item FY 2011-2012 11' 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Direct Costs Sweeping Services $ 4 637 $ 4 637 $ 4 776 $ 4 919 5 5.067 $ 5 219 Landscape Contract Maintenance 5 217 5 217 5 373 5 534 6 700 5 871 Lighting Repair&Maintenance 1.391 1.391 1 433 1 476 1 520 1 566 Landscape Repair&Maintenance 4 057 4 057 4.179 4.305 4 434 4 567 Landscape Utilities-Water 2.319 2 319 2 388 2 460 2 534 2 610 Street Lighting Utilities-Electric 5 449 5 449 5 612 5 780 5 954 6 132 Landscape Utilities-Electric 580 580 597 615 633 652 Subtotal Direct Costs $ 23 649 $ 23.649 $ 24 359 $ 25-089 5 25 842 $ 26.617 ndirect Costs District Administration 4.057 4 057 4 179 4 305 4 434 4 567 County Administration Fee 203 203 209 215 222 228 County Per Parcel Fee 8 9 10 10 10 10 Operating Reserve Fund Collection 1 030 1.030 1 000 1 000 1 000 1 000 Parking Lot Maintenance Fund Collection 6 386 6 386 6 200 6.200 6 200 6 200 Insurance 1 739 1 739 1 791 1 845 1.900 1.957 Subtotal Indirect Costs $ 13.423 $ 13 425 $ 13 389 $ 13 574 $ 13 766 $ 13 963 Levi Breakdown Total District Costs 37.072 37.074 37.747 38,664 39 608 40.580 Balance to Levy 5 37.072 $ 37 074 $ 37 747 $ 38 664 $ 39 608 $ 40 580 District Statistics Total Parcels 16 16 16 16 16 16 Total Parcels To Levy 16 16 16 16 16 16 Total Parcels Square Footage 453.956 453 956 453 956 453 956 453 956 453 956 Levy Rate per Direct Costs per Sq Ft $ 0 0520 5 0 0520 $ 0 0538 $ 0 0554 5 0 0570 $ 0 0588 Levy Rate per Indirect Costs per Sq Ft $ 0 0296 $ 0.0296 S 0 0296 $ 0 0300 $ 0 0304 $ 0 0308 Total Levy Rate per Square Foot 5 0 0816 $ 0 0816 $ 0 0832 5 0 0852 $ 0 0874 $ 0 0894 Operating Reserve Fund Balance Previous Balance - 1 030 2 030 3 030 4 030 Ending Balance 1 030 1.030 2 030 3 030 4,030 5.030 Parking Lot Maintenance Fund Balance Previous Balance - - 6.386 12.586 18 786 24 986 Ending Balance 6.386 6.386 12.586 18 786 24 986 31,186 Maximum annual assessments for direct costs.district and county administration,and insurance are adjusted by 3%from the previous Fiscal Year for Fiscal '''ears 2012-13 through 2C 1-201E The PBID Advisory Board will determine the amount of any actual increase for those years which may not exceed?%per year. F"2011-12 Actual and Maximum Proposed Assessments are the same. Sources:City of Palm Desert:sviadan Financil Services I i//vlira I'inancivi/.Shiite, l',N,, /3 City of Palm Desert President's Plaza 111 PBID Renewal Preliminary Engineer'.s Report FY 2011/2012 Appendix A Assessment Diagram The Assessment Diagram for the District is on the following page and is inclusive of all parcels identified on the County of Riverside Assessor's Parcel Maps as Book 627,Page 192. The Assessment Diagram will be kept on file with the City Clerk of the City of Palm Desert. Iri//lwi I''minrrimml.S'er•ri(ec 7 ...... .... ni - - - <1>:... ....1i: ,-. t'', •.1 N'. 4 !. 1 .. -, ,„ ..: .• , I- it 0 z., I-- co 5 1-- z w 2 w > 0 CC a. LL. 2 0 U) , u) co ill ILI E z 2!• 03 0 z 0 UJ 1.- O w Q- C_ O 0 CC PC CL CL = CL 03 rt CE itl Z . 4 .1* W , 0 Z Z O 8 12 re E , 0 ci. C i a _ , -s--- ....... „„... ::‘,..z.,.. ..... „„..- ;-, Q City of Palm Desert President's Plaza III PBID Renewal Preliminary Engineer's Report F1'2011/2012 Appendix B Assessment Roll Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor's Map for the year in which this Report is prepared. The Assessment Roll, which includes a listing of assessor parcels assessed within this District,along with their assessment amounts,is shown in Table 5 on the following page. (l'i1/fill I in,aihial.Scrcic�.� r V CDCD (D CO CO) O CD CO CD CV CV CD O CD CD CV r �, Q .�. COCD LA (t7 r-. M <t 41 N r� CO co (1) (D r-- P. ti; "- N- N O) N- In C) co - N P- ' M (0 O') co M �2. y E �"' N 0) 0) co h-- r- N- M CO N - N CO "7 l' 7 S - Ca co A CM M a) co O) 40 0-- Is, .1. CO (D r+ O) O - E C E r CV CV M M M r CV M r ? h- - 0 N N M Q u. (n CA O `? 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