HomeMy WebLinkAboutC32580A-B - PDCC Svcs Related to LLD or CFDContract No. C32580A
Contract No. C32580B
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: AUTHORIZATION OF A FUNDING AGREEMENT BETWEEN PALM
DESERT COUNTRY CLUB AND THE CITY OF PALM DESERT FOR
SERVICES RELATED TO THE FORMATION OF A LANDSCAPE AND
LIGHTING DISTRICT OR COMMUNITY FACILITIES DISTRICT
SUBMITTED BY: Ryan Stendell, Senior Management Analyst
APPLICANT: PD Golf Operations, LLC, dba: Palm Desert Country Club
Moe Sihota, Managing Director
77200 California Drive
Palm Desert, CA 92211
DATE: February 28, 2013
CONTENTS: Draft Agreement
Willdan Financial Scope of Work
Recommendation
By Minute Motion:
1. Authorize the City Manager to execute a Funding Agreement between Palm
Desert Country Club (PDCC) and the City of Palm Desert allowing PDCC to
place funds in trust for the purpose of creation of a Landscape and Lighting
District (LLD) or Community Facilities District (CFD) (Contract No.
C 32580A �,
2. Authorize the City Manager to enter into an agreement with Willdan
Financial Services to provide special district engineering services related
with the PDCC Golf Course (Contract No. C325sos ).
PDCC Funds to be placed in Trust Account 610-0000-228-3000
Executive Summary
Approval of staff's recommendation would allow PDCC to place monies in a trust account
with the City to be used toward information gathering and outreach for a potential formation
of an LLD or CFD. The City contracts with Willdan Financial Services for these studies and
special district services. The total contract amount with Willdan Financial will likely exceed
$25,000, so Council approval is being requested. The provided funding agreement allows
the City to be reimbursed for all expenses, less staff time.
Staff Report
Palm Desert Country Club Funding Agreement
February 28, 2013
Page 2 of 2
Backaround
Contract N0. C32580A
Contract N0. C32580B
Prior to purchasing the PDCC Golf Course, Managing Director Moe Sihota met with staff
members to inquire about the formation of an LLD to assist an owner with ongoing
maintenance of the golf course. Mr. Sihota had indicated that he had been in discussion
with the homeowners association (HOA) and that they had been willing to discuss the
concept. Staff urged extreme caution in basing any purchase of the property on this idea as
assurances could not be given by staff. Mr. Sihota eventually informed the City that they
had purchased the PDCC and were willing to invest in the property before coming back to
the idea of an LLD in order to build good will with the community.
In September of 2012, Mr. Sihota returned to staff with the LLD concept for the community.
Staff hosted a meeting with the City Manager, City Attorney, Finance Director and a
representative from Willdan Financial Services. Mr. Sihota expressed his struggles with
maintaining the golf course without the traditional funding stream of an HOA and the large
regional benefit that a thriving golf course has on this community. Willdan Financial
cautioned that an LLD could be problematic due to the legal challenges surrounding the
Finding of Benefit. Willdan suggested that a CFD could be a better financial tool to use in
this case, citing that once a CFD is in place it is extremely difficult to remove. Willdan also
cited many recent examples of LLD's being challenged based on the initial Finding of
Benefit. The City Manager's direction was to go through an analysis of each financial tool
and prepare to present a study session to the City Council explaining the differences and
legal constraints surrounding them. Staff is anticipating being prepared for this study
session on March 14, 2013. Based on feedback received, staff will return to the City Council
in open session with a full report and staff recommendation of how to proceed.
Fiscal Analvsis
There are no costs incurred by the City except for staff time relating to managing the
project. Additional monies from PDCC will be taken in on an as-needed basis.
Submitted By:
Ryan Stendell
Senior Management Analyst
Revie and Concur:
Paul S. Gibson, Director of Finance
CITY COUNCILA�ON
APPROVED 13��., �,�r
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Origiaat on File with City�lerk's Of�ce
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REIMBURSEMENT AGREEMENT
Between
CITY OF PALM DESERT
a California municipal corporation
and
PALM DESERT COUNTRY CLUB
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REIMBURSEMENT AGREEMENT
This Reimbursement Agreement ("Agreement") is made this _ day of ,
2013, by and between the City of Palm Desert, a California municipal corporation (the
"City"), and Palm Desert Country Club (the "Applicant").
RECITALS
This Agreement is made with respect to the following facts.
A. The Applicant is the owner of that certain real property ("Property") located
within the City of Palm Desert, County of Riverside, California. The Property is more
particularly described as the Palm Desert Country Club Golf Course.
B. The Applicant is contemplating the formation of a special district to provide
funding for the maintenance of the Golf Course at Palm Desert Country Club which is
referred to as the "Project."
C. To provide the City with the planning, environmental and legal services, and
other expertise and information necessary to the City's review process concerning the
development of the Property, it is necessary for the City to access the services of Willdan
Financial Services and City Attorney for the Project ("Consultants").
D. As a condition to the City's completion of the review process, the Applicant
has agreed to reimburse the City for the Consultants' costs and expenses related to the
City's review process in the manner and amounts set forth in this Agreement. The
Applicant's reimbursement of City under this Agreement will ensure that the City has the
necessary resources to diligently and efficiently process the Applicant's Project.
AGREEMENT
NOW, THEREFORE, in consideration of the following mutual promises and
agreements, City and Applicant agree as follows:
1 Incornoration of Recitals. The parties agree that the Recitals constitute
the factual basis upon which the City and the Applicant have entered into this Agreement.
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The City and the Applicant each acknowledge the accuracy of the Recitals and agree that
the Recitals are incorporated into this Agreement as though fully set forth at length.
2. Citv to Retain Consultants. As a necessary and indispensable part of
its fact finding process relating to the review and processing of the Applicant's proposed
uses of the Property and Project, the City shall retain the services of Consultants as set forth
in Section 4 of this Agreement to provide advice as the City may deem necessary in its
reasonable and sole discretion. The scope of work of each Consultant for the Praject is
attached hereto as Exhibit "A"and agreed to by both the Applicant and the City.. The City
after discussion with the Applicant, reserves the right, in its reasonable and sole discretion,
to axrtend the scope of work as it deems necessary and appropriate where such
amendments are reasonably necessary and related to the City's proper review and
consideration of the Applicant's Project.
The Applicant agrees that, nottivithstanding the Applicant's reimbursement
obligations under this Agreement, Consultants shall be the contractors exclusively of the
City and not of the Applicant. Except for those disclosures required by law including,
without limitation, the California Public Records Act, all conversations, notes, memoranda,
correspondence and other forms of communication by and between the City and its
Consultants shall be, to the extent permissible by law, privileged and confidential and not
subject to disclosure to the Applicant. The Applicant agrees that it shall have no claim to,
nor shall it assert any right in any reports, correspondence, plans, maps, drawings, news
releases or any and all other documents or work praduct produced by the Cansultants.
3. Aptilicant to Cootierate with Consultants. The Applicant agrees to
cooperate in good faith with the Consultants and City. The City agrees to co-operate in
good faith with the Applicant. The Applicant agrees that it will instruct its agents,
emplayees, consultants, contractars and attorneys to reasonably cooperate with the
Consultants and to provide all necessary documents or information reasonably requested
of them by the City and/or the Consultantis; provided, however, that the foregoing shall not
require the disclosure of any documents or information of the Applicant which by law is
privileged, proprietary, confidential, and exempt frvm disclosure under the Public Records
Act.
4. City's Selection of Consultants. The City has retained the following as
Consultants pursuant to this Agreement:
(I) Cvnsultant —Willdan Financial5ervices
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(ii) Legal Counsel — Best Best & Krieger LLP
5. Anvlicant's Reimbursement of Costs and Exvenditures. The Applicant
shall reimburse the City for one hundred percent (100%) only of the actual costs and
expenditures incurred by the City relative to the Consultant costs ("Costs".) The City has
preliminarily reviewed the scope of work required and has esti�nated the Costs to be
approximately Dollars ($ ) for
Willdan Financial Services in addition to legal counsel's fees based on attached scope and
hourly fees (Estimated Costs"). Within ten (10) calendar days of the execution of this
Agreement, the Applicanf shall submit the initial deposit in the amount of $ to
cover % of the consultant costs, and $ as an initial deposit for legal counsel
costs. The City shall provide copies of monthly invoices prepared by consultants, and the
applicant shall make additional deposits to adequately cover the anticipated consultant
costs.
City shall not exceed the Estimated Consultants Costs without the Applicants
prior written approval. The City may incur aggregate Costs up to the Estimated Costs,
subject to the reasonable approval of the Applicant. The City shall use reasonable good
faith efforts to consult with the Applicant prior to amending the scope of services to be
provided by the Consultants and incurring Costs that exceed the Estirnated Costs ("Excess
Costs"). The Applicant's obligation to reimburse the City for Excess Costs which exceed the
Estimated Costs shall be contingent upon, the City's providing the Applicant with written
notice of the amendment of the scope of work to be performed by Consultants and the
estimated Excess Costs prior to the commencement of work. The City shall not incur
Excess Costs without the prior written approval of the Applicant.
For purposes of this Section, the City shall be deemed to have consulted with
the Applicant when the City has provided written notice to the Applicant that the City
reasonably anticipates that it will incur, or has incurred, Excess Costs. If, after consultation,
the Applicant disagrees with the City's incurring of Excess Costs, then the Applicant's may
propose an amended scope of services or terrninate this Agreement pursuant to Sectian 9 of
this Agreement, subject to the Applicant's obligation to reimburse the City for all Costs
incurred by the City prior to the date of terrnination, whether or not yet paid by the City to
the Consultants.
6. Evidence of Payment of Consultant Costs Immediately following the
City's disbursement of funds to Consultant pursuant to an approved Professional Services
Agreement or similar retainer agreement with the Consultant(s), the City shall provide the
Applicant with such reasonable documentation as the Applicant rnay request to
substantiate any demands Eor payment by Consultant(s).
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7. Applicant understands and agrees that Ciiy reserves complete
discretion and authority regarding the (a) outcome of the Project, (b) contents, scope,
analysis and conclusions of the Consultant(s) and Consultant documents, including plans,
staff reports, ordinances, resolutions, maps, canditions, mitigation measures, and
environmental review documents and findings, (c) and City determinations and decisions
on the Project Nothing in this Agreement shall in any way commit or obligate City to
approve any particular development project application or to support the development of
any part of it.
8. Term. The term of this Agreement shall commence on the date that
this Agreement is approved by the City and fully executed by the parties and shall
terminate when all work required been completed to the City's reasonable satisfaction and
the Applicant has satisfied all of its obligations under this Agreement including, without
limitation, the obligation to reimburse the City for Estimated Costs and Excess Costs,
whether or not paid by the City to Consultant(s) prior to the date of termination. The
Applicant's obligation to reimburse the City as provided in this Agreement shall survive
the termination of this Agreement pursuant to Section 9.
9. Early Termination. The City may terminate this Agreement prior to
the term set forth in Section 8 above, without cost or liability to the City, upon thirty (30)
days prior written notice to the Applicant. The Applicant may in its reasonable and sole
discretion terminate this Agreernent prior to the end of the term set forth in Section 8 above
upon thirty (30) days' prior written notice to the City; provided, however, that the
Applicant has satisfied all of its obligations under this Agreement to the date of termination
regarding reimbursement to the City of both Estimated Costs and Excess Costs and,
furthermore, that the Applicant has given City written notice withdrawing its
application(s) for the Project.
Within two (2) City working days following either the City's decision to
terminate this Agreement or the City's receipt of written notice indicating the Applicant's
decision to terminate this Agreement, the City shall notify the Consultant(s) and instruct
them to cease work. Consultant(s) shall be instructed to bill the City for any work
completed prior to the date of termination.
10. Assignabilitv. This Agreement may not be assigned by either party
without the prior and express written consent of the other party, which consent shall not be
unreasonably withheld. In determining whether to approve a request by the Applicant to
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assign this Agreement, the City may consider, among other things, the proposed assignee's
financial status and commitment to the Project. Any attempted assignment of this
Agreement not in campliance with the terms of this Agreement shall be null and void and
shall confer no rights or benefits upon the assignee.
11. No Oral Modifications. This Agreement represents the entire
understanding of the City and the Applicant and supersedes all other prior or
contemporaneous written or oral agreements pertaining to the subject matter of this
Agreement. This Agreement may be modified, only by a writing signed by both the
authorized representatives of both the City and the Applicant.
12. Bindine Unon Successors. This Agreement and each of its terms shall
be binding upon the City, the Applicant and their respective officers, elected officials,
employees, agents, contractors, and permitted successors and assigns.
13. Leeal Challen�es. Nothing herein shall be construed to require City to
defend any third party claims and suits challenging any action taken by the City with
regard to any procedural or substantive aspect of the City's appraval of development of the
Property, the environmental process, or the proposed uses of the Property. The Applicant
may, however, in its sole and absolute discretion appear as real party in interest in any such
third party action or proceeding, and in such event, it and the City shall defend such action
or proceeding and the Applicant shall be responsible and reimburse the City for whatever
legal fees and costs, in their entirety, including actual attorneys' fees, which may be
incurred by the City in defense of such action or proceeding. This City shall have the
absolute right to retain such legal counsel as the City deems necessary and appropriate and
the Applicant shall reimburse the City for any and all attorneys' fees and costs incurred by
the City as a result of such third party action or proceeding; provided, however, Applicant
rnay, at any time, notify City in writing of its decision to terminate such reimbursement
obligation and, thereafter, in the event that the City decides to continue the defense of such
third party action or proceeding, Applicant shall have no further obligation to reimburse
City for its attorney fees and costs.
14. Attornevs' Fees. In the event that any action or proceeding, including
arbitration, is commenced by either the City or the Applicant against the other to establish
the validity of this Agreement or to enforce any one or more of its terms, the prevailing
party in any such action or proceeding shall be entitled to recover from the other, in
addition to all other legal and equitable remedies available to it, its actual attorneys' fees
and costs of litigation, including, without limitation, filing fees, service fees, deposition
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costs, arbitration costs and expert witness fees, including acival costs and attorneys' fees on
appeal.
15. Turisdiction and Venue. This Agreement is executed and is to be
performed in the City of Palm Desert, Riverside County, California, and any action or
proceeding brought relative to this Agreement shall be heard in the appropriate court in
the County of Riverside, California. The City and the Applicant each consent to the
jurisdiction of the Court in any such action or proceeding.
16. Severabilitv. If any term or provision of this Agreement is found to be
invalid or unenforceable, the City and the Applicant both agree that they would have
executed this Agreement notwithstanding the invalidity of such term or provision. The
invalid term or provision may be severed from the Agreement and the remainder of the
Agreement may be enforced in its entirety.
17. HeadinQs. The headings of each Section of this Agreement are for the
purposes of convenience only and shall not be construed to either expand or limit the
express terms and language of each Section.
18. Renresentations of Authoritv. Each party signing this Agreement on
behalf of a party which is not a natural person hereby represents and warrants to the other
party that all necessary legal prerequisites to that party's execution of this Agreement have
been satisfied and that he or she has been authorized to sign this Agreement and bind the
party on whose behalf he or she signs.
19. Notices. Notices required under this Agreement shall be sent to the
following:
If to the City: City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
If to the Applicant: Palm Desert Country Club
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Notices given pursuant to this Agreement shall be deemed received as follows:
(1) If sent by United States Mail - five (5) calendar days after deposit into
the United States Mail, first class postage prepaid.
(2) If by facsimile - upon transmission and actual receipt by the receiving
party.
(3) If by express courier service or hand delivery - on the date of receipt
by the receiving party.
The addresses for notices set forth in this Section 19 rnay be changed upon written
notice of such change to either the City or the Applicant, as appropriate.
Dated:
CITY OF PALM DESERT
a California municipal corporation
By:
John Wohlmuth, City Manager
ATTEST:
By: .
Rachelle Klassen, City Clerk
APPROVED AS TO FORM:
:
David j. Erwin, City Attorney
Dated:
APPLICANT:
PALM DESERT COUNTRY CLUB
:
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BY: �-',
Name: � mohan Sihata Title: Managing Director
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Exhibit "A-1"
Scope of Services
Willdan Financial Services
January 14, 2013
Mr. Ryan Stendell
Senior Management Analyst
City of Palm Desert
73-5io Fred Waring Drive
Palm Desert, California 92260
Re: Proposa/ to Provide Specfal District Engineering Services re/ated to fhe Pa/m Desert Country
Club Golf Course
Dear Mr. Stendell:
Willdan Financial Services ("Willdan") is pleased to submit the following scope of services and budget to the
City of Palm Dese�t to provide Special District Engineering Services related to the Palm Desert County Club
golf course. The following outlines the various steps that W illdan will perform as needed to assist the City with
the initial study and evaluation for the possible formation of a special district to provide funding for the
maintenance of a portion of the golf course area at the Palm Desert Country Club.
Our proposed scope of services outlines the tasks associated with an analysis and evaluation of forming an
assessment district to maintain a portion of the perimeter golf course adjacent to the residential properties,
under the provisions of the Landscaping and Lighting Act of 1972. Per our previous discussions regarding the
affects of recent case law for assessments, the boundaries of such a district may be limited, and the revenues
that can be collected as special benefit assessments will most certainly be less than the total amount required
for full cost recovery. Therefore in addition to the specific tasks associated with evaluating the possible
formation of an assessment district, our scope includes a preliminary review and analysis of utilizing an
alternative funding approach, specifically a special tax established under the provisions of the Mello-Roos
Communiry Facilities District Act of 1982 (CFD). W hile the establishment of a CFD requires a 2/3 approval of
registered voters rather than a simple majority of aifected property owners, a CFD does not have the same
special versus general benefit requirements of an assessment district. Therefore, a CFD has the capacity of
funding 100% of the annual maintenance costs and these costs may potentially be spread to more parcels,
thereby reducing the charge to individual parcels.
Per the City's request, the scope of services that follows is focused on the initial tasks of a feasibility and
benefit analysis necessary for developing an appropriate and defensible assessment methodology to form an
assessment district (Phase A). Upon completion of this phase, our findings and recommendations will be
discussed with the City prior to proceeding with the next possible phases of the project necessary to form the
appropriate district.
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Scope of Services
Phase A:
Task A.9:
Feasibility Study and Benefit Analysis
Project Kick-off Conference Cail
Objective: The primary objective of this conference call is to establish effective lines of communication
with key personnei that wili be involved in the project, and discuss the overali project strategy,
resources available (documents or information) to expedite the project, and the anticipated
timeline of events.
Descriptian: We propose to kick-off the project with an "all hands" conference call to discuss the various
elements of the project scope and finalize the overall approach and course of action to
address the City's needs. This conference call should include all City staff members that will
be directly involved in the project. This discussion may include identifying the City's goals and
priorities; legal and public outreach considerations; general budget information; availability of
specific improvement plans and information, pertinent development documents and property
data; and key project milestones and events (project timeline).
Meetings: One (1) conference call.
Delrverables: A project timeline will be prepared and provided to the City.
Task A.2: Establish District Database and tmprovement Matrix
CTbjective: Develop an overall matrix of the improvements for which properties will be assessed and the
proposed boundaries of the district based on a defensible special benefit nexus.
Descripfir�n: Willdan will work closely with City staff and the developer to fully establish a comprehensive
list of improvements, services and facilities and potential changes that may be funded by the
proposed assessments. This listing of improvements will require not only identifying the type
and extent of the improvements and facilities, but also specific improvement details such as
landscape square footage and type (turfversus plantings), tree counts, hardscapes (fencing,
walls, concrete surfaces and trails).
This task will also include development of an enhanced parcel database for budget modeling.
This database will utilize the existing electronic parcel data we currently maintain and use for
administration of the City's other districts, and will be expanded as needed utilizing County
data and information provided by the Ciry to develop an appropriate district boundary and
assessment methodology. The database will contain the following information:
■ Current and planned property development (land use);
■ Updated parcel characteristics, such as acreage and dwelling units;
■ Updated ownership information from County data (name(s), mailing address, and
property address information);
• Voter registration information obtained from the County Registrar of Voters (this
information will likely be summary information for the area and not parcel or person
specific);
• Known development restrictions (identified by the City);
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■ Land and improvement values (used to determine if a parcel is vacant or developed).
Note: Land value cannot be used as a basis for the assessment rate;
Assignment of possible weighted special benefit; and
Existing and proposed assessment amounts.
The expanded database will be structured to ensure that the property data assembled
matches the benefit methodology and district structure that is ultimately developed. This
database will also be used as source data for the mailing of any informational pieces and/or
notices and ballots, as well as development of related district maps utilizing available GIS
information and assessment methodology modeling.
Meetings: None.
Deliverabies: None.
Task A.3: Prepare Proposed 8udget
Objective: Prepare a comprehensive annual budget for the improvements to ensure that not only the
regular annual maintenance costs are addressed, but also the long term repair, rehabilitation
and replacement costs associated with these improvements and facilities as well as potential
capital improvement costs that may be necessary to establish special benefit. The budget will
in turn allaw for the establishment of assessments that achieve maximum cost-to benefit
equity for each property within the district and the funding support required by the City.
Description: Work with City staff and developer to prepare an appropriate annual budget for the
maintenance and servicing of the improvements and facilities. The proposed budget will be
developed utilizing both City provided cost estimates for construction of the facilities and
Willdan's budget modeling software that utilizes standard per unit costs for calculating annual
maintenance expenses associated with the improvements identified and developed in the
previous task. The budget will also incorporate maintenance cost estimates provided by the
City for specific improvements and/or cost per unit factors the City has utilized or identified for
other similar facilities, including estimates of periodic maintenance expenditures, long-term
repair and rehabilitation costs, applicable capital improvement expenditures, administration
expenses, and any other funding deemed appropriate to provide the improvements.
The proposed budgets prepared in Phase I will be comprehensive and identify the full cost of
providing the improvements. In addition, the budget will also identify costs considered to be
general benefit, as well as additional funding that may be needed from other revenue sources
available to the City that cannot be otherwise funded by the special benefit assessments. The
goal of this budget is to accurately depict the true funding requirements to provide the
improvements and to establish the annual assessments and potential funding support that
may be required of the City.
Meefin�s: None.
Deliverables: A summary of the budget or budget alternatives will be incorporated into the technical
memorandum prepared as part of Task A.5.
Task A.4: Development of Benefit Nexus and Cost Allocation Plan
Objective: Develop appropriate benefit findings (general versus speciaQ, district structure
(boundaries and benefif zanes), and cosd altocation jmethod of apportionmenf) based
on the pravisions of the California Consditution and current case law.
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Descripfion: Utilizing the database and comprehensive impravemenf matrix and,budget developed
in prior tasks, Willdan wili devstnp and identify appropriate districi baundaries arrd a
methpdotogy for fhe apporfionment of costs. The methad af apportioning cosfs, to the
extent possible, wil/ utr'lize a methodology cansisfent with tRe weighted methad af
apportionment utilized by the Grty for similar assessments. !-fowever, tlre benefit
nexus and cost a/tocation deve/oped for this districf must ultfmatety be in comp/iance
wlth the pravisians of the California Constitution and consisfent with recent caurt
decisions rega�rding assessmenis, specificaJty tocusirrg on the identifyir�g and
quantifying both specia/ and genera! benefr'fs. Far these reasons, rt is /ikely that the
boundaries of an assessment district (special benefit assessments) may include fewer
parcels #han if a CFD (special tax) were esfabtished. tlitimately, fhis analysis and
evaluation of benefits and cosf al/ocations wi// result in up fo fwo (2) districf optfons
far the City to eonsider befare proceeding with the next phases of the praject, r�amely:
An assessment district approach which incorporates only the parcels
that receive a particular and distinct benefit (special benefit) from the
improvements; the related improvement costs that are identified and
quantified as general benefit (costs not assessed); and the basis and
rationale for proportionally allocating the special benefit improvement
costs (method of apportionment); along with the proposed assessment
rate(s) applicable to the parcels to be assessed. It should be noted that the
assessment methodology will not exempt publicly owned properties.
Pursuant to the California Constitution, such properties are no longer
exempt from assessments unless clear and convincing evidence can be
provided that such properties do not receive special benefit.
While it is certainly the goal of this project to develop a district
structure and assessments that are in compliance with the provisions of
the California Constitution and recent case law, it is likely that such
assessments will not fund ioo % of the maintenance costs. Therefore as an
alternative consideration for funding these costs, our evaluation will also
identify and summarize the possible rate and method of apportionment
and district boundaries if the City were to establish a CFD (special tax)
rather than an assessment district. This scenario would be based on a full
cost recovery budget (no general benefit contribution) and may
incorporate more parcels than the proposed assessment district
boundaries.
Meefings: None.
Delivera�les: A summary of our review and analysis in this task will be incorporated into the technical
memorandum prepared as part of Task A.5.
Task A.S: Technical Memarandum and !mplementation Strategy
Discussion
Ob�ective: Prior to preparation of the documentation necessary to form an appropriate district (next
phases of the project}, we will provide the City with a brief inemorandum summarizing the
information, findings and recommendations of our budget development and benefit/cost
allocation analysis developed in previous tasks.
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�2500.0000i\�y56�6r. �
�escriptron: Prepare and provide the City with a brief inemorandum summarizing and/or identifying the
proposed boundaries of the district, the estimated annual maintenance budget, the method of
apportionment (cost altocation), and the resulting financial obligation of both the affected
properties and the City. This memorandum wiil likely include brief discussions of potential
benefit issues, the rationale for apportioning costs (both special and generai) and as
applicable, the pros and cons associated with establishing an assessment district versus a
CFD to fund the proposed goif course maintenance.
After delivery of the memorandum we propose to participate in a conference call with key City
staff to discuss the findings and recommendations outtined in the technical memorandum
and finalize the desired approach and modifications. In addition to finalizing the approach, we
will discuss the next steps and strategies that may be appropriate for gamering the support of
the property owners for the assessments, including appropriate property owner education or
outreach efforts that might improve the chances of a successful bailoting. We will also finalize
a timeline for implementing these strategies.
Meetings: One {1) conference call with City staff to discuss the Technical Memorandum and
implementation strategies.
13elrverables: Technical Memorandum summarizing and identifying the various findings and
recommendations that are deemed appropriate or necessary before proceeding to Phase II
of this project.
Phase 8: Public Opinion Survey (Optional)
Whenever a district is proposing to tax or assess property, it is important to determine the level of support
among those who will be asked to vote to approve the improvements to be funded and the charges proposed
to be levied. Therefore, our scope of services includes an optional Public Opinion Survey to determine the
level of support available for the improvements to be funded and the charges to be levied. In addition, the
information obtained from the survey will be used to form a district that is in-line with the level of support. A
community survey can provide an understanding of the type of services those who will be asked to vote
consider to be important, necessary and ultimately supported. For this engagement, we anticipate utilizing the
services of National Demographics Corporation (NDC) to assist with a survey of potentially affected property
owners.
Property owner surveys are a technical and operational challenge. Challenges include determining opinions for
and against a proposal, and the likelihood that any given property owner will vote. The accuracy and success
of such projects require detailed and well-informed preparation, a carefully worded survey instrument, and
sophisticated, experienced analysis of the responses. NDC can provide the extensive background in
successful, accurate surveys that the City needs for its survey.
NDC will perform the tollowing tasks in order to survey property owners.
Task B. 9: lnitia/ Survey Design and Field Test
In direct consultation with Willdan and the City, NDC will design a survey instrument for review and discussion.
The instrument will test the target population's attitudes toward the City overall, toward the charge, and toward
any potential assessment/tax options, including a test of different levels of funding.
In NDC's experience, surveys of 35 to 40 questions will be needed to achieve the City's goals (plus the
standard 8 to 10 demographic background questions). Should the City wish to add additional questions on this
i5
�2500.0000i\��56�6Li
or any other topic, NDC is happy to do so, though such an expansion will impact the overall price.
Instrument development typically involves one (1) kick-off meeting, either in person or by phone, and two (2)
or three (3) follow-up conversations.
NDC will develop, revise and field test an instrument in three (3) days, assuming that the data needed for the
questions is already available, and not including any time spent on City intemal review and approval of the
instrument.
Task B.Z: Fielding
Telephone surveys will include a carefully scheduled mix of daytime, evening and weekend hours. Fielding the
telephone element of the survey will require five (5) to ten (10) days.
Task 6.3: Ana/yses, lnterpretafions, Conclusions
Immediately following the completion of fieldwork, NDC will work with Wilidan and the City to provide
interpretations of, and conclusions from, the results. NDC's senior personnel will conduct this work.
Responses will be analyzed by age, income, and other key demographic and community divisions. In addition,
NDC will be fully responsive to requests for further cross-tabulation analysis.
NDC will incorporate survey results into hard copy and electronic form and will create a graphical Executive
Summary of the results. Throughout this process, all NDC personnel will be instructed to maintain complete
confidentiality on all aspects of the survey. This report will include the direct results, statistical analysis, an
interpretation of the findings and NDC recommendations.
Task 8.4: Presentation of Results
A NDC principal will provide a presentation and discussion of results at a time convenient to the City. The
presentation will include the methods, findings, and conclusions of this survey, including NDC's professional
advice and recommendation on whether and how to proceed.
The results of the surveys will help the City determine if the community will support the proposed district. With
this information and NDC's advice, the City will be able to make clear decisions regarding its future steps.
The final presentation will be scheduled to accommodate the City's availability.
City Responsibilities
The City will prepare or provide the following, if necessary.
• Provide any information regarding current zoning, existing land uses, and proposed property
development, as needed.
■ Coordinate with the developer and provide a detailed listing and description of the improvements and
facilities to be maintained constructed, including a breakdown of the estimated construction costs for
the various improvements and facilities to be installed
• Coardinate with the developer and provide either electronically or in hard copy, improvement
diagrams, design plans or renderings and site plans as needed for Willdan to develop the plans and
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�2500.00001\��56�6L 1
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specifications required for the Engineer's Report and to develop the proposed budget and
assessment evaluation.
■ Coordinate with the developer and provide pertinent budget information that will assist in developing
the district budget and benefit rationale including, but not limited to: estimated construction and
installation costs; summary information regarding current service levels and annual maintenance
costs; specific mainfenance costs or financing information; statistical information associated that may
identify or support the overall use of golf course facilities by residents and non-residents; and
available funding from other sources that can be used to offset costs.
■ Prepare all internal memos, staff reports and other supporting documents necessary for City Council
agendas.
■ Provide electronic data of parcels within the proposed district inciuding assessor parcel numbers and
related development information.
■ Arrange for any required publications notice of Council meetings or Public Hearings in the local
newspaper.
The City acknowledges that Willdan shall be relying upon the accuracy of the information provided by the City
and the County and agrees that Willdan shall not be liable for any inaccuracies contained in such information.
Legal Opinions. In preparing the resolutions, notices and batlots, Willdan will provide our professional
expertise. Since we do not practice law, we ask that your City Attorney, or other designated counsel, review
the documents. We will assist your attorney in identifying any pertinent legal issues.
1'7
�2500.0000i\��56�61i
Budget
Willdan will complete the scope of services for the fees identified below. The table below provides a
breakdown of this fee by each phase of work identified under the Scope of Services sectian.
Phase A: Feasibi�ity Study antt Se,nef?t Analyslti
Additional Services
Additional services may be authorized by the City of Palm Desert and wi{I be bi4led at our then current hourly
consulting rates. Our current hourfy rates are:
{�psitiC7n
Group Man�ager
Pnnc�pal Cr�risultai7t
SE�nior Pro�ecf 4Aanac�er
Pra�ect Msi�iayer
Se��u�r Pru;ect Anaiyst
.�'aPrliOf A�1c�ly�t
� t�r�3lyst
I Analy�f As�isftin!
Hnurly R�te
fi21�
( S2C1C)
� ;'� 165
'�145
5130
, � 12C�
` 1 ti(i
`: 75
Willdan Financial Services appreciates this opportunity to continue to serve the City of Palm Desert. if you
have any questions regarding this agreement please contact me directiy at (951) 587-3536 or via email at
imcauire cni wilidan.com.
Sincerely,
WILLDAN FINANCIAL SERVICES
. �� .
��
Jim McGuire
Senior Project Manager
:
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Phase E3: Pu�lic C)��iruori Surv�y � $1(?,OC10 -$15.QC1{�
Exhibit "A-2"
Scope of Services
Best Best & Krieger LLP — Legal Counsel
Best Best & Krieger LLP ("BBK") proposes to provide legal review services to the City of Palm
Desert to assist the City in reviewing the project.
The attorneys anticipated to provide legal review services are as follows:
David J. Erwin
Robert Hargreaves
Kim Byrens
$475/hour less ten percent (10%)
$445/hour less 10 percent (10%)
$425/hour less 10 percent (10°l0)
Other attorneys may also be used, provided their billing rates are less than those identified
above.
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Exhibit "A"
Location Map (Palm Desert Country Club)
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