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951.587.3500 � 800.755.6864
951.587.3510
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�Wl LLDAN �
Financial Services
ENGINEER'S REPORT AFFIDAVIT
City of Palm Desert
President' Plaza I
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
commencing in Fiscal Year 2013/2014 for a period of three fiscal years 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 , 2013.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Palm Desert
By:
Jim McGuire,
Senior Project Manager
By:
Richard Kopecky
R. C. E. # 16742
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TABLE aF CQNTENTS
OVERVIEW............................................................................................
1
Introduction �
Formation 2
DESCRIPTION OF THE DISTRICT .............................................................. 3
District Boundary 3
Improvements and Activities 3
Special Benefits of the Improvements and Activities 4
METHOD OF APPORTIONMENT................................................................ 7
Method of Apportionment Rationale 7
Parking Lot Improvements and Services 7
Solid Waste(Refuse) Collection Services 7
Method of Apportionment Calculations 10
Apportionment of Direct Costs 11
Apportionment of Indirect Costs 13
Total Annual Assessment 14
Annual Budget Adjustments 14
DESCRIPTION OF BUDGET ITEMS ..........................................................
15
Direct Benefit Costs 15
Indirect Benefit Costs 16
Levy Breakdown 16
District Statistics 17
District Budget �g
APPENDIX A—ASSESSMENT DIAGRAM................................................A-1
APPENDIX B— PARCEL LEVY INFORMATION..........................................B-1
APPENDIX C—ASSESSMENT ROLL .....................................................C-1
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QVERVIEIN
Introduction
The City of Palm Desert ("City") formed and established the President's Plaza I
Property and Business Improvement Assessment District ("District") beginning in
Fiscal Year 1998/1999 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 ending in Fiscal Year 2002/2003 and successfully
renewed in Fiscal Year 2003/2004 for a term of five years ending in Fiscal Year
2007/2008, and again successfully renewed in Fiscal Year 2008/2009 for a term
of five years ending in Fiscal Year 2021/2013. For each term, 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 2012/2013 is the last year of the
term of the currently existing 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.
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 three years (Fiscal Years 2013/2014 through 2015/2016).
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 estimated costs of
improvements, activities, and operations include anticipated 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.
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Formation
A written petition of the property owners within the District, representing more
than 50 percent of the proposed assessment to be levied must be submitted to
the Palm Desert City Council in order to proceed with the District formation. City
Council may initiate proceedings for the renewal of the District by adopting a
resolution expressing its intention to form/renew the District. The resolution of
intention will reference the Engineer's Report and the Management District Plan
(combined herein as one document), and will provide notice of the time and place
of a public hearing on the re-establishment of the District and levy of
assessments.
Within 90 days of adopting the resolution of intention, the City Council may hold a
public hearing on the matter, and cause notice to be provided to the property
owners pursuant to Section 54954.6 of the Government Code. Assessment
ballots (property owner protest ballots) shall be mailed to each property owner at
least 45 days prior to the public hearing pursuant to Artic% XlllD of fhe California
Constitution.
At the public hearing the City Council may provide 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 Council will tabulate property
owner assessment ballots received from property owners in order to determine
whether majority protest exists. This tabulation will occur after the close of the
Public Hearing.
If the property owners approve the renewal of the District and imposition of the
new or increased assessments, the City Council will appoint an owners
association for the District. This owners association shall make recommendations
to the City Council regarding the expenditures of revenue derived from the levy of
assessments and on the classification of properties as applicable. This owners
association shall cause to be prepared an annual 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.
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DESCRIPTI�N QF THE DISTRICT
District Boundary
The District consists of all parcels located in the commercial business area
known as the President's Plaza I within the City of Palm Desert, County of
Riverside. The District includes forty-two (42) assessed commercial parcels and
three (3) non-contiguous and non-assessed parking lot parcels and one (1) non-
assessed easement/walkway parcel.
The boundary of the proposed District and the parcels therein are located South
of Palm Desert Drive at Highway 111; North of EI Paseo; West of Portola
Avenue; and East of Larkspur Lane. PresidenYs Plaza I is commonly referred to
as President's Plaza East (the area east of San Luis Rey Avenue); and
President's Plaza West (the area west of San Luis Rey Avenue) located within
the boundaries of the District.
Improvements and Activities
In an effort to enhance and improve business opportunities and the appearance
of the area known as the President's Plaza I, the City originally 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 I Property and Business Improvement District was formed in
1998 to provide and ensure the continued maintenance of the improvements
after the renovations had been completed. In 2003 and again in 2008, the
property owners renewed the District for five (5) year terms and the assessments
that were levied continued to provide funding for this maintenance. Should the
District be renewed for another three (3) year term, the assessments generated
will continue to provide the necessary revenue for the maintenance, and an
increase in assessment will be added effective fiscal year 2014/2015 based on
anticipated increases in costs for the District's activities and for parking lot
maintenance.
It has been determined that the properties within the District and the businesses
associated with those properties receive special and distinct benefits from the
improvements and activities to be funded through the assessments. The
improvements include the necessary activities, services, operation,
administration, and maintenance required to keep the improvements in
satisfactory condition including 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 patching of asphalt,
slurry sealing, and striping of the parking lot areas; removal of trimmings,
rubbish, debris and other solid waste; the cleaning, sandblasting, and repainting
of walls and other improvements to remove or cover graffiti; providing for the
growth, health and beauty of landscaping and lighting including cultivation,
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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 etectrical energy;
• Debris removal: including, but not limited to: solid waste containers,
refuse collection services, and regular mechanical sweeping of the
parking lot; and,
• Parking Lot Maintenance: including, but not limited to, patching of
asphalt, slurry sealing, and parking lot striping required to properly
maintain and ensure the satisfactory condition of the parking lots and
appurtenant facilities.
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 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
lots, regular sweeping and maintenance of the parking lots, and refuse collection
services and facilities.
The special benefits of lighting (parking lot lights) are the convenience, safety,
and security of property, improvements, and goods. Speci�cally:
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 areas and the properties that
are associated with the parking areas;
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7. Increased promotion of business activities and opportunities during
nighttime hours; and,
8. The special economic enhancement to the properties and their ability
to attract and sustain business and commercial activity as a result of
the benefits identified above.
The benefits associated with landscaped islands and medians within the parking
lots are specifically:
1. Improved aesthetic appeal of the parking areas 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 economic enhancement to the properties and their ability
to attract and sustain business and commercial activity as a result of
the benefits identified above.
Debris removal (parking lot sweeping) and refuse collection are essential and
necessary activities for all properties—particularly commercial properties. These
activities and services are proposed to be funded through the assessments
solely for the special benefit of properties within the District. The benefits
associated with these services are:
1. Enhanced aesthetic appeal of the parking areas and the properties that
are associated with the parking areas;
2. Improved dust control;
3. A positive representation of the businesses within the District; and
4. A centralized location of refuse collection facilities and availability of
the service that would otherwise require individual facilities that could
be cost prohibitive and physically restrictive.
Parking lot maintenance is an essential and necessary activity for all properties,
and in particular, for 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. Increased safety to automobile, truck and pedestrian traffic within the
parking areas and to the properties that are associated with the
parking areas;
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2. Improved traffic circulation within the parking areas;
3. Enhanced aesthetic appeal of the parking areas and the properties that
are associated with the parking areas;
4. Improved dust control;
5. The special economic enhancement to the properties and their ability
to attract and sustain business and commercial activity as a result of
the benefits identified above.
The on-going operation and maintenance of the landscaping, lighting, sweeping
and refuse collection services, and parking lot areas provide no measurable
general benefit to other properties outside the boundaries of the District, or to the
public at large. Therefore, these improvements and the corresponding
assessments have been identified as providing 100% special benefit to parcels
within the District.
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METHQD C1F APPQRTIONMENT
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 lmprovements and Services
Assessed parcels within PresidenYs Plaza I are adjacent to centrafized parking
facilities (lots) that provide access, parking, and delivery areas for the businesses
and parcels within the District. Each parcel derives special benefit from the
parking lot improvements and the services and activities necessary to maintain
the parking lot. The improvements and activities include maintenance of several
landscaped islands and medians, maintenance and operation of lighting facilities,
parking lot maintenance, and sweeping services. Each assessed parcel within
the District receives a direct and special benefit from these improvements and
will share proportionately in the cost of maintaining the parking lots. The parking
areas consists of the three parcels that are entirely parking lot area and portions
of many of the assessed parcels within the District. The three parcels that are
entirely parking lot area parcels (627-212-016; 627-221-011; and 627-222-043),
and one easement/walkway parcel (627-222-042) are not assessed. These
parcels are considered to be part of the improvements and maintenance and
therefore receive no special benefit.
In determining the method of apportionment for the improvements, each parcel's
benefit is based on the parking area adjacent to, and associated with, each
parcel. Therefore, it has been determined that a fair and reasonable reflection of
each parcel's benefit for the parking lot improvements shall be based on the
approximate front footage adjacent to the parking areas. Most parcels within the
District front the parking lots on only one side. To ensure a reasonable and
equitable apportionment of special benefit, parcels that front the parking lot on
more than one side (corner properties), are only assessed for their front footage
along the side of their property adjacent to the parking lot.
Sotid Waste (Refuse) Collection Services
Establishing separate refuse receptacles for each parcel or business within
President's Plaza I, and thereby allowing for separate charges and agreements
for this service, is not practical due to limited space and accessibility. Therefore,
several common refuse containers have been placed within the parking lot area
for use by all the properties and businesses, and patrons of these businesses,
within the District. Historically, all developed properties within President's Plaza I
have shared proportionately in the costs associated with refuse collection based
on the building square footage of the structures on each parcel.
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In determining the method of apportionment for refuse collection services, the
possibility of factoring in business types as well as building square footage was
considered. However, the inclusion of business types in the calculation of an
annual assessment poses several problems. First, many of the parcels assessed
include multiple business types, which could require a complex calculation to
identify potential use of the service. Second, businesses often change from year
to year or even month to month, making specific business related assessments
difficult to track and time-consuming and expensive to administer. Third,
establishing a method of apportionment that is business-specific rather than
parcel-specific would likely result in annual changes for each parcel's
assessment even if the cost of the service was unchanged. Finally, the level of
service (number of pick-ups and receptacles) has changed very little over the
years. Although many of the businesses and business types have changed within
the District, the total cost of providing this service has remained fairly constant.
In contrast to the total cost, it is not reasonable to assume that all developed
parcels utilize or require the same level of refuse service—typically the larger the
building, the greater amount of refuse that is generated. Therefore, it has been
determined that a fair and reasonable estimate of each parcel's benefit for refuse
collection is the building square footage determined for each parcel.
As noted previously, due to limited space and accessibility, it is not practical for
each parcel or business within President's Plaza I to have separate containers or
agreements with the waste hauler. However, it is recognized that the baseline
level of service (i.e., number of bins, size of the bins and frequency of service)
established for the District may not be adequate or appropriately reflect the
needs of changing business within the District. Therefore, the following
considerations and criteria shall be followed when the level of service provided
requires modifications:
1. If the level of service is reduced, the incremental cost savings (if any) will be
reviewed and applied as follows:
a. Reserve Fund Account — The City staff and the owners' association will
evaluate the existing available Reserve Funds to ensure an acceptable
amount of money is being retained for normal annual operation of the District.
Based on this evaluation, the owners' association will modify the annual
report (recommendation to the City Council) to apply all or a portion of the
cost savings to the Reserve Account. A fully funded Reserve is an amount
equal to approximately one half of all annual operating expenses. However,
most operating reserves are typically less than 50%, but greater than 25% of
all annual operating expenses.
b. Reduced Assessments — After reviewing the Reserve Account, any cost
savings not applied to the Reserve Account (Reserve Fund Collection) will be
passed on to each parcel within the District by reducing their annual
assessment for the next fiscal year, in proportion to their estimated benefit
(from the method of apportionment).
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2. If the level of service is increased, the incremental cost increase (if any) will
be reviewed and applied as follows:
a. Increased service District-wide — When the current District was
renewed/formed, an assessment range formula was approved. This formula
provided for anticipated cost of living increases, but also allowed some
flexibility for increased costs due to increased levels of service. If an
increased level of service is required for the entire District, the increase is
reflected in the annual budget. This budget increase will typically cause a
proportionat increase of the annual assessment. If the increased cost results
in an assessment rate that exceeds the maximum assessment allowed, then
reserve funds will be used to reduce the annual assessment to the maximum
assessment allowed. If the reserve fund is not sufficient to cover the cost
increase, the City Council may provide a temporary loan to the District or
conduct a property owner ballot proceeding for an assessment increase.
b. Increased service for one parcel — When the current District was
renewed/formed, a baseline assessment rate and level of service was
established for all properties within the District. As businesses within the
District change or continue to grow, these businesses may generate a need
for an increased level of service, but it is not fair or equitable to spread the
cost of this increased service to other properties within the District. Therefore,
if a business requires an increased level of service, that particular business
owner or the owner of the property on which the business is located, must
pay the resulting cost increase as a surcharge. Either the City or the property
owner may initiate the need for an increased service level. The City Council
shall make the final determination as to the appropriate mechanism by which
the increased level of service will be provided. The increased level of service
may be accomplished by:
• Increasing the number of pick-ups on the specific bin(s) used by the
property or business.
• Increasing the size of the specific bin(s) used by the property or
business if space permits.
• Providing separate bin(s) for the property or business if space and
accessibility permits.
• Any combination of the above.
The costs associated with the increased level of service shall be the obligation of
the business and/or property owner which is provided with the additional service.
Payment for the increased level of service shall be reviewed by the owners
association, which will make a recommendation to the City Council for approval.
The additional cost of providing the increased level of service may be added to
the annual assessment for the property as a surcharge (in addition to their
annual assessment), upon written petition of the property owner and approval by
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the City Council (This may require a signed agreement between the property
owner and the City of Palm Desert). However, before any action is taken to add a
surcharge to the property tax roll as part of the property's annual assessment,
the property owner/business shall work with City staff and the owners association
to establish the necessary level of additional service. And arrange for direct
payment for the service to the waste hauler or the City if at all possible.
Method of Apportionment Calculations
The apportionment of benefit within the District utilizes a weighting factor known
as an Equivalent Benefit Unit (EBU). Each parcel's EBU represents a percentage
of the total EBU applied for the entire District. Depending on the improvement or
activity provided, the EBU assigned to each parcel is based on either the parcel's
development (approximate building square footage) or the parcel's area of
improvement (front footage to the parking lots). The cost of refuse collection
services is apportioned based on each parcel's approximate building square
footage. All other improvements and services funded through the District are
associated with the parking lots. The total cost of the parking lot improvements
and services is apportioned to each parcel based on their front footage to the
parking lots.
The sum of each parcel's proportionate share of refuse costs and parking lot
costs represents the parcel's Total Direct Cost. In addition to a parcel's Total
Direct Cost, each parcel is assessed for administration expenses and a reserve
fund collection (Indirect Costs). The Indirect Costs for each parcel have been
apportioned by a percentage of the parcel's Direct Costs, not to exceed fifteen
percent (15°/a). Therefore, each parcel's Total Annual Assessment is the sum of
its proportionate share of the Total Direct Cost and Total Indirect Costs. Although
each parcel's proportional benefit and assessment for each improvement is
calculated individually, each parcel's maximum assessment is based on the
parcel's combined assessment for all costs and services. The rate applied to any
one improvement or service may exceed the maximum rate originally
established, provided the parcel's combined assessment does not exceed the
combined maximum assessment established for the property (excluding changes
in land use or development).
The County requires that all annual assessments levied and submitted for
collection on tax bills be rounded to the nearest even penny, thus allowing the
total assessment to be split into two installments. In order to comply with the
County's requirements, the calculation of each assessment component (i.e.,
refuse costs, parking lot costs and indirect costs) is rounded to the nearest even
penny and then added together for the parcel's Total Annual Assessment.
The following describes the general method used to arrive at each parcel's
proposed assessment.
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Apportionment of Direct Costs
Refuse Coilection Assessment
The Total Refuse Cost estimated for refuse services is based on the City's
contract with a waste hauler for service to President's Plaza I. This Total Refuse
Cost divided by the estimated Total Building Square Footage establishes a Rate
per building square foot. This Rate is multiplied by each parcel's estimated
building square footage to calculate the parcel's proportionate share of the refuse
service cost.
Total Refuse Cost/Tota!Building Square Footage = Rate per Building
Square Foot
Rate x Parce!Building Square Footage = Refuse Assessment
Note: For purposes of calculating the refuse assessment, the building square footage for each
parcel has been rounded to the nearest hundred square feet. Refer to Appendix"B"for building
square footage applied.
Table 1 below provides the proposed Refuse assessment rates for Fiscal Year
2013/2014 throu h Fiscal Year 2015/2016.
Table 1: Building Size Proposed Rates
. . . - . . .
. - . . .
Fiscal Year 2013/2014 $ 0.4759
Fiscal Year 2014/2015 $ 0.4901
Fiscal Year 2015/2016 $ 0.5048
There are currently forty-two (42) developed commercial properties within the
District that are assessed for refuse collection services based on their
approximate proportional building square footage of the total 288,900 square
feet. (Refer to the Assessment Roll for individual parcel Refuse assessments).
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Parking Lot Assessment
The Total Lot Cost estimated for parking lot improvements and services
(maintenance) is based on the estimated annual costs to maintain the
landscaping, lighting, and parking lot improvements, as well as provide
mechanical sweeping of the parking lot, within President's Plaza I. This Total Lot
Cost divided by the applied parking lot Total Front Footage (3,735 Linear Feet),
establishes a Rate per front foot. This Rate is multiplied by each parcel's applied
front footage (proportional front footage) to calculate the parcel's proportionate
share of the parking lot maintenance costs.
Total Lot Cost/Total Fronf Footage = Rate per Front Foot
Rate per front foot x Parce/Front Footage = Parking Lot Assessment
Note: For purposes of calculating the parking lot assessment, each parcel's front footage is based
on the parcel's footage rounded to the nearest five feet. Refer to Appendix"B"for front footage
applied.
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Table 2 below provides the Parkinq Lot assessment rates for Fiscal Year
2013/2014 throuqh Fiscal Year 2015/2016.
Table 2: Parking Lot Proposed Rates
. . . - . .
. - . .
Fiscal Year 2013/2014 $ 12.6752
Fiscal Year 2014/2015 $ 13.0554
Fiscal Year 2015/2016 $ 13.4471
Each assessed parcel within the District receive direct and special benefits from
the parking lot improvements and services. Each of these parcels is assessed
proportionately based on their front footage adjacent to the parking lot.
Apportionment of Indirect Costs
To ensure the improvements, activities, and services provided and funded
through the District are continued, each parcel will be assessed for its
proportional share of 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 toward a Reserve Fund. The annual assessment
for Indirect Costs has been established at fifteen percent (15%) of the Total
Direct Costs assessed to each parcel.
The sum of each parcel's proportionate share of refuse costs and parking lot
costs represents the parcel's Direct Cost. This Direct Cost multiplied by fifteen
percent (15%) represents each parcel's proportionate share of the Indirect Costs.
Parcel's Total Direct Cost X 15% _ lndirect Assessment
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Table 3 below provides a summary of the District's estimated Indirect Cost
amounts for Fiscal Year 2013/2014 throuqh Fiscal Year 2015/2016
Table 3: Total Proposed Indirect Gosts
.
s a •
Fiscal Year 2013/2014 $ 27,765.71
Fiscal Year 2014I2015 $ 28,598.68
Fiscat Year 2015/2016 $ 29,456.64
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 and
the maximum amount projected. The maximum projected amounts were
determined by applying an annual inflationary factor of three percent (3%) over
the five-year duration of the District based on the first year assessments.
Annual Budget Adjustments
For the five years of the term of the PBID renewal, annual assessments may be
adjusted by the President's Plaza I 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 outlined in (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.
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DESGRtPT10N OF BUDGET ITEMS
Direct Benefit Costs
Landscape Maintenance Contract — 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 operations required within the District is
determined by City staff, but is generally scheduled weekly.
Landscape Water — Utility cost to furnish water required for landscape
irrigation.
Landscape E/ectric — Utility cost for furnishing of electricity required for the
operation of the irrigation systems and ornamental lighting.
Landscape Repairs — 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. Planned upgrades may also be included.
These upgrades may include, but are not limited to, replacing plant materials or
renovation of irrigation systems.
Lighting — The furnishing of electricity required for the operation and
maintenance of the lighting facilities (parking lot lighting, including but not limited
to, bulbs, fixtures, poles, wiring, and electrical energy). The City contracts for the
furnishing of its electricity for 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.
Sweeping Services — Weekly cleaning of the parking lots and gutters using a
contracted, mechanized service.
Parking Lot Maintenance — Includes all regularly scheduled labor, material,
and equipment for patching of asphalt, slurry sealing, and parking lot striping
required to properly maintain and ensure the satisfactory condition of the parking
lots and appurtenant facilities. The frequency and specific maintenance
operations required within the District is determined by City staff, but slurry
sealing and parking lot striping are generally scheduled annually, while patching
of asphalt is performed on an as-needed basis. Parking lot maintenance for
slurry sealing and parking lot striping within the District is contracted for service
on a regular basis, while patching of asphalt may be performed by City staff or
contracted for service as needed.
Solid Waste Remova/ Services — The furnishing of bins and bi-weekly
collection of solid waste. The City contracts with a waste hauler for this service.
Only developed properties (with a structure) receive special benefit from this
service and are assessed for this service.
PresidenYs Plaza l PB/D Renewal Page 15
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Financisl 5ervi�es
Indirect Benefit Costs
District Administration — The cost to all departments and staff of the City, for
providing the coordination of District services, operations and maintenance of the
District, response to public concerns and education, and procedures associated
with the levy and collection of assessments. This cost also includes contracting
with professionals to provide additional administrative, legal, or engineering
services specific fo the District.
County Adminisfration 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.
Coun�y Per Parcel Fee — This is the cost to the District for the County to collect
assessments on the property tax bills. This charge is on a per assessment basis,
at $0.36 per assessment, and is in addition to the County Administration Fee.
Miscellaneous Expenses — This is a fund for additional costs related to District
administration including required formation, documentation, recordation, and
legal fees.
Reserve Fund Collection — The Reserve Fund provides for collection of funds
to operate the District from the time period of July 1 (beginning of the Fiscal
Year) through January when the County provides the City with the first
installment of assessments collected from the property tax bills. The 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 the fiscal year. The 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.
Levy Breakdown
Tota/ District Costs — This is the sum total of all budgeted Direct and Indirect
costs.
Anticipated Deficif/Surplus — This item may include anticipated costs of the
District that exceed the amount to be collected. This item also reflects beginning
balance deficits. When the actual cost and expenditures for the District are
greater than the amount budgeted and collected in the prior fiscal year, the
District has a Beginning Balance Deficit. This deficit may be the result of
unforeseen and extraordinary costs incurred, or assessments actually collected
being less than anticipated. When a deficit occurs, the deficit amount may be
added to the amount to be collected through the levy for the current fiscal year or
recovered through use of the Reserve Fund.
When the actual costs and expenditures for the District are less than the amount
budgeted and collected in the prior fiscal year, the District has a Beginning
PresidenYs P/aza/PB/D Renewal Page �6
y1/wii�aaN �
Financiat Servi�es
Balance Surplus. When a surplus occurs, the amount may be used to reduce
assessments for the following year or may be added to the Reserve Fund.
Other Revenue Sources — This item may include additional funds designated
for use by the District that are not from District assessments. These funds are
added to the District account and may be added to the Reserve Fund or used to
reduce assessments, and may be from either non-District or District sources
including City General Fund Contributions or interest earnings on the Reserve
Fund.
BaJance to Levy—This is the total amount to be levied and collected through
assessments for the current fiscal year. The Balance to Levy represents the sum
of Total Direct Costs, Indirect Costs, Revenue Deficits, Other Revenue Sources,
Revenue Surpluses, and Contribution Replenishments.
District Statistics
Tota/Number of Parcels —The total number of parcels within the District.
Total Parcels Levied — 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.
Total Building Square Footage — This is the sum total of the building square
footage applied to parcels within the District.
Tofa/ Parking Lot Front Footage (parking /ot) — This is the sum total of the
parking lot front footage applied to parcels within the District.
Levy Rate per Building Square Foot—This amount represents the Rate being
applied to each parcel's individual building square footage (calculation of each
parcel's proportionate share of refuse collection costs). The Levy Rate per
Square Foot is the result of dividing the estimated total refuse cost for that year
by the sum of the District's Total Building Square Footage. The rate is calculated
to three decimal places.
Levy Rate per Front Foot— This amount represents the Rate being applied to
each parcel's individual parking lot front footage (calculation of the parcel's
proportionate share of parking lot maintenance costs). The Levy Rate per Front
Foot is the result of dividing the estimated total parking lot costs for that year by
the sum of the District's Total Parking Lot Front Footage. The rate is calculated to
three decimal places.
Levy Rate for Indirect Costs —This amount represents the percentage applied
to each parcel's Direct Costs to determine the parcel's proportionate share of the
amount to be assessed for administrative expenses and Reserve Fund
Collection. A maximum rate of fifteen percent (15%) has been established. It is
anticipated that the maximum amount will be collected each year in order to
establish and maintain a reasonable Reserve Fund.
PresidenYs Plaza!PB/D Renewa! Page 17
�V1/ILIDAN �
Financiai Serviccs
District Budget
The District Budget shown on the foliowing page (Tabie 4) lists the estimated
costs of providing the various improvements and services. The costs and the
resulting rate for each Fiscal Year is based on the estimated costs to provide the
improvements and services that year. The projected annual costs anticipated
over the five-year duration of the District assessments have been calculated
based on an annual inflationary factor of three percent (3%) from the first fiscal
year. However, this inflation factor does not mean the assessments will increase
annually by three percent (3%). 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.
President's Plaza/PBID Renewal Page 18
�WILLDAN '
Financiat Servi[xs
Table 4: Five Year Bud et
. .. - . . ,- , .
' • � - i 1 f
Direct Benefit Costs
Landscape Maintenance Costs $ 6,854 $ 7,060 $ 7,271
Landscape Water 5,376 5,537 5,703
Landscape Electric _ • _ • _
Landscape Repairs 4,704 4,845 4,990
Miscellaneous - - -
Lighting 13,438 13,841 14,256
Sweeping Services 5,376 5,537 5,703
Parking Lot Maintenance 11,593 11,941 12,299
Subtotal of Sen�ices based on parking lot front footage $ 47,340 $ 48,760 $ 50,223
Solid Waste Remo�l Senrices 137,766 141,898 146,155
Subtotal of Services based on building square footage $ 137,766 $ 141,898 $ 146,155
Total Direct Benefit 185,105 $ 190,658 $ 196,378
Indirect Costs
District Administration 12,345 12,716 13,097
County Administration Fee 161 166 171
County Per Parcel Fee 16 16 17
Miscellaneous Expenses 5,988 6,168 6,353
Administrative Subtotal $ 18,511 $ 19,066 $ 19,63$
Reser�e Fund Collection(5%) 9,255 9,533 9,819
Total Indirect Cost ��� $ 27,766 $ 28,599 $ 29,457
Levy Br�akdown
Total Direct and Indirect Costs 212,871 219,257 225,835
Anticipated Deficit or Surplus - - -
Other Re�enue Sources - - -
Balance to Levy $ 212,871 $ 299,257 $ 225,835
% increase 3.00% 3.00°/a 3.00°/a
Amount Balloted
District Statistics
Total Parcels 46 46 46
Total Parcels To Levy 42 42 42
Total Building Square Footage 288,900 288,900 288,900
Total Front Footage(Parking Lot) 3,735 3,735 3,735
Levy Rate per Building Square Foot�Z� $ 0.4759 $ 0.4901 $ 0.5048
°/a increase 3.00°/a 3.00°�
Levy Rate per Front Foot $ 12.6752 '$ 13.0554 '$ 13.4471
°!o increase 3.00% 3.00%
Levy Rate for AdmiNResen�es �'� 15.00% 15.00% 15.00%
Reserve Fund Balance
Previous Balance 102,217 111,472 121,005
Ending Balance 111,472 121,005 130,824
�'�Total Indirect costs including a 5%collection for reserves are 15%of the total direct benefit costs.
�>Maximum annual assessments for direct costs and indirect costs for FY 2013-14 represent a 3%increase over the
assessments applied in the current PBID term(Fiscal Year 2012/2013).
Sources:City of Palm Desert;Wilkian Financial Services
President's Plaza/P81D Renewa/ Page 19
�1NiLLQAN �
Financial Sarvi�es
APPENDIX A ASSESSMENT DIAGRAM
The Assessment Diagram for the District is shown in reduced format on the
following page and is inclusive of all parcels identified on the County of Riverside
Assessor's Parcel Maps as Book 627, Pages 212, 221 and 222. The Assessment
Diagram will be kept on file with the City Clerk of the City of Palm Desert.
President's Plaza/PBID Renewal Page A-9
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APPENDIX B - PARCEL LEVY INFORMATION
The parcel information shown on the following page, including building square
footage and front footage, is used in calculating each parcel's proportionate
share of all District Costs.
PresidenYs Plaza l PB1D Renewal Page B-1
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Parcel Information
� �- �. � .. � .. - .
. . . . . . .
. .� . .. . .� .. . .� . .
1 627-212-002 '73669 HiGHWAY 111 50.00 50.00 3,885.00 3,900.00
2 627-212-003 '73677 HIGHWAY 111 200.00 200.00 8,650.Q0 $,700.00
3 627-212-004 '73731 HIGHWAY 111 100.00 100.00 8,525.OQ 8,500.00
4 627-212-005 '73640 EL PASEO 171.55 170.00 12,132.00 12,100.00
5 627-212-006 '73660 EL PASEO 50.00 50.00 5,820.00 5,800.00
6 627-212-009 '73690 El PASEO 50.00 50.00 8,150.00 8,200.00
7 627-212-010 '73700 EL PASEO 50.00 50.00 3,210.00 3,200.00
8 627-212-011 '73710 EL PASEO 50.00 50.00 5,030.00 5,000.00
9 627-212-012 '73722 EL PASEO 50.00 50.00 2,400.00 2,400.00
10 627-212-014 '73730 EL PASEO 50.00 50.00 5,000.00 5,000.00
11 627-212-015 '73625 HIGHWAY 111 221.55 220.00 20,987.00 21,000.00
627-212-016 - - - -
12 627-212-017 '73670 EL PASEO 100.00 100.00 10,238.00 10,200.00
13 627-221-001 '�3741 HIGHWAY 111 50.00 50.00 4,750.00 4,800.00
14 627-221-002 '73759 HIGHWAY 111 50.00 50.00 4,750.00 4,800.00
15 627-221-004 '45145 SAN LUIS REY AVE 213.02 215.00 18,182.00 18,200.00
16 627-221-008 '73740 EL PASEO 50.00 50.00 5,300.00 5,300.OQ
17 627-221-009 '73750 EL PASEO 50.00 50.00 4,563.00 4,600.00
18 627-221-010 '73801 HIGHWAY 111 225.16 225.00 1,568.00 1,600.00
627-221-011 - - - -
19 627-222-002 '73845 HIGHWAY 111 50.00 50.00 4,435.�0 4,400.00
20 627-222-003 '73851 HIGHWAY 111 50.00 50.00 3,250.00 3,300.00
21 627-222-004 '73861 HIGHWAY 111 50.00 50.00 3,250.d0 3,300.00
22 627-222-005 '73873 NIGHWAY 111 50.00 50.0(} 3,000.00 3,000.00
23 627-222-008 '73891 HIGHWAY 111 100.00 100.00 6,712.00 6,700.00
24 627-222-014 '73965 HIGHWAY 111 50.00 50.00 4,692.00 4,700.00
25 627-222-015 '73981 HIGHWAY 111 50.00 50.00 3,900.00 3,900.00
26 627-222-021 50.00 50.00 3,762.00 3,800.00
27 627-222-024 '73900 EL PASEO 50.00 50.00 5,050.00 5,100.00
28 627-222-025 '73910 EL PASEO 50.00 50.00 5,000.00 5,000.00
29 627-222-026 '73920 EL PASEO 50.00 50.00 5,0OO.OQ 5,000.00
30 627-222-027 '73930 EL PASEO 50.00 50.00 5,150.00 5,200.00
31 627-222-028 '73940 EL PASEO 50.00 50.00 4,950.00 5,0OO.OU
32 62�-222-029 '73950 EL PASEO 50.00 5Q.00 4,800.00 4,800.00
33 627-222-030 50.00 50.00 4,950.00 5,000.00
34 627-222-034 '73925 HiGHWAY 111 100.00 100.00 6,276.00 6,300.00
35 627-222-038 '73890 El PASEO 100.OQ 100.00 9,900.00 9,900.00
36 627-222-041 '73885 HIGHWAY 111 75.00 75.00 5,925.00 5,900.00
627-222-042 - - - -
627-222-043 '45211 PORTOLA AVE - - - -
37 627-222-044 '73990 EL PASEO 140.63 140.00 13,338.00 13,300.00
38 627-222-048 '73941 HIGHWAY 111 100.00 100.00 7,825.00 7,800.00
39 627-222-052 '73820 EL PASEO 251.69 250.00 11,694.00 11,700.00
40 627-222-053 '73833 HIGHWAY 111 151.69 150.00 8,238.00 8,200.00
41 627-222-055 '73970 EL PASEO 100.00 100.00 15,017.00 15,000.00
42 627-222-058 '73993 HIGHWAY 111 140.00 140.00 9,312.00 9,300.00
Tota! 3,740.29 3,735.00 288,566.00 288,900.00
�� � �
���Due to rounding,totals rr�y not add up to$212,871.
Sources:I�verside County Secured Rnll;�IkJan Fnanciai Services
PresidenYs P/aza/PB►D Renewal Page B-2
�WILLDAN �
F�,ar����serv�
APPENDIX C 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.
President's Plaza!PB/D Renewal Page C-1
�WILLDAN I
FnsneiaD 5ervices
Tabie 5: Assessment Roll
. . . .
� �. .. . .� . . .. . .
• �- 1 . . -�-� • �- 1 � �
. �- . � . � . � � �
1 627-212-002 '73669 HIGHWAY 111 $633.76 $1,855.85 $373.44 $2,863.05
2 627-212-003 '73677 HIGHWAY 111 2,535.04 4,139.98 1,001.26 7,676.28
3 627-212-004 '73731 HIGHWAY 111 1,267.52 4,044.81 796.84 6,109.17
4 627-212-005 '73640 EL PASEO 2,154.78 5,757.91 1,186.90 9,099.59
5 627-212-006 '73660 E�PASEO 633.76 2,759.99 509.06 3,902.81
6 627-212-009 '73690 EL PASEO 633.76 3,902.05 680.38 5,2'l6.19
7 627-212-010 '73700 EL PASEO 633.76 1,522.75 323.48 2,479.99
8 627-212-011 '73710 EL PASEO 633.76 2,379.30 451.96 3,465.02
9 627-212-012 '73722 EL PASEO 633.76 1,142.06 266.38 2,042.20
10 627-212-014 �73730 EL PASEO 633.76 2,379.30 451.96 3,465.02
11 627-212-015 '73625 HIGHWAY 111 2,788.54 9,993.06 1,917.24 14,698.84
627-212-016
12 627-212-017 '73670 EL PASEO 1,267.52 4,853.77 918.20 7,039.49
13 627-221-001 '73741 HIGHWAY 111 633.76 2,284.13 437.68 3,355.57
14 627-221-002 '73759 HIGHWAY 111 633.76 2,284.13 437.68 3,355.57
15 627-221-004 '45145 SAN LUIS REY AV 2,725.16 8,660.65 1,707.88 13,093.70
16 627-221-008 '73740 EL PASEO 633.76 2,522.06 473.38 3,629.20
17 627-221-009 '73750 EL PASEO 633.76 2,188.96 423.40 3,246.12
18 627-221-010 '73801 HIGHWAY 111 2,851.92 76i.38 542.00 4,155.29
627-221-011
19 627-222-002 '73845 HIGHWAY 111 633.76 2,093.78 409.14 3,136.68
20 627-222-003 '73851 HIGHWAY 111 633.76 1,570.34 330.62 2,534J2
21 627-222-004 '73861 HIGHWAY 111 633.76 1,570.34 330.62 2,534.72
22 627-222-0Q5 �73873 HIGHWAY 111 633.76 1,427.58 309.20 2,370.54
23 627-222-008 '73891 HIGHVVAY T 11 1,267.52 3,188.26 668.36 5,124.14
24 627-222-014 '73965 HIGHWAY 111 633.76 2,236.54 430.54 3,300.84
25 627-222-015 '73981 HIGHWAY 111 633.76 1,855.85 373.44 2,863.05
26 627-222-021 633.76 1,808.27 366.30 2,808.33
27 627-222-024 '73900 EL PASEO 633.76 2,426.89 459.10 3,519.75
28 627-222-025 '73910 EL PASEO 633.76 2,379.30 451.96 3,465.02
29 627-222-026 'T3920 EL PASEO 633.76 2,379.30 451.96 3,465.02
30 627-222-027 '73930 EL PASEO 633.76 2,474.47 466.24 3,574.47
31 627-222-028 '73940 EL PASEO 633.76 2,379.30 451.96 3,465.02
32 627-222-029 '73950 EL PASEO 633.76 2,284.13 437.68 3,355.57
33 627-222-030 633.76 2,379.30 451.96 3,465.02
34 627-222-034 '73925 HIGHWAY 111 1,267.52 2,997.92 639.82 4,905.26
35 627-222-038 '73890 EL PASEO 1,267.52 4,711.01 896.78 6,875.31
36 627-222-041 '73885 HIGHWAY 111 950.64 2,807.57 563.74 4,321.95
627-222-042
627-222-043 '45211 PORTOLA AVE
37 627-222-044 '73990 EL PASEO 1,774.53 6,328.94 1,215.52 9,318.98
38 627-222-048 '73941 HIGHWAY 111 1,267.52 3,711.71 746.88 5,726.11
39 627-222-052 '73820 EL PASEO 3,168.80 5,567.56 1,310.46 10,046.82
40 627-222-053 '73833 HIGHWAY 111 1,901.28 3,902.05 870.50 6,673.83
41 627-222-055 '73970 EL PASEO 1,267.52 7,137.90 1,260.82 9,666.24
42 627-222-058 '73993 HIGFMIAY 111 1,774.53 4,425.50 930.00 7,130.02
Total 547,341.80 S13T,475.95 $27,722.72 5212,540.47
�
�'>Due to rounding,totals rrey not add up to$212,871.
Sources:f�verside Counry Secured Roll;Willdan Fnancial Services
PresidenYs P/aza/PB/D Renewa/ Page C-2