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Recommendation to Accept the Police and Fire Services Fee Report. (Finance 2410)
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To: Honorable Mayor and Members of the City Council
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From: John A. Russo, City Manager
Re: Recommendation to Accept the Police and Fire Services Fee Report
BACKGROUND
On March 21, 1990, the City Council adopted the Police and Fire Fee Ordinance, which established the City's Police and Fire Services Fee requirements as Section 27-2 of the Alameda Municipal Code and requires that this fee be imposed on all new construction. This ordinance serves to mitigate the impacts caused by new construction on Police and Fire facility demands. The original fee was 12 cents per square foot. In 1991, the fee was increased to 14 cents per square foot; in February 1995 it was increased to 15.5 cents per square foot. Effective September 15, 2014, these fees ceased to be collected as they have been incorporated into the new Development Impact Fee ordinance.
DISCUSSION
At the time of final inspection or date of the Certificate of Occupancy, whichever occurs first, the developer/builder must pay the Police and Fire Services Fee as required by ordinance. The ordinance permits an appeal process whereby the developer/builder may apply for an adjustment or waiver of the Police and Fire Services Fee. Award of appeals is based on the absence of any reasonable relationship or nexus between the police and fire service impacts of the new construction and the payment of the fee itself. The appeal process includes an administrative public hearing and an ultimate decision by the City Council.
FINANCIAL IMPACT
The Police and Fire Services Fee Ordinance has no impact on the General Fund. By ordinance, funds from this fee are segregated in a special fund (Fund 161) that can only be used for eligible purposes specified in the ordinance.
For FY13-14, a total of $43,034 in fees was credited to this fund. Expenditures from the account supported the debt service payments for the Police Building Remodel/Construction. Transfers from the General Fund in the amount of $231,000 were used to cover the remaining portion of debt service expenditures not covered by the Police and Fire Services Fee. (The debt service is a General Obligation of the City partially backed by the City's General Fund.) Exhibit 1 describes the beginning and ending fund balances and fund activity for FY13-14.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This Annual Review is consistent with the requirements of Section 27-2 (Police and Fire Fee Requirements) of the Alameda Municipal Code and California Government Code Section 66006.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378 (b)(4) of the CEQA Guidelines, because it involves governmental fiscal activities, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Accept the Police and Fire Services fee report.
Respectfully submitted,
Juelle-Ann Boyer, Interim Finance Director
Financial Impact section reviewed,
Juelle-Ann Boyer, Interim Finance Director
Exhibit:
1. Police & Fire Construction Impact Fee Balance Analysis