Title
Recommendation to Accept the Police and Fire Services Fee Report. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim 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. These fees serve 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, fees were eliminated and incorporated into the new Development Impact Fee (DIF) ordinance. However, the City will continue to collect the Police and Fire Fees per the development agreement with TriPoint Homes since it was entered into prior to establishment of the DIF. Collection and reporting of these fees will cease after the completion of the development agreement.
DISCUSSION
Under the Police and Fire Fee Ordinance, 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 The ordinance allowed for an appeal process whereby the developer/builder may apply for an adjustment or waiver of the Police and Fire Services Fee. The appeal process, under former Alameda Municipal Code 27-2 included an administrative public hearing and a right of appeal to 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 Fiscal Year (FY) 2014-15, a total of $48,430 in fees was credited to this fund. No expenditures were made from the Fund during FY 2014-15. The available fund balance of $233,900 will be used to support the debt service payments for the Police Building remodel and construction in the next Fiscal Year. Exhibit 1 describes the beginning and ending fund balances and fund activity for FY 2014-15.
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,
Elena Adair, Finance Director
Exhibit:
1. Police & Fire Construction Impact Fee Fund Balance Analysis