Title
Recommendation to Accept the Police and Fire Construction Impact Fee Annual Report. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
Accept the Police and Fire Construction Impact Fee Annual 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 and in February 1995, it was increased to 15.5 cents per square foot.
DISCUSSION
Effective September 15, 2014, the Police and Fire Services Fee was eliminated and incorporated into the new Development Impact Fee (DIF) ordinance. However, the City continues to collect the Police and Fire Fees per the development agreement with TriPoint Homes since it was entered into prior to the establishment of the DIF. Collection and reporting of these fees will cease after the completion of the TriPoint Homes development agreement.
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. No adjustment or waiver has been requested.
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.
During the Fiscal Year (FY) 2017-18, there were no fees collected. The Fund earned $321 in interest. There were no expenditures made from the Fund during the Fiscal Year. Generally, the fees support the debt service payments for the Police Building remodeling/construction that was done in the early 1990s. The available fund balance of $53,568 will be used to support the debt service payments in the next Fiscal Year. As the amount of the fees collected declines, the General Fund will make up the difference in the future debt service payments. Exhibit 1 describes the beginning and ending fund balances and fund activity for FY 2017-18.
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 Construction Impact fee annual report.
Respectfully submitted,
Elena Adair, Finance Director
Exhibit:
1. Impact Fee Report