Title
Recommendation to Accept the Police and Fire Construction Impact Fee Annual Report. (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The Police & Fire Impact Fee Fund (302) collects fees to support the debt service payments for the Police Building remodeling/construction that was done in the early 1990s. During the Fiscal Year (FY) 2021-22, the Police & Fire Impact Fee Fund (302) collected $50,856 in fees and lost $1,947 in investments. The Police & Fire Impact Fee Fund transferred $40,000 to the Police Building Debt Service fund to support the debt service payments for the Police Building remodeling/construction. The available fund balance as of June 30, 2022 was $97,089.
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.
During the FY 2021-22, the Police & Fire Impact Fee Fund (302) collected $50,856 in fees and lost $1,947 in investments. The Police & Fire Impact Fee Fund transferred $40,000 to the Police Building Debt Service fund to support the debt service payments for the Police Building remodeling/construction that was done in the early 1990s. Exhibit 1 shows the beginning and ending fund balances and fund activity for FY 2021-22. The available fund balance as of June 30, 2022 was $97,089.
ALTERNATIVES
• Accept the report.
• Request additional information from staff.
FINANCIAL IMPACT
There is no financial impact from acceptance of these reports.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
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.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with acceptance of this report.
RECOMMENDATION
Accept the Police and Fire Construction Impact Fee Annual Report.
Respectfully submitted,
Margaret O’Brien, Finance Director
By,
Philip Chang, Budget Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Annual Report
cc: Erin Smith, City Manager