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HomeMy WebLinkAboutAGENDA REPORT 2018 0404 CCSA REG ITEM 08A CITY OF MOORPARK, CALIFORNIA City of Moorpark April 4, 2018 of ACTION Adopted Resol No Item: 8.A. 2018-3692,rescinding Reso No. 2006-2446 By M Benson MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Ron Ahlers, Finance Director DATE: March 21, 2018 (City Council Meeting of April 4, 2018) SUBJECT: Public Hearing to Consider Resolution Updating the Police Facilities Fee SUMMARY On March 7, 2018, the City Council set April 4, 2018 as the public hearing date for the City Council to consider an increase in the Police Facilities Fee On March 21 , 2018, the City Council received and filed the report on the Police Facilities Fee calculation The City published a public hearing notice for the Police Facilities Fee in the Ventura County Star on March 23, 2018 The Police Facilities Fee is collected by the City prior to the issuance of building permits The purpose of the Police Facilities Fee is to provide funding for the construction and improvement of the Police Services Center as a result of increased demand for Police services arising from additional development The Police Services Center was completed in the fall of 2005 The last increase of the Police Facilities Fee occurred in May 2006 Staff recommends the City Council increase the Police Facilities Fee to Residential, per unit $ 1 ,167 00 Non-Residential, per square foot $ 0 75 DISCUSSION The City began collecting a Police Facilities Fee with the adoption of Ordinance No 9 in October 1983 During April 1995, Ordinance No 9 was replaced with Ordinance No 206 which is codified in Moorpark Municipal Code Sections 3 36 080 through 3 36 140 Resolution No 95-1112, established the Police Facilities Fee 1 Honorable City Council April 4, 2018 Regular Meeting Page 2 In September 2000, the City Council adopted Resolution No. 2000-1777 establishing the following Police Facilities Fee: Residential, per unit $ 677.00 Non-Residential, per square foot $ 0.41 The last increase was implemented in May 2006 with the adoption of Resolution No. 2006-2446, which established the current Police Facilities Fee: Residential, per unit $ 1,027.00 Non-Residential, per square foot $ 0.60 Twelve years have elapsed since the last increase, and a number of factors have changed that warrant a new calculation of the Police Facilities Fee. Municipal Code Section 3.36.130 requires an administration fee to process these revenues. The current fee of $25 is not proposed for change at this time. Police Facility Fee Calculation Moorpark Municipal Code 3.36.100 through 3.36.110 sets forth the calculation as follows: Computation of Fee for Residential Construction The amount of the police facilities fee to be paid pursuant to Section 2 with respect to the construction of residential buildings or the installation of mobile homes shall be the dollar amount equal to "X" in the following formula: X = (ACD)/B Where: "A" equals the estimated cost of acquiring a standard police station, excluding the cost of acquiring that portion to be used solely for custodial purposes, but including land acquisition, site preparation and landscaping costs; "B" equals the maximum number of people who can be served adequately by a standard police station; "C" equals the estimated average number of people who will reside in each dwelling unit in the buildings or mobile homes for which the permit is issued multiplied by a number equal to the number of dwelling units which will be contained in such buildings or mobile homes after construction minus, in cases where the construction is the replacement or modification of existing buildings or mobile homes, the number of dwelling units contained in such buildings or mobile homes immediately prior to construction; and "D" equals the estimated portion, expressed as decimal of the standard police station needed to provide service to residential buildings and mobile homes, as opposed to nonresidential buildings. 2 Honorable City Council April 4, 2018 Regular Meeting Page 3 “A” is $18,442,786 “B” is 36,828 “C” is 3.33 “D” is 0.70 Therefore “X” is $1,167 per residential unit. Computation of Fee for Nonresidential Construction The amount of the police facilities fee to be paid pursuant to Section 2 with respect to the construction of a nonresidential building shall be the dollar amount equal to "Y" in the following formula: Y = (AFG)/E Where: "E" equals the maximum square footage of nonresidential building floor space which can be served adequately by a standard police station; "F" equals the number of square feet of floor space in the buildings for which the permit is issued minus, in cases where the construction is the replacement of modification of existing buildings, the number of square feet of floor space in such existing buildings immediately prior to such replacement or modification; and "G" equals the number one minus the number value assigned to "D" for the purposes of Section 3. “A” is $18,442,786 “F” is One square foot “G” is 0.30 “E” is 7,370,000 Therefore “Y” is $0.75 per square foot. This fee falls under the regulation of Government Code Sections 66000-66025. Accordingly, the fee can only be amended after certain disclosure and timeline requirements. The attached “Proposed Police Facility Fee Information” sheet provides all the information required for disclosure by the Government Code. This information must be provided to the public at least 10 days in advance of the meeting in which the fee will be considered. The adoption of this fee increase can only occur after a public hearing is held and the fee will be effective no sooner than 60 days after adoption of the resolution. The public hearing to increase the Police Facilities fee is scheduled for April 4, 2018. California Government Code Section 66014 provides for cities to charge fees that do not exceed the costs associated with processing land development, zoning and use permit application. Section 66016, 66018 and 6062a set forth the notification and hearing process required prior to levying new fees or service charges, or prior to increasing an existing fee or service charge. Section 66017 provides that certain fees shall take effect no sooner than 60 days from the date of adoption. Notices will be provided in accordance with those requirements and, if adopted, updated fees would take effect on June 4, 2018. 3 Honorable City Council April 4, 2018 Regular Meeting Page 4 FISCAL IMPACT Revenues generated from Police Facilities Fees continue to pay down the interfund loan from the Endowment Fund and also provide funding for improvements to the Police Services Center. The original loan amount was about $2.2 million, the current amount due is about $1.1 million. STAFF RECOMMENDATION ROLL CALL VOTE Staff recommends that the City Council take the following actions: 1. Open the public hearing; accept public testimony, and close the public hearing. 2. Adopt Resolution No. 2018-____ increasing the Police Facilities Fee. Attachments: 1. Police Facilities Fee Information 2. Resolution No. 2018 - __________ 4 Attachment 1 City of Moorpark Police Facilities Fee Information Purpose of Fee: To collect funds from appropriate sources for the purpose of obtaining and/or constructing police facilities. Use of the Funds: All funds generated by imposition of this fee, including any interest earned on these funds, will be used for the financing of public facilities. Specifically, the funds will be used to acquire, construct, remodel, and/or furnish police facilities. Such facilities may include a police station, communications center, custodial areas, and other related police facilities. Relationship between Use of Fee/Need for Police Facilities and Development: This fee will be imposed on new residential and non-residential development. All development results in increased population to be served, either permanent or transitory, and places demand on police services. Reasonableness of Fee: This fee was calculated in accordance with City of Moorpark Ordinance No. 206 (Moorpark Municipal Code 3.36.080 through 3.36.140). In determining the fee to be charged to residential development, factors such as population to be served, typical number of residents per dwelling unit, and percent of police services required for residential areas were considered. In determining the fee to be charged to non-residential development, factors such as percent of police services required for non-residential areas and square foot of non-residential development to be served were considered. This project will be funded only partially with Police Facilities Fees collected as a result of this action. Cost of the Project and Funds Generated by this Fee: The total costs of the Police Services Center are approximately $11.3 million (not including financing costs). Based on current development projections, this fee is anticipated to generate approximately $2.6 million at build-out. This along with the cash collected to date plus interest earnings in an amount of $3.5 million, puts the total projected Police Facilities Fees paid from inception to build-out at approximately $6.1 million. The projected revenues generated by this fee will be approximately $5.2 million less than the total costs of the facility. This shortfall will be absorbed by the Endowment Fund. 5 Attachment 2 RESOLUTION NO. 2018-_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, UPDATING THE POLICE FACILITIES FEE, FINDING THIS ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND RESCINDING RESOLUTION NO. 2006-2446 WHEREAS, the City of Moorpark constructed the Moorpark Police Services Facility in 2005 to better serve the community; and WHEREAS, Chapter 3.36 of the Moorpark Municipal Code provides for parameters to calculate, collect, and process the Police Facilities Fee; and WHEREAS, construction costs for the Moorpark Police Services Center (MPSC) were paid out of the City’s Endowment Fund and a portion of the costs were considered an Interfund Loan from the Endowment Fund, which loan was to be paid with revenue collected from the Police Facilities Fee; and WHEREAS, the Police Facilities Fee, as currently calculated and if collected as the City is built out, will pay off the Interfund Loan and have a remaining balance of approximately $1.1 million in the Police Facilities Fund; and WHEREAS, the MPSC has been in use for more than ten years and will be in need of maintenance projects that are considered qualified ongoing costs in the foreseeable future and require an increase in the Police Facilities Fee to achieve a total fund balance of approximately $1.1 million when the City is built out; and WHEREAS, on April 4, 2018, the City Council held a public hearing as required by Sections 66016 and 66018 of the Government Code, at which hearing all interested persons had the opportunity to appear and be heard regarding the proposed increase to the Police Facilities Fee, and the Council closed the public hearing and reached a decision on the matter; and WHEREAS, the Community Development Director has determined that this adoption of a resolution increasing the Police Facilities Fee is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the California Code of Regulations (CEQA Guidelines) by the general rule that CEQA only applies to “projects” that may have a significant effect on the environment. In this case, it can be seen with certainty that there is no possibility that the proposed fee increase may have a significant impact on the environment. 6 Resolution No. 2018-_____ Page 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council concurs with the Community Development Director’s determination that the increase to the Police Facilities Fee is exempt from the provisions of the California Environmental Quality Act by the general rule that CEQA only applies to “projects” that may have a significant effect on the environment. SECTION 2. The administration fee authorized by Moorpark Municipal Code Section 3.36.130 shall be $25 per fee payment. SECTION 3. The values assigned to A, B, C, D, E, F, and G set forth in Moorpark Municipal Code Sections 3.36.100 and 3.36.110 shall be computed as follows: A. The value A is $18,442,786. This is the estimated cost to acquire a standard police station, including land acquisition, financing costs, site preparation and landscaping costs, with Construction Cost Index adjustment of 124.3%. B. The value B is 36,828. This is the total population served by the police station. C. The value C is 3.33. This is the estimated average number of residents per dwelling unit. D. The value D is 0.70. This is the estimated portion, expressed as a decimal, of the standard police station needed to provide service to residential buildings. E. The value E is 7,370,000. This is the maximum square footage of non- residential building floor space which can be served adequately by a standard police station. F. The value F is a variable and represents the number of square feet of floor space in the non-residential buildings for which the permit is issued. G. The value G is the number 1 minus the value of D. This number equals the estimated portion, expressed as a decimal, of the standard police station needed to provide service to non-residential buildings. 7 Resolution No. 2018-_____ Page 3 SECTION 4. The Police Services Fee shall be paid at the time a building permit is issued and shall be as follows: Residential, per unit $ 1,167.00 Non-residential, per square foot $ 0.75 SECTION 5. Resolution No. 2006-2446 is hereby rescinded upon the effective date of this resolution. SECTION 6. This resolution shall become effective on June 4, 2018, implementing those changes to the Police Facilities Fee described herein immediately upon the effective date set forth herein. This date is at least sixty (60) days after adoption of the resolution as required by Section 66017 of the Government Code. SECTION 7. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 4th day of April, 2018. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 8