HomeMy WebLinkAboutItem #13 New Fire Station and Fire Assessment Fee
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AGENDA ITEM COVER SHEET
Meeting Date: March 17,2008
Item # --L3
Contact Name:
Contact Number:
Jamie Croteau
X 1503
Reviewed By:
Department Director:
City Manager:
MV
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Subject: New Fire Station and the Fire Assessment Fee
Background Summary:
Last fiscal year the City of Ocoee took the steps necessary to develop and implement a non-ad valorem
assessment program to fund fire services. These steps included adopting a Resolution of Intent to Use the
Uniform Method of Collecting Non-Ad Valorem Special Assessments, adopting an Ordinance authorizing the
imposition of the assessment, and adopting both a preliminary and final fee resolution. The City set the fee at
zero. As the City starts to prepare its budget for Fiscal Year 09/10, it needs to determine if the fire fee will remain
at zero for the coming year.
The coming year brings many challenges for the City, a contracting economy, a loss of property values,
decreasing revenues, more attempted unfunded mandates from the state, and another possible round of tax
reform. Among these challenges comes the need for an additional fire station to serve the northern portion of our
City. In this year's budget the City added funding to support the operation of a temporary station along the Ocoee-
Apopka Road corridor. The money in this year's budget allows for slightly less than half a year's operation of the
facility and makes no provision for a permanent facility or continuance of the temporary station past the beginning
of next fiscal year (FY 09/10). Discussion during the budget process centered around the implementation of a fire
assessment fee that would, if not fully support fire operations, provide enough to offset fire costs so that an
additional station could be supported. Attachment A shows a breakdown of costs for both the temporary station
and the permanent station.
On-going annual costs for a temporary station would be approximately $670,000 with costs the first year running
approximately $753,000. The first-year cost includes set up of the temporary station and takes into consideration
that the station would be located on property already owned by the City of Ocoee. To build a permanent station
would cost the City approximately $3 million with on-going operational costs running approximately $1.5 million per
year. The debt service payment ($240,800) for the new facility is included in the $1.5 million on-going annual
costs for the station. This also assumes the station will be located on property already owned by the City. This
means that the overall Fire Department budget will increase by approximately $400,000 for the temporary station
and $1.2 million for the permanent station when taking into account the money the City set aside this year to start
temporary operations. With revenues for the City expected decrease next year, the City needs to secure a
funding source to support fire operations.
One possible source is to assess the fire fee at a level that will offset some, or all, of the City's budget for fire
services. The new station, temporary and/or permanent, were linked to the implementation of a fire fee in last
years' budget discussions. Because the City set the assessment at zero, if the Commission desires to pursue the
option of implementing a fire assessment fee, the City will need to follow the same steps as last year: setting a
preliminary assessment fee, noticing all property owners within the City, and holding a public hearing to adopt the
final assessment fee resolution.
Staff is seeking direction on implementing a fire assessment fee and the Commission's direction on moving
forward with implementation of the fourth fire station.
If the Commission's direction is to move forward with the fire assessment then staff will need input on what
assessment level should be set for the preliminary fee resolution.
Preliminary Fee Resolution
Attached to this agenda are possible assessment fee levels - Attachment B. This attachment shows both the
individual assessment levels and the anticipated revenue attributable to each level. Similar to last year the
Commission, at its discretion, may set the rate at any level at or under the maximum assessment level. Last year
the Commission set the preliminary fee at the 60% level and property owners were noticed of this rate and the
maximum allowable rate. The City would have to make a similar determination this year and staff is seeking
direction on what assessment level to bring forward in the preliminary fee resolution.
Which rate the Commission chooses can impact the City in the future. When the City chooses a preliminary rate,
that rate is the rate that will be noticed to property owners along with the maximum rate allowable. The City
Commission can set the rate at or below the noticed rate, but not higher, in the final assessment fee resolution.
They can also choose to notice a lower maximum than the actual maximum, but lowering the maximum may
increase costs to the City in the future if they choose to raise the rates.
If the City sets the rate lower then the maximum rate noticed, they can raise the fee in subsequent years without
re-noticing property owners as long as they do not exceed the previously noticed maximum fee level. This may
reduce the cost to the City in future years. An example would be, if the City noticed our preliminary rates at $88
and the maximum residential level of $147. In the final resolution the City could set the fee actually billed in
November of 2009 at $59. If the City wants to raise the fee to $60 in November of 2010 they could do so without
re-noticing all property owners; the City would need to provide notice to newly improved property owners. If the
City notices the preliminary and maximum fee at $88 and wants to raise it to $90 in a subsequent year, they would
have to re-notice all property owners in the City.
Therefore, it may be in the best interest of the City to notice the fee at a slightly higher level than the intended rate.
Staff also has a concern that the legislature may block any future increases to the fee or require a super majority
for future increases. It is too soon in this legislative session to see what direction the Legislature is heading on this
issue.
Next Steps
If the City desires to move forward with implementing a fire fee above the zero level the next step would be for
staff to prepare a new preliminary fee resolution for adoption. Following adoption of the preliminary fee resolution,
notices will need to be printed and mailed to all property owners, and a public hearing on the final fee resolution
will need to be held. A tentative schedule for these items is included as Attachment C.
If the City does desire to move forward with this option staff recommends engaging Government Services Group to
assist the City through this process. The cost for this service is $23,500 and their proposal is included in
Attachment D. The City will also face additional costs for printing and mailing of the notices, this cost will run
approximately $17,000.
Depending on the City's decision, staff could move forward with the implementation of the temporary fire station.
The temporary station could be ready for operation within 75 days of a decision to proceed. Development of a
permanent station will take approximately two years.
Issue:
Should the City of Ocoee:
A) Begin the steps necessary to implement the fire assessment fee?
B) Engage GSG to assist in the implementation of the fire assessment fee?
C) Continue with the development of a temporary and/or fourth fire station?
2
Recommendations
Staff is seeking direction on moving forward with a fire assessment fee, engaging GSG to assist with the fire
assessment and moving forward with the development of a fourth fire station.
Attachments:
Attachment A - Temporary and Permanent Station Costs
Attachment B - Possible Assessment Levels
Attachment C - Schedule
Attachment D - GSG Proposal
Financial Impact:
Type of Item: (please mark with an "x'J
Public Hearing
_ Ordinance First Reading
_ Ordinance Second Reading
Resolution
_ Commission Approval
x Discussion & Direction
For Clerk's OeDt Use:
_ Consent Agenda
_ Public Hearing
_ Regular Agenda
Original Document/Contract Attached for Execution by City Clerk
~ Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
N/A
N/A
N/A
3
Attachment A
City of Ocoee, Florida
Temporary Station Costs
(Double-Wide Trailer on City Property)
Temporary Facility Costs:
Site Preparation $ 49,000
Radio and Telephone $ 52,620
Furniture and Housekeeping $ 15,000
EMS Supplies $ 25,100
Protective Clothing $ 13,997
Total Facility Cost $ 155,717
On-going Annual Costs:
Facility (Trailer) $ 15,840
6 New Firefighters/Paramedics $ 424,880 6% increase per year ($55,000) per CBA
New Engine-Lease $ 103,167 4 year lease
Utilities $ 40,280
EMS Supplies $ 12,530
Total On-going Annual Costs $ 596,697
Total Initial Costs
$ 752,414
Attachment A
City of Ocoee, Florida
Permanent Station Costs
New Facility Costs:
Design $ 264,000
Site Work $ 416,000
Construction $ 2,200,000
Other $ 120,000
Total Bonding Amount $ 3,000,000 Annual debt service $240,800 for 20 years
On-going Annual Costs:
Personnel (12) $ 922,130
Operating Costs $ 180,617
New Engine Lease $ 103,167
Annual Debt Service - Facility $ 240,800
Total Annual Costs $ 1,446,714
Total for New Facility $ 4,446,714
6% increase per year ($55,000) per CBA
4 year lease
Assumptions:
The estimate for the station construction was based on an average of the cost of the new
Winter Garden station 22 constructed this year for a cost of $1.875M and an estimate received
from Wharton-Smith for a 50 year, 2 bay station for a cost of $2.2M. Site work is based on past
Ocoee Fire Station projects. Design is based on 12% of the construction cost.
The cost to finance $3 million dollars at 5% for 20 years is about $240,800
Attachment B
Fire Assessment Fee
Possible Assessment Levels
2009-2010
Maximum Fire Assessments
Residential Property
Use Categories
Residential
Non-Residential Property
Use Categories
Commercial $0.37
Industrial/Warehouse $0.08
Institutional $0.52
Estimated Gross Rev: 3,797,771 Exemption Buy-Down: 664,790 Net Rev: 3,132,981
Rate Per Dwelling Unit
$147.00
Rate Per Square Foot
Assessments at 60% of Maximum - Staff's Recommendation
Residential Property
Use Categories
Residential
Non-Residential Property
Use Categories
Commercial $0.22
Industrial/Warehouse $0.05
Institutional $0.31
Estimated Gross Rev: 2,278,663 Exemption Buy-Down: 396,360 Net Rev: 1,882,303
Rate Per Dwelling Unit
$88
Rate Per Square Foot
Assessments at 50% of Maximum
Residential Property
Use Categories
Residential
Non-Residential Property
Use Categories
Commercial $0.19
Industrial/Warehouse $0.04
Institutional $0.26
Estimated Gross Rev: 1,898,886 Exemption Buy-Down: 332,623 Net Rev: 1,566,263
Rate Per Dwelling Unit
$74
Rate Per Square Foot
Attachment B
Fire Assessment Fee
Possible Assessment Levels
2009-2010
Assessments at 40% of Maximum
Residential Property
Use Categories
Residential
Non-Residential Property
Use Categories
Commercial $0.15
Industrial/Warehouse $0.03
Institutional $0.21
Estimated Gross Rev: 1,519,109 Exemption Buy-Down: 268,431 Net Rev: 1,250,678
Rate Per Dwelling Unit
$59
Rate Per Square Foot
Assessments at 30% of Maximum
Residential Property
Use Categories
Residential
Non-Residential Property
Use Categories
Commercial $0.11
Industrial/Warehouse $0.03
Institutional $0.16
Estimated Gross Rev: 1,139,331 Exemption Buy-Down: 204,537 Net Rev: 934,794
Rate Per Dwelling Unit
$44
Rate Per Square Foot
Assessments at 25% of Maximum
Residential Property
Use Categories
Residential
Non-Residential Property
Use Categories
Commercial
Rate Per Dwelling Unit
$37
Rate Per Square Foot
Institutional
Estimated Gross Rev: 949,443
$0.10
$0.02
$0.13
Exemption Buy-Down: 166,539 Net Rev: 782,904
Industrial/Warehouse
2
Attachment C
Project Schedule
Event Date
City Adopted Resolution of Intent December 2, 2008
City Adopts Preliminary Fee Resolution April 7,2009
Publish Notice and Mail Notices of Public Hearing By April 27, 2009
To Adopt Final Assessment Resolution
City Adopts Final Assessment Resolution May 19,2009
City Begins Implementation of the Temporary May 20, 2009
Station
City Transmits Fee Schedule to Property Appraiser By July 1,2009
Temporary Station Opens August 3, 2009
City Certifies Roll Septem ber 2009
ATTACHMENT 0
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GOVERNMENT SERVICES GROUP. INC.
March 6, 2009
Via Electronic Mail
Mr. Rob Frank, City Manager
City of Ocoee
150 N. Lakeshore Dr.
Ocoee, FL 34761
Re: City of Ocoee - Fire Services Assessment Program: Continuing Services
Dear Mr. Frank,
The City of Ocoee (City) has now completed its first year of the annual assessment program for fire
protection services it initiated in Fiscal Year 2008-09. Government Services Group, Inc. (GSG) is pleased to
have assisted the City with developing and successfully implementing this recurring revenue source.
Accordingly, we believe that the City would benefit from a continuation of our services. Therefore, attached
as Appendix A is a proposed Scope of Services under which the firm will assist the City in the continued
maintenance of the special assessment program for Fiscal Year 2009-10.
GSG will work under a professional fee arrangement as described the scope of services. GSG will expect
payment pursuant to the payment schedule included within the attached appendix. The appendix also
provides a project deliverable schedule.
We are currently preparing our schedule for the upcoming assessment season and would appreciate your
prompt reply. This will help us to accommodate your request and provide you with thoughtful and deliberate
attention to ensure the continuation of this successful recurring revenue source. Please review the attached
scopes of services. Upon review and satisfactory determination, please sign below to execute this agreement
to indicate acceptance of the scope of service and to serve as proper notice to proceed. Upon execution,
please provide us with a signed copy for our files.
If you have any questions, please do not hesitate to contact me. We look forward to working with the City of
Ocoee again this year.
Sincerely,
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Jason Buchholz
Senior Project Manager
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Enclosure
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Mr. Rob Frank
March 6. 2009
Page 2
ACCEPTED AND AGREED TO APPENDIX A
By:
City of Ocoee
ATTACHMENT 0
Date
AITACHMENT 0
App8ndix A
FIRE SERVICES ASSESSMENT PROGRAM MAINTENANCE
FISCAL YEAR 2009-10
ATTACHMENT 0
SCOpB of SBrvicBs
Task 1:
Task 2:
Task 3:
Task 4:
Task 5:
Review/update the Fiscal Year 2008-09 fire protection assessment roll for use in the recurring
annual assessment program.
Advise the City in reviewing, determining and updating the fire protection assessment revenue
requirements for the Fiscal Year 2009-10 assessment program.
Calculate the proforma schedule of rates based on the apportionment methodology and
revenue requirements for the Fiscal Year 2009-10 assessment program.
Renew the City's implementing resolutions that conform to the fire protection assessment
ordinance.
Advise and assist with the legal requirements for the adoption of the annual assessment rate
resolution and certification of the assessment roll in accordance with section 197.3632,
Florida Statutes including: (a) the development of the TRIM notice or the first class notice and
its distribution to any affected property owners, (b) reminder of publication of the public
hearing, and (c) the certification of the assessment roll to the Orange County Tax Collector.
FEES AND COSTS
For the services and specialized assistance described in the proposed Scope of Services, GSG will work
under a professional fee arrangement of $23,500. This fee does not include expenses for airfare, lodging or
ground transportation, but does include reimbursement for all incidental expenses, including meals.
Expenses for airfare, lodging and ground transportation will be billed at actual costs.
The fee for professional services includes two on-site visits by GSG to the City. Any additional on-site
meetings by GSG may be arranged at our standard hourly rates provided below. All expenses related to
these requested meetings will be billed in accordance with section 112.061, Florida Statutes. If necessary,
in lieu of on-site visits, periodic telephone conference calls may be scheduled to discuss project status.
The standard hourly rates for GSG are as follows:
GOVERNMENT SERVICES GROUP, INC.
Chief Executive Officer .............................................................................. $225
Senior Vice President ................................................................................ $175
Vice President ............................................................................................ $160
Senior Project Manager/Consultant/Project Coordinator ...................... $160
Consultant/Database Analyst/Technical Services.................................. $130
Administrative Support.............................................................................. $ 50
The professional fee does not include the costs of producing and mailing the statutorily required first class
notices. Mailing and production costs depend on the number of assessable parcels of property within the
assessment program area, but average approximately $1.301 per parcel. Payment of mailing and production
costs is due at the time of adoption of the initial assessment resolution or like document. For non-domestic
1 The quoted price includes the May 11, 2009 U.S. postage rate increase. The additional postage charge will be included for any
postage rate increase that occurs after May 11, 2009.
Government Services Group, Inc. I A-1
ATTACHMENT D
notices, mailing charges will include the actual amount of postage beyond the domestic rate and if U.S.
postage rates increase prior to mailing, the additional postage per notice will be charged. A $400 setup fee is
charged for mailings to less than 2,000 parcels.
The City is responsible for any and all newspaper publications, including, but not limited to, making
arrangements for publications and any costs associated therewith.
The City is also responsible for any costs incurred to obtain information from the property appraiser or other
public officials that is necessary for the assessment program.
PAYMENT SCHEDULE
The fee for professional services and specialized assistance will be due and payable, based on the following
schedule and assuming that notice to proceed is received prior to March 18, 2009. If notice to proceed
occurs after this date, the payment schedule will be condensed over the anticipated number of months
remaining to complete the project.
Schedule Payment
April 2009 25% of professional fee
May 2009 25% of professional fee
June 2009 25% of professional fee
July 2009 25% of professional fee
DELlVERABLES SCHEDULE
Deliverable Schedule
Notice to Proceed March 2009
City Determines Net Revenue Requirements March - April 2009
Update Fiscal Year 2008-09 Assessment Roll March - April 2009
Calculate/Confirm Annual Assessment Rates April - May 2009
Preliminary Rate Resolution April - May 2009
First Class Notices May - June 2009
Published Notice May - June 2009
Annual Rate Resolution June 2009
Certify Fiscal Year 2009-10 Assessment Roll by September 15. 2009
Government Services Group, 'nc. I A-2