Loading...
HomeMy WebLinkAboutR-2021-127 Final Fire Assessment FeesRESOLUTION NO. 2021-127 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, RELATING TO THE IMPOSITION OF FIRE RESCUE ASSESSMENTS AND PROVISION OF FIRE PROTECTION SERVICES, FACILITIES AND PROGRAMS IN THE CITY OF DANIA BEACH, FLORIDA; CONFIRMING, SUPPLEMENTING, AND AMENDING THE PRELIMINARY RATE RESOLUTION AND ADDING A NEW DEFINITION; REIMPOSING FIRE RESCUE ASSESSMENTS WITH UPDATED ASSESSMENT RATES AGAINST ASSESSED PROPERTY LOCATED WITHIN THE CITY OF DANIA BEACH FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2021; APPROVING THE RATES OF ASSESSMENT; APPROVING THE FINAL ASSESSMENT ROLL; PROVIDING FOR EFFECT OF ADOPTION OF RESOLUTION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Dania Beach, Florida, (City) enacted Ordinance No. 10-96 (Ordinance) which authorizes the imposition of Fire Rescue Assessments for fire protection services, facilities, and programs against Assessed Property located within the City; and WHEREAS, the reimposition of a Fire Rescue Assessment for fire protection services, facilities, and programs each fiscal year is an equitable and efficient method of allocating and apportioning the Fire Assessed Cost among parcels of Assessed Property; and WHEREAS, the City desires to reimpose a Fire Rescue Assessment within the City using the procedures provided by the Ordinance, including the tax bill collection method for the Fiscal Year beginning on October 1, 2021; and WHEREAS, the City Commission, on July 13, 2021, adopted Resolution No. 2021-112 (2021 Preliminary Rate Resolution) as confirmed, supplemented, and amended herein, containing and referencing a brief and general description of the fire protection facilities, services and programs to be provided to Assessed Property, describing the method of apportioning the Fire Assessed Cost to compute the Fire Rescue Assessment for fire protection services, facilities, and programs against Assessed Property, updating and estimating a rate of assessment, and directing the updating and preparation of the Assessment Roll, and provision of published notice and mailed notice required by the Ordinance; and WHEREAS, in order to reimpose Fire Rescue Assessments for the Fiscal Year beginning October 1, 2021, the Ordinance requires the City Commission during its budget adoption process for each Fiscal Year to adopt an Annual Rate Resolution which establishes the rate of assessment and approves the Assessment Roll for the upcoming Fiscal Year, with such amendments as the City Commission deems appropriate, after hearing comments and objections of all interested parties; and WHEREAS, the updated Assessment Roll has heretofore been made available for inspection by the public, as required by the Ordinance; and WHEREAS, notice of a public hearing has been published and mailed as required by the terms of the Ordinance and Florida Statutes; and WHEREAS, a public hearing was held on September 13, 2021, and comments and objections of all interested persons have been heard and considered as required by the terms of the Ordinance; and WHEREAS, the City Commission of the City of Dania Beach, Florida deems it to be in the best interest of the citizens and residents of the City to adopt this Annual Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. Authority. That this Resolution is adopted pursuant to the provisions of Ordinance No. 10-96 (Ordinance) (codified as Chapter 23, Article VIII of the City of Dania Beach Code of Ordinances), the Initial Assessment Resolution (Resolution No. 63-96, also referred to as Resolution No. 1996-63); the Final Assessment Resolution (Resolution No. 72- 96, also referred to as Resolution No. 1996-72); and all subsequent Fire Assessment Resolutions, including Resolution No. 2021-112; and Florida Statutes Chapter 170 and Sections 166.021 and 166.041, and other applicable provisions of law. Section 2. Definitions and Interpretation. That this Resolution constitutes the Annual Rate Resolution as defined in the Ordinance and may be referred to as the 2021 Annual Resolution or Annual Resolution. All capitalized terms in this Resolution shall have the meanings defined in the Ordinance, the Initial Assessment Resolution, as amended, the Final Assessment Resolution, as amended, subsequent Preliminary and Annual Resolutions, as amended, and the 2021 Preliminary Rate Resolution (Resolution No. 2021-112), as may be amended by this 2021 Annual Resolution. Resolution No. 2021-112 is hereby amended by adding the following new term as a new subsection (f) to Section 2: 2 RESOLUTION #2021-127 (f) "2021 Final Methodology Report", "2021 Final Report", or "August 2021 Final Methodology Report" means the technical memorandum titled "City of Dania Beach, Florida Final Fire Services Assessment Methodology Report", prepared by Munilytics, Inc., dated August 31, 2021. Such 2021 Final Methodology Report, attached and incorporated within this Resolution as Exhibit A, supplements and provides additional information related to the calculation of the assessment rates presented in the 2021 Report dated July 8, 2021, approved by the 2021 Preliminary Resolution, and finally adopted in this 2021 Annual Resolution. Section 3. Reimposition of Fire Rescue Assessments. (a) The parcels of Assessed Property described in the Assessment Roll, as updated, which is hereby amended as needed and approved, are hereby found to be specially benefited by the provision of the fire protection services, facilities, and programs described or referenced in the Preliminary Rate Resolution, in the amount of the Fire Rescue Assessment set forth in the updated Assessment Roll, a copy of which was present or available for inspection at the above referenced public hearing and is incorporated herein by reference. It is hereby ascertained, determined, and declared that each parcel of Assessed Property within the City will be specially benefited by the City's provision of fire protection services, facilities, and programs in an amount not less than the Fire Rescue Assessment for such parcel, computed in the manner set forth in the 2021 Preliminary Rate Resolution. the 2021 Report, and the 2021 Final Report, as approved and incorporated into this 2021 Annual Resolution. Adoption of this 2021 Annual Rate Resolution constitutes a legislative determination that all parcels assessed derive a special benefit in a manner consistent with the legislative declarations, determinations and findings as set forth in the Ordinance, the Initial Assessment Resolution, as amended, the Final Assessment Resolution, as amended, and the subsequent Preliminary and Annual Rate Resolutions, as amended and supplemented by the 2021 Preliminary Resolution and this 2021 Annual Resolution, from the fire protection services, facilities, or programs to be provided and a legislative determination that the Fire Rescue Assessments are fairly and reasonably apportioned among the properties that receive the special benefit. 3 RESOLUTION #2021-127 (b) The method for computing Fire Rescue Assessments and the Parcel Apportionment methodology referenced in the 2021 Report, approved and incorporated into the 2021 Preliminary Rate Resolution adopted by the City Commission, and the 2021 Final Report, as approved and incorporated into this 2021 Annual Resolution, is hereby approved and reaffirmed. The Fire Rescue Assessments to be assessed and apportioned among benefited parcels pursuant to the Cost Apportionment and Parcel Apportionment to generate the estimated Fire Assessed Cost for the Fiscal Year commencing October 1, 2021, are hereby established as follows: FY2021-22 Fire Rescue Assessment Rates PROPERTY USE CATEGORIES RATE BASIS RATE Residential Per Dwelling Unit $267.94 Vacant Per Acre $ 93.88 Commercial Per Square Foot $0.3815 Industrial/Warehouse Per Square Foot $0.0310 (c) The above rates of assessment are hereby finally approved. Fire Rescue Assessments for fire protection services, facilities, and programs in the amounts set forth in the updated Assessment Roll, as herein amended and approved, are hereby levied and reimposed on all parcels of Assessed Property described in such Assessment Roll for the Fiscal Year beginning October 1, 2021. (d) No Fire Rescue Assessment shall be imposed upon a parcel of Government Property or upon Buildings the use of which is wholly exempt from ad valorem taxation under Florida law. Any shortfall in the expected Fire Rescue Assessment proceeds due to any reduction or exemption from payment of the Fire Rescue Assessments required by law or authorized by the City Commission shall be supplemented by any legally available funds, or combination of such funds, and shall not be paid for by proceeds or funds derived from the Fire Rescue Assessments. 4 RESOLUTION #2021-127 (e) As authorized in Sec. 23-107, City of Dania Beach Code of Ordinances, Interim Fire Rescue Assessments are also levied and imposed against all property for which a certificate of occupancy is issued after adoption of this Annual Rate Resolution based upon the rates of assessment approved in this Resolution. (f) Fire Rescue Assessments shall constitute a lien upon the Assessed Property so assessed equal in rank and dignity with the liens of all state, county, district, or municipal taxes and other non -ad valorem assessments. Except as otherwise provided by law, such lien shall be superior in dignity to all other liens, titles, and claims until paid. (g) The Assessment Roll, as herein approved, together with the correction of any errors or omissions as provided for in the Ordinance, shall be delivered to the Tax Collector for collection using the tax bill collection method in the manner prescribed by the Ordinance. Section 4. Amendment and Confirmation of Preliminary Rate Resolution and Methodology Report. That the 2021 Preliminary Rate Resolution, as may have been modified, supplemented, and amended herein, is hereby confirmed. Section 5. Effect of Adoption of Resolution. That the adoption of this 2021 Annual Rate Resolution shall be the final adjudication of the issues presented (including, but not limited to, the determination of special benefit and fair apportionment to the Assessed Property, the method of apportionment and assessment, the rate of assessment, the Assessment Roll, the sufficiency of notice, and the levy and lien of the Fire Rescue Assessments), unless proper steps shall be initiated in a court of competent jurisdiction to secure relief within 20 days from the adoption of this 2021 Annual Rate Resolution. Section 6. Conflict. That all resolutions or part of resolutions in conflict with this Resolution are superseded and supplanted to the extent of such conflict, provided however, that nothing in this Resolution amends or affects the validity of any Fire Protection Assessments adopted and imposed by any previously adopted resolutions. Section 7. Severability. That if any clause, section or other part of this Resolution shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part shall be considered as eliminated and in no way affecting the validity of the other provisions of this Resolution. Section 8. Effective Date. That this Annual Rate Resolution shall be in force and take effect immediately upon its passage and adoption. 5 RESOLUTION #2021-127 PASSED AND ADOPTED on September 13, 2021. ATTEST: I THOMAS SCHNEIDER, CMC CITY CLERK AMARA J A, �O� MAYOR APPROVED AS TO FORRECTNESS: i THOMAS J. ANSBRO . CITY ATTORNEY 6 RESOLUTION #2021-127 EXHIBIT A City of Dania Beach, Florida Final Fire Services Assessment Methodology Report Prepared for the City of Dania Beach, Florida August 31, 2021 Executive Summary This report updates the City of Dania Beach's ("the City") methodology and apportionment of costs associated with fire services provided by the City to its residents and businesses. Fire services are part of the total fire rescue service budget and it is only the fire portion of that budget that can be assessed to property owners. Emergency medical service costs, because they cannot be demonstrated to benefit property, are not assessable. The purpose of this report is to forecast the cost of fire services and apportion those costs to the properties benefiting from the City's fire service efforts. The report details how the costs are determined, how they are apportioned, and what the maximum rates to various property categories would be if the full amount of fire service costs is recovered through an assessment on the benefited property. The City has traditionally levied less than 100% of the assessable costs. The annual costs to be assessed will need to be determined annually by the City based upon the budgeted costs for fire services for the year. This report will guide those annual assessment costs, typically set during the each year's budget cycle. This report uses as a base the proposed fire rescue fiscal year 2022 estimated budget. The apportionment of those costs relied upon actual call data for fire/rescue calls during calendar years 2016 through 2020. Since the last study, call distribution has noticeably changed, probably due to the extensive new development in the City. Introduction The City of Dania Beach ("the City") has annually levied and collected a Fire Assessment against benefitted properties within the City to fund the provision of fire services beginning with Fiscal Year 1996-1997, The City is considering the continuance of an assessment program for Fire Services (the "Fire Services"). Fire call data can change from time -to -time and evaluations need to be done by the City to insure costs are being fairly apportioned to benefited property. The City has previously determined that the owners of property benefited by the proposed Fire Services should share in funding these services by imposition of non -ad valorem assessments. The City can fund through assessments up to 100% of the net Fire Services costs, estimated to be $7,399,112 in fiscal year 2022, as noted in Appendix A, Forecast of City of Dania Beach Fire Service Costs. The City contracts with the Broward Sheriffs Office (BSO) for fire rescue services and also has legacy pension costs that must continue to be funded in addition to those pension costs charged by BSO. Procedural Requirements The Florida Statutes contain a number of procedural requirements that define the process for adoption of the proposed Fire Services Assessments. Additionally, the City has adopted local legislation to provide general procedures and standards for the imposition of annual fire assessments. The City may collect the assessments by direct mailing of bills to each assessed property or, if additional statutory requirements are or have been fulfilled, may collect the assessments on the annual property tax bill under the Uniform Assessment Collection Act, Section 197.3632, Florida Statutes. Regardless of the method of collection the City may use, the adoption of the Final Assessment Roll and Final Assessment Resolution shall place a lien equal to the amount of the total assessment, including interest, on each assessed property. Such lien is equal in rank and dignity to the lien of all state, county, district, and municipal taxes and other non -ad valorem assessments. Estimated Cost of Fire Services The City provides a full -service fire rescue department through a contract with BSO. At the time of this report, the City operated 2 fire stations. The contract with BSO also provides for fire inspection services. All other costs were deemed to not be within the confines of the assessment process. The net total cost of fire services estimated for fiscal year 2022 is estimated to be $7,399,112, as noted in Appendix A, Forecast of City of Dania Beach Fire Service. The costs have then been reduced by revenues related to the fire protection functions, which serves to reduce the cost of providing the service. Appendix A details the annual forecast of costs the City is expected to incur through fiscal year 2025. The Fire Services costs can include, but are not limited to: 1. The cost of physical construction, reconstruction, or completion of any required facility or improvement. 2. The costs incurred in any required acquisition or purchase. 3. The cost of all labor, materials, machinery and equipment. 4. The cost of fuel, parts, supplies, maintenance, repairs, and utilities. S. The cost of computer services, data processing, and communications. 6. The cost of all lands and interest therein, leases, property rights, easements, and franchises of any nature whatsoever. 7. The cost of any indemnity or surety bonds and premiums for insurance. 8. The cost of salaries, volunteer pay, workers compensation, insurance, or other employment benefits. 9. The cost of uniforms, training, travel and per diem. 10. The cost of construction plans and specifications, surveys, and estimates of costs. 11. The cost of engineering, financial, legal, and other professional services. 12. The costs of compliance with any contracts or agreements entered into by the City to provide or obtain Fire Services. 13. All costs associated with the structure, implementation, collection, and enforcement of the Fire Services charges and amounts necessary to offset discounts received for early payment of Fire Services charges. 14. All other costs and expenses necessary or incidental to the acquisition provision or construction of Fire Services, facilities, or programs and such other expenses as may be necessary or incidental to any related financing authorized by the City Commission by subsequent resolution. 4 15. A reasonable amount for contingency and anticipated delinquencies and uncollectible Fire Services charges. 16. Reimbursement to the City or any other person for any moneys advanced for any costs incurred by the City or such person in connection with any of the foregoing components of Fire Services cost. 17. Any other cost that can be attributed to the provision of Fire Services within the City. The City may choose to include all or only some of these costs so long as the total cost assessed does not exceed the actual cost of providing the service. As noted earlier, these costs are further reduced by revenue attributed to Fire Services. The City expects to receive $781,000 in FY2022 from fire services related revenue that has been forecasted and applied to reduce the expected fire services cost for that year. 5 Determination of Benefit & Delineation of Benefit Area An important step in the assessment process is the determination of benefit and delineating the geographic area that will benefit from the Fire Services (the "Benefit Area"). The proposed Fire Services will service all properties within the entire City of Dania Beach. These Fire Services will, by their nature, provide direct benefit to the properties that will have these services. Though vacant lands not used actively in the production of agricultural products and services may infrequently have Fire Services provided to them, the City has determined that Fire Services provided to those lands derive some benefit to them, due to the urbanized nature of the City. A review of the call data for calendar years 2016 through 2022 also noted that these types of calls were infrequent, but did occur. The Benefit Area for the City of Dania Beach Fire Services assessments includes all such properties within the City. The parcels are identified by the unique Folio Number assigned by the Broward County Property Appraiser (BCPA) for purposes of the ad valorem property tax roll, as shown on the Preliminary Assessment Roll and more fully described below. Cost Allocation Methodology Using the BCPA's tax roll data, benefited parcels were identified using the various categories of land use codes within that data set. Additionally, and to keep the proposed apportionment categories as close to the existing categories as possible, we relied upon the Fire Class codes currently maintained by the BCPA. The BCPA has previously identified and coded the improved properties by type and assigned each parcel an appropriate Fire Class Code. We reviewed consistency in this data and it was determined to be of high accuracy. This data has also undergone considerable review over time. The Fire Class codes thus used were as follows: Residential ("R") This includes all residential dwelling units, be they single family, multifamily, mobile homes, or mobile home lots. This includes separate or attached guest houses or "granny flats" or anything considered a residential dwelling unit. Commercial ("C") This includes all property used for commercial activity, except where otherwise identified by its own Fire Class code, and includes office and retail uses. It also includes recreational vehicle lots converted to a commercial square footage as provided by statute. Government ("X") This includes any property owned by a federal, state, or local government. Special ("S", and generally mixed use) This includes property that has more than one use or improvement that contains more than one Fire Class code. An example might be a parcel which contained both a warehouse and an office use. Each use will be assigned the cost for that use. Vacant Parcels Not Developed ("V", "A", or "L") This includes land that does not contain any improvement or structure but does not include property classified as agricultural. Warehouse/Industrial ("W") This includes manufacturing and processing sites, storage units (whether for commercial or non- commercial purposes), and warehousing sites. Miscellaneous ("Y") This includes properties that are used for Charitable, Educational, Literary, Scientific, or Religious organizations, or other properties defined under Florida Statutes. These properties may be assessed or may be excluded by the City from year -to- year. Though the BCPA differentiates in their database and for their purposes the Government ("X") and Miscellaneous ("Y") fire class codes, for purposes of this study, those codes and uses are combined because they are very similar in use and occupancy, involving a large number of public assembly uses. It should also be noted that properties that can sometimes be exempt from this assessment (e.g., church -owned residential properties, portions of warehouses used for exempt purposes, portions of office buildings used for exempt purposes) remain classified as "R", "C", "W", etc., but are not assessed if the City has excluded them from the assessment. Again, these codes are used by BCPA to assist them in the administration of their rolls and we believe them to be highly accurate at the parcel level. The vacant parcels and vacant lots ("Vacant", "Acreage", or "Land") contain properties that fire call data demonstrated had little demand. Nonetheless, the City has determined that vacant parcels do receive a special benefit and will be assessed. Each BCPA parcel for the City of Dania Beach also has, in addition to a Fire Class code, a Fire Basis element, which indicates the number of applicable billing units located on the parcel For example, a single-family residential dwelling unit would have a Fire Basis element of "1", indicating that the fixed residential assessment rate would be multiplied by "1" to arrive at an assessment amount and a duplex residential dwelling unit would have a Fire Basis element of "2", indicating that the fixed residential assessment rate would be multiplied by "2" to arrive at an assessment amount, and so on. Commercial, Warehouse/Industrial, and Not -for -profit are based upon the square footage of the property. Land, Vacant, or Acreage are based upon the number or fraction of an acre for the parcel. The Fire Class code "S", Special, generally includes mixed -use parcels that have mixed assessment rates applied to them. The sum of each category (e.g., "Residential", "Commercial", etc.) are added together within this coding. The Fire Basis element code in this Fire Class code in this category indicates the amount of the assessment for that Fire Class code. The BCPA handles mixed -use parcels as exceptions and manually calculates the assessment based upon the particular mix of uses that exist on those parcels. Mobile Home parks are assessed whether or not a lot/space is occupied. Each mobile home lot/space is assessed a residential assessment rate. The commercial component of a mobile home park may include a calculation based on the total of any commercial structures located on the parcel plus an assigned commercial structure size of the minimum square footage of 1,200 square feet that is mandated by the Department of Health under Chapter 64E-15.002(3), Florida Administrative Code for Recreational Vehicle Park spaces and a square footage of 500 square feet for tent spaces inside Recreational Vehicle Parks, also as mandated by Chapter 64E-15.002(3), Florida Administrative Code. The City does not have any parks that have only recreational vehicles. Mobile home parks are mixed -use parcels. There were 13,952 unique parcels or folio numbers within the City of Dania Beach fire assessment district provided to us by the BCPA in July 2021. After eliminating properties owned by governmental units (for which costs were not reapportioned to other parcels), or parcels such as rights -of -way and waterways, we identified a maximum of 13,229 parcels that could potentially be assessed. The parcel counts by BCPA Fire Class category code and use code counts appear below: BCPA Fire Class Counts Sum of Total Category Unit of Fire Class Category Number of Code(s) Measure Units Commercial C LandNacant Land/Acreage LN/A Residential R Warehouse/Industrial W Government/Not For Profit Exempt X/Y 6,169,741 Square Feet 733 Acres 15,513 Dwelling Units 5,109,093 Square Feet 1,459,422 Square Feet The City may not ultimately assess all the properties within these fire class categories for Fire Services as the City traditionally has exempted some uses (e.g., non -profits, houses of worship, and other properties also exempt from property taxes) of property from the fire assessment. Commercial, Warehouse/Industrial, and, if levied, Not -for -profit parcels are assessed based upon tranches, or ranges of square footage. The parcels are divided into categories that are measured as factors of the base unit to the midpoint of each range. Fire/rescue Incidents Fire/rescue call for service data is maintained by the Broward Sheriffs Office (BSO). BSO provided call data related to the City of Dania Beach for calendar years 2016 through 2020. The call data included all dispatched calls for all fire and rescue units at each of the City's five stations. The call data contained fire service calls, calls for rescue services, and all other calls. Because rescue services do not benefit property, this call data (Appendix B) was culled from further consideration, leaving only fire service call data in our analysis. We also excluded from the call data calls to property that was located outside of the City limits. The Broward Sheriffs Office uses the National Fire Incident Reporting System (NFIRS) for the collection and categorization of all fire and rescue incident types. This system provides not only the nature of the call responded to but also includes the type of property involved in the call. This data forms the basis for determining not only which properties benefit from fire services, but also to what degree those types of properties demand service. While evaluating the call data, we exercised discretion in reclassifying certain incidents that we determined, for the purposes of this study, needed to be reclassified to accurately tie it to the most appropriate property use. As an example, an automobile fire in a parking lot at a shopping center would be reclassified from "uncovered parking" to a commercial use as the parking lot is considered to be part of the shopping center parcel. During the three-year period (calendar years 2018 through 2020) studied, the City of Dania Beach had a total of 5,297 recorded incidents of which 3,974 were non -fire related calls (generally rescue calls) not benefitting real property in the City. The remaining 1,323 were deemed to be fire -related. After eliminating mutual aid fire calls, calls that could not be ascribed to a particular property use (fires on streets and roads, waterways, etc), the remaining 1,040 calls were attributable to the various Fire Class categories. Calls were categorized into the two main categories (Fire and Rescue) based upon the Incident Type Number used in the NFIRS coding system. Also placed into the "Rescue" category, and excluded from fire calls, were calls that were not clearly fire related, or did not clearly benefit real property, or the address/location were indeterminate. Mutual aid calls were excluded because they did not benefit Dania Beach properties. A list of the types of calls excluded from consideration of Fire Services apportionment is detailed in Appendix B, Excluded Calls From Fire Services. 10 The incident data also includes a "Property Use" code. These codes were then aggregated into larger Property Type codes that could be used to match more closely to the BCPA Fire Class Codes used for fire assessments. The following table details the 1,040 fire service incidents by the categories used to study fire service delivery and their corresponding BCPA Fire Class codes: Number of Percent of Fire Class Category Attributed Fire Total Calls R Residenital C Commercial W Warehouse/Industrial A Acreage Y Not For Profit X Government 604 58.08% 342 32.88% 23 2.21% 10 0.96% 43 4.13% 18 1.73% 1,040 100.00% The detail of and cross tabulation of this categorization appears in Appendix C, Translation of NFIRS Property Use Code To BCPA Fire Class Code. We then recoded the Fire Department incident data, Property Type codes, to the BCPA Fire Class coding. We then assigned the maximum assessment by category and in total for the City of Dania Beach and the expected cost of fire service delivery for fiscal year 2022 as noted in Appendix A, Forecast of City of Dania Beach Fire Service Costs: 11 Fiscal Year 2022 Anticipated Fire Services Cost and Fire Cost Apportionment Maximum In Fire Class Category Distribution Category R Residenital C Commercial W Warehouse/Industrial A Acreage Y Not For Profit X Government 58.08% 4,297,177 32.88% 2,433,170 2.21% 163,634 0.96% 71,145 1.73% 128,062 4.13% 305,925 100% 7,399,112 It should also be noted that the tables have been developed using the latest property information supplied by the Broward County Property Appraiser's Office. The actual unit counts that exist from year-to-year will need to be used in developing the annual rates. The preceding table includes houses of worship, not -for -profits, and other properties that are wholly or partially tax-exempt. Historically, the City exempts these uses from the fire assessment, but they may consider including them at a future date. As noted previously, the City has determined to assess a maximum Fire Service cost based upon the projected fiscal year 2022 net costs of $7,399,112. The actual cost from year-to- year to be levied by the City will be based upon its actual costs for that fiscal year. The following tables apportion the category costs to the various units for each category, excepting the not -for -profit category, which the City has elected not to assess. A unit may be a dwelling unit (in the case of residential), a square footage charge, or an acreage charge (for vacant): (continued) 12 FY2022 Maximum Rates Unit Assessed Category Units Unit Type Allocation Amount Residential Vacant/Acreage Commercial Industrial Warehouse Less: Exempt Properties Total Assessable Not For Profit Government Exempt Properties Total Fire Service Costs 15,513 4,297,177.00 733 71,145.00 6,169,741 2,433,170.00 5,109,093 163,634.00 (38,341.08) 6,926,784.92 128,062.00 305,925.00 38,341.08 7,399,113.00 13 277.00 per dwelling unit 97.06 per acre 0.3944 per square foot 0.0320 per square foot Allocation of Assessable and Non -Assessable Costs The City utilizes personnel who are certified firefighters that may also be qualified medical personnel. Personnel assigned to medical units may also be called upon to assist in firefighting duties. Because emergency medical services (EMS) are not services for which the City can assess property, costs for those services cannot be included in the total fire services costs to determine the allowable assessed costs. Mutual aid services provided by other Fire Departments do not cost the City anything and those calls accordingly are not considered in this assessment. ALLOCATIONS BSO provides the City with an annual "Consideration" budget that becomes the contract cost for the ensuing fiscal year. The budget is for fire, rescue, inspection, and administrative costs of providing fire rescue services. Additionally, the City has costs in addition to its contract with BSO. When BSO took over fire rescue operations from the City, it was left with significant legacy pension costs related to its former employees that still must be funded. Similarly, the City must fund those employees share of the City's other post -employment benefits (generally retiree medical costs). The City must also pay for the costs of administering the assessment itself. These costs include legal and professional fees, notification fees from the property appraiser's office, advertising, and discounts allowed on early payments of property tax bills. Of the sum of these costs, only those costs directly attributable or allocated to fire services can be included in the assessment. The remaining costs relate to the combined fire and rescue services and must be allocated between the operations of those two services. While there are many ways to allocate the costs of these services, we have chosen to allocate them in proportion to the staffing of the apparatus types deployed by BSO. Fire rescue budgets are largely driven by personnel costs. Fire costs are largely driven by insuring standby availability in the event of a fire. If no calls for rescue were ever recorded, a fire department budget would still have large fixed costs for firefighting services. The total cost for firefighting services generally will not change by very much for a range of calls for services. Unlike firefighting services, rescue services usually account for a significant amount of the calls for service to a department. While this puts more workload on those personnel assigned to rescue vehicles, the costs of rescue services are largely fixed over a range of calls for service. While there is more 14 variability in certain operational costs such as medical supplies, those variable costs do not account for a meaningful portion of total costs. Accordingly, we believe that the fairest apportionment method is one that utilizes apparatus -based personnel assignments. BSO operates two Quints and two rescue vehicles. The Quints each require three personnel each shift. One of the rescue units (Rescue 1) maintains three personnel per shift, while the other (Rescue 17) staffs two personnel per shift. BSO maintains one battalion chief per shift, which, for purposes of this allocation, has been presumed to be allocated in proportion to the staffing between fire and rescue services. The following table illustrates this approach: Allocation Percentages Between Fire and Rescue Apparatus Personnel Assigned ` Fire Rescue Quint 1 3 3 Quint 17 3 3 Rescue 1 3 3 Rescue 17 2 2 11 54.55% 45.45% We benchmarked this against the prior study that utilized an "effort allocation" approach. That allocation technique uses an average duration of the type of call for service (Fire versus Non -fire), then weights that for the number of apparatus and personnel assigned to a typical call for service to determine a "resource factor". This resource factor is then weighted for the number of calls to reach an "effort allocation". This effort allocation becomes the basis for apportioning combined costs to fire and rescue services. In that approach in the prior study, the percentage of costs allocated to fire services was 52.52%, compared to the 54.55% reached by our approach. Both approaches provide a reasonable and similar allocation of costs. The "effort allocation" approach, while reasonable in its approach, requires a re -study of call data each time either the number of apparatus or the number of assigned personnel change. The staffing approach provides an easier to administer, but still reasonable, approach to cost allocation. The administrative costs of the shift battalion chiefs have been apportioned between fire and non -fire costs. It is reasonable to assume that the administrative costs of management bear a direct relationship to the number of personnel being managed. 15 Benefit and Fair Apportionment The improved properties in the City are found to benefit from a special assessment because fire services, facilities, and programs possess a logical relationship to the use and enjoyment of property by: (i) protecting the value and integrity of improvements, structures, and land through the availability and provision of comprehensive fire services; (ii) protecting the life and safety of intended occupants in the use and enjoyment of property; (iii) lowering the cost of fire insurance by the presence of a professional and comprehensive fire program; and (iv) containing fire incidents occurring on land and within miscellaneous buildings with the potential to spread and endanger other property and property features. Further, the availability and provision of comprehensive fire services enhance and strengthen the relationship of such services to the use and enjoyment of the parcels of property, the market perception of the area, and the property and rental values within the assessable area. The costs of the assessment have been fairly apportioned. While there can be many ways to fairly apportion the costs of the fire services to benefited properties, we note the following: Apportioning costs among classifications of property based upon the historical demand for fire rescue services is a fair and reasonable method because it reflects the property uses' potential fire risk based upon building use and is a reasonable proxy for the firefighters training and experience, quantity and size of apparatus, and other special firefighting equipment that must be available in accordance with the City's standards and practices. It is fair and reasonable to allocate costs to any particular non-residential structure without any limit to the square footage of a structure as large buildings require more resources and more value of property benefits from fire protection. It is fair and reasonable to not consider the flow capacity of fire apparatus as a limiting factor to fire protection as larger buildings will have fire flows provided independent of the apparatus cumulative pumping capacity. The amount of personnel engaged in firefighting increases with building size and personnel costs are the largest costs in fire protection. Buildings cannot be permitted for construction if a local government cannot provide adequate fire protection at the time they are ready for occupancy. Accordingly, we have removed tranches from earlier studies and have determined that limits on the size of structures may shift the cost burden to owners of smaller structures. Apportioning costs among classifications of property (Fire Class code) based upon both historical demand for fire rescue services is fair and reasonable and proportional to the special benefit M received, and will ensure that no property is assessed an amount greater than the special benefit received. Apportioning the percentage of the fire services assessed costs relating to historical calls for service among classifications of property (Fire Class code) is fair and reasonable because it reflects the property uses' potential fire risk based upon use and is a reasonable proxy for the number of firefighters, the firefighters training and experience, the quantity and size of apparatus, and other special firefighting equipment that must be available in accordance with the City's standards and practices. The fire rescue incident reports (NFIRS) are the most reliable data available to determine the potential demand for fire services from property use and to determine the benefit to property use resulting from the demand for fire services to protect and serve buildings and land located within assessed property and their intended occupants. There exist sufficient fire incident reports that document the historical demand for fire services from assessed property within the property use categories. The relative demand that has been determined for each property use category by an examination of such fire incident reports is consistent with the experience of the City. Therefore, the use of the relative percentages that were determined by an examination of fire rescue incident reports is a fair and reasonable method to apportion the fire services assessed costs among the property use categories (Fire Class codes). Neither the size nor the value of the residential property determines the scope of the required fire response by the City. The potential demand for fire services is driven by the existence of a dwelling unit and the anticipated average occupant population. Apportioning the percentage of the fire services assessed costs relating to the relative demand for fire services attributable to residential property on a per dwelling unit basis (Fire Basis) is required to avoid cost inefficiency and unnecessary administration and is a fair and reasonable method of parcel apportionment based upon historical call data. The separation of non-residential property buildings by actual square footage (Fire Basis) is fair and reasonable for the purpose of parcel apportionment for the relative demand because the demand for fire service is determined and measured by the actual square footage of structures and improvements within benefited parcels. The greater the building area, the greater the potential for a large fire and the greater the amount of firefighting resources that must be 17 available in the event of a fire in a structure of that building's size. It is fair and reasonable to correlate a building's benefit directly to a building's size, without limit. Based upon the historical demand for fire protection services, the percentages of the City's total fire protection assessable costs attributable to vacant non-agricultural properties were calculated. The costs attributable to parcels were divided by the number of acres (Fire Basis) associated with parcels in the Vacant category to compute the fire assessment rate per acre. An acreage charge is a fair and reasonable allocation. For residential parcels that contain non-residential buildings, non-residential improvements located on the parcel were treated according to their non-residential property use category and size to compute the parcel's non-residential fire protection assessment. This assessment was then added to the parcel's residential fire services assessment. For non-residential parcels that contain a residence, the number of dwelling units by type located on the parcel was multiplied by the rate per dwelling unit to compute the parcel's residential fire services assessment. This assessment was then added to the parcel's non-residential fire services assessment. For agricultural parcels that contain a residence or non-residential building, the parcel was assessed for the actual number of dwelling units by type located on the parcel and/or the appropriate assessment for the non- residential building square footage. The property used for agricultural purposes was not assessed. We believe that the apportionment methodology prepared here is fair and reasonable and benefits the property that will be assessed and that it fits the particular properties in and nature of the City of Dania Beach. F. j APPENDIX A FORECAST OF CITY OF DANIA BEACH FIRE SERVICE COSTS City of Dania Beach Development of Assessable Fire Service Costs Projected Fiscaly Years 2021-2025 FY2021 FY2022 FY2023 FY2024 FY2025 Expenditures Broward Sheriff's Office 13,751,931 14,311,327 14,955,337 15,628,327 16,331,602 Less: EMS Costs (130,000) (130,000) (135,850) (141,963) (148,352) City Fire Costs 4,954,973 248,000 259,160 270,822 283,009 Total Net Fire Costs Before Allocation 18,576,904 14,429,327 15,078,647 15,757,186 16,466,259 Other City Operating Expenses 5,000 5,000 5,000 5,000 5,000 Property Appraiser and Tax Collector Fees 7,226 7,443 7,666 7,896 8,133 Advertisements 6,500 6,500 6,500 6,500 6,500 Legal and Professional Fees 25,000 6,000 6,000 6,000 6,000 OPEB Costs - - - - - Total Forecasted 18,620,630 14,454,270 15,103,813 15,782,582 16,491,892 Percentage Allocated To Fire 54.55% 54.55% 54.55% 54.55% 54.55% Assessable Fire Costs 10,156,707 7,884,147 8,238,443 8,608,681 8,995,577 Less: Attributed Revenues Revenues Impact Fees - - - - - False Alarms 1,000 1,000 1,000 1,000 1,000 Hazmat Permit Fees 30,000 30,000 30,000 30,000 30,000 Fire Inspection Fees 490,274 750,000 776,250 803,419 831,538 Total Attributed Revenues 521,274 781,000 807,250 834,419 862,538 Net Assessable Fire Costs 9,635,433 7,103,147 7,431,193 7,774,262 8,133,039 Assessment Discounts 401,476 295,964 309,633 323,928 338,877 Special Assessments, Gross 10,036,910 7,399,112 7,740,826 8,098,190 8,471,916 19 APPENDIX B EXCLUDED CALLS FROM FIRE SERVICES NFIRS Incident NIFIRS Incident Type Description Type Code 300 Health care, detention, & correction, other 321 Mental retardation/development disability facility 322 Alcohol or substance abuse recovery center 323 Asylum, mental institution 324 Motor vehicle accident with no injuries 331 Hospital - medical or psychiatric 342 Doctor, dentist or oral surgeon office 350 Extrication, rescue, other 352 Extrication of victim(s) from vehicle 357 Extrication of victim(s) from machinery 360 Water and ice -related rescue, other 361 Jail, prison (not juvenile) 363 Reformatory, juvenile detention center 365 Police station 381 Rescue or EMS standby 460 Dormitory -type residence, other 463 Vehicle accident, general cleanup 500 Mercantile, business, other 510 Person in distress, other 511 Lock -out 512 Ring or Jewelry Removal 540 Animal Problem, Other 541 Animal problem 542 Animal Rescue 550 Public Service assistance, other 551 Assist police or other governmental agency 552 Police matter 553 Public Service assistance, other 554 Assist invalid 600 Ind., utility, defense, agriculture, mining, other 611 Dispatched and canceled en route 621 Wrong location 622 No incident found on arrival at dispatch address 661 EMS call, party transported by non -fire agency 900 Outside or special property, other 20 APPENDIX C Translation of NFIRS Property Use Description To BCPA Fire Class Code BCPA Fire NFIRS Property Use Description Code 1 or 2 family dwelling R 24-hour care Nursing homes, 4 or more persons I Adult education center, college classroom Y Alcohol or substance abuse recovery center I Amusement center: indoor/outdoor C Bank C Boarding/rooming house, residential hotels C Business office C Casino C Casino, gambling clubs C Church, mosque, synagogue, temple, chapel Y Clinics, doctors offices, hemodialysis cntr, other C Clubs, other I Construction site C Convenience store C Crops or orchard L Day care, in commercial property C Department or discount store C Dock, marina, pier, wharf W Dump, sanitary landfill W Educational, other Y Electric -generating plant W Electronic amusement center C Elementary school, including kindergarten Y Energy production plant, other W Fire station X Food and beverage sales, grocery store C Gas distribution, gas pipeline W General retail, other C Graded and cared -for plots of land L High school/junior high school/middle school X Hospital - medical or psychiatric I Hotel/motel, commercial C Household goods, sales, repairs C Industrial plant yard - area W Laboratory or science laboratory C Laundry, dry cleaning C Livestock, poultry storage C Manufacturing, processing C 21 APPENDIX C Translation of NFIRS Property Use Description To BCPA Fire Class Code (Continued) Mental retardation/development disability facility I Mercantile, business, other C Motor vehicle or boat sales, services, repair C Multifamily dwelling R Museum X Office: veterinary or research C Open land or field A Outside material storage area A Personal service, including barber & beauty shops C Places of worship, funeral parlors, other Y Preschool C Professional supplies, services C Public or government, other X Railroad yard C Recreational, hobby, home repair sales, pet store C Reformatory, juvenile detention center I Refrigerated storage C Residential board and care I Residential or self -storage units W Restaurant or cafeteria C Sanitation utility W Schools, non -adult, other C Service station, gas station C Specialty shop C Textile, wearing apparel sales C Vacant lot L Warehouse W Yacht Club W 22