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HomeMy WebLinkAboutR-2017-084 Fire Preliminary Assessment RESOLUTION NO. 2017-084 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, RELATING TO THE IMPOSITION OF FIRE RESCUE ASSESSMENTS AND THE PROVISION OF FIRE SERVICES, FACILITIES AND PROGRAMS WITHIN THE CITY OF DANIA BEACH, FLORIDA; SUPERSEDING AND SUPPLANTING PRIOR RESOLUTIONS RELATING TO FIRE RESCUE ASSESSMENTS INCLUDING RESOLUTION NOS. 1996-063, 1996-072 AND ALL SUBSEQUENT RELATED RESOLUTIONS; PROVIDING AUTHORITY; PROVIDING PURPOSE, EFFECT AND DEFINITIONS; PROVIDING FOR PROVISION AND FUNDING OF FIRE SERVICES; PROVIDING FOR IMPOSITION AND COLLECTION OF SUCH ASSESSMENTS; PROVIDING LEGISLATIVE DETERMINATIONS OF SPECIAL BENEFIT AND FAIR APPORTIONMENT; PROVIDING UPDATED ASSESSMENT METHODOLOGY AND CALCULATIONS; ESTABLISHING PRELIMINARY NOT-TO-EXCEED ASSESSMENT RATES FOR FIRE ASSESSMENTS TO PROVIDE FOR THE PROVISION OF FIRE SERVICES, FACILITIES AND PROGRAMS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2017; DIRECTING THE PREPARATION OF A PRELIMINARY ASSESSMENT ROLL; AUTHORIZING A PUBLIC HEARING AND DIRECTING THE PROVISION OF MAILED AND PUBLISHED NOTICE OF SUCH HEARING; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, in July of 1996, the City of Dania Beach (City) implemented a Fire Rescue Assessment to provide a portion of the funding for the City's fire rescue services and facilities with the adoption of Ordinance No. 10-96 (subsequently codified as Article VIII of the City of Dania Beach Code of Ordinances), and imposed fire rescue assessments for Fiscal Year 1997-1998 with the adoption of the Initial Rate Resolution, Resolution No. 63-96 (also referred to as Resolution No. 1996-063) and the Final Rate Resolution, Resolution No. 72-96 (also referred to as Resolution No. 1996-72); and WHEREAS, pursuant to Ordinance No. 10-96 (Ordinance), the reimposition of fire rescue assessments for any Fiscal Year after the year of initial levy (Fiscal Year 1996-1997) requires certain processes and procedures; and WHEREAS, annually a Preliminary Rate Resolution describing the method of assessing fire rescue costs against Assessed Property located within the City, directing the preparation of an Assessment Roll, authorizing a public hearing and directing the provision of notice of such hearing and an Annual or Final Rate Resolution adopting the final assessment rate and directing billing and collection of such rates are required by the Ordinance for the reimposition of the fire rescue assessments; and WHEREAS, the City has in each year subsequent to 1996 adopted Preliminary and Final/Annual Rate Resolutions in accordance with the requirements of the Ordinance, including Resolution Nos. 1997-106, 1997-110, 1997-130, 1998-97, 1998-113, 1998-136, 1999-130, 1999-164, 2000-109, 2000-126, 2001-133, 2001-160, 2002-117, 2002-145, 2003-173-, 2003-212, 2004-115, 2004-125, 2004-145, 2005-108, 2005-144, 2006-128, 2006-154, 2007-133, 2007-161, 2008-123, 2008-166, 2009-141, 2009-169, 2010-116, 2010-157, 2011-073, 2011-101, 2012-089, 2012-124, 2013-081, 2013-108, 2014-052, 2014-082, 2015-079, 2015-100, 2016-090, and 2016-120, to adopt and impose the Fire Rescue Assessments; and WHEREAS, to facilitate the understanding of the public and simplify the administration of the Fire Rescue Assessments, the resolutions adopted for Fiscal Year 2017-2018 (this Preliminary Resolution and a subsequent Annual Resolution) will supersede and supplant all prior resolutions to provide updated, consolidated resolutions for the adoption and implementation of the Fire Rescue Assessments, without however affecting the validity or effectiveness of any prior resolutions for purposes of the Fire Rescue Assessments adopted and imposed by such prior resolutions; and WHEREAS, the City has engaged a rate consulting firm to analyze and reasonably adjust the City's assessment rates and cost allocations based on more recent emergency response call data and updated budget and cost information; 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 of Dania Beach to adopt this Preliminary Rate 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 the Fire Rescue Assessment Ordinance (Ordinance No. 10-96, subsequently 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; and Florida Statutes Chapter 170 and Sections 166.021 and 166.041, and other applicable provisions of law. 2 RESOLUTION#2017-084 Section 2. Purpose, Effect and Definitions. That this Resolution constitutes the Preliminary Rate Resolution as defined in the Ordinance which initiates the annual process for updating the Assessment Roll and directs the reimposition of Fire Rescue Assessments for the Fiscal Year beginning October 1, 2017. This Resolution supplants and supersedes all prior resolutions, including Resolution Nos. 1996-63, 1996-72, 1997-106, 1997-110, 1997-130, 1998-97, 1998-113, 1998-136, 1999-130, 1999-164, 2000-109, 2000-126, 2001-133, 2001- 160, 2002-117, 2002-145, 2003-173-, 2003-212, 2004-115, 2004-125, 2004-145, 2005-108, 2005-144, 2006-128, 2006-154, 2007-133, 2007-161, 2008-123, 2008-166, 2009-141, 2009-169, 2010-116, 2010-157, 2011-073, 2011-101, 2012-089, 2012-124, 2013-081, 2013-108, 2014-052, 2014-082, 2015-079, 2015-100, 2016-090, and 2016-120, to provide an updated, consolidated resolution for the adoption and implementation of the Fire Rescue Assessments, without however affecting the validity of any prior resolutions for purposes of previously adopted and imposed Fire Rescue Assessments. All capitalized words and terms not otherwise defined in this Resolution shall have the meanings set forth in the Ordinance. Unless the context indicates otherwise, words using the singular number include the plural number, and vice versa: (a) Assessed Property shall mean, as defined in the Ordinance, all parcels of land in the City included on the assessment roll that receive a special benefit from the delivery of the fire rescue services, programs or facilities identified in the initial assessment resolution or a subsequent preliminary rate resolution. Only parcels of land within the boundaries of the City may be Assessed Property. (b) Building Area means the adjusted area of a Building expressed in square feet and reflected on the Tax Roll or, in the event such information is not reflected or determined not to be accurately reflected on the Tax Roll,that area as may be determined by the City. (c) Cost Apportionment means the apportionment of Fire Assessed Costs among all properties within the geographic boundaries of the City according to the Fire Class Codes maintained by the Broward County Property Appraiser (BCPA) and the Demand Percentages established in the Methodology Report. (d) Demand Percentage means the percentage of demand for fire services, facilities, or programs attributable to each Fire Class Code category determined by analyzing the historical demand for fire services as reflected in the Fire Rescue Incident Reports in the State Database, and under the methodology described in the Methodology Report. 3 RESOLUTION#2017-084 (e) Dwelling Unit means (1) a Building, or portion of a building, available to be used for residential purposes, consisting of one or more rooms arranged, designed, used, or intended to be used as living quarters for one family, or (2) the use of land in which lots or spaces are offered for rent or lease for the placement of mobile homes, travel trailers, or the like for residential purposes, but excluding lands classified as a Recreational Vehicle Park. (f) Emergency Medical Services or EMS means those services recorded in Incident Reports that assign a type of situation found code that begins with the numeral 3. The type of situation found codes are presented in Appendix B to the Methodology Report showing all excluded call codes, including EMS calls. (g) Emergency Medical Services Cost means the amount, other than first response medical rescue services, as determined by the City Commission that is associated with Emergency Medical Services. (h) Exempt Property means any Government Property or any property that is tax exempt due to ownership or use by a religious or not-for-profit entity. Pursuant to Florida Statutes, Section 170.01(4), effective as of November 1, 2017, no Fire Rescue Assessment will be imposed on property classified as agricultural lands under F.S. Sec. 193.461 except where such assessment is imposed on a dwelling unit or nonresidential farm building with a value over $10,000 located on such property. (i) Fire Assessed Cost means the amount determined by the City Commission to be assessed in any Fiscal Year to fund any or all portions of the costs of the provision of fire services, facilities, or programs, whether such services are provided by the City or by another public or private entity under agreement with the City, which provide a special benefit to Assessed Property and shall include, but not be limited to, the following components: (A) the cost of physical construction, reconstruction or completion of any required facility or improvement; (B) the costs incurred in any required acquisition or purchase; (C) the cost of all labor, materials, machinery, and equipment; (D) the cost of fuel, parts, supplies, maintenance, repairs, and utilities; (E) the cost of computer services, data processing, and communications; (F) the cost of all lands and interest in them, including leases, property rights, easements, and franchises of any nature whatsoever; (G) the cost of any indemnity or surety bonds and premiums for insurance; (H) the cost of salaries, volunteer pay, Workers' Compensation insurance, or other employment benefits; (I) the cost of uniforms, training, travel, and per diem; (J) the cost of construction plans and specifications, surveys and estimates of costs; (K) the cost 4 RESOLUTION#2017-084 of engineering, financial, legal, and other professional services; (L) the costs of compliance with any contracts or agreements entered into by the City to provide fire services; (M) all costs associated with the structure, implementation, collection, and enforcement of the Fire Rescue Assessments, including any service charges of the Tax Collector or Property Appraiser, and amounts necessary to off-set discounts received for early payment of Fire Rescue Assessments, pursuant to the Uniform Assessment Collection Act or for early payment of Fire Rescue Assessments; (N) all other costs and expenses necessary or incidental to the acquisition, provision, or construction of fire rescue 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; (0) a reasonable amount for contingency and anticipated delinquencies and uncollectible Fire Rescue Assessments; and (P) 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 Assessed Cost. Any references in the Ordinance to Fire Rescue Assessed Costs are deemed to refer to Fire Assessed Costs as described in this Resolution. 0) Fire Basis means the applicable billing units assigned to each Assessed Parcel (i.e., dwelling units for residential, square footage for nonresidential such as commercial, and acreage for vacant properties) as identified on the tax roll by the Broward County Property Appraiser (BCPA). (k) Fire Class Code means the codes assigned to improved properties by the Broward County Property Appraiser (BCPA) based on the use and classification of property on the tax roll. The Fire Class Codes used in the Methodology Report include: R — Residential; C — Commercial, X— Government; S — Special/Mixed-Use; V, A or L —Vacant; I— Institutional; W —Warehouse/Industrial; and Y—Miscellaneous. (1) Fire Incident Reports mean those Incident Reports that do not record Emergency Medical Services. (m) Fire Rescue Assessment means a special assessment lawfully imposed by the City against Assessed Property within the City to fund all or any portion of the cost of the provision of fire services, facilities or programs providing a special benefit to Assessed Property within the City. The Fire Rescue Assessment does not include costs of nor fund any emergency medical services. The Fire Rescue Assessment is a non-ad valorem assessment within the meaning and intent of the Uniform Assessment Collection Act. 5 RESOLUTION#2017-084 (n) Methodology Report or Report means the applicable report detailing the identification of Fire Assessed Costs, the allocation of such costs to each Fire Class Code, and the methodology for calculating and imposing the Fire Rescue Assessments. The City of Dania Beach, Florida Fire Services Assessment Methodology Report prepared by Munilytics, Inc., dated June, 2017, attached and incorporated within as Exhibit A, is the Report used to determine the Fire Rescue Assessments for the fiscal year beginning October 1, 2017. Any modifications to the budget, Fire Assessed Costs or other data related to the Fire Assessment Rates as presented in the Report may be documented by an Addendum to the Report and such Addendum may be included in Exhibit A and become part of the Report. (o) Mixed-Use Property means an Assessed Property that contains Buildings with Fire Class Codes in more than one category. The Fire Rescue Assessment imposed on Mixed-Use Property shall be the sum of the Fire Rescue Assessment calculated for each Building. (p) National Fire Rescue Incident Reports or NFIRS mean a guide of how incident reports relate to Fire Class Codes and other related information. (q) Preliminary Fire Rescue Assessment Rate Schedule means that rate schedule presented in this Resolution based on the Methodology Report, and any Addenda to that Report if applicable. Such Preliminary Rate Schedule shall be used in the mailed and published notices of the Public Hearing regarding the proposed Fire Rescue Assessments. (r) Recreational Vehicle Park means (1) a place set aside and offered by a person for either direct or indirect remuneration of the owner, lessor, or operator of such place, for the parking, accommodation, or rental of five or more recreational vehicles or tents; and (2) licensed by the Department of Health of the State of Florida, or its successor in function as a Recreational Vehicle Park under Chapter 513,Florida Statutes, as amended from time to time. Section 3. Provision and Funding of Fire Services. That upon the imposition of Fire Rescue Assessments for fire services, facilities, or programs against Assessed Property located within the City, the City shall provide fire services to such Assessed Property. A portion of the cost to provide such fire services, facilities, or programs shall be funded from proceeds of the Fire Rescue Assessments. The remaining costs required to provide fire services, facilities, or programs shall be funded by lawfully available City revenues other than Fire Rescue Assessment proceeds. No EMS costs shall be funded by Fire Rescue Assessment proceeds. It is ascertained, determined, and declared by this Resolution that each parcel of Assessed Property located within the City will be benefited by the City's provision of fire services, facilities,or 6 RESOLUTION#2017-084 programs in an amount not less than the Fire Rescue Assessment imposed against such parcel, computed in the manner as set forth in this Preliminary Rate Resolution. Section 4. Imposition and Computation of Fire Rescue Assessments. That Fire Rescue Assessments shall be imposed against all Assessed Property based on the Fire Assessment rates calculated in the Methodology Report, as may be modified by any Addenda to such Report, using the Fire Class Codes and Fire Basis data maintained by the BCPA for each Assessed Parcel. Fire Rescue Assessments shall be computed in the manner set forth in this Preliminary Rate Resolution and in the Methodology Report, which is incorporated into this Resolution. It is determined and declared that the Fire Rescue Assessments for Fiscal Year 2017-18 proposed in this Resolution, as may be adopted by a Final or Annual Resolution, shall be collected under the Uniform Assessment Collection Act. Section 5. Legislative Determinations of Special Benefit and Fair Apportionment. That it is ascertained, determined, and declared that the Fire Assessed Cost provides a special benefit to the Assessed Property, based upon the following legislative determinations: General (a) Upon the adoption of this Preliminary Rate Resolution, and determining the Fire Assessed Costs and identifying the Assessed Property to be included in the Assessment Roll, the legislative determinations of special benefit ascertained, determined, and declared in Section 1.04 of the Ordinance are ratified and confirmed to the extent authorized by law. (b) The authority of local governments to adopt and impose special assessments for fire services and to develop fair and reasonable assessment apportionment methodologies was reaffirmed and upheld by the Florida Supreme Court in Morris v. Town of Cape Coral, 163 So.3d 1174 (Fla. 2015). (c) It is fair and reasonable to use the Fire Class Codes and the Fire Basis data as maintained by the Broward County Property Appraiser (BCPA) for the Cost Apportionment and the Demand Percentage. The BCPA data and classifications are the most comprehensive, accurate, and reliable information readily available to determine the Fire Class Code and Fire Basis units (i.e., Dwelling Units and Building Area) for improved property within the City. The Tax Roll database with such Fire Class Codes and Fire Basis data is maintained by the Property Appraiser and is consistent with parcel designations on the Tax Roll, which compatibility permits the development of an Assessment Roll in conformity with the requirements of the Uniform Method of Collection. 7 RESOLUTION#2017-084 (d) The data available in the Tax Roll is useful and accurate to determine the Fire Rescue Assessment for Assessed Property since the Tax Roll represents records maintained by the Property Appraiser with the most information relative to property use and classification, presence of improvements such as dwelling units,and Building Area regardless of Fire Class Code. Cost Apportionment (e) It is fair and reasonable and consistent with the decision from the Florida Supreme Court in the case of SMM Properties, Inc. v. City of North Lauderdale, Florida 825 So.2d 343 (Fla. 2002) to exclude from the Fire Assessed Cost amounts determined to constitute the emergency medical services costs. (f) Apportioning the Fire Assessed Cost among the Fire Class Code categories of property based upon historical demand for fire rescue services, but not Emergency Medical Services, is fair and reasonable and proportional to the special benefit received. (g) The Fire Rescue Incident Reports are the most reliable data available to determine the potential demand for fire rescue services by properties in each Fire Class Code category and to determine the benefit to each Fire Class Code resulting from the availability of fire services to protect and serve Assessed Property. There exist sufficient Fire Rescue Incident Reports documenting the historical demand for fire rescue services from Assessed Property within the Fire Class Code categories. The Demand Percentage determined for each Fire Class Code category by an examination of such Fire Rescue Incident Reports is consistent with the experience of the City. Therefore, the use of Demand Percentages determined by an examination of Fire Rescue Incident Reports as presented in the Methodology Report is a fair and reasonable method to apportion the Fire Assessed Costs among the Fire Class Code categories. (h) The level of services required to meet anticipated demand for fire services and the corresponding annual fire rescue budget required to fund fire services provided to non-specific incidents would be required notwithstanding the occurrence of any incidents from such non- specific incidents. Therefore, it is fair and reasonable to omit from the Demand Percentage calculation the Fire Rescue Incident Reports documenting fire rescue services provided to non- specific properties and other incidents that do not clearly benefit Assessed Property. Residential Parcel Apportionment (i) The size or the value of the Residential Property does not determine the scope of the required fire response. The potential demand for fire services is driven by the existence of a Dwelling Unit and the anticipated average occupant population. 8 RESOLUTION#2017-084 0) Apportioning the Fire Assessed Costs for fire services attributable to Residential Property on a per Dwelling Unit basis is needed to avoid cost inefficiency and unnecessary administration and is a fair and reasonable method of Parcel Apportionment based upon historical call data as analyzed in the Methodology Report. Non-Residential Parcel Apportionment (k) The risk of loss and the demand for fire service availability is substantially the same for Buildings below a certain minimum size. Because the value and anticipated occupancy of non- residential Buildings below a certain minimum size is less, it is fair, reasonable and equitable to provide a lesser assessment burden on improved property containing such Buildings by the creation of specific Building Area classification ranges for such parcels. (1) The separation of improved Non-Residential Property into Building Area classification ranges is fair and reasonable for the purposes of Parcel Apportionment because: (1)the absence of a need for precise square footage data within the ad valorem tax records maintained by the Property Appraiser undermines the use of actual Building Area within each improved parcel as a basis for Parcel Apportionment; (2) the administrative expense and complexity created by an on-site inspection to determine the actual Building Area within each improved parcel assessed is impractical; (3) the demand for fire service availability is not precisely determined or measured by the actual Building Area within benefited parcels; and (4) the classification of parcels within Building Area classification ranges is a fair and reasonable method to classify benefited parcels and to apportion costs among benefited parcels that create similar demand for the available fire services. (m) The demand for the availability of fire services diminishes at the outer limit of Building size because a fire occurring in a structure greater than a certain size is not capable of being suppressed under expected conditions and the fire control activities under such circumstances are directed to avoid the spread of the fire event to adjacent Buildings. Therefore, it is fair and reasonable to place a cap on the Building Area classification of benefited parcels within Non- Residential Property. (n) Government Properties and not-for-profit and religious entities, including Assembly Property, the use of which is exempt from ad valorem taxation under Florida law, benefit the general public in ways that otherwise might be requested or required to be provided by the City and such properties serve a legitimate public purpose and provide a public benefit. Therefore, it is fair and reasonable not to impose Fire Rescue Assessments upon such parcels the use of which is wholly exempt from ad valorem taxation under Florida law. Accordingly, no Fire 9 RESOLUTION#2017-084 Rescue Assessment shall be imposed upon a parcel which use is wholly exempt from ad valorem taxation under Florida law. The ability of the City to collect special assessments that may be levied on other governmental properties is very limited and generally requires the consent of the other governmental entity. In addition, because non-taxable properties are not subject to ad valorem property taxes, the data collected and maintained by the BCPA may not be complete or regularly updated. Therefore, for all of these reasons, it is fair and reasonable not to impose Fire Rescue Assessments upon such parcels. The City has determined that Exempt Parcels, as defined in this Resolution, shall not be required to pay Fire Rescue Assessments. (o) It is fair and reasonable to assess Hotels and Motels as Commercial Property. (p) It is fair and reasonable to assess vacant property by using acreage as there are no structures existing on the properties. In accordance with Florida Statutes, Section 170.01(4), effective as of November 1, 2017, no Fire Rescue Assessment will be imposed on property classified as agricultural lands under F.S. Sec. 193.461 except where such assessment is imposed on a dwelling unit or nonresidential farm building with a value over$10,000 located on such property. Apportioning the assessed costs for fire protection services attributable to vacant property on a per acre basis is a fair and reasonable method of parcel apportionment based on historical call data. (q) In accordance with Chapter 2002-241, Laws of Florida, which mandates that the City treat Recreational Vehicle Park property as Commercial Property for non-ad valorem special assessments levied by the City (such as this proposed Assessment), it is fair and reasonable to treat each space within the Recreational Vehicle Parks as a Building of Commercial Property and assign 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. Section 6. Cost Apportionment Methodology. Utilizing data from the Fire Rescue Incident Reports related to the type of calls and physical location of each call, the City identified and assigned fire incidents within the City to Fire Class Code categories as indicated in the Methodology Report. Based upon such assignment of Fire Incident Reports to Fire Class Code categories, the number of Fire Incidents filed within the sampling period was determined for each Fire Class Code category. A Demand Percentage was then determined for each Fire Class Code 10 RESOLUTION#2017-084 category by calculating the percentage that Fire Incident Reports allocated to each Fire Class Code category bear to the total number of Fire Incident Reports documented for all Fire Class Code categories within the sampling period. The Demand Percentage for each Fire Class Code category was then applied to the Fire Assessed Costs and the resulting product is the cost apportionment representing that portion of the Fire Assessed Costs allocated to each individual Fire Class Code category. Section 7. Parcel Apportionment Methodology. The apportionment among Assessed Properties of that portion of the Fire Assessed Cost apportioned to each Fire Class Code category under the Cost Apportionment shall be consistent with the methodology described and determined in the Methodology Report attached to this Resolution as Exhibit A, which Methodology Report, including any applicable Addenda, is approved, adopted, and incorporated into this Preliminary Rate Resolution. The Demand Percentage is used to allocate Fire Assessed Costs to each Fire Class Code category as described in Section 6 above. The allocated Fire Assessed Costs within each Fire Class Code category of Assessed Property is then allocated to Assessed Properties based on the Fire Basis, or number of billing units as identified by the BCPA. By dividing the Fire Assessed Costs allocated to a Fire Class Code category by the total Fire Basis in that Fire Class Code, the Fire Rescue Assessment Rate is determined. It is acknowledged that the Demand Percentage and Parcel Apportionment methodology described and determined in the Methodology Report is to be applied in the calculation of the estimated Fire Rescue Assessment rates established in Section 8 of this Preliminary Rate Resolution. Section 8. Determination of Fire Assessed Costs; Establishment of Proposed Not- to-Exceed Fire Rescue Assessment Rates. The Fire Assessed Cost to be assessed and apportioned among Assessed Property within the City for the Fiscal Year commencing October 1, 2017, is the amount determined in the Proposed Fire Rescue Assessment Rate Schedule presented in this Section 8. The approval of the Proposed Fire Rescue Assessment Rate Schedule by the adoption of this Preliminary Rate Resolution determines the amount of the Fire Assessed Cost and the maximum, or not-to-exceed, rates that may be imposed and collected for the upcoming fiscal year. The remainder of such Fiscal Year budget for fire rescue services, facilities, and programs shall be funded from lawfully available City revenue other than Fire Rescue Assessment proceeds. 11 RESOLUTION#2017-084 The estimated Fire Assessed Cost for the Fiscal Year commencing on October 1, 2017 is $6,686,066.00. Based on this estimated Fire Assessed Costs, the following are the proposed, not-to-exceed rates to be used in preparing the Preliminary Assessment Roll and in the required notices: PROPERTY USE RATE BASIS RATE CATEGORIES Residential Per Dwelling Unit $223.75 Vacant Per Acre $204.96 Commercial Building Area In Square Feet ➢ 1,999 $1,060.04 2,000—3,499 $1,457.55 3,500—4,999 $2,257.88 5,000—9,999 $3,975.15 10,000—19,999 $7,950.29 20,000—29,999 $13,250.49 30,000—39,999 $18,550.68 40,000—49,999 $23,850.88 ➢ 50,000 $26,500.97 Industrial/Warehouse Building Area In Square Feet ➢ 1,999 $190.54 2,000—3,499 $261.99 3,500—4,999 $405.85 5,000—9,999 $714.52 10,000—19,999 $1,429.04 20,000—29,999 $2,381.73 30,000—39,999 $3,334.42 40,000—49,999 $4,287.11 ➢ 50,000 $4,763.46 Section 9. Preliminary Assessment Roll. That the City Manager or designee is directed to prepare, or cause to be prepared, an updated Preliminary Assessment Roll for the Fiscal Year commencing October 1, 2017, in the manner provided in the Ordinance and this Resolution. The updated Assessment Roll shall include all Assessed Properties within the Fire Class Code categories and incorporate the Proposed Rates presented in Section 8 above. The City Manager or designee shall apportion the estimated Fire Assessed Cost to be recovered through Fire Rescue Assessments in the manner set forth in this Preliminary Rate 12 RESOLUTION#2017-084 Resolution and the Methodology Report. A copy of this Preliminary Rate Resolution, the Ordinance, previously adopted Resolutions, documentation related to the estimated amount of the Fire Assessed Cost to be recovered through the imposition of Fire Rescue Assessments, and the updated Preliminary Assessment Roll shall be maintained on file in the office of the City Clerk and open to public inspection. The foregoing shall not be construed to require that the updated Preliminary Assessment Roll proposed for the Fiscal Year beginning October 1, 2017, be in printed form if the amount of the Fire Rescue Assessment for each parcel of Assessed Property can be determined by the use of a computer terminal available to the public. It is ascertained, determined, and declared by this Resolution that the method of determining the Fire Rescue Assessments for fire services as set forth in this Preliminary Rate Resolution is a fair and reasonable method of apportioning the Fire Assessed Cost among parcels of Assessed Property located within the City. Section 10. Authorization of Public Hearing. That there is established a public hearing to be held at 5:01 p.m. on September 13, 2017, in the City Commission Chambers of City Hall, 100 West Dania Beach Boulevard, Dania Beach, Florida, at which time the City Commission will receive and consider any comments on the Fire Rescue Assessments from the public and affected property owners and consider imposing Fire Rescue Assessments for the Fiscal Year beginning October 1, 2017 and collecting such assessments on the same bill as ad valorem taxes. Section 11. Notice of Publication. That the City Clerk shall publish a notice of the public hearing authorized by Section 10 of this Preliminary Rate Resolution in the manner and time provided in Section 2.04 of the Ordinance. The notice shall be published no later than August 24, 2017, in substantially the form attached as Exhibit B. Section 12. Notice by Mail. That the Director of Finance shall provide information on the public hearing and the proposed not-to-exceed rates to the Broward County Property Appraiser's Office to be included in the TRIM (Truth in Millage) Notice to serve as first class notice as required by the Ordinance to be mailed no later than August 24, 2017. Section 13. Application of Assessment Proceeds. That proceeds derived by the City from the Fire Rescue Assessments will be utilized for the provision of fire services, facilities, and programs and will not be used for any EMS costs or services. In the event there is any unexpended or uncommitted assessment revenue remaining at the end of the Fiscal Year, such balance shall be carried forward and used only to fund fire services, facilities, and programs. 13 RESOLUTION#2017-084 Section 14. Conflict. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 15. Severability. That if any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. Section 16. Effective Date. That this Resolution shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on July 25,2017. ATTEST: e�o�p�Is Fl�rClrj 1 LOUISE STILSON, CMC TAMARA S CITY CLERK MAYOR ATEV 19" APPROVED A O RM AND CORRECTNESS: nA THO J. AWSB O CITY ATTO EY 14 RESOLUTION#2017-084 EXHIBIT A CITY OF DANIA BEACH,FLORIDA FIRE SERVICES ASSESSMENT METHODOLOGY REPORT June,2017 Prepared by Munilytics, Inc. With METHODOLOGY REPORT ADDENDUM Dated July 18,2017 15 RESOLUTION 92017-084 City of Dania Beach, Florida Fire Services Assessment Methodology Report Prepared for the City of Dania Beach, Florida June 2017 U N I L Y T I C • ADDENDUM TO CITY OF DANIA BEACH FIRE ASSESSMENT METHODLOGY REPORT BY MUNILYTICS, INC. July 18, 2017 The total amount of Fire Assessed Costs for Fiscal Year 2017-2018 is$6,686,066. A portion of this cost, $272,094, is associated with services to parcels owned by governments, religious organizations, and not- for-profits,which are exempt from the levying of the assessment. The portion of the Fire Assessed Costs assessed to non-exempt parcels totals$6,413,972. The proposed rates to be assessed for fiscal year 2017-2018 are as follows: PROPERTY USE RATE BASIS RATE CATEGORIES Residential Per Dwelling Unit $223.75 Vacant Per Acre $204.96 Commercial Building Area In Square Feet ➢ 1,999 $1,060.04 2,000—3,499 $1,457.55 3,500—4,999 $2,257.88 5,000—9,999 $3,975.15 10,000—19,999 $7,950.29 20,000—29,999 $13,250.49 30,000—39,999 $18,550.68 40,000—49,999 $23,850.88 ➢ 50,000 $26,500.97 Industrial/Warehouse Building Area In Square Feet ➢ 1,999 $190.54 2,000—3,499 $261.99 3,500—4,999 $405.85 5,000—9,999 $714.52 10,000—19,999 $1,429.04 20,000—29,999 $2,381.73 30,000—39,999 $3,334.42 40,000—49,999 $4,287.11 ➢ 50,000 $4,763.46 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 2017 budget as adopted by the City and then forecasts those costs through fiscal year 2022. The apportionment of those costs relied upon actual call data for fire/rescue calls during calendar years 2012 through 2016. Since the last study, call distribution has noticeably changed. Further, due to development and other factors,the inter-category assessments have moved and need realignment. 1 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$9,606,919 in fiscal year 2018,as noted in Appendix A,Forecast of City of Dania Beach Fire Service Costs. In FY2017,the City assessed approximately 74% of the total Fire Services costs. Net Fire Services costs are the total Fire Services costs less the expected allocated revenues associated with fire services. 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. 2 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. 3 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 for fiscal year 2018 is estimated to be$9,606,919,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 2022. 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$484,223 in FY2018 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 2012 through 2016 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. 6 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. Institutional ("I") This includes nursing homes and substance abuse centers; healthcare facilities located in shopping centers and office buildings,funeral homes and mausoleums; utility company depot locations that operate as remote offices; and other sundry uses.A review of these 4 parcels indicated that half of the structures closely related to residential uses and the other half closely related to commercial use. Because this category had only 4 parcels,we reassigned those uses to either the residential or commercial categories, as applicable. 7 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 8 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 33,337 unique parcels or folio numbers within the City of Dania Beach fire assessment district provided to us by the BCPA in January 2017. 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 13,862 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 Category Sum of Total Number of U Number of Fire Class Category Code(s) Units nit of Measure parcels Square Feet By Commercial C NA Tranche 485 Land Vacant Land/Acreage L V A 789.35 Acres 334 Residential R 15,307 Dwelling Units NA Square Feet By Warehouse/Industrial W NA Tranche 535 Government Not For Profit XY Not Assessed 1 Square Feet 1 559 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 9 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. 10 Fire/rescue Incidents Fire/rescue call for service data is maintained by the Broward Sheriff's Office (BSO). BSO provided call data related to the City of Dania Beach for calendar years 2012 through 2016. 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 four-year period (calendar years 2012 through 2016) studied,the City of Dania Beach had a total of 67,733 recorded incidents of which 65,252 were non-fire related calls (generally rescue calls) or outside of the City of Dania Beach,or otherwise not benefitting real property in the City. The remaining 2,481 were deemed to be fire related and benefitting real property in the City. Fire related calls that could be attributed to property benefied in the City of Dania Beach accounted for about 4% of all incidents. 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. 11 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 2,481 fire service incidents by the categories used to study fire service delivery and their corresponding BCPA Fire Class codes: Fire Assessment Call Volume Fire Class Fire Calls Category Category Evaluation 2012- Distribution 2016 R Residential 1,271 51.23% C/I Commercial/Institutional 867 34.95% W Warehouse/Industrial 182 7.34% L/V/A Vacant/Agricultural 60 2.42% Y Not For Profit 41 1.65% X Government 60 2.42% Total Fire Calls 2,481 100.00% 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 2018 as noted in Appendix A,Forecast of City of Dania Beach Fire Service Costs: 12 Fiscal Year 2018 Anticipated Fire Services Cost and Fire Cost Apportionment Maximum Fire Class Category Distribution Costs In Category R Residential 51.23% 4,921,625 C Commercial/Institutional 34.95% 3,357,618 W Warehouse/Industrial 7.34% 705,148 LN/A Acreage 2.42% 232,487 Y Not For Profit 1.65% 158,514 X Government 2.42% 232,487 Total Assessable 100% 9,606,919 differences due to rounding 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 official tax roll is not expected until July 2017. 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,but have been identified for this report. 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 2018 net costs of$9,606,919. 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 range or tranche (in the case of commercial or warehouse/industrial or not-for-profit),or an acreage charge (for vacant): 13 Number of Maximum Assessment Dwelling Units Rate/DU For Category Residential 15,307 321.53 4,921,625 Number of Maximum Assessment Acres Rate/Acre For Category Vacant 789.35 294.53 232,487 Commercial Square Footage Parcel Weighting Percent ofAssessment Rate For' Multiplier Assessment Tranche Count for Tranch For Tranche Tranche For Tranch < 1,999 1.000 147 147.00 6.67% 223,922 1,523.28 2,000-3,499 1.375 116 159.50 7.24% 242,963 2,094.51 3,500-4,999 2.130 40 85.20 3.87% 129,784 3,244.59 5,000-9,999 3.750 86 322.50 14.63% 491,258 5,712.31 10,000- 19,999 7.500 36 270.00 12.25% 411,286 11,424.61 20,000-29,999 12.500 13 162.50 7.37% 247,533 19,041.02 30,000- 39,999 17.500 12 210.00 9.53% 319,889 26,657.43 40,000-49,999 22.500 11 247.50 11.23% 377,012 34,273.84 >50,000 25.000 24 600.00 27.22% 913,969 38,082.05 485 2,204.20 100.00% 3,357,618 Warehouse/Industrial Square Footage Parcel Weighting Percent ofAssessment Rate For Multiplier Assessment Tranche Count for Tranchf For Tranche Tranche For Tranch < 1,999 1.000 183 183 7.11% 50,106 273.80 2,000-3,499 1.375 94 129 5.02% 35,389 376.48 3,500-4,999 2.130 49 104 4.05% 28,577 583.20 5,000-9,999 3.750 69 259 10.05% 70,847 1,026.77 10,000- 19,999 7.500 51 383 14.85% 104,730 2,053.53 20,000-29,999 12.500 42 525 20.39% 143,747 3,422.56 30,000-39,999 17.500 20 350 13.59% 95,832 4,791.58 40,000-49,999 22.500 13 293 11.36% 80,088 6,160.60 >50,000 25.000 14 350 13.59% 95,832 6,845.11 535 2,575 100.00% 705,148 14 Fire Suppression Equipment Within The City of Dania Beach The City has previously deployed the following equipment with the indicated pumping capacity: Pump Rescue Capacity Assignment Type Year Brand Ladders Tools Water Tank (GPM) Quint 01 75'Quint 2010 Pierce Velocity X X 500 1,500 Quint 17 75'Quint 2010 Pierce Velocity X X 500 1,500 Spare Engine 2261 Pumper 2005 Pierce Velocity 750 1,250 Total Pumping Capacity 4,250 Based on the pumping capacity of the current equipment and conversations with the City's assigned Fire Chief,all buildings within the City can be effectively protected and responded to by the Fire Department. The International Fire Code (IFC) sets standards for the minimum required fire-flow and flow duration for buildings using the classifications established by the Uniform Building Code (UBC). That code details by construction types the size in square feet of building that can be minimally protected during a given duration by a fire-flow indicated by gallons-per-minute. BSO Fire has confirmed that all buildings within the City of Dania Beach can be protected with the existing staffing and apparatus maintained within the City; however,the demand on the availability of the City's fire services diminishes at the outer limit of Building size (i.e.,greater than 50,000 so. This is because a fire occurring in a structure greater than a certain size is not capable of being suppressed under expected conditions without requiring mutual aid from other agencies and results in the City's fire suppression efforts diverted to protect adjacent structures 15 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 16 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. 17 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 amount of fire flow, 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. 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 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 amount of fire flow,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. 18 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,up to a reasonable limit,the greater the potential for a large fire and the greater amount of firefighting resources that must be available in the event of a fire in a structure of that building's size. 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 19 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. 20 APPENDIX A FORECAST OF CITY OF DANIA BEACH FIRE SERVICE COSTS Development of Assessable Fire Service Costs Projected Fiscaly Years 2018-2022 FY2018 FY2019 FY2020 FY2021 FY2022 Expenditures Actual or Forecasted Costs 11,160,157 11,687,155 12,214,153 12,741,151 13,268,150 Less: Direct Budget Costs Non- Fire EMS Supplies 74,663 76,903 79,210 81,586 84,034 Total Direct Costs Deducted 74,663 76,903 79,210 81,586 84,034 Net BSO Costs 11,085,494 11,610,252 12,134,943 12,659,565 13,184,116 City Legacy Pension Costs Including Chapter 175 6,313,395 7,243,632 8,173,869 9,104,107 10,034,344 Other City Operating Expenses 5,000 5,000 5,000 5,000 5,000 Other City Capital - - - - - 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 35,000 5,000 5,000 5,000 5,000 OPEB Costs 343,305 314,842 286,380 257,917 229,455 Total Forecasted 17,795,919 19,192,669 20,619,358 22,045,985 23,472,547 Percentage Allocated To Fire 54.55% 54.55% 54.55% 54.55% 54.55% Assessable Fire Costs 9,706,865 10,468,729 11,246,923 12,025,083 12,803,207 Less: Attributed Revenues Revenues Impact Fees 100,340 93,535 86,729 79,924 73,119 False Alarms 1,000 1,000 1,000 1,000 1,000 Hazmat Permit Fees 28,000 28,000 28,000 28,000 28,000 Fire Inspection Fees 354,883 355,451 356,020 356,588 357,157 Total Attributed Revenues 484,223 477,986 471,749 465,513 459,276 Net Assessable Fire Costs 9,222,642 9,990,743 10,775,173 11,559,570 12,343,931 Assessment Discounts 384,277 416,281 448,966 481,649 514,330 Special Assessments,Gross 9,606,919 10,407,024 11,224,139 12,041,219 12,858,262 21 APPENDIX B EXCLUDED CALLS FROM FIRE SERVICES NFIRS Incident Number of Type Code NIFRS Incident Type Description Incidents 300 Rescue,EMS incident,other 4,878 321 EMS call,excluding vehicle accident with injury 15,968 322 Motor vehicle accident with injuries 1,114 323 Motor vehicle/pedestrian accident(MV Ped) 103 324 Motor vehicle accident with no injuries. 965 331 Lock-in(if lock out,use 511 ) 26 342 Search for person in water 7 350 Extrication,rescue,other 1 352 Extrication of victim(s)from vehicle 5 357 Extrication of victim(s)from machinery 2 360 Water&ice-related rescue,other 1 361 Swimming/recreational water areas rescue 5 363 Swift water rescue 1 365 Watercraft rescue 5 381 Rescue or EMS standby 3 460 Accident,potential accident,other 4 463 Vehicle accident,general cleanup 16 500 Service Call,other 9 510 Person in distress,other 10 511 Lock-out 57 512 Ring or jewelry removal 4 540 Animal problem,other 5 541 Animal problem 48 542 Animal rescue 129 550 Public service assistance,other 35 551 Assist police or other governmental agency 179 552 Police matter 929 553 Public service 87 554 Assist invalid 457 600 Good intent call,other 26 611 Dispatched&canceled en route 1,981 621 Wrong location 61 622 No incident found on arrival at dispatch address 1,513 661 EMS call,party transported by non-fire agency 42 900 Special type of incident,other 1 28,677 22 APPENDIX C Translation of NFIRS Property Use Description To BCPA Fire Class Code 8CPA Fire NFIRS Property use Description Code I 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 1 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 23 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 24 EXHIBIT B FORM OF NOTICE TO BE PUBLISHED NOTE: To Be Published No Later Than August 24, 2017. This Notice may be combined with the required notice for other non-ad valorem assessments levied by the City and the format and wording may be modified as needed so long as the requirements of the Uniform Assessment Collection Act are fulfilled. [CITY TO INSERT MAP SHOWING BOUNDARY OF CITY. MAP NEEDS TO REFLECT THAT FIRE RESCUE ASSESSMENTS ARE BEING IMPOSED CITY-WIDE.I NOTICE OF PUBLIC HEARING TO REIMPOSE AND PROVIDE FOR COLLECTION OF FIRE RESCUE SPECIAL ASSESSMENTS BY THE CITY OF DANIA BEACH, FLORIDA Notice is given that the City Commission of the City of Dania Beach will conduct a public hearing to consider reimposing fire rescue assessments within the City of Dania Beach for the provision of fire services within the City of Dania Beach for the Fiscal Year beginning October 1, 2017. The Public Hearing will be held at 5:01 P.M. on September 13, 2017, in the City Commission Chamber of City Hall, 100 West Dania Beach Boulevard, Dania Beach, Florida. The assessment for each parcel of Assessed Property will be based upon each parcel's Fire Class Code(s) and the total number of billing units (Fire Basis) attributed to that parcel. The following table reflects the proposed not-to-exceed fire rescue assessment rate schedule. Copies of the Fire Rescue Assessment Ordinance (Ordinance No. 10-96), the Preliminary Rate Resolution initiating the annual process of updating the Assessment Roll and reimposing the Fire Rescue Assessments, the Assessment Methodology Report, documentation related to the estimated amount of the Fire Rescue Assessed Cost to be recovered through the imposition of Fire Rescue Assessments,and the updated Preliminary Assessment Roll for the upcoming fiscal year are available for inspection at the City Clerk's office. EXHIBIT`B" 1 RESOLUTION#2017- PROPOSED NOT-TO-EXCEED FIRE RESCUE ASSESSMENT RATES PROPERTY USE RATE BASIS RATE CATEGORIES Residential Per Dwelling Unit $223.75 Vacant Per Acre $204.96 Commercial Building Area In Square Feet ➢ 1,999 $1,060.04 2,000—3,499 $1,457.55 3,500—4,999 $2,257.88 5,000—9,999 $3,975.15 10,000—19,999 $7,950.29 20,000—29,999 $13,250.49 30,000—39,999 $18,550.68 40,000—49,999 $23,850.88 ➢ 50,000 $26,500.97 Industrial/Warehouse Building Area In Square Feet ➢ 1,999 $190.54 2,000—3,499 $261.99 3,500—4,999 $405.85 5,000—9,999 $714.52 10,000—19,999 $1,429.04 20,000—29,999 $2,381.73 30,000—39,999 $3,334.42 40,000—49,999 $4,287.11 ➢ 50,000 $4,763.46 If you have any questions, please contact the City's Department of Finance at (954) 924- 6800 Ext. 3672, Monday through Friday between 9:00 a.m. and 4:00 p.m. The above special assessments will be collected on the ad valorem tax bill to be mailed in November 2017, as authorized by Section 197.3632, Florida Statutes. Failure to pay the assessments will cause a tax certificate to be issued against the property, which may result in a loss of title (ownership) of one's real property. These special assessment programs have provided a fair and efficient alternative funding and collection approach for these vital and essential services. A PUBLIC HEARING WILL BE HELD AT 5:01 P.M. ON SEPTEMBER 13, 2017, IN THE CITY COMMISSION CHAMBER OF CITY HALL, 100 WEST DANIA BEACH EXHIBIT"B" 2 RESOLUTION#2017- BOULEVARD, DANIA BEACH, FLORIDA, FOR THE PURPOSE OF RECEIVING PUBLIC COMMENT ON ALL OF THE CITY'S PROPOSED ASSESSMENTS. All affected property owners have a right to appear at the hearing and to file written objections with the City Commission within 20 days of this notice. If a person decides to appeal any decision made by the City Commission with respect to any matter considered at the hearing, such person will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. In accordance with the Americans with Disabilities Act, persons needing special accommodation or an interpreter to participate in this proceeding should contact the City Clerk's office at (954) 924-6800 Ext. 3624, at least forty-eight(48)hours prior to the hearing. EXHIBIT`B" 3 RESOLUTION 42017-