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HomeMy WebLinkAboutD-2 Staff Report - County Fire Parcel Tax ReportSCHEDULED ITEM D-2 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINITRATIVE SERVICES DATE: OCTOBER 21, 2019 SUBJECT: ADOPTION OF A RESOLUTION OPTING FOR THE CITY OF AZUSA TO BE INCLUDED IN THE POTENTIAL PARCEL TAX MEASURE BY THE CONSOLIDATED FIRE PROTECTION DISTRICT OF LOS ANGELES COUNTY FOR FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES COSTS IN THE EVENT THE LOS ANGELES COUNTY BOARD OF SUPERVISORS ELECTS TO MOVE FORWARD WITH THE MEASURE BACKGROUND: Staff presented to Council on October 7th a receive and file report and requested direction to return for action regarding the Consolidated Fire Protection District of Los Angeles County’s (Fire District of District) proposal for placing a special parcel tax measure on the ballot in 2020, which would require an opt in by the City by the end of this month. The recommended actions are for Council to opt in for the parcel tax to be included as a potential ballot measure, and to allow Azusa voters to vote on the parcel tax measure that would provide the additional funding for fire protection and emergency medical services. If the City opts in on the parcel tax measure and it passes, it will allow the City to fund a part of the fire protection and emergency medical services cost increases through the parcel tax and would allow voters to decide whether or not to support additional funding for fire protection and emergency medical services. If the City does not opt in on this potential parcel tax measure, any additional fire protection and emergency medical services cost increases will have to be paid strictly out of the General Fund. RECOMMENDATIONS: Staff recommends the City Council take the following actions: 1)Adopt the attached Resolution No. 2019-C37 opting for the City of Azusa to be included in the Fire District’s Potential parcel tax measure for fire protection and emergency medical services. 2)Authorize the City Manager to issue a written notice to the Fire District that the City of Azusa has determined to allow voters to decide on this important funding measure and therefore authorizes the Fire District to include the City of Azusa within a 2020 ballot measure to provide critical funding for fire protection and emergency medical services. APPROVED CITY COUNCIL 10/21/2019 County Fire Special Parcel Tax Measure October 21, 2019 Page 2 ANALYSIS: The City of Azusa contracts with the Consolidated Fire Protection District of Los Angeles County for medical and fire protection services. The District has identified a need for additional funding and is contemplating placing a special parcel tax measure on the ballot in 2020, which would require an opt in by the City by the end of this month. In 1983, the City of Azusa decided to annex to the Los Angeles County Fire District to receive fire protection and emergency medical services. In 1997, the agreement between the City of Azusa and District was amended to reflect the City’s decision to opt in when the Fire District proposed and successfully passed Proposition E. Revenues from the special parcel tax are credited back to the City to offset costs related to fire and medical services provided by the Los Angeles County Fire Station 32. In 2016, Station 97 was added to serve the cities of Azusa and Glendora. This station was paid for by Rosedale Land Partners as part of the Rosedale Planned Community and ongoing costs are covered by special district assessments. The District is currently considering requesting voter approval of a special parcel tax in 2020. However, if the County decides to place a special parcel tax measure in 2020, the City has the option to opt in and give its permission to place the measure before Azusa voters. If voters approve the measure, it would allow the City an opportunity to defray additional costs related to District staffing needs, facility and equipment upgrades, and overhead charges. Approval of the special tax measure would require a 2/3 passing rate by Azusa voters in order take effect. Placement of a ballot measure by the Fire District is under evaluation, but in order to meet established ballot deadlines, the District needs to know whether or not Azusa elects to opt in by October 31st. Pomona is one of the District’s contract cities and the Pomona Council voted to opt in at its October 7, 2019 meeting. Since 1993, the service incident rate in Azusa has grown by 59% through 2018 (Attachment 2). The City of Azusa paid County Fire $4.6 million in Fiscal Year 2018-19 for medical and fire protection services. That amount is expected to increase to $5.7 million in Fiscal Year 2019-20, nearly a $1.1 million or 23% increase. County Fire costs for Azusa have risen by 46% or $1.8 million in the past seven years and it is expected that costs for fire services will continue to increase. Opting in on the above recommendations will allow the City to use the parcel tax generated through the parcel tax ballot measure to be used for fire protection and emergency medical services costs. Funds raised in each fee-for-service city (including Azusa) will be allocated to a zone to ensure that funds will be expended within the city they are generated for major fire station repairs/replacement, additional paramedic services, and offsetting costs for equipment, vehicles, dispatching and communications equipment, etc., which would be specified in a resolution by the Los Angeles County Board of Supervisors that places a measure on the ballot. Should a ballot measure be pursued and approved by the voters, the Fire District estimates Azusa based revenues would range from $1.4M to $2.0M annually (Attachment 3), depending on the tax levy formula established by the District. Cost for the ballot measure would be borne by the Fire District. The City Council’s agreement to opt in to the ballot measure would allow voters to decide whether or not to support additional funding for fire protection and emergency medical services. County Fire Special Parcel Tax Measure October 21, 2019 Page 2 FISCAL IMPACT: No fiscal impact is associated with the recommended actions. However, if the District decides to place a measure on the ballot, all associated costs will be the responsibility of LA County Fire. The City Council’s agreement to opt in to the ballot measure would allow voters to decide whether or not to support additional funding for fire protection and emergency medical services. Should the Council decide to opt in and the District pursue a measure, which is subsequently approved by voters, the Fire District estimates Azusa based revenues would range from $1,356,000 to $2,012,000 annually, depending on the tax levy formula established by the District. Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1)Attachment 1 – Resolution No. 2019-C37 2)Attachment 2 – Incident Growth for fee-for-services Cities (Provided by Fire District) 3)Attachment 3 – City Revenue Estimates from Fee (Provided by Fire District) RESOLUTION NO. 2019-C37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA OPTING FOR THE CITY OF AZUSA TO BE INCLUDED IN A PROSPECTIVE 2020 REVENUE MEASURE TO FUND FIRE PROTECTION AND EMERGENCY SERVICES SHOULD THE CONSOLIDATED FIRE PROTECTION DISTRICT OF LOS ANGELES COUNTY AND THE LOS ANGELES COUNTY BOARD OF SUPERVISORS DECIDE TO PURSUE SUCH A MEASURE WHEREAS, In 1983, the City Council approved annexation to the Consolidated Fire Protection District of Los Angeles County (Fire District) to contract for Fire and Emergency Services; and WHEREAS, The Fire District’s records dating back to 1993, show the number of total incidents within the City have increased by 59%; and WHEREAS, the City desires to continue to provide fiscally sustainable Fire and Emergency Services for our residents and stakeholders and to address the City’s continually evolving service demands; and, WHEREAS, The Fire District estimates Azusa based revenues from a potential revenue measure between $1,356,000 and $2,012,000, depending the tax levy formulation determined by the Fire District; and, WHEREAS, if such a measure is pursued by the Fire District and subsequently approved by voters, Azusa generated revenues would be used as negotiated by the City and Fire District to determine appropriate staffing enhancements and Fire Station improvements to mitigate increased incident levels in the City and provide fiscally sustainable Fire and Emergency Medical Services; and, WHEREAS, To meet established election deadlines, the City must advise the Fire District of their desire to opt in to the ballot measure no later than October 30, 2019, to be included on a potential revenue measure for the scheduled March 3, 2020 Election. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Azusa as follows: SECTION 1. That the City Council of the City of Azusa, State of California, hereby opts for the City of Azusa to be included into consideration of the Los Angeles County Fire District’s potential 2020 funding measure for fire protection and emergency services, and; SECTION 2. That the City Council authorizes the City Manager to issue a written notice and executed copy of the proposed resolution to the Fire District indicating that the City of Azusa has determined to allow voters to decide on this important funding measure and therefore authorizes the Fire District to include the City of Azusa within a 2020 ballot measure to provide critical funding for fire protection and emergency medical services. SECTION 3. That the City Clerk shall certify to the approval and adoption of this Resolution. Attachment 1 PASSED, APPROVED AND ADOPTED this 21st day of October 2019. ____________________________________ Joseph Romero Rocha Mayor ATTEST: ____________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2019-C37 was duly adopted by the City Council of the City of Azusa at a special meeting thereof, held on the 21st day of October 2019, by the following vote of the Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ___________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: ___________________________________ Best Best & Krieger, LLP City Attorney Attachment 2 INCIDENT GROWTH FOR FEE‐FOR‐SERVICE CITIES City 1st Contract  Year 2018 % Increase Azusa* 2,491 3,961 59% Commerce* 2,160 3,473 61% Covina 3,474 5,123 47% El Monte 6,778 9,502 40% Gardena 4,840 6,765 40% Hawthorne 6,378 9,458 48% Hermosa Beach 2,026 2,025 0% Inglewood 10,590 14,850 40% La Habra 3,396 4,866 43% Lynwood 4,907 6,593 34% Palos Verdes Estates* 489 1,086 122% Pomona 11,512 17,464 52% * The Department's incident reporting system changed in 1993, and records are not available prior to the change in systems.  Therefore, for the cities of Azusa, Commerce, and PVE, 1993 was used as the base‐year for incident growth even though they were annexed into the Fire District prior to that year. Number of Incidents F:\Planning\Special Tax ‐ Infrastructure Measure\Incident Growth for Fee Cities.xls (9‐24‐2019) Attachment 2 CityHigh Estimates Low EstimatesAzusa$2,012,000 $1,356,000Commerce$3,604,000 $2,430,000Covina$2,679,000 $1,806,000El Monte$4,051,000 $2,731,000Gardena$3,608,000 $2,432,000Hawthorne$3,761,000 $2,535,000Hermosa Beach$1,347,000$908,000Inglewood$4,849,000 $3,269,000Lynwood$1,925,000 $1,297,000Palos Verdes Estates$1,390,000$937,000Pomona$6,608,000 $4,455,000A range of various rates is still being evaluated; this information is subject to change.  F:\Planning\Special Tax ‐ Infrastructure\Fee City Rev Estimates.xls (9‐23‐2019)Attachment 3Attachment 3