98-013 RESOLUTION NO. 98-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AVENTURA, FLORIDA, AUTHORIZING THE PREPARATION
OF AN INTERIM SERVICE FEE REPORT BY TlSCHLER &
ASSOCIATES, INC.; AUTHORIZING THE CITY MANAGER TO
DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF
THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Aventura has expressed its intent to
establish INTERIM SERVICE FEES within the City of Aventura; and
WHEREAS, the City Council of the City of Aventura desires to adopt an Interim
Service Fee program which is fair and equal and legally defensible; and
WHEREAS, City staff recommends that the firm of Tischler & Associates be
selected to prepare an Interim Service Fee Report as a sole source acquisition based
upon their experience, qualifications, unique methodology and proven legal defensibility
of their reports.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
AVENTURA, FLORIDA, THAT:
Section 1. The firm of Tischler & Associates is hereby authorized to prepare an
Interim Service Fee Report for the City of Aventura based on the methodology and
services and costs described in the "Feasibility Report for Interim Service Fee" attached
hereto as Exhibit A.
Section 2. The City Manager is hereby authorized to do all things necessary to
carry out the aims of this Resolution.
Section 3. This Resolution shall become effective immediately upon its
adoption.
The foregoing resolution was offered by Councilmember Cohen, who moved its
adoption. The motion was seconded by Councilmember Holzberg, and upon being put
to a vote, the vote was as follows:
Councilmember Arthur Berger yes
Councilmember Ken Cohen yes
Councilmember Harry Holzberg yes
Councilmember Jeffrey Perlow yes
Councilmember Patricia Rogers-Libert yes
Vice-Mayor Jay Beskin yes
Mayor Arthur I. Snyder yes
Resolution No. 98-13
Page 2
PASSED AND ADOPTED this. 20 .day of January, 1998..
, MAYOR
ATTEST:
CITY CLERK
APPROVED AS TO LEGAL SUFFICIENCY:
ClTYATTORNEY
AVENTURA, FLORIDA
December 30, 1997
Prepared By:
Tischler & Associates, Inc.
Bethesda, Maryland
Pasadena, California
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY .......................................................................... l
II. RATIONALE FOR iNTERIM SERVICE FEES ........................................... l
Ill. APPROACH .............................................................................................. 2
IV. NEXT STEPS 3
V. SCOPE OF SERVICES 3
VI. TIME AND COST 5
VII. QUALIFICATIONS ................................................................................... 5
Tischler & Associates
I. EXECUTIVE SUMM. A RY
Interim Service Fees are fees charged to new devclopmcm to cover oper(~ting
expenses which are not initially covered by real estate taxes. As discussed further
in the next section, these interim service fees arc prorated for the first year of
occupancy of the real estate until the real estate is put on the tax assessment roll.
Tischler & Associates, Inc. (TA) has reviewed various City documents and had
discussions with City staff. TA believes that interim service fees could be
calculated and that potential annual income could be in excess of $150,000 over
at least the next two years. This is based on a preliminary assumption of about
1,500 dwelling units per year and employment increases of 290 per year. To the
extent these figures are increased, the interim service fee would increase.
The cost for a formal interim service fee calculation, as discussed in a later
section, is $22,300. The study could be completed within approximately 45 days
from time of start-up.
II. RATIONALE FOR INTERIM SERVICE FEES
lnterim service fees are fees charged to new development to pay for its ~mpact on
City facilities and services which are not otherwise paid by impact fees, property
taxes or other revenues. The primary reason for implementing interim service
fees is that a certificate of occupancy issued after January I of one year will not be
included on the City's tax rolls until the following January. Since the City needs
to provide services to the inhabitants of the residentia/ and nonresidential space,
interim service fees are an equitabie approach to having these users help to pay for
their fair share of the City services that are needed prior to the time the property is
assessed property taxes.
Without the implementation of the interim service fees, the existing taxpayers will
continue to subsidize operating costs incurred by the City to service the new
residents and employees from the time of the certificate of occupancy to the time
the property is put on the tax roll. Accordingly, the interim service fee schedule is
prorated for a period of from one to fifty-two weeks. A house recezving a
certificate of occupancy in the first week of January would pay a relevant interim
service fee for fifty-two weeks while the house which receives a certificate of
occupancy in the last week of the year would be paying one week (1/52 of the
applicable service fees).
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Tischler & Associates Inc
III. APPROACH
This feasibility study utilizes a very generalized approach to eslablish a range of what the
impact interim service fee might be~ The stuAy also discusses the probable methodology to
calculate a more precise and defensible fee.
A. Estimated Allocable Expenses
The first step was to calculate the potential increased operating expenses due to growth.
General Fund activities which were assumed not to increase due to growth in this
preliminary analysis were City Council, Office of the City Manager and City Clerk.
Although the Community Development operating expenses will increase with growth, other
fees will offset the increased costs. The departments which will be affected by growth and
are reflected in this preliminary methodology are Financial Support Services. Legal. Public
Safety, Community Services and Non Departmental.
The budget document used for this analys;s was the City of Aventura Proposed Operating
and Capital Budget - Fiscal Year 1997/1998.
For Financial Support Services the General Fund expenditures are S519.~71. Based on
discussions with City staff, it is estimated that about 75% of the oper?ting expenses are
variable and will increase with growth. The net expenditures are about $389,000.
The second activity is legal. The General Fund cost is $205,000.
For Public SMety, the general expenditures of $4,099,720 was reduced by two specific
revenue sources. These revenue sources were Police Detail Billing and County Court Fines.
These sources totaled $45,000 and therefore result in net cost for Public Safety of about
$4,055,000.
The Community Services category has expenditures of $1,307,000. This activity focuses on
roads and maintenance, including landscaping and beautification. A direct revenue oft~et is
$78,000 from State revenue sharing utilized for road operations. Therefore the net cost is
approximately $1,229,000.
The Non-Departmental category cost totals about $516,000. There are no direct revenue
offsets.
The total cost of these activities is about S6~394,000. This compaxes to the ad valorem taxes
of $5,860,000. Since the focus of the in,~rim service fee methodology is to recamure
unassessed real estate taxes, for the purposes of this preliminary analysis, the figure of
$5,860,000 is referenced in estimating the potential interim service fee amount. This
represents an 8% reduction of the allocable costs.
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T~schler & AssociateSr
The departments included in this analysis provide services which benefit both residential and
nonresidential activities. Therefore the costs are allocated on a per capita and per employee
basis. These will then be allocated to dwelling units and nonresidential square footage.
B. Allocation to Population and Nonresidential
The 1997 estimated year round population is approximately 20,300. It is estimated that
seasonal residents constitute an additional 20% or 4, 100 more persons. Therefore the total
peak population approximates 24,400. Given the City estimate of about 17,200 dwelling
units, this represents about 1.42 per unit, reflecting peak populatiom
The estimated total 1997 employment in Aventura is about 16,900. This is based on the
Dado County employment estimates by Traffic Analysis Zone (TAZ) in Aventura for 1995
(16,299) and 2005 (19,199) and averaging the employment increase, 290 per year.
The City services provided will benefit both residential and nonresidential activity.
Therefore the total 1997 population and employment figures of 41,300 will be used in this
feasibility analysis. Dividing this number into the ad valorem tax amount of $5,860.000
equals $141.89 or $142.00 per person and employee.
Assuming 1,500 dwelling units per year, averaging 1.42 persons, the population will
increase 2, 130 per year. This would represent about $302,000 in interim service fees. (2,130
x $142). Assuming the Certificate of Occupancy is prorated evenly over the year, this figure
should be divided by two (assurmng a mid year average) to generate about $151,000.
The nonresidential component will be a reflection of the estimated annual increases m
employment of about 290. The resulting interim service fee will be about $41,000.
Assuming the Certificate of Occupancy is prorated evenly over thc year, this figure should
be about $20,000.
Therefore the total interim service fee would be about $171,000 annually. A reduction of
10% is assumed at this point to reflect existing property tax paid on the land. Therefore the
interim service fee is about $i54,000 on an annual basis among the above development.
IV. NEXT STEPS
In order to implement interim service fees, a more f(~rmal and rigorous methodology nmst be
prepared to ensure that the amount paid at the certificate of occupancy reflects the direct and
reasonable impact of operating expenses to be incurred by the new development. Therefore
the following steps are recommended.
V. SCOPE OF SERVICES
We suggest thc following tasks be conducted to derive a thorough and legal, ly defensible
interim service fee program.
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T~schlor & Assoc~ales, In(-
Task i Review of Information and Confirmation of Services and Activities Eligible for
Interim Services Fees. TA will evaluate the specific parameters which will clearly meet the
interim service fee requirements. Considerations will include forecast period, geographic
suhareas, type of land use, type of service, relationship to capital faciLties and other factors.
Work Product: See lnter~m Services Fee Report Below
Task 2 Conduct Level of Servicg and Cost and Revenue Interviews. TA will meet with
the Finance Director and various other service providers in the City in order to evaluate the
level of service and the operating cost factors which could be included in the interim
services fee.
The methodology will focus on population and employment by different types of land use.
Work Product: See Interim Services Fee Report Below
Task 3 Calculation of Revenue Offsets. In this task we will consider the various
revenues which should be deducted from the costs eligible for interim ser ,icc fees. This is a
requirement of the interim services fee methodology and it will enable us to calculate thc net
cost to be covered by fees.
Work Product: See lnter~m Services Fee Report Below
Task 4 Complete Interim Services Fee Methodology and Calculation. The completion of
the above tasks will enable the interim service fee methodology to be finalized. The interim
services fee will be expressed in terms of population and employment.
Work Product: See Interim Services Fee Report Below
Task $ PreparaUon of Draft Interim Services Fee Report. We will prepare five copies of
a draft report which discusses the level of service and cost factors as well as offsetting
revenues. The report will include at a minimum the following information:
· A detailed description of the methodologies used during the study.
· A detailed description of all formulas used and accompanying rationale.
· A detailed schedule of the interim services fee by population and employment.
· Other information which adequately explains and justifies the resulting recommended
fee schedule.
We will meet with the service providers to discuss the draft report. Any mutually agreed
upon changes will be reflected in the final report.
Work Product: Draft lnterim Services Fee Report
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Tischler & Associates, Inc
Task 6 Preparation of Final Interim Services Fee Reporl. After City review, we will
make mutually agreed upon changes and issue ten copies of the final report. City staff will
be able to use the formulas to prorate the interim services fees by time period.
Work Product: Interim Services Fee Report
Task 7 Coordinate With City Officials and Staff. Throughout the process the consultant
team will coordinate with the appropriate City officials and other representatives for
developing necessax3, information or recommendations.
Work Product: Meetings and Discussion
Task 8 Presentations. We will attend one presentation.
Work P)'oduct: Appropriate Presentation Material
VI. TIME AND COST
We can complete the draft final report in about 45 days from start-up. The cost including
out-of-pocket expenses for all tasks is $22,300. We will invoice monthly on a percentage
completion basis.
VII. QUALIFICATIONS
Tischler & Associates, Inc. (TA), in business for over 20 years, is a risc'al, economic and
planning consulting firm with offices in Bethesda, Maryland and Los Angeles, California.
The firm has a national practice and a particular niche in fiscal impact evaluat/ons and
impact fee/exaction analysis. TA has prepared over 300 fiscal impact evaluations of
comprehensive plans, annexations, specific projects, etc. It has prepared over 400 impact
fees/exactions for communities throughout the country. This includes interim service fee
evaluations for Naples, Deerfield Beach, Miramar, Wellington and Key Biscayne as well as
Lee and Collier counties. Deerfield Beach expects to collect about $I00,000 annually,
assuming only 150 new units. In Miramar the interim service fees are likely to generate in
excess of $200,000 per year. None of TA's public sector impact fees/exactions have ever
been challenged.
Our Florida clients have included: Tarpon Springs, Hillsborough County, Manatee County,
Sarasota County, Venice, Lee County, Lee County School District, Collier County, Collier
County School District, Naples, Pehcan Bas*, Key Biscayne, Miramar, Deerfi¢ld Beach~
Coral Springs, Parkland, Stuart*, Wellington and Palm Coast* (*Private sector client).
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Tischler & ASSOClales, Ir/c