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98-061 RESOLUTION NO. 98-61 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FI.ORIDA, PROVIDING FOR ADOPTION OF INTERIM SERVICE FEES STUDY DATED JUNE 1, 1998 PREPARED BY TISCHLER AND ASSOCIATES, INC., ATTACHED HEI~,ETO AS EXHIBIT A, AND INTERIM SERVICE FEE SCHEDUI.E INCLUDED THEREIN, PURSUANT TO ORDINANCE NC). 98-19; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RES()LUTION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuar t to Section 12 "Interim Service Fee Schedule" of the City of Aventura Interim Service F.~e Ordinance, the City Commission is required to adopt an Interim Service Fee SchedL le (the "Fee Schedule"); and WHEREAS, the City of Aventura has caused an Interim Service Fee Study to be conducted for the City by T schler and Associates, Inc. (the "Consultant"), noted experts in the area of Interim Servic Fees; and WHEREAS, the Co 3ultant has produced the Interim Service Fee Study (the "Study") dated June 1, 1991 a copy of which is attached hereto as Exhibit "A"; and WHEREAS, the Ci Commission has held a public hearing upon the Fee Schedule and finds that th~ proposed Fee Schedule as set forth in the Study complies with the Interim Service Fe, Ordinance. NOW, THEREFORE BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FL( RIDA, THAT: Section 1. The al: ove stated recitals are hereby adopted as if set out in full herein. Section 2. That th~ Study is hereby approved and the Fee Schedule is hereby the interim Service Fee Schedule for the City of Aventura approved and adopted as pursuant to the Interim Ser lice Fee Ordinance of the City. Section 3. The In :erim Service Fees contained in said study shall be payable upon all properties receivir a certificate of occupancy on or after October 1st, 1998. Section 4. This r~ ~olution shall be effective immediately upon adoption. Resolution No. 98-_6_t Page 2 Commissiomer The foregoing resok tion was offered byRosers-Libert ,who moved its econded byvice Nayor Co]~en , and upon being put to adoption. The motion was ,, a vote, the vote was as folio ~vs: Commi~ ~sioner Arthur Berger y~ Commi:~sioner Jay R. Beskin yes Commi ~sioner Harry Holzberg yes Commi ~,sioner Jeffrey M. Perlow ~ Commi ,sioner Patricia Rogers-Libert )-es Vice-M ~yor Ken Cohen ,/es Mayor,~,rthur I. Snyder yes PASSED AND ADO~ 'TED this 7th day of July, 1998. ,,~ ~NYDEi~, ~'Ay O~R ATTEST: TERESA M. SMITH, CMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CiTY A~ Exhibit "A" l~tterim Service Fees Study City of Aventura Florida June 1, 1998 Prepared by: Tischler and Associates, Inc. Bethesda, Maryland Pasadena, California Il~ TABLE OF CONTENTS TlSCX-n.F.R & Assoc~.s, I~c. 4701 Sanoamore Road I. EXECE ~E SUMMARY ..................................................................................................... Suite N210 Belhe~, MD 20816 A. ~ACK ROUND ........................................................................................................................ (~1) 320-6~ B. M~ ,~LOOY ..................................................................................................................... F~: (~1) 320-4~0 C. DE~A ~D FOR C~ S~RViC~ ................................................................................................ D. ~ ~ SUP~RT~ [~g~ SERVICings ................................................................ ~ Annandale Read H. GROW~'H [~PACTED SER~[CE ACT~[T]ES & ASSOCIATED Pa~dena, CA 91105-14~ (818)~-6170 A. E~AN( ALSUP~gTSERViC~ ................................................................................................ F~: (818) 7~ 6235 B. LEO~ E~v[c~s ..................................................................................................................... (~0) 424-4318 D. Co~u ~ SERVICES DEPARTMENT ..................................................................................... HL ADJ~ ;T~D FEES B~FOR~ EAND CREDitS ............................................................ ~. ~AND TAX CREDitS AND NET F~ ........................................................................ A. [ 997 PO >ULATION ~D ~P~Y~ENT ~ST~A~5 ................................................................ C. ~U~D~ } AREA ~AT[OS ........................................................................................................ D. ~EN HAL ~D ~ONR~S~ENT~L MEHIC~ TR~S ............................................................ Fiscal Impact Analysis Capital Facility Analysis Impact Fee Systems Growth Policy Planning Economic and Market Analysis MUNIES, FISCALS & CRIM Fiscal impact systems lailored for each community II~ I. EX ~CUTIVE SUMMARY I A. Background TlSCHLER & Interim ser~ ice fees are charged to new development to cover operating expenses AXSOCIATES, INC. which are n )t initially covered by real estate taxes. The reason for implementing 47'01 Sangam0re Road interim setw ce fees is that a certificate of occupancy for new development issued Suite N210 after Januar 1 of one year will not be included on the City's tax rolls until the 8ethesda, MD 20816 following y~ ar. Since the City needs to provide services to the inhabitants of (~01) 320-6900 Fax: (301)320-4860 residential a ad nonresidential space, interim service fees are an equitable approach to having these users pay for their fair share of the City services that are 80 Annandale Road needed prio~ to the time the property is assessed property taxes. Pasadena, CA 91105-1404 (818) 790-6170 Fax: (818) 790-6235 Without the implementation of interim service fees, the existing taxpayers will continue to ~ ubsidize operating costs incurred by the City to service the new (800) 424-4318 residents am L 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 period of from one to fifty-two weeks. A new development receiving a c :rtificate of occupancy in the first week of January would pay a relevant inte 'im service fee for fifty-two weeks while a new development which receives a ce :tificate of occupancy in the last week of the year would be paying relevant fees for one week ( 1/52 of the applicable service fees). B. Metl] odoiogy The first con ~onent of determining interim service fees is to ascertain the various City activitie whose operating expenses are: 1) paid through the General Fund, and 2) likely increase due to growth. Net operating costs for these relevant activities are then determined based on the FY97/98 budget. To determine the net costs, all rele rant revenues for that activity are deducted from the total operating costs for ser~ ices. For example, federal grants are subtracted from Public Safety costs to dete~ mine net operating costs due to growth. The second c vmponent is the determination of the most appropriate demand generator (su :h as population or employment or both) for the service to be provided to tte property. For example, costs for Legal Services are impacted by both populatJ on and employment, v, hereas costs for Community Services are based on veh [cie trip generation by land use given that a significant portion of these costs m e for roads. Next, factors are calculated based on the demand generator. For example, costs Fiscal Impact Analysis for Legal Sea vices are divided by total population and employment to derive a per capita and er tployee cost that applies to new growth. This factor is then Capilal Facilffy Analys,smultiplied ti~ des the number of persons per household by housing type to Impact Fee Systems determine a { dSt per housing unit, and multiplied times the number of employees Growth Policy Planning Economic and Marke~ Analysis MUNIES, FISCALS & CRIM Fiscal impact systems tailored for each community Page ] per nonresidential square f ,~et (per room for hotels) by employment type to determine costs for nonresidential space. The next step is to adjust ti e gross fees to reflect the total property tax revenue collected in the 1997/98 fiscal year. This ~ voids the possibility that the fees will be higher than the property taxes that would be collect, '.d if the new development were on the assessment rolls. The final step of the methodology is :o apply property tax credits for land. Property tax credits result from any real estate taxes paid o: the land, which, unhke the improved property, is on the tax rolls during the first year. Section II of this report dis{ ~sses the growth related net annual costs for each service activity in the City budget, the methoc ologies used, and the resulting gross annual fees. In Section III, the gross annual fees are adjust ~,d to account for actual property tax collected in the City. In Section IV, land tax credits are app]ied and the net annual fees are derived. Section V is the supporting documentation section and ncludes all population, employment, household and building- employee ratios used to der, :rmine the fees. C. Demand for City S .'rvices Demand for City services ir cluded in the interim service fee methodology is dependent on the number of people and empl, ~yees per house or per nonresidential activity, respectively. The residential and nonresidenti development categories are described below. Refer to the Supporting Documentation ~ction at the end of this report for further details. The residential interim servJ ce fees are calculated on a per housing unit basis for the following categories: 1) single family detached, and 2) multifamily and other. The multifamily and other category includes attached t nits such as townhouses and condominiums. The nonresidential interim s ~rvice fees include three categories: 1) office/institutional, 2) retail/shopping center, an t 3) hotel. Nonresidential interim service fees are calculated per 1,000 square feet of develo[ ment, as determined by gross floor area and the number of employees per square foot. For resort hotels, per loom factors are used.) This approach allows the fees to be proportionatel ' increased according to the size of nonresidential development. D. Maximum Support tble Interim Service Fees The table on Pages 3 and 41 )elow provide a schedule of the maximum supportable interim service fees for the City; thz is, the amount that will not necessitate any subsidy by the existing taxpayers. This schedule w( ~ld be included in the interim service fee ordinance. Residential fees per housin~ unit vary by type of housing and the nonresidential fees are listed per 1,000 square feet ofbui ding space (gross floor area). Hotel fees are listed per room. Since the interim service fees will be applied to serving new residents and employees once they occupy the units, the fees should be :ome effective at the time of Certificate of Occupancy. As indicated above, the fees are prorated over the course of the first year. In subsequent years, the new development would be on tl te tax rolls. Page 2 Tischler & Associates, Inc Interim Service Fees - Prorated of Aventura, Florida Single Com/ Shop Com/ Shop Corn / Shop Office / Inst Office / Inst Office / Inst Family Multi- less than 75,000 to greater than less than 17,500 to greater than WEEK Detached Family 75,000 SF 150,000 SF 150,000 SF 17,500 SF 37,500 SF 37,500 SF Hotel (per unit) /per unit) (per 1,000 SF) (per 1,000 SF /per 1,000 SF) (per 1,000 SF); (per 1,000 SF (per 1,000 SF) (per room) I $138 $121 $582 $456 $376 $206 $181 $165 $52 2 $135 $119 $571 $447 $369 $202 $178 $162 $51 3 $132 $117 $560 $439 $362 $19R $174 $159 $50 4 $130 $114 $549 $430 $355 $194 $171 $156 $49 5 $127 $112 $538 $421 $347 $190 $167 $153 $48 6 $125 $110 $526 $412 $340 $186 $164 $149 $47 7 $122 $107 $515 $403 $333 $1821 $160 $146 $46 8 $119 $105 $504 $395 $326 $178 $157 $143 $45 9 $117 $103 $493 $386 $318 $174 $153 $140 $44 10 $114 $100 $482 $377; $311 $170 $150 $137 $43 11 $111 $98 $470 $368 $304 $166 $146 $134 $42 12 $109 $96 $459 $360 $297 $162 $143 $130 $41 13 $106 $93 $448 $351 $289 $158 $139 $127 $40 14 $103 $91 $437 $342 $282 $154 $136 $124 $39 15 $101 $89 $426 $333 $275 $150 $132 $121 $38 16 $98 $86 $414 $325 $268 $146 $129 $118 $37 17 $95 $84 $403 $316 $260 $142 $126 $114 $36 18 $93 $82 $392 $307 $253 $138 $122 $111 $35 19 $90 $79 $381 $298 $246 $134 $119 $108 $34 20 $87 $77 $370 $289 $239 $130 $115 $105 $33 21 $85 $75 $358 $281 $232 $126 $112 $102 $32 22 $82 $72 $347 $272 $224 $123 $108 $99 $31 23 $79 $70 $336 $263 $217 $119 $105 $95 $30 24 $77 $68 $325 $254 $210 $115 $101 $92 $29 25 $74 $65 $314 $246 $203 $111 $98 $89 $28 26 $72 $63 $302 $237 $195 $107 $94 $86 $27 Interim Service Fees By Week Continued... of Aventura, Florida Single Com/ Shop Corn / Shop Corn / Shop Office / Inst Office / Inst Office / Inst Family Multi- less than 75,000 to greater than less than 17,500 to greater than WEEK Detached Family 75,000 SF 150,000 SF 150,000 SF 17,500 SF 37,500 SF 37,500 SF Hotel (per unit) (per unit) (per 1,000 SF) (per 1,000 SF (per 1,000 SF) (per 1,000 SF) (per 1,000 SF) (per 1,000 SF) (per room) 27 $69 $61 $291 $228 $188 $103 $91 $83 $26 28 $66 $58 $280 $219 $181 $99 $87 $79 $25 29 $64 $56 $269 $210 ~174 30 $61 $54 $258 $202 $166 $91 $80 $73 $23 31 $581 $51 $246 $193 $159 $87 $77 $70 $22 32 $56~ $49 $235 $184 $152 $83 $73 $67 $21 33 $53 $47 $224 $175 $145 $79 $70 $64 $20 34 $50 $44 $213 $167 $137 $75 $66 $60 $19 35 $48 $42 $202 $158 $130 $71 $63 $57 $18 36 $45 $40 $190 $149 $123 $67 $59 $54 $17 37 $42 $37 $179 $140 $116 $63 $56 $51 $16 38 $40 $35 $i68 $132 $109 $59 $52 $48 $15 39 $37 $33 $157 $123 $101 $55 $49 $45 $14 40 $34 $30 $146 $114 $94 $51 $45 $41 $13 41 $32 $28 $134 $105 $87 $47 $42 $38 $12 42 $29 $26 $123i $96 $80 $43 $38 $35 $11 43 $26 $23 $1121 $88 $72 $40 $35 $32 $10 44 $24 $21 $101 $79 $65 $36 $31 $29 $9 45 $21 $19 $90 $70 $58 $32 $28 $25 $8 46 $19 $16 $78~ $61 $51 $28 $24 $22 $7 47 $16 $14 $67 $53 $43 $24 $21 $19 $6 48 $13 $12 $56 $44 $36 $20 $17 $16 $5 49 $11 $9 $45 $35 $29 $16 $14 $13 $4 50 $8 $7 $34 $26 $22 $12 $10 $10 $3 51 $5 $5 $22 $18 $14 $8 $7 $6 $2 52 $3 $2 $11 $9 $7 $4 $3 $3 $1 II. GROWTH IMPA~ iTED SERVICE ACTIVITIES & ASSOCIATED GROSS FEES The first component of det{ -tnining interim service fees is to ascertain the various City activities whose operating expenses ~:e: 1) paid through the General Fund, and 2) likely to increase due to growth. Net operating cost ~ for these relevant activities are then determined based on the FY97/98 budget. To deterr fine the net costs, all relevant revenues for that activity are deducted from the total operating cos rs for services. The second component is to determine the most appropriate demand general or such as population and/or employment. The gross fees are then calculated per development type based on persons per household or employees per square feet or per hotel room. The residential interim serv ce fees are calculated on a per housing unit basis for the following categories: 1) single family detached, and 2) multifamily and other. The multifamily and other category includes attached t nits such as townhouses and condominiums. The nonresidential interim service fees are base on the three land categories and size ranges as defined below. 1. Office/Institutiot -- This category includes finance, insurance, real estate, services, and institutional and uses. Three size categories are used: less thanlT,500 square feet, 17,500 to 3' ',500 square feet, and greater than 37,500 square feet. These reflect smaller and large r office related uses, which in turn affect the number of employees per 1,000 square feet. 2. Retail/Shopping 2enter -- This general commercial category includes all retail land uses and shoppin centers. Shopping centers typically include personal and business services and eatit ~/drinking places. Three size categories are used: less than 75,000 square feet, 75,0( ~ to 150,000 square feet, and greater than 150,000 square feet. These reflect sm~ ller and larger retail activities, which in turn affect the number of employees per 1, )00 square feet. 3. Hotel -- This cat :gory includes hotel facilities that provide sleeping accommodations restaurants, cocktail lounges, meeting and banquet rooms or convention facili les, and other retail and service shops. At the City's discretion, base d on an applicant's request and supporting documentation, a more appropriate nonresidential l~ nd use category may be utilized as based on the Institute of Transportation Engineers Trtp Generation manual. For example, a self service storage facility would be its own category, ~ nd the applicable fee would be calculated based on the unique employment levels for this t tpe of facility. In general, the larger the office and retail activities, the fewer employees there ~ ill be per 1,000 square feet. The industrial category, or warehousing and light industrial, are fairl consistent regardless of size. Other categories that may be more specific could have higher o lower numbers. Page 5 Tischler & Associates, Inc A. Financial Support Se 'vices Of the five activity centers of the Finance Support Services Department, the Director of Finance Support Services activity i: expected to be unaffected by growth. The other activity areas of Accounting, Purchasing H~ tman Resources and Information Management will be affected by growth. The budget expen ;e categories include personal ~crviccs, contractual services and other charges and services. To a ;certain the department's variable operating expenses, the $138,555 personal services costs for he Director of Finance Support Services activity is deducted from the total cost $519,171. This esults in an expense of $380,616. A per capita and employee 2ost factor is next derived given that both residential and nonresidential developmer t benefits from this activity. Dividing the net cost of $380,616 by the total peak population and e nployment in the City, 41,239 (24,360 residents plus 16,879 employees), results in a cos: factor of $9.23. The table below, which also uses data in Section V, Supporting Documentation ummarizes the gross factors by land use type using the above cost factor. Financial St port Services Gross Interim Service Fees City of Aventura, Florida Standards: Persons Pet Household Singk Family Detached 2.11 Multif, ~mily 1.68 Employees ~ Der 1,000 Square Feet Corn, Shop Ctr< 75,000 Sq Ft 3.33 Com ~ Shop Ctr 75,000-150,000 Sq Ft 2.50 Com ~ Shop Ctr > 150,000 Sq Ft 2.00 Office / inst < 17,500 Sq Ft 4.39 Office / Inst 17,500-37,500 Sq Ft 4.04 Office / Inst > 37,500 Sq Ft 3.80 Hotel oerroom) 0.90 Level Of Set vice Cost I~er Capita or Employee $9.23 Gross Interi~ rt Service Fees Resid ntial Per Housinq Unit Singk Family Detached $19.46 Singl~ Family Attached $15.47 Nonr( sidential Per 1,000 Square Feet Corn. Shop Ctr < 75,000 Sq Ft $30.77 Corn Shop Ctr 75,000-150,000 Sq Ft $23.07 Com Shop Ctr > 150,000 Sq Ft $18.46 Office / Inst < 17,500 Sq Ft $40.49 Office / Inst 17,500-37,500 Sq Ft $37.28 Office / Inst > 37,500 Sq Ft $35.03 Hotel (per room) $8.31 Page 6 Tischler & Associates, Inc B. Legal Services A legal firm performs leg~ I services as required by the City Council and City Manager. Based on discussions with city st tff, it is estimated about 25% of the legal services costs can be considered variable and wi 11 increase due to growth. Therefore, 25% of the $205,000 in legal costs represents variable c{ ,sts of $51,250. Dividing $51,250 by the total peak population and employment in the City, 4 ,239 (24,360 residents plus 16,879 employees), results in a cost factor of $1.24. The table below summarizes the gross factors by land use type using the resulting cost factor. Legal Servic; ,s Gross Interim Service Fees City of Avent Jra, Florida Standards: Persons Per ~ousehold Sin~ lie Family Detached 2.11 Mui ifamily 1.68 Employees P ;r 1,000 Square Feet Cor ~ / Shop Ctr < 75,000 Sq Ft 3.33 Cor 1 / Shop Ctr 75,000-150,000 Sq Ft 2.50 Cor 1 / Shop Ctr > 150,000 Sq Ft 2.00 Offi, :e / Inst < 17,500 Sq Ft 4.39 Offi, :e / Inst 17,500-37,500 Sq Ft 4.04 Offi, :e / Inst > 37,500 Sq Ft 3.80 Hot, ~1 (per room) 0.90 Level Of Serv ~ce Cos: per Capita or Employee $1.24 Gross Interim Service Fees Res dential Per Housinq Unit Sin( le Family Detached $2.62 Sin le Family Attached $2.08 Nol residential Per 1,000 Square Feet Coe ~ / Shop Ctr < 75,000 Sq Ft $4.14 Coe~ / Shop Ctr 75,000-150,000 Sq Ft $3.11 Co~ ~ / Shop Ctr > 150,000 Sq Ft $2.49 Offi, ;e / Inst < 17,500 Sq Ft $5.45 Offi, :e / Inst 17,500-37,500 Sq Ft $5.02 Offi, :e / Inst > 37,500 Sq Ft $4.72 Hot, ~1 (per room) $1.12 Page 7 Tischler & Associates, Inc C. Public Safety Depart rnent As the City continues to. g :ow, most of the public safety operating expenses will increase. Exceptions are the positto is of police chief, deputy chief, executive assistant and administrative assistant. However, the ot her activity centers of uniform patrol, special services and administrative services wi experience an increase in operating expenses. The total public safety budget is $4,099,720. Fro a this is deducted the fully burdened personal services costs of the four positions noted above, $280,152. The gross costs are therefor $3,819,568. Three revenue categories are deducted fro m this figure. These are federal grants ($7,396), police detail billing ($10,000), and county cou: t fines ($35,000). When the total revenue of $52,396 is deducted from the expenses, the rest lting net expenses are $3,767,172. The demands for services ~ re calculated by evaluating the calls for service as provided by the Police Department. In eva uating the costs for service, TA aggregated the calls for service, which could be attributed t I nonresidential land uses, such as retail, office and industrial/flex, and residential land uses. l'or a period of approximately 3 months, ending in January 26, 1998, the calls for service from ti ese categories totaled 2,885. Of these, approximately 59% were for the nonresidential categoric s indicated above and 41% were for residential. Of the nonresidential calls, 93% were specificall', related to retail activities and 7% were related to the remaining two categories. These distribul ions of calls for service are not surprising given the magnitude of retail activity within the cit compared to other land uses. This distribution will be used for the allocation of the costs. As noted, 41% of the net e~ >enses are allocated to residential. This figure of $1,544,540 (3,767,172 x .41) is divided by the population figure of 24,360 to generate a per capita cost of $63.40. The nonresidential cost is ~ located on the basis of employees per thousand square feet by type of activity. TA used the Dad~ County employment estimates by traffic analysis zone in Aventura for 1995 and 2005 and assr ned an average annual increase during this period. This results in an estimated 8,359 employees in the commercial sector in 1997. Since 93% of the nonresidential costs are allocable to retail, or $2,067,047 ($3,767,1'72 x .59 x .93), the cost per retail employee is $247.28. The other rema ning employment is for industrial (701 employees) and service (7,746 employees including hotels). The remaining costs, $155,584, ($3,767,132 x .59 x .07) are allocated to the 8,447 emph 'ees. The resulting figure is $18.42 per employee for these categories. The table belou ;ummarizes the gross factors by land use type using these resulting cost factors. Page 8 Tischler & Associates, Inc Public Saf, ;ty Gross Interim Service Fees City of AvE ntura, Florida Standards: Persons P~ ,r Household ~ingle Family Detached 2.11 /lultifamily 1.68 Employee,, Per 1,000 Square Feet ;om / Shop Ctr< 75,000 Sq Ft 3.33 :om / Shop Ctr 75,000-150,000 Sq Ft 2.50 :om / Shop Ctr > 150,000 Sq Ft 2.00 ~ffice / Inst < 17,500 Sq Ft 4.39 ~ffice / Inst 17,500-37,500 Sq Ft 4.04 ,ffice / Inst > 37,500 Sq Ft 3.80 otel (per room) 0.90 Level Of, 'vice ost per Capita $63.40 ost per Retail Employee $247.28 ost per Office/Hotel/Industrial Employee $18.42 Gross Int t~ Service Fees R .~sidentjgiJ Per Housina UnJt S ngle Family Detached $133.70 S ngle Family Attached $106.31 N ~2[.e,.dd.eflzJJ~ Per 1.000 Sauare Feet C )m / Shop Ctr < 75,000 Sq Ft $824.26 C )m / Shop Ctr 75,000-150,000 Sq Ft $618.20 C )m / Shop Ctr> 150,000 Sq Ft $494.56 O rice / Inst < 17,500 Sq Ft $80.80 O rice / Inst 17,500-37,500 Sq Ft $74.40 O Jice / Inst > 37,500 Sq Ft $69.90 H~ ~tel (per room) $16.58 D. Community Services I lepartment There are a number of servi ces performed under the Community Services Department. These are allocated to four genera activity centers: public works, contractual city engineer services, landscape architecture, and cultural/recreation. During the current budget ~ ear, thc operating expenses of this department will increase in order reflect the operation of Fou ~ders Park as well as the initiation of the local circulator bus services. Accordingly, there are no fi xed costs assumed in this department. The total community service costs are $1,306,902. Fron this is subtracted the General Fund revenue category of recreational/cultural events ($20,000) and the State revenue sharing revenues utilized in the operations of this departme it ($78,000). Therefore, revenues of $98,000 are deducted from the total costs, to represent a m operating expense of $1,208,902. Because the overwhelming bcus of current activities are related to roads, street maintenance, and related landscaping ant beautification, road usage by various land use categories is utilized Page 9 Tischler & Associates, Inc ,~ a proxy for allocating t ~e Community Services Department costs. The table below provides a summary of the Level of 2;ervice standards used to calculate the interim service fees. Community Services Gross nterim Service Fees City of Aventura, Florida Total Res and Nonres A WDt Trips in 1997: 143,505 Total FY97 Net Community -~ em/ices Operating Cost: $1,208,902 Commercial / Office/ Residential Shopping Centers Hotel Average Weekday Vehicle Tr p Ends Residential (oer Hous r~o Unit~ Single Family Detach~ 9.57 Multifamily 5.86 Nonresidential toer 1J 0 Sq Ft) Com/ Shop Ctr< 75,( 00 Sq Ft 87.31 Corn / Shop Ctr 75,00. )-150,000 Sq Ft 68.17 Corn / Shop Ctr > 150 000 Sq Ft 53.22 Office / Inst < 17,500 ~;q Ft 22.64 Office/Inst 17,500-37 500 Sq Ft 18.31 Office / Inst > 37,500 ,' Ft 15.59 Hotel (per room) 8.92 Trip Adjustment Factors Residential 62% Corn / Shop Ctr< 75,0 ) Sq Ft 23% Com/ Shop Ctr 75,00( -150,000 Sq Ft 28% Corn / Shop Ctr > 150, )00 Sq Ft 34% All Other Nonresidenti~ 50% Level Of Service Annual Operating ExpE ~ditures per Tdp: $8.42 $8.42 $8.42 Gross Interim Service Fees Residential Per Housing Unit Single Family Detacho $49.98 Multifamily $30.61 Nonresidential Per 1,000 Sq Ft per Room Com/ Shop Ctr < 75,1~ 3 Sq Ft $169.43 Com/ Shop Ctr 75,0012.150,000 Sq Ft $162.65 Corn / Shop Ctr> 150J 1130 Sq Ft $151.09 Office / lnst < 17,500 S :1Ft $95.37 Office / Inst 17,500-37, 500 Sq Ft $77.11 Office / Inst > 37,500 S Ft $65.65 Hotel (per room) $37.57 The total annual net operati g cost of $1,208,902 is divided by the estimated number of residential and nonresidenti Average Weekday Vehicle Trips (AWDVT) in 1997, 143,505. (Refer to the Supporting Dc umentation Section at the end of this report for details on how 1997 trips are determined.) The ~ esulting average operating cost is $8.42 per trip. This is multiplied by the number of trips for etch development type to determine an average annual cost factor to be applied to new growth. ' ?he resulting fees are shown at the bottom of the table. Page 10 Tischfer & Associates, Inc The Level of Service (L()S) standards include Average Weekday Vehicle Trip Ends from the reference book, Trip Get eration, published by the Institute of Transportation Engineers (6th edition, 1997). A "trip e~ ~d" represents a vehicle either entering or exiting a development (as if a traffic counter were plac{ across a driveway). For trip generation rates not shown in the table, Aventura staff may use ti most appropriate rates from the Trip Generation manual, or rates from approved local tram ortation studies. Trip generation rates are ~ :tjusted to avoid double counting each trip at both the origin and destination point. For oft ice/institutional and hotel development, the trip factor is 50 percent. For CommerciallShoppin; Center development the trip adjustment factor ranges from 23 to 34 percent depending on the Floor area of the development. The trip factor is less than 50 percent because retail uses attract vehicles as they pass by on arterial and collector roads. For example, when someone stops at a ~ :onvenience store on the way home from work, the convenience store is not their primary destin ttion. The Trip Generation manual indicates that, on average, 31 percent of the vehicles enl ~ring shopping centers that have at least 250,000 square feet of floor area are passing by on the r way to some other primary destination. The remaining 69 percent of attraction trips have the sh vpping center as their primary destination. Because attraction trips are half of all trips, the trip ad ustment factor for large size Commercial/Shopping Centers is 69 percent multiplied by 50 p ~rcent, or approximately 34.5 percent of the trip ends. The data contained in Trip Generati >n indicates there is an inverse relationship between shopping center size and pass-by trips. Th, ~,refom, appropriate trip adjustment factors have been calculated for the three categories of sho )ping center size used in the Community Services Department interim service fee calculations. For Residential uses, the t ip adjustment factor is 62 percent because many of the employed residents of Aventura go t¢ work outside of the City. Half of the trips attributed to residential uses are production trips (1 ;aving home), and half are attraction trips (returning home). Therefore, the basic trip fa :tor is 50 percent. To this is added 11 percent to account for Aventura residents working outside ~ he City. According to 1990 census data (from Table P-46 of STF3A), approximately 84% of Ave ntura workers were employed outside of the City. Because home- based work trips generally account for 28% of all productions trips (National Personal Transportation Study, US l)ept, of Transportation, 1984), these three factors may be multiplied together (0.50 x 0.28 x 0.8, l) to indicate the percentage of home-based work trips to locations outside of Aventura. The ~ esulting 12 percent of trips have been added to the residential trip adjustment factor to accom for increased road impact due to commuting patterns. E. Non-Departmental Various activities of the nc -departmental category will provide services directly to employees of various departments or t > the City at large. For example, the insurance cost is heavily influenced by increase in p ~rsonnel, particularly police. Postage and copy machine costs are also affected by increases in po )ulation and employment within the city. The total operating expenses for this departme it are $516,179. Since there are no offsetting revenues, these costs are reflected as part of the nterim service fee. Dividing $516,179 by the total peak population and employment in the Cit 41,239 (24,360 residents plus 16,879 employees), results in a cost Page 1 l Tischler & Associates, Inc factor of $12.52. The t~ ,le below summarizes the gross factors by land use type using the rcsulting cost factor. Non-Depa mental Gross Interim Service Fees City of Ave ~tura, Florida Standards: Persons Per Household Si ~gle Family Detached 2.11 M~ ~ltifamily 1.68 Employees Per 1,000 Square Feet C( m / Shop Ctr< 75,000 Sq Ft 3.33 C¢ m / Shop Ctr 75,000-150,000 Sq Ft 2.50 Cc m / Shop Ctr > 150,000 Sq Ft 2.00 Of ice / Inst < 17,500 Sq Ft 4.39 Of ice / Inst 17,500-37,500 Sq Ft 4.04 Of ice / Inst > 37,500 Sq Ft 3.80 Hc ~el (per room) 0.90 Level Of Se~ vice Co per Capita or Employee $12.52 Gross Interi Service Fees Re dential Per Housinq Unit Sir gle Family Detached $26.39 Sir ~]le Family Attached $20.99 No ~residential Per 1,000 Square Feet Co n / Shop Ctr< 75,000 Sq Ft $41.72 Co n / Shop Ctr 75,000-150,000 Sq Ft $31.29 Co~ n / Shop Ctr> 150,000 Sq Ft $25.03 Off ce / lnst < 17,500 Sq Ft $54.91 Off ce / Inst 17,500-37,500 Sq Ft $50.56 Off ce / Inst > 37,500 Sq Ft $47.50 Ho1 el (per room) $11.27 Page 12 Tischler & Associates, Inc III. ADJUSTED FEEl BEFORE LAND CREDITS For purposes of fairness, a d to avoid the possibility that the fees will be higher than property taxes that would be paid if these were partial year assessments, the net costs deternnned in Section II are adjusted don n to the total property tax revenue collected in the 1997 fiscal year. Total growth-related Genei al Fund expenditures amount to approximately $5.92 million. However, property tax rev~ hues for that year amount to $5.86 million, 98.92 percent of the $5.92 million growth-related tota. Net expenditures for each service activity in the General Fund are reduced proportionately. '1' Re table below summarizes the proportionately adjusted growth related net costs for each gt r>wth impacted service activity discussed in Section II. Total General Fi ~nd Costs and Adjustments to =roperty Tax Total City of Aventura Florida Net General Adjusted Net Percent Service Fund Cost General Fund Cost Adiustmenl Financial Service~ $380,616 $376,496 98.92% Legal Services ! $51,250 $50,695 98.92% Public Safety ! $3,767,172 $3,726,398 98.92% Community ServiCes $1,208,902 $1,195,818 98.92% Non-Departmenta~l $516,179 $510,592 98.92% Total ! $5,924,119 $5,860,000 98.92% This percentage adjustment must similarly apply to the gross fees by land use type for each service activity calculated i ~ Section II above. The gross fees and resulting adjusted fees are summarized in the table bel( ,w. ~ U~e Type ~ Services Pu~ic Safe~ ~/~<~,~a ~.~ ~.~ ~.14~ ~.10 ~4.~ ~15.~ $1~.~ $1~.~ ~1.~ ~1.~ ~,~ ~,~ ~/~,~i~,~R ~.07~ ~ ~.~ ~ ~.07 ~18.~ ~11.~ $1~ $1m.~ ~1.~ ~.~ ~[ ~/~>I~,~R $18.~ $1~ ~.~ ~.~ ~.~ ~.~ $151.~ $1~.~ ~.~ ~4.76 ~ ~/1~<17,~R ~.~ ~.~ ~.~ ~.~ ~.~ $~.~ ~.37~ ~.~ ~.91~ ~.~ ~ ~4 ~d~r~) ~.31[ ~.~ $1.12j $1.11 $1~i $16.~ ~7.~ ~7.16 $11.27~ $11.14 ~ ~4 (1) ~e~ f~ r~. Page 13 Tischler & Associates, Inc IV. LAND TAX CREi )ITS AND NET FEES Given that owners of new {[evelopment will pay property taxes on land (which is already on the tax rolls) during initial occ~ ~ancy after construction is complete, credits for land property tax payments must be subtract{ from the gross interim service fee. Based on an analysis of the Miami Dade Property App~ iser's Assessment Roll, land ~,,lue as a percentage of total property value (land plus improvem~ :nts) have been estimated for each of the residential and nonresidential land use cate ories. These percehtages are shown in the table below. Land ;alue as a Percentage of Total Value For I~ ew Construction City ~ ~f Aventura, Florida Resi¢ Iential Singh Family Detached 40% Multif imily 30% Nonr~ ~sidential Comr terciaVShopping Ctr. 45% Office qnstitional 25% Hotel 30% Sourc =.: City of Aventura, Finance Support Services The net interim service fees >y land use are determined by reducing the gross fee by the associated land value percen !age of total property value. The results are summarized in the table below. Net Interim S, ~rivce Fees City of Avent~ ira, Florida L~ Gross Net Fee nd Use Type Adjusted After Fee Land Credits Residential! Single Family petached $230 $138 Multifamily ! $174 $121 , Nonresidential Corn / Shop C~r < 75,000 Sq Ft $1,059 $582 Com/ Shop C~r 75,000-150,000 Sq Ft $829 $456 Com/ Shop C~r > 150,000 Sq Ft $684 $375 Office / Inst < ~ 7,500 Sq Ft $274 $206 Office / Inst 17,500-37,500 Sq Ft $242 $181 Office/Inst > p7,500 sq Ft $220 $165 Hotel (per roo~n) $74 $52 Page 14 Tischler & Associates, Inc V. SUPPORTING DC )CUMENTATION A. 1997 Population and ~:mployment Estimates Current population and em ~loyment estimates in Aventura are surumarized in the tables below. Based on discussions with ~ity staff, seasonal residents are estimated to be 20 percent of year- round residents. Total peaJ: year population is therefore 24,260. Total at place employment in the City is estiruated to be 15,879 based on Dade County Traffic Analysis Zone (TAZ) data. The second table shows eruploy~ :e estiruates by eruployee type. 1997 Popul ltion and Employment Estimates City of Ave: ttura, Florida Year-round )opulation 20,300 Seasonal re ;idents (1) 4,060 Total Peak- fear Population 24,360 Employmer (2) 16,879 Total Popul tion and Employment 41,239 (1) Estiamte~ I to be 20 percent of Year-Round Population. (2) Estimate, I based on Dade County total employment estimates by TAZ in Aventura in 1995 (16,299) and 2005 (19,199) and averagin(, the employment increase. 1997 Employ1 nent Estimates by Employment Type City of Avent ,ra, Florida Employment Category Employees (1) Industrial 701 Service 7,746 Commercial 8,359 (1) Estimated )ased on Dade County employment estimates by TAZ in Aventur~ in 1995 (16,299) and 2005 (19,199) and averaging the employme~ ~t increase. B. Average Household Siz, In 1990, there were 8,889 ho Lseholds in Aventura. The 1990 mixture of housing types, as defined by units in structure, is shown in the figure below. After reviewing the detailed household size data, TA recc ruruends using the following two residential categories in the interim service fee calculatic ns: 1) single family detached, and 2) ruultifamily, which includes all Page 15 Tischler & Associates, Inc attached housing units. T ~e resulting average household size is 2.11 for single family detached and 1,68 for multifamily. A differentiation by type of housing is necessary to make the interim service fees roughly propt rtionate and reasonably related to service demands. Population and Housi 3g Characteristics Aventura, Florida Persons per Units in: tructure Persons Households Household Owner-Occupied Hou., ~ng 1 detached 79 40 1.98 1 attached 633 287 2.21 2 33 17 1.94 3-4 22 18 1.22 5-9 139 70 1.99 10-19 185 112 1,65 20-49 1,084 623 1.74 50 or More 9,022 5,440 1.66 Other 322 211 1,53 Renter-Occupied Hous lng 1 detached 18 6 3.00 1 attached 180 68 2.65 2 9 5 1.80 3-4 4O 21 1.90 5-9 60 29 2.07 10-19 67 40 1.68 20-49 255 136 1.88 50 or More 2,702 1,741 1.55 Other 59 35 1.69 Housing Dist. Aggregate Household l ;haracteristics Single Family Detached 97 46 2.11 0.5% Multifamily (1 14,431 8,607 1.68 96.7% Other 381 246 1.55 2.8% TOTAL 14,909 8,899 1.68 100% (1) Includes SFA, and 2 ~ ~nits per structure through 50 or more units per structure. Source: 1990 U.S. Cens~ Is Bureau Summary Tape File lA, Aventura CDP C. Building Area Ratios To convert employment to i~ross floor area of nonresidential development, TA used average square feet per employee m ~ltipliers (per room for hotels). The multipliers shown in the table below are derived from nati r>nal data published by the Institute of Transportation Engineers (1TE) and the Urban Land astitute (ULI). The trip generation rates and the square feet per employee multipliers are u '.d in the interim service fee calculations. Page 16 Tischler & Associates, Inc Employee a,~! ~Juildlng ~'ea Rath s City of Aventu;a Interim Service F .,es Wkdy Trip Ends Emp Per Land Use Per 1,000 Sq R (1) Wkdy Trip Ends 1,000 Sq Ft Sq Ft (ITE code) (Per Room for Hotels) (1) Per Employee (1) (Per Room for Hotels) (';) Per Emp (2) Comme~clel / Shopping Ctr (~0) 50 KSF GLA 87.31 na 3.33 300 100 KSF GLA 68.17 na 2.50 400 200 KSF GLA 53.22 na 2.00 500 General Off/ce (710) 10 KSF GFA 22.64 5.16 4.39 228 25 KSF GFA 18.31 4.53 4.04 248 50 KSF GFA 15.59 4.11 3.80 263 General Light Industrial (110) 6.97 3.02 2.31 433 Hotel (310) 8.92 14.34 0.90 (1) Based o~ Informafio~ provided fr m Trio Generation. Institute of Transpodation Engineers, 1997. (2) Square feet per employee calcula ed from thp rates except for Shopping Canter data, which are derived from Dollars and Cants of Shoppit q Centers, published by the Urban Land Institute, and for hotels which is based on data in 1997 ITE Man, ~al sourced frcrn Buttke, Carl H. unpublished studies of building employment densities The square feet per employ ~e multipliers shown in the last column on the right are used to convert employment into tl~ vusands of square feet (KSF) of nonresidential floor area. In Aventura, the General Ligh Industrial (1TE land use code 110) is an appropriate prototype for jobs in the industrial emplo ~ment sector. Office development in Aventura is typically located in scattered, mid scale buildin Is. Therefore, a general office building of 25,000 square feet is a suitable prototype for futur~ office and institutional development. This size office building has an average of 248 square fe, ~t per employee. For Retail jobs, a prototypical development in Aventura is a shopping cent ~r of approximately 100,000 square feet. A commercial development of this size wi have approximately 400 square feet per employee. These "prototypes" are used to cal, ulate total nonresidential trips in 1997. (Refer to the next section regarding the derivation of I vtal residential and nonresidential vehicle trips in 1997.) D. Residential and Nonre ;idential Vehicle Trips The table below shows the { stimated 1997 average weekday vehicle trips (AWDVT) in Aventura. Both residential md nonresidential trips are calculated. This information is used for the interim service fees asscciated with the Community Services Department (refer to Section II, Part D). Based on current d -~velopment characteristics, there are an average of 60,338 residential trips and 83,167 nonresiden :iai trips for a total of 143,505 vehicle trips on an average weekday. Page 17 Tischler & Associates, Inc 1997 Vehicle Trips on An Average Weekday City of Aventura Interim ;ervice Fees Residential Housing Uni~ ~ (1) Units Percent Single Family ached 89 0.5% Multifamily 16,622 96.7% All Other 475 2.8% Total 17,186 100.0% Average Weekday Vehic 'rip Ends per Household (2) Trip Factors (3) Single Family D, !tached 9.57 62% Multifamily 5.86 62% All Other 2.21 62% Residential Vehicle Trips, ~n an Average Weekday Single Family D( tached 517 Multifamily 59,184 All Other 638 Residential SuZ total 60,338 Non-Residential Gross FIe or Area (Sq. Ft. x 1,000) (4) Industrial 304 Service (Office) 1,918 Commemiar 3,344 Average Weekday Vehicle l'rip Ends per 1,000 Sq. Ft. (2) Trip Factors (3) Industrial 6.97 50% Service (Office) 18.31 50% Corn mercial 68.17 28% Non-Residential Vehicle T~ ~s on an Average Weekday Industrial 1,059 Service (Office) 17,551 Commercial 64,557 Nonresidential ', ~btotal 83,167 TOTAL TRIPS 143,505 (1) Based on 17,186 residen iai units in 1997 as estimated bythe City. Percent breakdown by housing unit type based c '~ household distribution percentage as indicated in 1990 Census. (2) Trip ends from 1997 ITE Vlanual for residential Trip rate for multifamity is Residential Condo/ Townhouse category. Tri ~ factor for other residential based on Congragate Care Facility. Nonresidential based on I ~ical development characteristics in Aventura -~ 100K retail space, 25K office space, and ligt t industrial. (3) See text in Section II, Pair D for an explanation of trip factors. (4) Based on 1997 employm ;nt distribution times employee square foot factors for typical development characterist cs in Aventura. Page 18 Tischler & Associates, Inc