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HomeMy WebLinkAboutMINUTES - 05181993 - 2.B Contra TO: BOARD OF SUPERVISORS o: Costa Coun FROM: PHIL BATCHELOR }�/ County Administrator T>. --ate °. `y DATE: May 18, 1993 SUBJECT: BENEFIT ASSESSMENT RISK UNIT SCHEDULE MODIFICATIONS Specific Request(s) or Recommendation(s) & Background & Justification RECOMMENDATION: Approve modifications to the benefit assessment risk unit schedule as it pertains to certain small business and commercial properties. REASONS FOR RECOMMENDATION/BACKGROUND: On February 23 , 1993 the Board of Supervisors approved the report of the County Administrator's Office regarding the need to review the basis for certain risk unit assignments related to small business and commercial properties. The Board directed the fire chiefs, County Counsel and the County Administrator to review the methodology used in assigning risk units to small business from the standpoint of equity and to meet with business representatives such as local chambers of commerce to discuss potential refinements to the risk unit assignment methodology. The fire chiefs appointed a committee of three district representatives which, in conjunction with the County Administrator' s Office, met with County Counsel to review the characteristics of the risk unit levels assigned to small business in preparation for meeting with the business community. On April 29, 1993 the County risk unit committee met with representatives of the Pittsburg Chamber of Commerce, the Concord Chamber of Commerce and local business to discuss risk unit issues. Continued on Attachment:—X— YES Signature: Recommendation of County Administrator Recommendation of Board Committee Approve Other Signature(s) : Action of Board on: Mai i R, >AAS` Approved as Recommended --other-X The Board APPROVED the above recommendation and AMENDED the Risk Unit Schedules and AUTHORIZED the Fire Chief to allow up to a 50 percent adjustment of the assigned risk units for residential rental property if the owner can demonstrate that the affected property is disproportionately assessed when compared taisimilar property in the same comparable market, APPROVED language as amended for an information mailing to commercial properties; AND AUTHORIZED the expenditure of up to $600 to accomplish this mailing. Vote of Supervisors: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN Unanimous (Absent L AND ENTERED ON THE MINUTES OF THE Ayes: Noes:----;--) BOARD OF SUPERVISORS ON DATE SHOWN. Contact: Terry McGraw (64 6-4855) Attested: May 18, 1994 cc: County Administrator Phil Batchelor, Clerk of Auditor-Controller the Board of Supervisors County Counsel and County Administrator County and Indep. Fire Districts United Professional By: , DEPUTY Firefighters Local 1230 Benefit Assessment Risk Unit Schedule Modifications Page 2 May 18, 1993 It was agreed that the entire benefit assessment methodology was in need of total revision or replacement with some other method of assigning assessment amounts to different types of property. The committee assured the business people that the County intends to develop a more equitable assessment method before any benefit assessment program is initiated in the future. Although major adjustments to the risk unit schedule are not feasible in the . midst of the current benefit assessment process, an agreement was arrived at to make some equity adjustments to a couple of use code designations affecting small businesses, vacant industrial land and commercial buildings that have been apportioned into condominiums. The recommended equity adjustments regarding small business property would affect the following use code designations: Use Code Property Type Current Risk Unit 31 Commercial stores - not supermarkets 3 32 Small grocery stores (7-11, etc. ) 3 33 Office Building 4 34 Medical, dental 4 43 Financial Buildings (Ins. Title, Banks, S&L) 4 The risk unit levels and related fire risks for the above categories were discussed in relation to the fire risk characteristics of single family homes. It was agreed that smaller buildings in these property classes did not warrant assessments three or four times higher than single family structures. The business representatives suggested a 50% reduction in the risk units for buildings in these categories that are less than 5,000 square feet in size. Accordingly, it is recommended that the assessments for properties of less than 5, 000 square feet be reduced by 50% to the following levels: Use Code 31 and 32 - 1. 5 risk units each Use Code 33 , 34, & 43 - 2 risk units each Vacant industrial land is currently assigned 5 risk units whereas vacant non- industrial land is charged only . 5 risk units. Since there is no logical reason to differentiate between different types of vacant land, it is recommended that all vacant land be assigned . 5 risk units. The issue of business property such as office, medical/dental, and light industrial buildings that have been subdivided into condominiums has been discussed in prior reports. If these condominium buildings appear on the tax roll as separate parcels, each condominium is charged the risk unit value for that class of building. For example, an office building is assigned four risk units. If that building has been converted to condominiums, each condominium will be assessed four risk units. In some cases, there could be thirty or forty individual units within a single building. The County risk unit committee does not believe that subdividing these types of buildings results in any significant increase in fire risk. Therefore, it is recommended that these categories of buildings be assessed the appropriate risk factor regardless of the number of condominiums within the building. Benefit Assessment Risk Unit Schedule Modifications Page 3 May 18, 1993 The recommended adjustments in the risk unit schedule are summarized below: Use Code Property Type Proposed Risk Unit 31 Commercial stores - not supermarkets ) Less 1. 5 32 Small grocery stores ( 7-11, etc. ) ) Than 1. 5 33 Office Building ) 5, 000 2 (A) 34 Medical, dental ) Square 2 (A) 43 Financial Buildings (Ins. Title, Banks) ) Feet 2 (A) 50 Industrial Vacant Land . 5 53 Light Industrial 7 (A) Although the proposed adjustments will reduce benefit assessment revenue to the fire districts, it is estimated that the risk unit reductions are within the margin of adjustment built into the benefit assessment plans. (A) Charge per building regardless of subdivision into condominiums. ELIZABETH RECEIVED IMBAULT MAY I 8 1993 APPRAISAL SERVICE ... CLERK BOARD OF SUPFRmSORS CONTRA COSTA CO. Contra Costa County Board of Supervisors $� �b1Sp0 b 651 Pine Street dnS�pQ�08�� " Martinez , Calif. 94553 %6181 May 14, 1993 A Re: Fire Assessment Risk Unit Assignments. Honorable Members of The Board: I have reviewed the recommendation of the fire assessment committee , which was contributed to by the members of the East County Regional Fire Committee. I believe this recommendation will answer the initial concerns of the business community and meet our commitment to them to find some relief before the June election on the assessment. It is my further belief that this solution will be as temporary as the proposed one year fire assessment. I hope that we can all continue to work together this next year to find a permanent, stable solution for our own districts and County, instead of merely reacting to the State. That permanent solution may require a true Fire Flow Tax similar to Moraga's, that would require a full ballot measure. We have a lot of educating to do in this next year to teach the difference between wasteful State spending and desperately needed local services. I hope we can do it and I encourage you with all my conviction to make a start here and support more equitable treatment for small business within this fire assessment fee. Sincerely, Elizabeth A. Rimbault Chair, Riverview Fire Commission Council member,City of Antioch N r' L I '�'CC MAY ' S 2810 Lone Tree Way, #8 Antioch, Ca 94509 (51 O) 757-5353