HomeMy WebLinkAboutCM MERA Financing Parcel Tax4. a
• 'Agenda Item No:
eeting D. April 21, 2014
Department: City Manager
Prepared by: Nancy Mackle, City Manager City Manager Approval:
TAX TO FINANCE A NEW MARIN EMERGENCY RADIO AUTHORIT
PUBLIC SAFETY COMMUNICATIONS SYSTEM I
BACKGROUND: Marin Emergency Radio Authority {MER.A) is a Joint Powers Authority
formed in 1998 to plan, implement and manage a countywide public safety and emergency radio
system for the use of all member agencies. This system helps unify public safety response and
ensures communication among individual agencies and departments. In addition to Marin County
agencies, the partner agencies include dispatch centers for the California Highway Patrol, Golden
Gate Transit, US Coast Guard,, Petaluma Police,, Sonoma County Sheriff, and others.
The system includes 17 base station radio and receiver sites that provide regional or countywide
radio communications among dispatch centers and mobile units throughout the county. The
system, which was designed in 1998, and has been in service since 2004, is now severely
challenged by issues of reliability, capacity, coverage, and FCC compliance.
In response to the risks posed by a deteriorating and obsolescing first generation system,, the
MERA Board has been reviewing options for selecting, funding and migrating to a new system
over the next four years, which will require the initiation of the replacement project next year.
MERA is proposing to fund the second generation public safety communications system via a
parcel tax, and has requested the endorsement of each member agency. MERA representatives
have requested time at this City Council meeting in order to make a short presentation, and
answer any questions that the City may have regarding their proposal.
Over the past several months, MERA and local Police and Fire Chiefs have made presentations
to MERA member agencies describing the status of the current system and plans for the
replacement system. Earlier this month, MERA conducted a finance presentation that was
directed to the respective finance directors and managers of the member agencies.
Council Meeting: Lf 11
ANALYSIS: The attached MERA staff report presents the reasons for the upgrade from the
current system (Gen 1), the timeline for implementation, the criteria to be used for the next
generation system (Gen 11) selection, and the Gen 11 budget and funding considerations.
Based on MERA's preliminary budget for fiscal year 2014-2015, the City of San Rafael is
projecting to pay MERA a total of $646,107: $253,876 for operations, $33,451 for bank note,
and $358,780 for debt service (used to fund Gen 1) on existing bonds. The assumed budget for
the Gen 11 system will have varying effects, depending upon the inclusion of a parcel tax, and — if
no such tax funding is available, the manner in which Gen 11 bond payments would be structured.
The impact on the City of San Rafael's capital costs is shown below under the three scenarios
presented by MERA: (1) the passage of a county -wide, $29 parcel tax that would fully cover the
required payments for twenty years on bonds issued to fund the new system. The payments under
this scenario are already committed in order to complete the payment for the current system; (2)
agency- •supported •bonds with level debt service •payments; and (3) agency supported bonds with
smoothing, to •lessen the impact •during the •period (fiscal years 2015-2016 through 2020-2021) in
which payments continue on the existing system.
Projected City Capital Costs with Parcel Tax ($000) — no capital after fiscal year 2020-2021
Fiscal Year 14/15
15/16 16/17 17/18
18/19 19/20 20/21
21/22
Gen I bond: City
Wray&
GM
en I bond: Ci !GIFA•
359
359 359 359
359 359 359
General Fund
•
Gen It bond: City GF
Gen 11 bond: paid
from parcel tax
Total Debt Servicef
fIS ME
4 0
Total Debt Service $359
$359 $359 $359
$359 $359 $359
Itf 61121
Projected City Capital Costs without Parcel Tax {$000) - no smoothing on Gen 11 bond
Fiscal Year
-6111 rl�
Wray&
GM
en I bond: Ci !GIFA•
MO
I
•
Gen It bond: City GF
Total Debt Servicef
fIS ME
4 0
4
Itf 61121
Capital City Costs without Parcel Tax ($000) - smoothing on Gen 11 bond
Fiscal V ear
Wray&
Gen I bond: City GF
vie
Gen It bond: City GF
These scenarios were reviewed and discussed with the Finance Committee at their meeting of
April 10, 2014. The Committee recommended that staff bring the ME RA request forward for the
entire City Council to consider.
FISCAL IMPACT: There is no direct fiscal impact associated with adopting a formal position
on the proposed public safety communications system parcel tax. The projected City of San
Rafael's share of MERA capital costs under the three scenarios is summarized in the following
table. The $359,,000 annual obligation for the current system runs through fiscal year 2020-2021
in all scenarios.
Total City of San Rafael Capital Costs ($000)
Fiscal Year(s)
15/16 20/21
I ! . ! i i i i ` i
►
► i �
W/O Parcel Tax: Gen Fund pays both bonds: no smoothing
�FW�6Parcel Tax: Gen Fund pays both bonds: smoothing
Without the Parcel Tax, the City would see an increase of $327,000 or $535,000 (dependin
upon bond payment smoothing) for six years beginning • in fiscal year 2015-2016, with an
increase to $645,, 000 in fisc+r
al year 2021-2022 (if smoothing is implemented). I
OPTIONS: 1. Adopt Resolution as presented
2. Adopt Resolution with modifications
3. Request additional information from staff or MERA
ATTACHMENTS
MERA Staff report
Resolution
ra &TOJ L W K11 a 9101-1 § U RM •i
0
WHEREAS, public safety and emergency radio communications are vital to our first responders and
0
the communities they serve. Public safety and emergency radio communications in our jurisdiction are
currently provided by our membership in the Marin Emergency Radio Authority ("MERA"); and
WHEREAS, MERA is a Joint exercise of powers agency comprised of the City of Belvedere, Bolinas
Fire Protection District, Town of Corte Madera, Town of Fairfax, Inverness Public Utility District, Kentfield
Fire Protection District, City of Larkspur, County of Marin, Marin Community College District, Marinwood
Community Services District, City of Mill Valley, Novato Fire Protection District, City of Novato, Town of
Ross, Ross Valley Fire Department, Town of San Anselmo, City of San Rafael, City of Sausalito, Southern
Marin Fire District, Town of Tiburon, Tiburon Fire Protection district, Central Marin Police Authority, Marin
County Transit District, Marin Municipal Water District, and Stinson Beach Fire District, existing as an entity
separate from its member agencies and organized under California Government Code Sections 6500, et seq.,
for the purpose of constructing and operating a countywide public safety and emergency radio system in the
County of Marin; and
WHEREAS, MERA has determined the need to replace the existing countywide public safety and
emergency radio system as a result of several factors, including: age and obsolescence of current system, user
demand exceeding current system's capacity, current system unable to meet new FCC standards becoming
effective in 2017, and federal law requiring current public safety and emergency radio frequencies be turned
back to the federal government in 2021. MERA plans to have a new replacement system operational in 2018
to ensure reliable public safety and emergency radio communications; and
WHEREAS, on December 11, 2013, the Governing Board of MERA approved a project financing
plan that includes the levy of a parcel tax (the "Parcel Tax") to finance the capital costs of the new system to
offset such costs to its member agencies. The proposed Parcel Tax is $29.00 annually per parcel for a single
family residence, and varies based on land use, such as multi -family housing, commercial, industrial and
agricultural uses, and includes an exemption for income -qualified senior homeowners. The Parcel Tax is
scheduled to be submitted to Marin County voters at the November 4, 2014 election; and
WHEREAS, on December I I , 2013, the Governing Board of MERA further approved the
establishment of an Independent Citizen Oversight Committee to review the collection and expenditure of the
Parcel Tax revenues. The Committee would consist of at least five members, who would be residents of Marin
County.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of San Rafael supports and
endorses the Parcel Tax as approved by the Governing Board of the MERA Governing Board.
L Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was
,iuly and regularly introduced and adopted at a regular meeting of the San Rafael City Council held on the 21 st
day of April, 2014, by the following vote to wi*t.*
AYES: Councilmemberl
NOES: Councilmembers:
Bushey, Colin, Connolly and Mayor Phillips
ESTHER C. BEIRNE, City Clerk
k1i I'll
11
MEETING
DATE: April 21, 2014
TO: San Rafael City Council
FROM: David Jeffries, MERA Special Project Manager
till 0011 Ka
XULTA 104 telzi
rK
REOUES14:
Receive a presentation on the proposed funding mechanism for the second generation Marin
Emergency Radio Authority public safety communications system and approve a Resolutio
supporting and endorsing the proposed parcel tax as the funding mechanism for capital costl'.
of this project. i
A \ .
Marin Emergency Radio Authority (MERA) is a collection of public agencies formed in 1998 to
planimplement and manage a countywide public safety and emergency radio system for the
use of all member agencies. All Marin County public safety agencies can communicate
through MERA, including police departments, fire departments, public works departments,,
animal controll transportation agencies and parks departments. MERA provides crucial
public safety communications to 25 member agencies, both day-to-day and during and after a
major emergency or natural disaster.
In addition to the Marin County agencies there are a number of partner agencies that include
the California Highway Patrol dispatch, Golden Gate Transit dispatch, US Coast Guard,
Petaluma Police dispatch, Sonoma County Sheriff dispatch, State Emer ency ManagemeW-1
9
and Mutual Aid, to name a few.
MERA radio communications is the backbone of the 911 emergency response system. It
provides the communications link between 911 public safety dispatch centers and the field
units that respond to emergencies.
MERA and local Police and Fire Chiefs provided a presentation in the fall of 2013 to all MERA
member agencies describing the status of the Gen I system and plans for the Gen 11 system.
11
TMOMMES =041res
The current Gen I system will face several significant risks over the next few years. The
"history" of MERA can be traced back to 1995 when the County of Marin initiated a "needs
assessment" for a countywide radio system. Over the course of the next few years, outreach and
feasibility studies were conducted and an Oversight Committee was created. In 1998 "MERA"
was officially formed. In February 1999, the MERA Board authorized the sale of bonds in the
amount of $26,940 r-1-111
,,000 to finance the first MERA radio system. I he system was designed to
accommodate 1,580 mobile and portable radios with expansion capacity to 2,500 radios.'As we
took to replace the Gen I system in 2018, the key risks are listed below:
• Reliability - The current system was designed in 1998 and has been in service since
2004. By 2018, it will be 20 years past its design phase and will have been in service for
14 years. Key components are no longer being manufactured and MERA is finding it
increasingly difficult to locate replacement equipment. While MERA believes we can
maintain a reliable system until 2018, system reliability will continue to decrease over
time.
• Capacity - The Gen I system was designed to gradually increase to 2,500 users over 20
years. We are already past that mark at nearly 2,900 users with requests for additional
radios on a regular basis.
• Coverage - We have been aware of areas that could greatly benefit from increased
coverage. Key areas of concern have been in Southern Marin and West Marin.
• Out of Compliance - While the MERA Gen I system has been capable of upgrades to
meet evolving FCC technical requirements, the Gen I system will not be capable of
meeting new 'narrow -banding' requirements that will be in place in 2017.
• Frequency Give Back -® Even if MERA could address all of the above risks, the FCC is
now requiring that MERA give back its current UHF -T band frequencies in 2021.
It is this array of risks, taken in combination, which has driven MERA's proposed Gen 11 system.
The bottom line is that the Gen I system is approaching a time in which we will not be able to
sustain the system and it needs to be replaced. To meet our "go -live" target of 2018, the
replacement project needs to begin in 2015 with a solid funding source.
I
To mitigate the impending risks and to allow MERA and its member agencies to maintain a
reliable public safety and emergency communications systeml MERA has developed a proposal
for a Next Generation (Gen 11) communications system with the following features:
Response Times - Reduce 911 response times with an upgraded radio network, better
technology and additional user capacity. This will also reduce MERA radio user wait
times, by reducing busy signals during major events.
Coverage - Reduce response times and improve safety in certain areas of the county
through additional coverage areas. The Gen 11 proposal includes two additional sites in
Southern Marin and two additional sites in West Marin.
N
• Increased Reliability - Provide upgraded radios, radio network, and dispatch consoles
with the latest software, with streamlined user interfaces for maximum efficiency.
• Compliance - Comply with new federal regulations in force over the next few years.
Move to 700 MHz - Offering regional interoperability throughout the Bay Area with a
move to a 700 MHz system and additional access to the 800 MHz frequencies.
W
New Radios — Up-to-date radios and technology, supported by a more modem
infrastructure, such as GPS tracking of resources as a potential example, that will be
provided to first responder and safety personnel.
The current MERA system was purchased using bonds that have obligations to the member
agencies until August, 2020. Using this method of funding the Generation 11 system would
require MERA member agencies to provide annual funding for the Generation 11 bonds,
beginning in FY 15/16 and ending in FY 35/36.
To minimize the impacts to local government budgets for the Next Generation system, several
funding alternatives have been explored. As mentioned in the Round I presentation, MERA did
look at different funding mechanisms, such as a sales tax or general obligation bond, but found
much less community support for those options. Additional potential funding alternatives 'Include
grants and low interest loans, and a parcel tax. MERA has selected a parcel tax as the best and
most viable option available to raise the necessary funds to successfully complete the project.
This does not mean that the County and MERA have not been seeking grant funds. In fact, Marin
County has been successful in securing over $6,000,000 in grants for the Next Generation
system. Grants have supported system design studies, and the installation of backbone radio
elements, dispatch consoles and microwave components. However, we do not believe that grant
funding will cover all of the costs of the Next Generation system, nor do we believe it prudent to
presume any particular level of grant funding into the future. We will continue to took for grant
opportunities that could potentially reduce the level of parcel tax in the future as well as
opportunities to minimize operating and maintenance costs.
At the same time., we are very concerned about the impact of the Parcel Tax failing to pass. If
that should occur, MERA and its member agencies would need to either quickly find another
funding mechanisml such as the traditional or existing method of MERA member contributions
described later,, or having each MERA member possibly licensing and funding their own
communications systems, while trying to cooperate in some means of creating interoperability
across multiple systems with limited coverage.
The County of Marin is the legal entity that must place the parcel tax on the ballot as MERA
itself does not have the legal authority to do so. Bonds in the amount of $46 million need to be
issued to provide adequate funding for the new system.
91
PWOWANA
REM
The proposed budget for the MERA Generation 11 system is $40 million, with an additional $6.3
million in additional bond costs. This assumes a reuse of building and towers were appropriate as
well as a I for I replacement of field radios for MERA member agencies.
Site Development and Upgrades, Environmental Compliance,, Licensing & Leases
FY
16/17
Radio Communication System, Site Equipment and Dispatch Consoles
mkyj I
ve System
MicrowaSII
$2,347
Mobile and Portable Radios
qq 1 II
SUBTOTAL CAPITAL COSTS (Includes Contingency)
I'M
Bond Capitalized Interest
$21200 $21200 $2,200 $4,400 $4.400
Bond Reserve Fund
$4,547
Bond Issuance iIa
$4,547 S41547 $4,1547 S41400 $4,400
(All figures are in millions)
To provide an illustration of the potential impacts on MERA member agencies from the
traditional vs. Parcel Tax means of funding the Gen 11 system, the following table and charts
were developed. MERA first looked at using the same mechanism as was used for the Gen I
bond funding, with costs spread equally across twenty years. This resulted in a significant impact
during the first several years of Gen 11 funding that overlap with the final years of Gen I funding.
This model was shared during the Round I presentations.
Recognizing the impacts of that model, MERA has looked at an alternative for Gen 11 funding
should the Parcel Tax fail to pass. In this model, a smoothing technique is used in which ME
members would make interest only payments from FY 15/16 thru FY 20/2 1, reducing the
impacts of these overlapping years, with payments being caught up in the remaining thirteen
years. It is this model that is illustrated below. It should be noted that MERA has adopted the
Parcel Tax as its method to fund the Gen 11 system and that the Gen 11 figures below are
provided as an illustration of the potential impacts should the Parcel Tax fail to pass.
Annual MERA System -wide Capital Costs if Parcel Tax Fails to Pass (Gen 11 with
smoothing):
FY FY FY
13/14 14/15 15/16
FY
16/17
FY
17/18
FY FY FY FY FY
18/19 19/20 20/21 21/22 22/23
I Gen 1 $2,347 $2,347 $2,347
$2,347
$21347
$21347 $21,347 $2,347 1
yy Gen 11 $21200
$21200
$2!200
$21200 $21200 $2,200 $4,400 $4.400
Total 1 $2,347 S2,347 S41547
$4,547
54,547
$4,547 S41547 $4,1547 S41400 $4,400
(All figures are in thousands)
11
Annual MERA System -wide Capital Costs if the Parcel Tax Wins Approval:
$5,000
$4,000
$3,000
am,
S 21--
$2,000
Al
.... . ... .
---- - ---- --
$1,000
$0
--I, rNj r -j N.> INIJ N) N.) 11Q PQ r1j PQ tA> CA> W W W W
_141 _41 F3 F3 K3 i�3 K5 t'sj ��3 'W 'W 65 C'.X> 'W
(All figures are in thousands)
Annual MERA System -wide Capital Costs if Parcel Tax Fails to Pass with Smoothing:
$5,000
$4,000
$3,000
$2,000
$1,000
0
1MR1
*Gen I Capital a Gen 11 Capftal
N� NJ NQ Nj r1j N) rQ tQ rQ Nj W W W W W
Nj rQ rQ W W W W W W
It should be noted that MERA has not adopted a traditional or smoothed mechanism for funding
of the Gen 11 system as we believe the Parcel Tax method best serves our member agencies, but
these mechanisms are included in this report to illustrate the need to focus the efforts and
energies of MERA and our member agencies on the success of the Parcel Tax proposal.
I WMIJ - I .1W
During the MERA Round I presentations, there were a number of requests for information on
Operating and Maintenance costs as we move forward. Looking at our current costs and those of
other similar systems, MERA staff has developed estimates through FY 2022. These costs,
impacted by both inflation and the need to operate and maintain an expanded system, show an
average annualized increase of 7.4%.
A
As you review these figures, please keep two caveats in mind: first, that the future Operating and
Maintenance costs are educated estimates; second, that the individual fiures for loca
gl
jurisdictions (later in this staff report) assume that there will be no additional MERA members or
changes to the cost-sharing mechanism.
Estimated MERA System -wide Operations and Maintenance Costs thru FY 22/23:
(All figures are in thousands)
Estimated MERA System -wide Operations and Maintenance Costs thru FY 22/23:
KIM • rommWI-ME
One option MERA is considering is a Service Upgrade Agreement (SUA). As an example of a
SUA, MERA would receive bi-annual system and technology upgrades for the first ten years of
the system's life. We currently estimate that this option could increase MERA's Operating and
Maintenance costs by $450,000 per year over the first ten years of the Gen 11 system while
putting MERA in an upgraded position as the Gen 11 system enters its second decade. We
anticipate asking that potential vendors provide a separate description and cost description from
the core project proposal to allow MERA to evaluate the value of this additional feature.
7. Combined Cost Impacts:
With the additional information of the Operating and Maintenance estimations, we can also look
at the combined costs of the Gen 1. Gen H and Operating and Maintenance costs to further
illustrate the importance of the Parcel Tax proposal on MERA member agencies. The following
charts show the total of the Gen I Bonds with Operating and Maintenance, should the Parcel Tax
pass, and then the combined costs of Gen I and Gen 11 with Operating and Maintenance costs
should the Parcel Tax fall as well as with the smoothing formula. As the Operating and
Maintenance estimates go thru FY 2022, these graphs show the impact through that fiscal year.
0
FY
FY
21 22
Iss 0 =0602mAE
(All figures are in thousands)
Estimated MERA System -wide Operations and Maintenance Costs thru FY 22/23:
KIM • rommWI-ME
One option MERA is considering is a Service Upgrade Agreement (SUA). As an example of a
SUA, MERA would receive bi-annual system and technology upgrades for the first ten years of
the system's life. We currently estimate that this option could increase MERA's Operating and
Maintenance costs by $450,000 per year over the first ten years of the Gen 11 system while
putting MERA in an upgraded position as the Gen 11 system enters its second decade. We
anticipate asking that potential vendors provide a separate description and cost description from
the core project proposal to allow MERA to evaluate the value of this additional feature.
7. Combined Cost Impacts:
With the additional information of the Operating and Maintenance estimations, we can also look
at the combined costs of the Gen 1. Gen H and Operating and Maintenance costs to further
illustrate the importance of the Parcel Tax proposal on MERA member agencies. The following
charts show the total of the Gen I Bonds with Operating and Maintenance, should the Parcel Tax
pass, and then the combined costs of Gen I and Gen 11 with Operating and Maintenance costs
should the Parcel Tax fall as well as with the smoothing formula. As the Operating and
Maintenance estimates go thru FY 2022, these graphs show the impact through that fiscal year.
0
Annual Capital and O&M MERA System -wide Member Costs if the Parcel Tax Passes:
* 0 & M a Gen I Capital
(All figures are in thousands)
Annual Capital and O&M MERA System -wide Member Costs if the Parcel Tax Fails with
Smoothing:
$8,000
$7,000
$6,000
$5,000
$4000
$3,000
$2,000
$1 .000
$0
nO&M viGenIC,a
NJ N) N)
41;�' CP 00 tc
IIQ
(All figures are in thousands)
The data included in this section are estimates developed for vour agency. As a reminder, the
Generation I bond cost is based on the current costs and adopted funding mechanism. The
Generation 11 cost above assumes the Parcel Tax falls AND that there are no changes in the
current MERA fandina mechanisms for distribution of costs across member agencies and that
with the smoothing model there is an assumption of interest only payments for seven years with
increased annual costs for the remaining thirteen years. Lastly, the Operating and Maintenance
cost is based on existing current costs and an educated estimate for future years that also assumes
that MERA member costs will be distributed as are Generation I bond costs.
0
.?.. Generation I Bond Costs: $349,,000 annually thru FY 20/21.
b. Generation 11 Bond Costs with Smoothing: $327,000 annually from FY 15/16 thru FY
20/21 and $654,000 from FY 21/22 thru. FY 35/36.
c. Operating and Maintenance Costs: (Estimated)
FY
13/14
FY
14/15
FY FY
15/16 16/17
FY
17/18
FY
18/19
FY
19/20
FY
20/21
FY FY
21/22 22/23
$245
$257
$267 $277
$353
$384
$377
$390
$409 $427
(All figures in thousands)
d. Parcel Tax Passes: Gen I Bond Costs and Operating and Maintenance Costs:
(Estimated)
FY
13/14
FY
14/15
FY
15/16
FY
16/17
FY FY
17/18 18/19
FY
19/20
FY
20/21
FY FY
21/22 22/23
$594
$606
$616
$626
$702 $733
$726
$739
$409 $427
(All figures in thousands)
e. Parcel Tax Falls: Gen I and 11 Bond Costs and Operating and Maintenance Costs With
Smoothing.- (Estimated)
FY
13/14
FY
14115
FY
15/16
FY
16/17
FY
17/18
FY
18/19
FY
19/20
FY
20/21
FY
21/22
FY
22/23
$594
$606
$943
$953
$11029
$1,060
$11,053
$11,066
$11,063
$ 1,081
(All figures in thousands[
9. Latest Polling Data._
MERA has recently conducted a second public opinion survey. This survey focused on the
details of the Parcel Tax as described in this staff report. As mentioned in the Round I
presentationsthe 2013 survey was broad based and helped to develop the funding proposal. The
findings of the January 2014 survey include: (Poll conducted 01/26-29/14 with 400 surveys and
a margin of error of
• Support for a $29 parcel tax measure is marginally higher than the $45 measure tested in
2012.
However, support still falls short of the to vote threshold both initially (62%) and
after positive arguments (64%).
The lowering of the Parcel Tax to $29 was offset by the diminished concern about the
need for reliable emergency communications among respondents.
F*01
The two strongest arguments in favor of a measure cite the need for communications
during a natural disaster and highlight how a new system would improve 911 response
times.
A public information effort is needed to raise awareness of the importance of the ME
system and the need to replace the current system with the Gen 11 system.
By the time that the second round of presentations is complete, MERA will have delivered 48
presentations throughout Marin County on the future of the MERA system and the need for the
Generation 11 system, with public, council and board feedback. In addition, MERA has already
held I I Strategic Plan development meetings and 56 implementation meetings. This work has
been accomplished by the MERA Governing Board, Executive Board, Project Oversight
Committee,, Finance Committee, Governance Workgroup and the Operations and System
Technology Workgroup.
MERA will also be conducting a proactive public education campaign, including firefighters,
police and direct community outreach, from April thru June to increase public awareness of
MERA and the critical importance of this project.
Timeline:
10. Tentative Gen 11 Prof ect' r i meline:
11/2014-. Parcel Tax Election
03/2015: Request for Proposal
11/2015: Contract Negotiations
01/2016: Detailed Design Review
06/2016: Begin Implementation
09/2017: System Cutover
0 1/2018: System Acceptance
03/2018: Project Completion
11. Parcel Tax Details:
The Parcel Tax has been developed by the MERA Finance Committee and is based on a study by
NBS. The Parcel Tax details for different property types are shown below.
Proposed Parcel Tax Rates:
Property Description
Method
Maximum Rate
Single -Family Residential
Per Parcel
$29.00
Multi -Family Residential
Per Unit
$26.10
Agricultural
Up to 5 Acres — Small
Per Parcel
$29.00
Greater than 5 acres — Large
Per Parcel
$258.00
Commercial, Industrial and Utility
Up to 1/2acre
Per Parcel
$87.00
Greater than 1/2acre & up to I
Per Parcel
$174.00
9
acre
Greater than I acre $174 per parcel + $29/acre Up to cap of $2,500.00
Parcel Tax Revenues by Category:
a ru"
Parcel i i I ax
Categories
# of Parcels
Tax Units
Total Parcel
Tax
Average per
Parcel
Median
Single Family
8 1, 107
81,107
$2!,352!,103
$29
$29
Multi -Family
4,986
24!,551
$640!391
$129
$52
Agricultural
715
1,361
$391469
$55
$58
Commercial,
Industrial &
Utility
4,015
10!,360
$585,193
$145
$87
The proposed parcel tax will include exemptions for income qualified senior homeowners. The
parcel tax proposal also includes the formation of an Independent Citizen Oversight Committee
that shall review the collection and expenditure of tax revenues collected under the authority of
the parcel tax measure.
During the latter half of 2013, all MERA member agencies were provided with an overview of
the system,, the current challenges and the proposed solution and funding mechanism. As a result
of that process and the feedback received,, MERA reviewed and updated the proposal, with the
MERA Governing Board approving the updated plan on 12/11/2013. The current action plan for
the project is that beginning in February, 2014 through June, 2014 each MERA member agency
will be asked to formally endorse the project funding plan for the Next Generation MERA
system. In July, 2014, a request will be made to the County of Marin Board of Supervisors to put
a countywide parcel tax measure on the ballot in November, 2014.
ACTION ITEM:
With the support of all of the MERA member agencies, we will be able to continue and improve
our countywide public safety communications system for years to come with a Parcel Tax based
on a single-family residence assessment of just $29 per year. With your support, we can build on
the already strong public support identified in our polling and help inform our community of the
0
importance of this Parcel Tax on the November 2014 ballot.
MERA would like to reiterate that the Gen I system needs to be replaced in 2018 and while that
is still four years away, it will be a busy four years. Delays will increase the risk of degraded
public safety communications and equipment failure. MERA also believes that the successful
passage of the Parcel Tax is in the best interest of MERA and for your organization in order to
fund this critical project.
To that end,, MERA is requesting that each MERA member agency pass a resolution to support
and endorse the proposed MERA Parcel Tax. The attached resolution is being provided to each
MERA member agency with the intent that all of the resolutions will be provided to the Marin
US
County Board of Supervisors as MERA seeks to have the Parcel Tax placed on the November
2014 ballot.
FISCAL IMPACT:
None at this time, but significant potential costs should the Parcel Tax fail.
Do not approve the Resolution of Support for the MERA Parcel Tal
M
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OTA 'CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
SRRA / SRCC AGENDA ITEM NO. 4, b
DATE OF MEETING: April 21, 2014
FROM: Nancy Mackle
1EPARTMENT: City Manager
DATE: April 11, 201�
A RESOLUTION ENDORSING A COUNTYWIDE LEVY OF A PARCEL TAX TO FINANCE A
NEW MARIN EMERGENCY RADIO AUTHORITY PUBLIC SAFETY COMMUNICATIONS
SYSTEM
Department Head (signature)
(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL 1 AGENCY
AGENDA ITEM:
APPROVED AS TO FORM:
City Attorney (signature)