Ordinance 2762 and staff reportCITY OF ALAMDA ORDINANCE NO.2762
New Series
AMENDING THE ALAMEDA MUNICIPAL CODE BY AMENDING
SUBSECTION 3-62.6 (EXEMPTIONS) OF SECTION 3-62 (IMPROVEMENT
TAX, OF CHATER III (FINANCE AND TAXTION) BY ADDING
SUBSECTION 3-62.6( d) PERTAIING TO ASSESSME OF IMROVEMET
TAX
BE IT ORDAID by the Council of the City of Alamed that:
Section 1 . The Alamed Muncipal Code is hereby amended by amendig subsection 3-62.
(Exemptions) of Section 3-62 (Iprovement Tax) of Chapter III (Finance and Taxation) by adding
subsection 3-62.6(d) thereof to read:
62.6 (Exemptions)!C d. Work which is performed solely for the purose of seismic upgrading of residential
rea propert shall not be included in the defition of "constrction" for puroses of assessing the
!: Improvement Tax. All such work sha reqUie a building permt and shall meet all requirements of
Co the Uniform Building Code.
Section 2 . Ths Ordinance shall be in ful force and effect from and afer the expiration ofth (30) days from the date of its fial passage.
Attest:
City Clerk
the undersigned hereby certify that the foregoing
Ordinance was duly and regularly adopted and passed by the Council
of the City of Alameda in regular meeting assembled on the 19th
day of May , 1998, by the following vote to wit:
AYES:Councilmembers Daysog, DeWitt, KerrLucas and President Appezzato - 5.
NOES:None.
ABSENT:None.
ABSTENTIONS:None.
IN WITNESS, WHEREOF , I have hereunto set my hand and affixed the
official seal of said City this 20th day of Mav , 1998.
Diane
Ci ty of Alameda
t. J ,
. .;.,." .; " )
City of Alameda
Inter-departental Memorandum
Date:April 29 , 1998
To:Honorable Mayor and
Members of the Council
From:Robert L. Warick
Public Works Director
Re:Introduction of Ordinance Amending the Alameda Municipal Code by Amending
Subsection 3-62.6 (Exemptions) of Section 3-62 (Improvement Tax), of Chapter III
(Finance and Taxation) by adding Subsection 3-62.6( d) Pertaining to Assessment of
Improvement Tax
Background
By letter dated September 1 , 1997 , Mr. Kenneth Gutleben requested that the City Council consider
adopting a program to provide assistance to homeowners in making their homes seismically safer.
A copy of Mr. Gutleben' s letter was previously provided to the City Council on October 7 , 1997.
After reviewing the letter and hearng public comment on the matter , City Council requested City
staffto contact Mr. Gutleben to discuss his recommendations , to evaluate the recommendations , and
to report back to the City Council.
On January 20 , 1998 , the City Council reviewed a report describing a proposed program to assist
homeowners in makng their homes seismically safer. The Council approved a list of short term
public training actions and directed the City Attorney to draft the necessar ordinance to provide an
Improvement Tax exemption for the seismic strengthening of residential structues projects in
response to Mr. Gutleben s requests.
Discussion! Analysis
The curent Improvement Tax regulations are contained in section 3-62 ofthe Alameda Municipal
Code. These regulations , adopted in May, 1986 , require the payment of a fee at the time building
permits ar e issued equal to 1% of the construction cost for projects valued over $5 000.
Improvement Tax fuds are used to defer the cost of municipal services generated by the
development of property. Mr. Gutleben believes that seismic strengthening projects at existing
residential buildings do not result in fuher demands on muncipal services in the same way as new
construction or addition projects. The City Attorney has prepared a draft ordinance which would
amend section 3-62 of the Municipal Code to add an exemption on seismic strengthening of
residential structures projects.
The City Council has previously approved Improvement Tax exemptions for unreinforced masonr
retrofit projects and for projects that correct construction defects. Past experience has proven that
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Re: Introduction of Ordinances #4.W CC
Honorable Mayor and
Members of the Council
Page 2
April 29 , 1998
financial incentives are a very effective means of persuasion. Approval of an exemption from
Improvement Tax may encourage people to proceed with residential retrofit projects.
Budget Consideration!Financial Impact:
It is estimated that the anual Improvement Tax revenue would be reduced by approximately $1 500
if the proposed exemption for residential seismic strengthening proj ects is adopted. This revenue
reduction would not adversely impact the City budget.
Municipal Code Cross Reference
The Alameda Municipal Code has been thoroughly analyzed and it is determined that there are no
other sections ofthe Code which deal with this subject matter. The proposed amendments to Section
62 (Improvement Tax), subsection 3-62-6 (Exemptions), of Chapter III (Finance and Taxation)
of the Alameda Municipal Code are found to be compatible with the Municipal Code.
Recommendation:
It is recommended that the City Council , by motion , introduce the draft Ordinance amending the
Alameda Municipal Code by amending subsection 3-62.(Exemptions) of section 3-
(Improvement Tax), of chapter il (Finance and Taxation) by adding subsection 3-62.6( d) pertaining
to assessment of Improvement Tax
Respectfully submitted
/41
Robert L. Warick
Public Works Director
RL W /sd
G:IPUBWRKSICOUNCILIIMPT AX.ORD
Forwarded:
Mr. Kenneth Gutleben
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