Title
Hold a Public Hearing to Consider Adoption of a Resolution Amending Master Fee Resolution No. 12191 to Add and Revise Fees. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Hold a Public Hearing to Consider Adoption of a Resolution Amending Master Fee Resolution No. 12191 to Add and Revise Fees
BACKGROUND
On January 22, 1992, the City Council adopted Resolution Number 12191, codifying all fees for services and linking the rate at which the City's fee schedule may be increased to the Consumer Price Index for the San Francisco Bay Area. Subsequently each year, via resolution, the fee structure is revised and updated to streamline fee collection.
On October 3, 2006, the City Council approved Resolution 14027, Amending Master Fee Resolution No. 12191 to Revise and Streamline the Planning & Building, Public Works, and Fire Department Fee Schedules, to allow for 100% cost recovery.
DISCUSSION
Annually, staff reviews existing fees and charges as part of the budget development process. The current modifications to the Master Fee Schedule are recommended to reflect increases in the cost of living adjustments authorized by Resolution and the Municipal Code.
The Bureau of Labor Statistics announced the Consumer Price Index (CPI) for the San Francisco Bay Area as 2.5% for Fiscal Year (FY) 2014-15. Based on Resolution 12191, the eligible fees in the Master Fee Schedule have been increased in accordance with the Bay Area Consumer Price Index. The Engineering News Record announced the Construction Cost Index for the San Francisco Bay Area as 2.5% for FY 2014-15. Based on the fee escalator provisions of Municipal Code Sections 27-3.12, 27-4.12, and 27-1.10, Affordable Housing Unit Fees, Development Impact Fees (DIF), including the Alameda Point DIF, have been increased in accordance with the Construction Cost Index.
Fees associated with the Alameda Recreation and Park Department were approved by the City Council in November 2014 and are included in the attached schedule.
The City's fees for ambulance and emergency medical services are based on the Alameda County's fee schedule. When fee updates are received from the County, the City will revise and adjust its fee schedule to reflect the County fee schedule.
Staff proposed changes to the Fee Schedule as follows:
Police Department
· Eliminate the Alcoholic Beverage Control (ABC) License Approval Fee. The Alameda Police Department recommends removing this fee as it primarily impacts nonprofit-charitable organizations which may impede fundraising efforts.
Community Development Department
· Add subcategories with smaller deposits. No new fees proposed.
· Added new language to clarity descriptions of various fees.
Billing Rates for selected staff positions (with and without overhead) are included in the Master Fee Schedule. These rates were established based upon the internal fee study prepared by the Finance Department in Fiscal Year 2012-13 and were based upon a 1,600 effective working hours for a staff member for a Fiscal Year. These rates have been updated this year based upon the CPI. Finance department staff will review and evaluate the current billing rates within next year.
In addition, based on the recent feedback received from the City Council, Finance Department will re-evaluate the penalty formula calculated on the delinquent business license tax. Staff will return to the City Council with an update and recommendation for adjustments, if any.
FINANCIAL IMPACT
The projected revenues from the fees outlined in the Master Fee Schedule are included in the FY 2015-16 Budget.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378 (b)(4) of the CEQA Guidelines, because it involves governmental fiscal activities (acceptance of the operating and capital budget), which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Hold a public hearing to consider adoption of a resolution amending Master Fee Resolution No. 12191 to add and revise fees.
Respectfully submitted,
Elena Adair, Finance Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Fiscal Year 2015-16 Master Fee Schedule