Title
Public Hearing to Consider Adoption of Resolution Amending Master Fee Resolution No. 12191 to Add and Revise Fees, Including a Rent Stabilization Program Late Fee. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Public Hearing to Consider Adoption of Resolution Amending Master Fee Resolution No. 12191 to Add and Revise Fees, Including a Rent Stabilization Program Late Fee
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 (CPI). 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. Any 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 CPI as 3.6% for Fiscal Year (FY) 2017-18. Based on Resolution 12191, the eligible fees in the Master Fee Schedule have been increased in accordance with the CIP. The Engineering News Record announced the Construction Cost Index for the San Francisco Bay Area as 2.7% for FY 2017-18. 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 2017 and are incorporated in the attached schedule without changes.
The City’s fees for ambulance and emergency medical services are based on the Alameda County’s fee schedule. These fees were updated and approved by the City Council in November 2017 and are incorporated in the attached schedule without changes.
Staff is proposing the following changes to the Fee Schedule:
Rent Stabilization Program
• On June 5, 2018, the City Council adopted Resolution No. 15388 approving a Rent Stabilization Program fee of $106 per rental unit. The fee is included in the Master Fee Schedule and will be effective July 1, 2018. To encourage timely payment, remittance to the City must be received by July 31, 2018. Any payments received on or after August 1, 2018 will be assessed a late fee of 10% per month up to 60%.
Public Works
• On-site sewer lateral test fees were removed from the master fee schedule. The City participates in the Regional Private Sewer Lateral Program administered by East Bay Municipal Utilities District (EBMUD). EBMUD bills the private party directly for the services performed.
Fire
• The Fire Department has added a mandatory inspection after the 3rd commercial false alarm and every other subsequent false alarm to determine potential causes of the false alarms. The fee associated with this inspection will be based upon occupancy, as identified under Fire Inspections. This inspection fee is separate of, and in addition to, the false alarm fee.
Library
• The Library will no longer charge for material reserves. Most libraries do not charge to hold books. This rarely occurs and requires manual adjustments and is inefficient.
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 FY 2012-13 and were based upon 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 will be reviewing and updating the billing rates this summer and will bring the revisions for Council approval in the fall of this year.
FINANCIAL IMPACT
The projected revenues from the fees outlined in the Master Fee Schedule are included in the FY 2018-19 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, including a Rent Stabilization Program late fee.
Respectfully submitted,
Elena Adair, Finance Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Fiscal Year 2018-19 Master Fee Schedule