Title
Public Hearing to Consider Adoption of Resolution Amending Master Fee Resolution No. 12191 to Add and Revise Fees. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Annually, City of Alameda (City) 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 Alameda Municipal Code with City Council’s approval.
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.
In the spring 2019, the City Council reviewed and adopted fee studies for the Public Works and Fire Departments, which overall provide for less than 100% cost recovery.
DISCUSSION
The Bureau of Labor Statistics announced the CPI as 3.5% for Fiscal Year (FY) 2018-19. Based on Resolution 12191, the eligible fees in the Master Fee Schedule have been increased in accordance with the CPI. The Engineering News Record announced the Construction Cost Index for the San Francisco Bay Area as 2.6% for FY 2018-19. 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.
The annual adjustments to the Affordable Housing Unit Fees for Hotel/Motel use have inadvertently not been updated in the Master Fee Schedule since FY 2014-15. The current proposed increase of $115 from $1,108 (room/suite) to $1,223 (room/suite) accurately reflects the fee for FY 2019-20 and includes the intermediate annual adjustments.
Fees associated with the Alameda Recreation and Park Department were approved by the City Council in December 2018 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, new fees were added, and existing Fire Department fees were revised and approved by the City Council in March 2019 and are incorporated in the attached schedule.
The City’s Planning, Building and Transportation and the Public Works Departments added new and revised existing fees, which were approved by City Council in April 2019 and are incorporated in the attached schedule.
It should be noted that consistent with the findings of the Final User Fee Study for Public Works Department Fees, and the approved fully burdened hourly rate for the Integrated Waste Program, the fee for the Solid Waste-Special Event Permit should be $149. It was erroneously entered into Exhibit A of Resolution No. 15525 as a land development fee at $192. This correction is incorporated in the attached schedule.
The Rent Stabilization Program fee for FY 2019-20 will remain the same as last year, $106 per rental unit, and was approved by City Council in April 2019.
Cannabis Business Operator and Regulatory Fees were adopted by the City Council in October 2018 and are incorporated in the attached schedule.
Staff is proposing the following changes to the Fee Schedule:
Library
• The Library will no longer charge for late fees. Overdue fines accumulate and block access for low-income residents, who are the people who need libraries the most. In addition, fines do not work well to encourage people to return books and lower income people have a harder time paying fines for overdue items. Because the library’s mission of free and equal access to information, eliminating late fees supports this objective.
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 Finance Department’s analysis of personnel costs. The Finance Department has reviewed and updated the billing rates, which are incorporated in the attached schedule.
ALTERNATIVES
Alternative 1 --- The updated fees and modifications, which are recommended to reflect increases in the cost of living adjustment, are incorporated into the Biennial Budget. If fee changes are not approved, this would have an adverse effect to all department revenues supported by fees.
Alternative 2 - Do not authorize recommended updated fees and modifications.
FINANCIAL IMPACT
The projected revenues from the fees outlined in the Master Fee Schedule are included in the Biennial Budget for FY 2019-20 and FY 2020-21.
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.
CLIMATE IMPACT
There are no climate impacts from adopting a resolution amending the Master Fee Resolution to add and revise fees.
RECOMMENDATION
Hold a public hearing to consider adoption of a resolution amending Master Fee Resolution No. 12191 to add and revise fees.
CITY MANAGER RECOMMENDATION
The City Manager recommends holding a public hearing and approval of amended Master Fee schedule resolution.
Respectfully submitted,
Elena Adair, Finance Director
Exhibit:
1. Fiscal Year 2019-20 Master Fee Schedule
cc: Eric Levitt, City Manager