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.
DISCUSSION
The Bureau of Labor Statistics announced the CPI as 2.9% for Fiscal Year (FY) 2019-20. 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 4.9% for FY 2019-20. 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, would be increased in accordance with the Construction Cost Index.
Due to COVID-19, there will be no increases to the Master Fee Schedule for FY 2020-21. Fees may be re-evaluated in the Fall depending on the state of the economy. Exceptions are the Recreation and Park fee schedule, Rent Program fees, Planning and Building tree removal fees and DIF fees. While there are no increases or substantive changes at this time, there are several changes the Master Fee Schedule that are outlined below.
Fees associated with the Alameda Recreation and Park Department were approved by the City Council in November 2019 and are incorporated in the attached schedule without changes.
The Rent Stabilization Program Fee Study recommended a tiered fee structure. The fee for a rental unit that is a “Fully Regulated Unit” will be $132 per unit. The fee for a “Partially Regulated Unit” will be $84. Fees for FY 2020-21 were approved by City Council in June 2020.
The Planning and Building Department’s fee for Certificate of Approval by Staff for tree removal was incorrect in the FY 2019-20 Master Fee Schedule. The fee has been corrected. An additional line item for Certificate of Approval by Staff for dead/diseased tree removal has been added.
The DIF fees were adopted by City Council on July 16, 2019 and are being incorporated in the attached schedule without change.
ALTERNATIVES
No alternatives
FINANCIAL IMPACT
The projected revenues from the fees outlined in the Master Fee Schedule are included in the Budget for FY 2020-21.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
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. The Master Fee schedule does not contain a CPI increase for FY 2020-21 due to COVID 19.
Respectfully submitted,
Nancy Bronstein, Interim Finance Director
Exhibit:
1. Fiscal Year 2020-21 Master Fee Schedule
cc: Eric Levitt, City Manager