Title
Public Hearing to Consider Adoption of Resolution Amending Master Fee Resolution No. 12191 to Add and Revise Fees. (Finance 2410) [Not heard on June 15, 2021]
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 (AMC) 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 1.6% for Fiscal Year (FY) 2020-21. Based on Resolution 12191, the eligible fees in the Master Fee Schedule would be increased in accordance with the CPI. The Engineering News Record announced the Construction Cost Index for the San Francisco Bay Area as 2.5% for FY 2020-21. Based on the fee escalator provisions of AMC 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 CPI increases to the Master Fee Schedule for FY 2021-22. While there are no increases or substantive changes at this time, there are changes to the Master Fee Schedule that are outlined below:
• Staff hourly rates for the City Attorney staff and Police hourly rates for special events have been adjusted to reflect personnel costs per the Biennial Budget calculations.
• Fees associated with the Alameda Recreation and Park Department were approved by the City Council in November 2020 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 $148 per unit. The fee for a “Partially Regulated Unit” will be $100. Fees for FY 2021-22 were approved by City Council in May 2021.
• The Planning and Building Department will no longer require a fee for Accessory Dwelling Units due to recent changes in the State law requiring ministerial review of ADU applications which occur as part of the building permit review. Zoning Clearance permits will also no longer require a fee as an economic development incentive and to lower costs for business startup during the pandemic. Building Plan Review for minor and major projects was adjusted to better reflect actual staff review time.
• Alameda Point Development Impact Fees (DIF) were repealed by City Council in September 2020.
• The Fire Department recommended fee increases for the Hazardous Materials Inspection Permit Fees, Marinas, Licensed Care Facilities, Fire Inspections, Fire Life Safety Review of Construction Permits, and Fire Sprinkler Systems Fire Alarm Systems as detailed in the Proposed FY 2021-22 Master Fee Schedule.
ALTERNATIVES
• Accept the Master Fee Schedule as proposed.
• Do not increase the fees as proposed in the Master Fee Schedule
• Increase only some of the fees.
FINANCIAL IMPACT
The projected revenues from the fees outlined in the Master Fee Schedule are included in the proposed budget for FY 2021-22.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the AMC.
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 approval with one potential amendment. The Fire cost recovery fee from 2019 had a significant increase in year one. Due to the pandemic last year, the fee increase was deferred. I recommend that the City Council either approve the recommended fee increase which is half of the increase in the initial study or not increase the Fire fees for 2021 - 2022.
Respectfully submitted,
Annie To, Finance Director
Exhibit:
1. Fiscal Year 2021-22 Master Fee Schedule
cc: Eric Levitt, City Manager