Title
Public Hearing to Consider Adoption of Resolution Amending Master Fee Resolution No. 12191 to Revise Fees for Fire Department Services and Permits. (Fire 10032220)
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. The Fire Department Fees were not approved with the City’s Master Fee Schedule presented to Council on July 6, 2021. Adoption of this Resolution would add and revise fees related to fire prevention services and permits.
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.
Alameda Fire Department contracted with NBS, Inc. to conduct a detailed cost of services study of user fee activities in the Fire Department’s Fire Prevention Services Division. The primary purpose for conducting this study was to ensure that existing fees do not exceed the costs of service and to provide an opportunity for the City Council to re-align fees with the adopted cost recovery policies. The Fee Study was completed in January 2019. It was presented to City Council on March 5, 2019 as part of the legislative package requesting approval of additions and revisions to existing Fire Department Fees. On March 5, 2019, the City Council approved Resolution No. 15504, “Amending Master Fee Resolution No. 12191 to Add and Revise Existing Fire Department Fees.”
Alameda County Emergency Medical Services Agency establishes the ambulance transport fee rates and the City follows the County’s adopted fee schedule for these services. On July 14, 2021, the Alameda County Emergency Medical Services Agency notified the City that the County had authorized an increase, subject to City Council approval of the City’s user fees for ambulance transport services.
.
A summary of the Fire Department fee revenue actuals and budgets is shown below.
|
Fee |
Fees Set by |
FY 18-19 Actual |
FY 19-20 Actual |
FY 20-21 Actual |
FY 21-22 Budget |
FY 22-23 Budget |
|
Fire Prevention Fees |
City Resolution |
$493,669 |
$668,610 |
$667,357 |
$609,000 |
$719,000 |
|
Ambulance Fees |
Alameda County Emergency Medical Services Agency and by City Resolution |
$2,722,994 |
$3,894,402 |
$3,450,826 |
$3,334,500 |
$3,334,500 |
DISCUSSION
The 2019 fee study found that Fire Prevention fees were at approximately a 29% recovery rate. The fee study recommended recovering additional costs in phases over the course of a four-year period, with a total annual cost recovery target not to exceed 59% annually across all fees for service.
The Fee Study also included a Comparative Fee Survey (below) which included similar communities and their associated fee structure in the greater East Bay, as of July 1, 2019.
|
City |
Inspection Per Hour |
Plan Review Per Hour |
|
Alameda |
$150.00 |
$150.00 |
|
Hayward |
$885.00 |
$221.00 |
|
San Leandro |
$120.00 |
$241.00 |
|
Oakland |
$369.51 |
$174.00 |
|
Berkeley |
$374.00 |
$374.00 |
|
Walnut Creek |
$837.00 |
$279.00 |
|
Newark |
$305.00 |
$131.00 |
|
Fremont |
$192.00 |
$95.00 |
|
Average (excluding Alameda) |
$440.36 |
$216.43 |
|
*Berkeley pro-rates by the quarter hour |
The following table represents the cost recovery rates as recommended by NBS in the 2019 Fee Study compared with the actual and budgeted recovery rates since Fiscal Year (FY) 2018-19.
|
|
FY 18/19 |
Year 1 (FY19-20) |
Year 2 (FY20-21) |
Year 3 (FY21-22) |
Year 4 (FY22-23) |
|
NBS Projected Revenue |
$499,970 |
$847,541 |
$995,471 |
$995,471 |
$1,037,591 |
|
Actual Revenue |
$493,669 |
$668,610 |
$667,357 |
$609,000 (budget) |
$719,000 (budget) |
|
Estimated Recoverable Expenditures |
$1,750,000 |
$1,750,000 |
$1,750,000 |
$1,750,000 |
$1,750,000 |
|
Net Cost to General Fund |
$1,256,331 |
$1,081,390 |
$1,082,643 |
$1,141,000 |
$1,031,000 |
|
NBS Recommended Cost Recovery |
29% |
48% |
57% |
57% |
59% |
|
Actual/Budgeted Cost Recovery |
28% |
38% |
38% |
35% |
41% |
Due to COVID19 and pursuant to City Manager direction, there were no increases in fees for FY 2020-21 to reflect the 57% cost recovery provided in Resolution No, 12191. As a result the fully burdened hourly rate remained at $150, as shown below.
|
|
FY 18-19 |
Year 1 (FY19-20) |
Year 2 (FY20-21) |
Year 3 (FY21-22) |
Year 4 (FY22-23) |
|
Fully Burdened Hourly Rate (NBS Recommended) |
Varies |
$150 |
$180 |
$180 |
$200 |
|
Actual Hourly Rate |
Varies |
$150 |
$150 |
TBD |
TBD |
Any proposed reduction in Fire Prevention fees will have a corresponding effect on General Fund revenues. For example:
o 5% reduction in fees = $30,450 additional General Fund liability
o 10% reduction in fees = $60,900 additional General Fund liability
ALTERNATIVES
• The City Council may approve the fees as described in the report.
• The City Council could direct staff to decrease the fees discussed in the report.
• The City Council could direct staff to leave the fees as they are.
FINANCIAL IMPACT
The projected revenues from the Fire Prevention Fees outlined in the Master Fee Schedule are included in the General Fund budget for FY 2021-22. As noted above, a 10% reduction in Fire Prevention fees would reduce the General Fund revenue projection by $60,900.
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
Approve the Fire Department fee schedule as stated in Amended Resolution No.12191 (March 5, 2019).
CITY MANAGER RECOMMENDATION
The City Manager recommends approval.
Respectfully submitted,
Ricci Zombeck, Interim Fire Chief
By,
James Colburn, Deputy Fire Chief
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Fiscal Year 2021-22 Master Fee Schedule (Fire Department)
2. Fee Study
cc: Eric Levitt, City Manager