HomeMy WebLinkAbout2019-05-23 Finance Committee Agenda PacketFinance Committee
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Thursday, May 23, 2019
Special Meeting
Community Meeting Room
1:00 PM
Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in
the Council Chambers on the Thursday 12 days preceding the meeting.
PUBLIC COMMENT
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Call to Order
Oral Communications
Members of the public may speak to any item NOT on the agenda.
Action Items Page #s
1:00 – 1:30 PM 1.May 15th Budget Hearing- Continuation
1:30 – 2:00 PM
2:00 – 3:15 PM
3:15 – 4:45 PM
4:45 – 5:45 PM
5:45 – 6:45 PM
6:45 – 8:00 PM
Adjournment
2.Fiscal Year 2020 Proposed Municipal Fee Schedule
3.Public Safety Services: Fire, Emergency Services, and
Police – Operating Budgets
4.General Fund Capital Budget (General Capital
Improvement Plan and Cubberley Capital Improvement
Plan)
Dinner Break
5.Placemaking and Infrastructure: Public Works Department
–Operating and Capital Budgets
a)General Fund
b)Airport Fund
c)Refuse Fund
d)Stormwater Management Fund
e)Vehicle Replacement and Maintenance Fund
f)Wastewater Treatment Fund
6.Community and Neighborhood Services: Community
Services and Library – Operating Budgets
O: 213-226
273-282
313-326
C: 75-310
O: 327
O: 341, C: 313
O: 349
O: 360, C: 477
O: 368, C: 641
O:375, C: 533
O: 193-212
261-272
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Proposed Capital Budget
Proposed Operating Budget
MEMO
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City of Palo Alto (ID # 10225)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 5/23/2019
City of Palo Alto Page 1
Summary Title: Fiscal Year 2020 Proposed Municipal Fee Schedule
Title: Fiscal Year 2020 Proposed Municipal Fee Schedule
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the Finance Committee recommend that the City Council approve
proposed amendments to the Municipal Fee Schedule for Fiscal Year 2020.
Background
Annually, as part of the budget process, staff submits changes to the Municipal Fee Schedule
for Finance Committee review and recommendation, followed by final approval by the City
Council. The City charges fees for a variety of services provided. For example, these include
fees for photocopies, building inspection services, or room rentals.
In Fiscal Year 2013, staff completed a cost of services study for most departments. Part of that
study included a review of the City’s calculation of expenditures linked to a particular fee
activity in order to determine the cost recovery level. These expenditures include the budgeted
cost of staff time including salaries and benefits; related non-salary expenditures; department
and citywide cost allocations to recuperate costs for department management oversight and
internal support functions such as purchasing, payroll, or human resources.
On April 6, 2015 staff presented, as part of a study session, a draft User Fee Cost Recovery Level
Policy. Based on Council input and support for the policy, Council approved the policy on May
18, 2015, detailed in the chart below.
City of Palo Alto Page 2
Since its adoption in Fiscal Year 2015, the User Fee Cost Recovery Level Policy has served as a
guide for departments to update their fees. Planning and Community Environment Department
completed a fee study in Fiscal Year 2016. The Development Services Department completed an
extensive fee study in Fiscal Years 2017 and 2018. More recently, the Police Department
analyzed their fees and presented their recommendations based on that analysis to the Finance
Committee for review in Fiscal Year 2019.
As suggested by the City Council in Fiscal Year 2016, this annual report brings forward
amendments to the Municipal Fee Schedule focused on
(1) New fees,
(2) Deletion of existing fees, and
(3) Changed fees to attain a higher cost recovery level consistent with other fees or
based on a market study for similar services.
Discussion
The development of the Municipal Fee Schedule for Fiscal Year 2020 initiates efforts that
address Finance Committee recommendations from October 16, 2018 (CMR 9664) for the City
Council to
A. Adopt an update to the User Fee Cost Recovery Level Policy to include language
clarifying certain types of fees are not subject to state laws limiting fees to cost
recovery; and
B. Direct Staff to develop a work plan to evaluate all fees and decide which ones are still
appropriate.
City of Palo Alto Page 3
The Finance Committee unanimously approved this direction. During the development of the
Municipal Fee Schedule for Fiscal Year 2020, Library, Police, and Public Works conducted an in-
depth review of their fees to determine which ones are still appropriate. Staff anticipates
bringing the policy update to the full Council for final approval this year.
This Municipal Fee Schedule for Fiscal Year 2020 also reflects department and services
realignments including: the Animal Shelter services transition; merging Development Services
with Planning and Community Environment; and establishing the Office of Transportation
(OOT). Information regarding these realignments are detailed below:
• Animal Services Transition: on November 26, 2018 (CMR 9822), the City Council approved a
contract with Pets-in-Need (PIN) to deliver animal care services at the shelter, transitioning
service delivery from the Police Department to the outside contractor. This new partnership
with PIN is administered by the Community Services Department. While the City no longer
directly administers animal care services including various shelter service fees, the fees are
still included in the Municipal Fee Schedule as it remains a City service and operation
administered through PIN. Recommended changes to certain Animal Shelter service fees to
align with the new service delivery model are detailed in Attachment A and are a result of
conversations with PIN and CSD staff.
• Merging Development Services into Planning and Community Environment: The FY 2020
Proposed Operating Budget recommends the merging of these two departments creating
one cohesive unit focused on entitlements, permitting, code enforcement, and land use
visioning. The Development Center remains as a one stop shop, however, all fees have been
realigned to fall under the Planning and Community Environment Department.
• Establishing an Office of Transportation: The FY 2020 Proposed Operating Budget
recommends establishing an Office of Transportation, reporting directly to the City
Manager’s Office. This Office will continue to address the growing complexity and demands
associated with parking, traffic, and pending decisions regarding grade separation.
Transportation was previously a division of the Planning and Community Environment
Department.
The majority of fees across the City were updated to maintain cost recovery levels. The average
increase of salaries and benefits from Fiscal Year 2019 to Fiscal Year 2020 was 7.5% and this
rate of increase was applied to most fees to maintain cost recovery levels. This year over year
increase is higher than typically seen as it includes the City Council’s new direction to use a
more conservative assumption for pension costs. Therefore, this general increase assumes the
proactive work to ensure the City is keeping up with “pay go” pension costs would also be
supported by fee payers for those services reimbursed by fees. Only those fee changes that
deviate from this general increase, fees that were adjusted by a factor greater than 7.5% to
attain a higher cost recovery level, or were adjusted based on a fee study or a market study, are
further detailed in Attachment A.
City of Palo Alto Page 4
New Fees
As identified in Table 1 below, eight (8) new fees are recommended to be added to the Fiscal
Year 2020 Proposed Municipal Fee Schedule: three in Community Services and five in Planning
and Community Environment.
Community Services Department recommended additions:
• Two fees for events and training that will be provided at the Animal Shelter. These fees are
recommended to be added to reflect new programs and services added by Pets-In-Need
(PIN), the City’s non-profit partner at the Animal Shelter.
• One reinstated fee for personal flotation device (life vest) rentals at Foothills Park so visitors
can rent a life vest for use when they bring their personal non-motorized boats.
Planning and Community Environment Department recommended additions:
• Four new hourly fees associated with Plan Checks and Inspections, which will allow
management to apply cost recovery rates for situations which do not fall within the typical
scope of a full department review. While there are existing Plan Check and Inspection fees
based on project valuation, some hourly rates to charge builders for specific time and
materials work needed to be specified such as costs associated with projects that submit
change requests or are outside the normal scope of building activity.
• One fee to address new permit requirements for demolition of certain applicable
structures.
Table 1. New Fees for 2020
Department Fee Title FY 2020 Proposed Fee
Cost
Recovery
Level
Community Services Canine Training Deposit $75.00 each High
Community Services Classes, camps, corporate
events $20.00 - $1,000.00 per event High
Community Services Personal Flotation Device
(Foothills Park Only) $2.00 per use High
Planning and Community Environment
(Development Services - Fire)*
Miscellaneous Fire Prevention
Plan Check $214.00 per hour High
Planning and Community Environment
(Development Services - Building)*
Miscellaneous Planning Plan
Check & Inspection $216.00 per hour High
Planning and Community Environment
(Development Services - Public Works)*
Miscellaneous Public Works
Inspection $216.00 per hour High
Planning and Community Environment
(Development Services - Public Works)*
Miscellaneous Public Works
Plan Check $254.00 per hour High
Planning and Community Environment
(Development Services - Public Works)*
Polychlorinated Biphenyls
(PCBs) Permit Review Fee
$400.00 per review (up to 2 hours)
plus $168.00 per hour thereafter High
*As discussed above, Development Services is included as part of the Planning and Community Environment Department (PCE) in the FY 2020
Proposed Budget.
City of Palo Alto Page 5
Deleted Fees
Twenty-three (23) fees are recommended to be deleted in the Fiscal Year 2020 Proposed
Municipal Fee Schedule. The deleted fees are included in the following departments:
Community Services (5 fees); Library (1 fee); Office of Transportation (3 fees); and Police (14
fees). It should be noted that the majority of these recommended deletions were already
approved by the Finance Committee in October 2018 in the review of Police Department fees
(CMR 9664). This action carries forward this recommendation and ultimately would finalize
these eliminations as part of the public hearing for the adoption of the FY 2020 Municipal Fee
Schedule. Each fee, and the justification for its deletion, is detailed in Table 2 below.
Table 2. Deletion of Fees for FY 2020
Department Fee Title Justification
Community Services Green Room and Dressing Rooms These rooms are no longer available for rent following
contract negotiations with the theatre companies.
Community Services Group Rate This fee is no longer necessary given current program
and service offerings.
Community Services Individual Entry Rate This fee is no longer necessary given current program
and service offerings.
Community Services Package Rental - Adobe North Tech Lab and South
Meeting Room
This fee is no longer necessary given current program
and service offerings.
Community Services Snack Food at Special Events This fee is no longer necessary given current program
and service offerings.
Library Downtown Library Community Room There is little to no market for this fee.
Office of Transportation Commercial/Construction Parking Permits -
Emergency Repair Vehicles There is little to no market for this fee.
Office of Transportation Locker - Refundable Key Deposit This service is no longer provided.
Office of Transportation Locker - Rental Fee This service is no longer provided.
Police Billiard Room (non-refundable)
This service is no longer provided and is recommended
for removal as directed by the Finance Committee
recommendation on October 16, 2018 (CMR 9664) to
remove fees that the Police Department has determined
obsolete.
Police Bingo Employee - New
Police Bingo Employee - Renewal
Police Bingo Establishment
Police Bowling Alley (non-refundable)
Police Carnival
Police Circus
Police Hot Tub Sauna - Employee (New)
Police Hot Tub Sauna - Employee (Renewal)
Police Hot Tub Sauna - New
Police Hot Tub Sauna - Renewal
Police Hot Tub Sauna - Sale or Transfer of Interest
Police Mechanical Amusement Device Establishment
Police Rodeo - New
City of Palo Alto Page 6
Changed Fees
Sixty-one (61) fees are recommended for adjustments by a factor other than the baseline salary
& benefits adjustments to either
(1) attain a cost recovery level consistent with other fees or
(2) align with a market study or
(3) modify the fee structure to be aligned with current service delivery.
These changed fees are detailed in Attachment A and are included in the following
departments: 35 in Community Services and 26 in Planning and Community Environment. Out
of the 26 Planning and Community Environment fees, 20 are fees related to Development
Services – Public Works, one Parking In-Lieu fee, four Development Services – Building fees, and
one Development Services – Fire fee. Each fee is listed by name along with the Adopted Fiscal
Year 2019 rate, the Proposed Fiscal Year 2020 rate, the percentage change, and the fee change
justification.
Some examples of fees being increased by other than the baseline salary & benefits
adjustments include Community Services Animal Shelter fees, which were changed based on
the market value for providing animal care services; and Planning and Community Environment
(Development Services – Building) fees, which were modified to a progressive tier structure
based on project value in an effort to attain appropriate cost recovery for projects over $4
million dollars. Through the 2020 Municipal Fee Schedule development, the Public Works
Department closely analyzed and updated their Planning and Community Environment
(Development Services – Public Works Department) fees, which were recommended for
alignments to maintain cost recovery levels.
Parking In-Lieu fees
Palo Alto Municipal Code (PAMC) Chapter 16.57.030 requires that the Parking In-Lieu Fee be
recalculated in the event the City Council approved the construction of a public parking
structure. Per the Municipal Code, the fee shall be adjusted at the time the construction
contract is awarded to include actual costs to date, plus the projected construction cost and
authorized contingency. A second recalculation must occur after the project is completed,
based on actual design and construction costs incurred. The recalculated fee may be higher or
lower than the initial fee.
In December 2018 Council awarded a construction contract to Swinerton Builders (CMR 9688)
for the New California Avenue Area Parking Garage. Attachment B provides a calculation of the
total project cost as described in PAMC 16.57.30. This total cost includes design costs plus
additional services, the construction bid with authorized contingency, and all other staff and
administrative actual and projected costs. The total project cost as calculated above is $50.1
million. The total number of net new parking spaces (new garage spaces minus existing spaces)
is 475. Special factors such as retail space, tenant improvements, and solar installation were
considered and adjusted in the project total where applicable. Therefore, the cost per new
space is recommended at $106,171 (total cost/net new parking spaces), a 51.5 percent increase
from the existing fee of $70,094.
City of Palo Alto Page 7
Development Impact Fees
In the Planning and Community Environment Department, development impact fees were
updated to reflect the most recently published Construction Cost Index (CCI) for the San
Francisco Bay Area, as calculated by the Engineering News Record. This is in accordance with
Municipal Code 16.64.110, as amended on November 28, 2016 (CMR 7518), to standardize
when these fees are paid, bring uniformity to the calculation in effect, bring uniformity to the
annual adjustment rate, and other updates. Since these fees are governed by the applicable
Municipal Code section, they are not discussed in Attachment A.
Resource Impact
The majority of fees are recommended to be increased by 7.5% due to the equivalent average
citywide increase in salary and benefits costs from the Fiscal Year 2019 Adopted Budget to the
Fiscal Year 2020 Proposed Budget. As outlined in Attachment A, two fees are recommended to
be changed by an amount greater than 7.5% to attain a higher cost recovery level consistent
with other fees or adjusted based on a policy or market study. Development Impact fees are
increased in accordance with the applicable Municipal Code sections and are not reflected in
Attachment A. The revenue adjustments associated with these various fee level adjustments
have been factored into the development of the Fiscal Year 2020 Proposed Operating Budget as
appropriate. To the extent recommended fee levels are changed, implications on the revenue
assumptions included in the FY 2020 Proposed Operating Budget may need to be reevaluated
and impact the balancing of revenues versus expenses.
Policy Implications
These recommendations are consistent with existing City policies. In accordance with
Proposition 26, the amount of new or increased fees and charges is no more than necessary to
cover the reasonable cost of the City service, and the manner in which those costs are allocated
to a payer bears a fair and reasonable relationship to the payer’s burden on, or benefits
received from, such a City service.
Environmental Review
Adjustment to the Municipal Fee Schedule does not constitute a project as defined in Public
Resource Code Section 21065 for the purpose of the California Environmental Quality Act.
Attachments:
• ATTACHMENT A: Municipal Fee Schedule Amendments for FY 2020 - Changed Fees
• ATTACHMENT B: Municipal Fee Schedule Parking In-Lieu Calculations
Municipal Fee Schedule Amendements for FY 2020 Changed Fees ATTACHMENT A
Community Services (CMR#9822 Pets‐In‐Need)
Fee Title 2019 Adopted 2020 Proposed % Change Justification
Animal Services (Adoptions): Cockatiels $27.00 per pet $10.00 per pet ‐62.96%
Animal Services (Spay & Neuter Clinic Fees): A. Neuter (0lbs ‐ 50lbs) $95.00 per pet $75.00 per pet ‐21.05%
Animal Services (Vaccinations): DA2PP $20.00 per pet $15.00 per pet ‐25.00%
Animal Services (Adoptions): Rabbits $45.00 per pet $10.00 per pet ‐77.78%
Animal Services (Vaccinations): Bordatella $20.00 per pet $15.00 per pet ‐25.00%
Animal Services (Spay & Neuter Clinic Fees): B. Neuter (51lbs and
over)
$120.00 per pet $100.00 per pet ‐16.67%
Animal Services (Spay & Neuter Clinic Fees): Spay $90.00 per pet $65.00 per pet ‐27.78%
Animal Services (Spay & Neuter Clinic Fees): C. Spay (0lbs ‐ 50lbs) $110.00 per pet $125.00 per pet 13.64%
Animal Services (Vaccinations): FVRCP $20.00 per pet $15.00 per pet ‐25.00%
Animal Services (Spay & Neuter Clinic Fees): D. Spay (51lbs and
over)
$165.00 per pet $175.00 per pet 6.06%
Animal Services (Vaccinations): Leukemia $20.00 per pet $15.00 per pet ‐25.00%
Animal Services (Vaccinations): Microchip $40.00 per pet $25.00 per pet ‐37.50%
Animal Services (Spay & Neuter Clinic Fees): Neuter $65.00 per pet $50.00 per pet ‐23.08%
Animal Services (Boarding): Rabbits $5.00 per pet $20.00 per pet 300.00%
Animal Services (Vaccinations): Rabies $10.00 per pet $15.00 per pet 50.00%
Animal Services (Adoptions): Rats, Hamsters, Guinea Pigs, & Mice $5.00 per pet $10.00 per pet 100.00%
Animal Services (Adoptions): Dogs & Cats $125.00 per pet $150.00 per pet 20.00%
Animal Services (Vaccinations): Microchip Rescue Group $20.00 per pet $25.00 per pet 25.00%
Animal Services (Adoptions): Parakeets, Chickens, Pigeons, & Doves $5.00 per pet $10.00 per pet 100.00%
Animal Services (Boarding): Small Animals (Reptiles, Birds, etc.) $3.00 per pet $20.00 per pet 566.67%
Animal Services (Boarding): Cats $20.00 per pet $20.00 per day NA
Animal Services (Boarding): Dogs $20.00 per pet $20.00 per day NA
These recommended changes will align fees with the new
business model for providing Animal Shelter services
through a partnership with Pets‐In‐Need (PIN) approved by
Council (CMR#9822).
Attachment A: Page 1 of 4
Municipal Fee Schedule Amendements for FY 2020 Changed Fees ATTACHMENT A
Community Services
Fee Title 2019 Adopted 2020 Proposed % Change Justification
Arts & Sciences: Field Trips Resident Fee: Palo Alto & Ravenswood School Districts: $3.00 ‐
$5.00 per student;
Non‐Resident Fee: $84.00 ‐ $140.00 per group
Resident Fee: $135.00 per group;
Non‐Resident Fee: $135.00 per group
NA
Recreation: Card Replacement Fee $1.00 ‐ $5.00 $5.00 per item NA
Rentals & Reservations: Auditorium and Stage Resident Fee: $210.00 ‐ $3,150 per hour;
Non‐Resident Fee: $315.00 ‐ $4,275.00 per hour
Resident Fee: $250.00 per hour;
Non‐Resident Fee: $375.00 per hour
NA
Rentals & Reservations: Exclusive Monthly Storage Space (As
Available)
$2 per sq. ft. per month $2 per cubic feet per month NA
Rentals & Reservations : Auditorium and Stage Resident Fee: $210.00 ‐ $3,150 per hour;
Non‐Resident Fee: $315.00 ‐ $4,275.00 per hour
Resident Fee: $250.00 per hour;
Non‐Resident Fee: $375.00 per hour
NA
Rentals & Reservations: Rehearsal Hall Resident Fee: $42.00 ‐ $1,050.00 per hour;
Non‐Resident Fee: $63.00 ‐ $1,575.00 per hour
Resident Fee: $50.00 per hour;
Non‐Resident Fee: $75.00 per hour
NA
Rentals & Reservations: Cubberley Banner Marquee $12.00 ‐ $54.00 per week $25.00 per week NA
Rentals & Reservations: Park Ranger $75.00 per hour $99.00 per hour 32.00% Fee is increased to align with city staff costs.
Rentals & Reservations: Piano ‐ 7' Grand $43.00 per use plus moving and tuning costs $50.00 per use plus moving and tuning costs 16.28%
Rentals & Reservations (Foothills Park): A. Oak Grove Picnic 1 ‐ 50
People
Resident Fee: $80.00 per group;
Non‐Resident Fee: Not Available
Resident Fee: $90.00 per group;
Non‐Resident Fee: Not Available
12.50%
Rentals & Reservations (Foothills Park): B. Oak Grove Picnic 51 ‐ 100
People
Resident Fee: $160.00 per group;
Non‐Resident Fee: Not Available
Resident Fee: $180.00 per group;
Non‐Resident Fee: Not Available
12.50%
Rentals & Reservations (Foothills Park): C. Oak Grove Picnic 101 ‐
150 People
Resident Fee: $240.00 per group;
Non‐Resident Fee: Not Available
Resident Fee: $270.00 per group;
Non‐Resident Fee: Not Available
12.50%
Rentals & Reservations (Foothills Park): Towle Camp Resident Fee: $35.00 per campsite;
Non‐Resident Fee: Not Available
Resident Fee: $40.00 per campsite;
Non‐Resident Fee: Not Available
14.29%
Modify fee structure to align with current service delivery.
Fee is increased to align with market value.
Attachment A: Page 2 of 4
Municipal Fee Schedule Amendements for FY 2020 Changed Fees ATTACHMENT A
Planning and Community Environment (Development Services: Public Works)
Fee Title 2019 Adopted 2020 Proposed % Change Justification
Encroachment Permit: A. Dumpster, Container $339.00 each $331.00 each ‐2.36%
Encroachment Permit: B. Non‐Residential ‐ Single Day $1,368.00 each $1,339.00 each ‐2.12%
Encroachment Permit: C. Non‐Residential Short‐Term (Less than 5
days)
$1,606.00 each $1,570.00 each ‐2.24%
Encroachment Permit: D. Non‐Residential Long‐Term (More than 5
days)
$2,234.00 each $2,177.00 each ‐2.55%
Encroachment Permit: E. Additional Non‐Residential Long‐Term
(More than 5 days) Monthly
$817.00 per month $786.00 per month ‐3.79%
Engineering: A. 101 ‐ 1,000 cubic yards $217.00 for the first 100 cubic yards, plus $217.00 for each
additional 100 cubic yards or fraction thereof
$213.00 for the first 100 cubic yards, plus $213.00 for each
additional 100 cubic yards or fraction thereof
‐1.84%
Engineering: B. 1,001 ‐ 10,000 cubic yards $2,170.00 for the first 1,000 cubic yards plus $204.00 for each
additional 1,000 cubic yards or fraction thereof
$2,130.00 for the first 1,000 cubic yards plus $199.00 for each
additional 1,000 cubic yards or fraction thereof
‐1.84%
Engineering: C. 10,001 or more cubic yards $4,210.00 for the first 10,000 cubic yards plus $770.00 for each
additional 10,000 cubic yard or fraction thereof
$4,120.00 for the first 10,000 cubic yards plus $771.00 for each
additional 10,000 cubic yard or fraction thereof
‐2.14%
Inspection Fees: Tree Inspection for Private Development $164.00 per inspection $162.00 per inspection ‐1.22%
Inspection Fees: Wet Season Construction Site Stormwater
Inspection
$314.00 per inspection plus $94.00 per hour thereafter, charged
monthly October thru April.
$308.00 per inspection plus $101.00 per hour thereafter, charged
monthly October thru April.
‐1.91%
Map/Plan Review Fees: Architectural Review ‐ Minor Project Trees
(ARB Review)
$1,249.00 per application $1,223.00 per application ‐2.08%
Map/Plan Review Fees: Architectural Review ‐ Minor Project Trees
(Staff Review)
$249.00 per hour $244.00 per hour ‐2.01%
Permit Fees: 1. Temporary Discharge to Storm Drain from Non‐
Exclusionary Construction Site Dewatering
$15,442 per request to discharge $15,593.00 per request to discharge 0.98%
Permit Fees: 2. Additional Temporary Discharge to Storm Drain from
Non‐Exclusionary Construction Site Dewatering
$342.00 per week for the duration of dewatering activities $341.00 per week for the duration of dewatering activities ‐0.29%
Permit Fees: A. Construction in Public Right‐of‐Way ($1.00 ‐ $5,999) $783.00 per occurrence $751.00 per occurrence ‐4.09%
Permit Fees: B. Construction in Public Right‐of‐Way ($6,000 ‐
$25,999)
$783.00 + 9.7% of value greater than $6,000.00 $751.00 + 9.4% of value greater than $6,000.00 ‐4.09%
Permit Fees: C. Construction in Public Right‐of‐Way ($26,000 ‐
$100,999)
$2,723.00 + 11.9% of value greater than $26,000.00 $2,631.00 + 11.5% of value greater than $26,000.00 ‐3.38%
Permit Fees: D. Construction in Public Right‐of‐Way ($101,000 +) $11,648.00 + 9.8% of value greater than $100,000.00 $11,265.00 + 9.6% of value greater than $100,000.00 ‐3.29%
Permit Fees: Right of Way Closure Management $91.00 per closure $87.00 per closure ‐4.40%
Permit Fees: Storm Drain Plan Check Fee $814 per project $1,017.00 per project 24.94%Council directed in FY 2016 to bring this fee up in 25%
increments to be fully cost recoverable; fee will be fully cost
recoverable as of FY 2020.
Fees were analyzed; proposed fees reflect costing refined to
maintain cost recovery levels.
Attachment A: Page 3 of 4
Municipal Fee Schedule Amendements for FY 2020 Changed Fees ATTACHMENT A
Planning and Community Environment (Development Services)
Fee Title 2019 Adopted 2020 Proposed % Change Justification
Building Permit Fee 1.50% of Construction Value 1.50% of Construction Value for projects between $1.00 to
$4,000,000.00; 1.0% of Construction Value for projects between
$4,000,000.01 to $10,000,000; 0.5% of Construction Value for
projects above $10,000,000.00, progressively applied in a tier
structure as value increases; if project is out of scope from a
traditional building structure and/or additional services are required
then an alternative fee arrangement may be established by the
Chief Building Official to achieve cost recovery.
Building Plan Check 75% of Building Permit fee 75% of Building Permit Fee for projects between $1.00 to
$4,000,000; 50% of Building Permit Fee for projects between
$4,000,000.01 to $10,000,000; 25% of Building Permit Fee for
projects above $10,000,000, progressively applied in a tier structure
as value increasesFire and Life Safety Plan Check 54% of Building Permit fee 54% of Building Permit Fee for projects between $1.00 to
$4,000,000; 35% of Building Permit Fee for projects between
$4,000,000.01 to $10,000,000; 18% of Building Permit Fee for
projects above $10,000,000, progressively applied in a tier structure
as value increasesFire and Life Safety Plan Check ‐ Commercial Building Plan Check Fee and is collected by the Building Division at th 54% of Building Permit Fee for projects between $1.00 to
$4,000,000; 35% of Building Permit Fee for projects between
$4,000,000.01 to $10,000,000; 18% of Building Permit Fee for
projects above $10,000,000, progressively applied in a tier structure
as value increasesPublic Works Plan Check 44% of Building Permit fee 44% of Building Permit Fee for projects between $1.00 to
$4,000,000; 30% of Building Permit Fee for projects between
$4,000,000.01 to $10,000,000; 15% of Building Permit Fee for
projects above $10,000,000, progressively applied in a tier structure
as value increases
Planning and Community Environment (Parking In‐Lieu)
Fee Title 2019 Adopted % Change Justification
Parking In‐Lieu Fee for Downtown Assessment District $70,094 per parking space
2020 Proposed
$106,171 per parking space 51.47%Please see page 6 for detailed justification.
Fees were changed from flat percent to a progressive tier structure to
ensure appropriate cost recovery for projects over $4 million dollars; this
was recommended after internal analysis and review with outside
consultant.
Attachment A: Page 4 of 4
Municipal Fee Schedule Parking In-Leiu Calculation ATTACHMENT B
Expense Type Expense Description Amount Notes
DESIGN & SOFT COSTS
Permits, Fees, Utilities Plan Check/ Permit Fees 865,960
Utility Fees 370,000
Relocation, connection etc should all be included. Relocation may be included in the construction
cost, do not double count.
Title Reports 3,000
Easement Costs 150,000 To include related attorney fees.
Land Acquisition
Other Must specify - all CIP costs should be accounted for.
Architect & Engineer Architect 1,811,046
Architect Reimbursables
Architect Add Services Budget
Civil Engineering Services
Structural Engineering Services
Mechanical/Plumbing/Electric
Architect Add Services Fee 219,747 Curent Remaining Soft Cost Contingency
Other Must specify - all CIP costs should be accounted for.
Other Consultants Geotechnical Engineering 50,000
Geological Testing 38,600
Feasibility Study
Site Assessment 40,614
Survey and Parcel Map
Archeologist
Traffic Consultant 30,000
Project Management Preconstruction
C-3 Stormwater Management 7,500
Arborist 8,640
Construction Management 1,249,193
Construction Management Add Services
Photo Documentation
Commissioning Agent 20,000
Acoustical Study
City Staff Time 2,360,000 City of Palo Alto staff salary actuals to date recorded in the CIP plus projected costs
Other 430,000 Preconstruction
Insurance & Bonds Builders Risk and OCIP
Bonds
Bond Issuance/ Financing 301,606 Any legal fees and outside counsel required.
Other Must specify - all CIP costs should be accounted for.
Testing & Inspection Geotechnical Inspections 105,251
Geotechnical Inspections Add Services
Special Inspections
Special Inspections Add Services
Waterproofing Inspections 175,000
Misc. Sewer / Existing Utility 6,640
Other (430,054)
Must specify - all CIP costs should be accounted for. (Note: adjustment to match soft costs with
budget at time of construction contract award)
Subtotal 7,812,743$
SOFT COST TOTAL 7,812,743$
CONSTRUCTION HARD COSTS
Demolition
Construction 39,395,153
Other Must specify - all CIP costs should be accounted for.
Subtotal 39,395,153$
Construction/Owner Contingency 2,954,636$ This was reduced to 7.5%
CONSTRUCTION HARD COST TOTAL 42,349,789$
ADMINISTRATIVE COSTS & EXPENSES
Marketing & Operating Advertising & Printing 5,000
Community Events 5,000
Reimbursables 10,000
Blueprinting/FedEx/Etc.5,000
Reimbursables Travel, meeting, and any other project associated reimbursable cost.
Miscellaneous Expenses 5,000
Parking Mitigation & Temporary Parking
Measures 239,020
Model/Trailer/Office
Temporary Services Must specify - all CIP costs should be accounted for.
Other Must specify - all CIP costs should be accounted for.
EXPENSES TOTAL 269,020$
PROJECT TOTAL 50,431,552$
SPECIAL FACTORS These are factors that need to be backed out of the Project Total for various reasons.
Retail Space
If retail space is added to the project scope the cost associated with building that space should
NOT go into the calculation of the fee.
Tenant Improvements
Solar Installation
Other Must specify - all CIP costs should be accounted for. Consult with Attorney's Office.
SPECIAL FACTORS TOTAL -$
NET NEW SPACES ADDED CALC
Total Number of Spaces in New Garage 627
Motorcycle spaces should be included here based on the actual number of regular spaces they
occupy (e.g. there are 10 motorcycle spaces occupying 2 full size spaces then count as 2 spaces) .
New Garage Number of Retail or Other
Designated Use Spaces
Original Lot/Garage Number of Spaces 152 from Final EIR document
TOTAL NET NEW SPACES 475
NEW IN-LIEU FEE Project Total / Total Net New Spaces 106,171$
• CITY OF
PALO
ALTO
TO:
DATE:
Finance Committee
May23, 2019
City of Palo Alto
MEMORANDUM
FINANCE COMMITTEE MEETING
5/23/2019
(X) Placed Before Meeting
I I Received at Meeting
su·eJECT: FY 2020 Proposed Budget -Employee Parking Permit Adjustments for Municipal Fees
On May 15, 2019 the Finance Committee reviewed the implications of increasing the price of employee
parking permits with the goal of generating increased funding for the Transportation Management
Association (TMA). Four scenarios were presented to the Finance Committee (detailed in the table
below) and Scenario C was ultimately recommended by the Finance Committee, which would increase
the fees for parking permits by 7 .5%, in alignment with a majority of City fees. This increase in permit
costs is anticipated to generate an additional $182,000 in the University Avenue Parking Fund, of which
$180,000 will be used to increase the appropriation to the TMA from $480,000 to $660,000 in FY 2020.
Parking Area Scenario A: Scenario B:
Current Permit +5% Increase
Downtown Core $750/yr $788/yr
Downtown RPP $750/yr $788/yr
callfornia Avenue $375/yr $394/vr
Evergreen Park/Mayfield RPP $375/yr $394/yr
Southgate RPP $375/yr $394/yr
Tentatively approved
by Finance Committee
May15, 2019
.J,
scenario e:
+7.5" Increase
$806/yr
$806/vr
$403/vr
$403/yr
$403/yr
Scenario D:
+10% Increase
$825/yr
$825/vr
$412/yr
$412/vr
$412/yr
Therefore, this memorandum recommends updating the Fiscal Vear 2020 Municipal Fee Schedule, in the
Parking Permit section under Transportation, for the following fees, adding these changes to
Attachment A of CMR #10225 www.cityofpaloalto.org/civicax/filebank/documents01320:
Parking Area Fee Title FY 2019 Fee Amount FY 2020 Fee Amount
Downtown Core All Downtown and SOFA Lots and Garages $750.00 per year $806.00 per year
Annual Parkin~ Permit
Downtown RPP Downtown RPP Full Price Employee Parking $375.00/slx months $403.00/six months
Permit
(allfornla Avenue California Avenue Area All Garages and Lots $375.00 per year $403.00 per year
Annual Parking Permit
Evergreen Evergreen Park -Mayfield RPP Full Price $187.SO/six months $201.50/six months
Park/Mayfield RPP Employee Parking Permit
Southgate RPP Southgate RPP -Full Price Employee $187 .SO/six months $201.50/slx months
Parking Permit
1
As a result of this action, various budgetary adjustments will be necessary, detailed below:
• Permit sales revenue estimates in the University Avenue, California Avenue, and Residential
Parking Permit Funds will each need to be adjusted upward by $155,000, $21,000, and $37,000,
respectively.
• As an employer in the downtown core area, the City contributes its share for City employees
who receive a parking permit. Therefore, transfers from the General Fund, the Information
Technology Fund, and the Utilities Funds to the University Avenue Parking Fund will each need
to be increased to pay for the raised permit price by $21,000, $2,000, and $4,000, respectively.
Transfers into the University Avenue Parking Fund from each of those will be adjusted by a
corresponding amount, for a total increase of $27,000. This additional $27,000 of funding
combined with the increased University AvenJ,Je Parking Permit Fund revenue of $155,000 from
public permit sales will yield a total of $182,000 in additional revenue in the University Avenue
Parking Fund. This increase in revenue is offset by an increase in the appropriation to the TMA
of $180,000.
• The General Fund operating deficit transfer to the Residential Parking Permit Fund will be
reduced by $37,000 as a result of the operating deficit shrinking by the amount of the increased
revenue associated with the increase in employee permit fees.
These actions and the budgetary appropriations necessary to implement them will be discussed in
greater detail when the FY 2020 Operating Budget is brought forward for adoption by the City Council
on June 17, 2019.
DEPARTMENT HEAD:
CITY MANAGER:
~se
Director, Administrative Services/CFO
./~:.>2 r -' ~ ~----
Ed Shikada
City Manager
2
~ w
CITY OF
PALO
ALTO
TO:
DATE:
SUBJECT:
Finance Committee
May 23, 2019
City of Palo Alto
MEMORANDUM
FINANCE COMMITTEE MEETING
5/23/2019
[X] Placed Before Meeting
[ l Received at Meeting
Planning and Transportation Commission 2020-2024 Capital Improvement Plan Review
On May 8, 2019, the Planning and Transportation Committee (PTC) reviewed and determined, based on
staff representation, that the new projects in the FY 2020-2024 capital Improvement Plan are consistent
with the City's current Comprehensive Plan. Attachment A Is the letter the PTC wished to transmit to the
Finance Committee regarding their review. The transcribed minutes from the meeting are not yet
available and will be.referenced in the City Manager Report to transmit the final budget adoption for FY
2020 In June 2019. The video recording of the May 8, 2019 PTC meeting can be found on the MidPen
Media Center website: www.midpenmedia.org/planning-transportation-commission-63-582019/
DEPARTMENT HEAD:
CITY MANAGER:
Director, Administrative Services/CFO
Edward K. Shlkada
City Manager
ATTACHMENT A: PTC Review of 2020-2024 Proposed Capital Improvement Projects (CIPs)
l
May 13, 2019
Honorable City Council
C/O City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
RE: Review of 20»2024 Proposed Capital bnprovement Projects (CIPs)
ATTACHMENT A
The Planning and Transportation Commission (PTC) reviewed the 2020-2024 proposed
Capital Improvement Plan on Wednesday, May 8, 2019 and determined that, all of the new
Capital Improvement Projects included in the 202(}2024 Capital Budget are consistent with
the adopted Comprehensive Plan and recommended forwarding this finding to the City
Council Finance Committee and the City Council. The motion was made by Commissioner Ed
Lauing and seconded by Commissioner Asher Waldfogel. The motion was approved by a vote
of 6-0 with Chair William Riggs absent.
Respectfully submitted
wf::~{Y
Planning and Transportation Commission
CITY Of:'
PALO
ALTO
TO:
DATE:
SUBJECT:
City of Palo Alto
MEMORANDUM
Finance Committee
May23, 2019
FINANCE COMMITTEE MEETING
5/23/2019
[X] Placed Before Meeting
[ ] Received at Meeting
Fiscal Year 2020 Proposed Budget -Community Services Department Staffing
This memorandum recommends a change in the staffing complement and a corresponding change to
the Table of Organization in the Community Services Department, which is item #6 on the May 23, 2019
Finance Committee Agenda.
Subsequent to the release of the Proposed FY 2020 Operating Budget, a necessary change to the Table
of Organization in the Community Services Department has been identified. As the result of an
agreement resolving a grievance, 1.0 Program Assistant II is recommended to be reclassified to 1.0
Coordinator Recreation Programs. This reclassification provides budgetary authority for the agreement
terms on an ongoing basis. As a result of the reclassification, the position will take on a wider and more
robust portfolio of community projects and programs, resulting in overall expanded capacity. Contingent
on tentative approval of this action by the Finance Committee, ongoing costs of $7,200 will be
incorporated into the FY 2020 Operating Budget as will the necessary change the Table of Organization
for FY 2020.
DEPARTMENT HEAD:
CITY MANAGER:
Ed Shikada
City Manager
1
CITY Of:'
PALO
ALTO
TO:
DATE:
SUBJECT:
City of Palo Alto
MEMORANDUM
Finance Committee
May23, 2019
FINANCE COMMITTEE MEETING
5/23/2019
[X] Placed Before Meeting
[ ] Received at Meeting
Fiscal Year 2020 Proposed Budget -Community Services Department Staffing
This memorandum recommends a change in the staffing complement and a corresponding change to
the Table of Organization in the Community Services Department, which is item #6 on the May 23, 2019
Finance Committee Agenda.
Subsequent to the release of the Proposed FY 2020 Operating Budget, a necessary change to the Table
of Organization in the Community Services Department has been identified. As the result of an
agreement resolving a grievance, 1.0 Program Assistant II is recommended to be reclassified to 1.0
Coordinator Recreation Programs. This reclassification provides budgetary authority for the agreement
terms on an ongoing basis. As a result of the reclassification, the position will take on a wider and more
robust portfolio of community projects and programs, resulting in overall expanded capacity. Contingent
on tentative approval of this action by the Finance Committee, ongoing costs of $7,200 will be
incorporated into the FY 2020 Operating Budget as will the necessary change the Table of Organization
for FY 2020.
DEPARTMENT HEAD:
CITY MANAGER:
Ed Shikada
City Manager
1