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HomeMy WebLinkAboutStaff Report 241-05j t· TO: BUDGET '05-'07 City of Palo Alto City Manager's Report HONORABLE CITY COUNCIL ATTENTION: FINANCE COMMITTEE FROM: DATE: SUBJECT: CITY MANAGER MAY 24, 2005 DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 241:05 PROPOSED AMENDMENTS TO 2005-06 MUNICIPAL FEE SCHEDULE RECOMMENDATION Staff recommends that the City Council approve the proposed changes to the Municipal Fee Schedule for fiscal year 2005-06. DISCUSSION This staff report transmits the proposed Municipal Fee Schedule for fiscal year 2005-06. Changes to the Municipal Fee Schedule are shaded and deleted text is lined through. The fee increases vary depending on such factors as staffing costs and increasing expenses for cost- recovery operations. An explanation of all increases is detailed in Attachment A. The major changes to the 2005-06 Municipal Fee Schedule include: 1. The Planning and Community Environment Department is proposing a number of fee increases for development-related permits and inspection plan reviews. As part of the 2005-07 budget process, staff completed a cost recovery analysis of services provided at the Development Center. The fee adjustments included in this fee schedule bring the Development Center to the Council's mandated 100 percent cost recovery level. The total projected revenue impact of these fee changes is approximately $526,773. In accordance with state law, these fees go into effect sixty days after Council adoption, which is August 13,2005. 2 .. The Community Services Department is proposing a few new fees and is proposing to increase some existing fees to recover costs of providing services. 3. The Fire Department is proposing increases to certain fees to cover negotiated salary increase and benefit cost increases. 4. The Human Resources Department has adjusted the proposed training classes offered in the fee schedule to accommodate the changing needs of the City. 5. The Police Department is proposing increases to various fees. CMR:241:05 Page 1 of2 6. The Refuse Fund is proposing a new pallet fee, eliminating the tree book and television and computer monitors' fees, and increasing other fees to bring them in-line with cost recovery levels. RESOURCE IMPACT Approval of the proposed changes to the Municipal Fee Schedule are projected to result in a net General Fund revenue increase of approximately $946,714 when compared to the 2004-05 Adjusted Budget. All fees in the 2005-06 Municipal Fee Schedule are intended to recover costs associated with City departments providing these services. While some budgeted revenue increases result from fee increases, other increases are the result of higher volume, not increased fees. These revenue impacts are summarized in the resource level change tables contained within each departmental section of the 2005-06 Proposed Budget. POLICY IMPLICATIONS These recommendations are consistent with existing City policies. ENVIRONMENTAL ASSESSMENT Adjustment to the Municipal Fee Schedule does not constitute a project for the purposes of the California Environmental Quality Act. PREPARED BY: Sehior Financial Analyst DEPARTMENT HEAD APPROVAL: ~~~~~~~~~==~~ __ __ CARL YEAT CITY MANAGER APPROVAL: ATTACHMENTS Attachment A: Attachment B: CMR:241:05 EM Y HARRISON Assistant City Manager Summary of Proposed Changes to the 2005-06 Municipal Fee Schedule Proposed 2005-06 Municipal Fee Schedule Page 2of2 \ , Attachment A Summary of Proposed Changes to the 2005-06 Municipal Fee , ~0"* ' " , , > ' ' , , , " ", ,"' ,"< X, Change, \' Ex~lanation ' ~~~ j ,~, ,> , , , '\ :, ,< A ADMINISTRATIVE SERVICES DEPARTMENT (See 'page 3;.1 for'details) Various Processing Fees and Easement Vacation Increase by citywide cost index and additional staff costs. This will fee increases have a minimal budget impact. Various Document and Miscellaneous fee These reflect the additional cost of staff time for handling these increases particular items. Evergreen Residential Parking (non-refundable) This fee is being eliminated since this permit type has not been sold in the last 14 years. COMMUNITY SERVICES DEPARTMENT Arts and Culture (See page 4-1 for details) General change to fee layout In 2005-06, there will be two new categories for type of fees. The categories used to be "Fee" and "Resident Discount Fee", now they will be "Fee" and "Non-Resident Fee". A Patron Facility Use Fee of $1.00 has been This new fee would apply to each ticket sold for performances at introduced our Theatres to cover maintenance costs. Golf Services (see pages 5-1 to 5~2 fordetaHs) '~, Overall Golf Fees raised an average of 10.7% Fee increases to cover increased operating cost for negotiated salaries and benefits, and other operating cost increases. Cubberley Rental (See page 9-1 for details) Fees raised between 3%-5% To recover for increased costs. Recreation and Youth Services (See page 6,..1 to 6-3 for details) Aquatics fees changed from a set price to a price To allow flexibility in marketing and pricing programs. Some fees range will increase by $1 in the 2nd quarter, while others will increase in the 4th quarter. Also, the resident coupon swim book will be phased out and replaced by lap swim passes to be sold in increments of quarterly, semi-annual, and annual passes. City of Palo Alto Page 1 Attachment A Summary of Proposed Changes to the 2005-06 Municipal Fee El1'cing~ ,,' ,,",\ x ). '< I Ex.'planation' ' , '0&',< , , ' " , , , ~, " ' , \ ' " }', " ::;:is'~Y' ~x " ' , , ~ "' ~ " ~ ", " ,,,,,, COMMUNITY SERVICES DEPARTMENT (OHltinued) Open Space (See page 7-1io7-2for details) Open Space Day Use Permit fee has been Local open space and county parks have been charging entry fees. introduced at $5.00 per day Projected new revenue of$100,000. Community Garden Fee raised from $0.15/sq. ft Fees have not been increased in 5 years, while staff time and to $0.50/sq. ft maintenance costs have increased. Community Garden Deposit of $100 introduced To recover the cost of abandoned plots. Deposit returned when garden plot surrendered in good condition. Rentals and Reservations (See page 8-1 to 8-6 for details) Tennis Court rental fee ranges have been Tennis court fees have been relatively low. To bring fees more in increased line with market rate over the next two years. Special Use Permit fee range introduced New fee to cover costs incurred by City for staff time to set-up, plan, and monitor special events such as weddings, memorial services, or recreational events. For Profit Use fee at certain facilities. Resident Requesting a change in building use guidelines to allows for profit Rate plus 75% use of select City facilities by for-profit entities to generate revenue. Lucie Stern Community Center Fees raised To recover more direct costs associated with rental usage. approx.12%. Group Picnic Area Reservations fees raised by To bring fees more inline with market rates and cost recovery. $5.00 -$10.00 Custodial Services fees have increased approx. To reflect change in services. Position will now do event set-up 33% and cleaning. City of Palo Alto Page 2 Attachment A Summary of Proposed Changes to the 2005-06 Municipal Fee Cliang'e ,< > i:i ~ \ IEXPlanati~n, 'f' ' '" ' < ,,' ", " ~ >+ '$ " )" '-~ ,~~ ";,,, , " , , , ' FIRE DEPARTMENT (See pages 13-1 to 13-7 for details) Emergency Response Fee language changed Change in language to better reflect this fee. Engine Company Second Re-inspection (After Increase to offset cost of engine and 3 fire personnel. inspection and re-inspection only) Increases in Compliance fees These fee increases are associated with negotiated salary increases and increased benefit costs. Increase in High Rise Building fee These fee increases are associated with negotiated salary increases and increased benefit costs. Increase in Fire Protection Systems-Permits and These fee increases are associated with negotiated salary increases Plan Review and increased benefit costs. Increase in Hazardous Materials Storage Permits· These fee increases are associated with negotiated salary increases Title 17 and increased benefit costs. Increase in Inspection Fees These fee increases are associated with negotiated salary increases and increased benefit costs. Increase in Investigations/Consultations/CEQA These fee increases are associated with negotiated salary increases and increased benefit costs. Under Paramedics (Paramedic Transport Fee), For these fees, there is additional text regarding fees based on type ALS Base Rate, BLS Base Rate, BLS Transport -of services rendered. Single, and BLS Scheduled Transport additional clarifying text Under Paramedics (Paramedic Transport Fee), There is a 2% consumer price index increase on various Paramedic various fees fees for cost recovery. Under Specific Hazard and Hazardous Materials These fee increases are associated with negotiated salary increases Permits, various fee increases and increased benefit costs. HUMAN RESOURCES DEPARTMENT (See pages 14-1 to 14-2 for details) Several new training classes are being offered in These training classes are more in-line with what the City workers 2005-06 as follows: Leadership Development, training needs are especially in helpirig them in their professional Personal Development & Wellness, Professional growth and giving them the tools to move up in the organization. Development, Technology Development, E- Learning License Package, SafetylMandated, Confined Space Awareness, Business Writing Certificate, all other certificates based on 6 classes, Customer Service, Administrative Support Skills Academy, Lead Worker Academy, Executive Leadership Academy, Water College- Introduction Water Distribution, Water College - Introduction Water Treatment City of Palo Alto Page 3 Attachment A Summary of Proposed Changes to the 2005-06 Municipal Fee ," ~" ," ," I Ext1lanation , }, ' ' , , Change '~"",, " " " , , ' , , HUMAN RESOURCES DEPARTMENT (Continued) The following training classes are being These training classes are being eliminated because of the changing eliminated in 2005-06: ManagementlLeadership, needs of the City. Tech Academy, and the Customer Service Academy The following special events are being These special events are being eliminated because of the changing eliminated in 2005-06: Chamber of Commerce needs of the City. Business Success Series, Disney Institute Training Event, and Luncheon seminars PLANNIN"G AND COMMUN"ITYENVIRONMENT (See page16-1 to18~1 for details) 20% increase to various Planning and Building This fee increase is an outcome of the Development Center cost fees. recovery study. Building, Plumbing, Mechanical, Electrical, and Excavation/Grading permit fees are all included. Increase plan check fee to 80% of building Plan check fees are charged as a percentage of building permit permit fee fees. This fee increase represents the increased cost of checking plans relative to the cost of inspections. 5% increase to hourly planning and building Fee increases are commensurate with increasing operating costs. division fees Update of the "fixture fee" schedule These fees are charged for installation of new plumbing, mechanical, or electrical equipment (e.g. air conditioners, solar panels, or light fixtures) on an existing building when an extensive remodel or addition is not involved. The fixture fees, which represent less than 1 % of Building Division revenue, have not been updated in 15 years. The list of fixture types has been simplified, two new types have been added, and the rates have been increased based on a survey of surrounding cities. These fees are located under the "Plumbing permit," "Mechanical permit," and "Electrical permit" sections of the "Inspection services" section of the fee schedule. City of Palo Alto Page 4 Attachment A Summary of Proposed Changes to the 2005-06 Municipal Fee PLANNING AND COMMUNITY ENVIRONMENT (Continued) Major Temporary Occupancy Permit fee added Temporary occupancy permits for major projects consume more staff time than normal temporary occupancy permits. "Major" is defined as any project categorized as "Major" during the Planning Architectural Review process. Increase Individual Review fees In the past, fees have not been sufficient to cover the cost ofthis program. Based on an analysis of actual time to process a single application, the required fee needs to be $2,960 for a new second story home, and $2,050 for remodels. Development impact fees are raised 4.0% Fee increases are commensurate with the increase in the traffic impact fees, based on published 2003 Construction Cost Index. Demolition permit fees increased Fee increase associated with increased service levels surrounding demolitions. Certificate of Occupancy fee increased This increase captures salary and benefit increases of 5%, as well as associated inspection costs not adequately captured under current fee levels. Address. fee change Represents full cost recovery. Building relocation fee increased Current fee for in-city relocation does not adequately capture non- Building-Division costs. Refundable key deposit is raised to $25 This fee has not been raised since 1998. Current fee does not cover the full cost of key replacement. Parking permit fees are raised 3% Most parking permit fees are increased by 3 percent due to the increased cost of administering the program because of negotiated salary and benefit increases. POLICE DEPARTMENT (See pages 19-1 to 20-5 for details) 2% increase to various Police fees Elimination of block party fee In Animal Services, there is a new fee boarding fee for rabbits Minor textual changes under disposal of dead owned animals Minor textual changes under Miscellaneous Service Fees City Veterinarian Minor textual changes under Surrender Fee These increases include both departmental salary and benefit increases. They will have a minimal impact on revenue. The block party fee is being eliminated. This new boarding fee will have minimal impact on revenue. See text changes under Animal ServiceslDisposal of Dead Owned Animals. See text changes under Animal ServiceslMiscellaneous Service Fees/City Veterinarian. See text changes under Animal Services/Surrender Fee. City a/Palo Alto Page 5 Attachment A Summary of Proposed Changes to the 2005-06 Municipal Fee ~ll~nge::~ ~', <' i,', : ,,',,' Explanation ; " , ;' "" ~' "~\; :., '~ ~ , " , , " "'~ ~~ PUBLIC WORKS DEPARTMENT (See page 21-1 to 21-5 fordetaiIs) Certificate of Compliance is increased by $2,115 This fee is being increased to a cost recovery level. Under Operations, Maintenance and Repair 10 percent increase associated with negotiated salary increases and Charges, Construction and Repair and Graffiti consumer price index adjustment. Management Services fees Under Operations, Maintenance and Repair 5 percent increase associated with negotiated salary increases and Charges, Sweeping Services, Tree Services, and consumer price index adjustment. Supervision fees Elimination of Tree Book fee Tree books will no longer be available because they are now out of print. Television and Computer Monitors' fee is There will no longer be a fee associated with Television and eliminated Computer Monitors because the Waste Board has officially accepted the City's application as a "Collector". Now the City can no longer charge fees or make a profit from disposal of these items. New pallet fee For 2005-06, there will be a new pallet disposal fee of $1.00 per pallet. City of Palo Alto Page 6