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HomeMy WebLinkAboutStaff Report 1673City of Palo Alto (ID # 1673) Finance Committee Staff Report Report Type:Meeting Date: 5/25/2011 May 25, 2011 Page 1 of 4 (ID # 1673) Summary Title: 2012 Municipal Fee Schedule Title: Request to Approve Changes to the Fiscal Year 2011 Municipal Fee Schedule From:City Manager Lead Department: Administrative Services Recommendation Staff recommends that the Finance Committee approve the proposed changes to the Municipal Fee Schedule (Attachment A) and forward these to the City Council for their approval. Executive Summary This staff report transmits the proposed changes to the City’s Municipal Fee Schedule. Attachment A reflects all proposed changes to the Fiscal Year 2011 Fee Schedule. All changes are shaded and text that is proposed for deletion has a line through it. Staff will compile the FY 2012 Fee Schedule after the Council reviews and approves changes to the FY 2011 Fee Schedule. The FY 2011 Fee Schedule is available on the City’s website for anyone wishing to view all existing fees. Background Best practices and professional guidelines indicate that a comprehensive analysis of all user fees and cost recovery levels should be conducted at least every three to five years. In addition in light of the recent passage of Proposition 26 a comprehensive review should be conducted to ensure that the City’s existing fee structure comports with Constitutional standards. Staffing vacancies, turnover and other resource constraints prohibited such a review for Fiscal Year 2012, however we do plan to complete this analysis in the fall of 2011 in advance of bringing the Fiscal Year 2013 Fee Schedule to the Council. Staff will hire a consultant to perform a comprehensive fee study to determine the net cost of providing fee supported services. Once the study is completed staff will present the findings to the Council. If the current feel levels are not sufficient to cover the full level of service, staff will solicit Council’s policy input on various policy options such as whether to: increase a fee; reduce level of service; outsource a service; eliminate the service; pursue a public/private partnership; or a combination of these options. We will also review and update procedures for incorporating the cost allocation plan into the fee structure in order to capture the indirect costs (i.e. expenses incurred in the provision of citywide services such as payroll, legal, budget, human resources, etc.) of providing fee based services. May 25, 2011 Page 2 of 4 (ID # 1673) As a result of the comprehensive analysis planned in advance of preparing the Fiscal Year 2013 Fee Schedule, few changes are proposed for the Fiscal Year 2012 Fee Schedule. The changes that are proposed are relatively minor, in total estimated to increase General Fund revenues by approximately $100,000 in Fiscal Year 2012. Please note the format for presenting new/changed fees has been modified to reflect total program or service costs, estimated revenues to be generated from the fees, and the percentage of costs that will be recovered based on projected utilization of these services. In cases where calculating costs for “subsets” of programs is cost prohibitive, the total program costs are displayed. For example, the costs portrayed for the two fee changes proposed in the Aquatics program are the total costs for the Aquatics program. For Fiscal Year 2013, we plan on presenting cost and revenue information for all fees, regardless of whether they are proposed to change in the upcoming year. This will allow the Council and the public to compare user fees/charges with the costs of providing these programs. Discussion The following summarizes the proposed changes for Fiscal Year 2012: Community Services Department 1.The Community Services Department (CSD) is proposing to increase rental fees at the Lucie Stern Community Center and eliminate the current five hour minimum for exclusive use of that facility. The facility is also used for year-round classes and summer camps. CSD Administration and Recreation staff are housed in a portion of this facility. The fee increases are projected to increase revenues by approximately $10,000 per year. Overall, these rental fees are projected to recover approximately 43% of the costs of maintaining this facility. 2.The fee charged for use of organic garden plots in the Community Garden is proposed to increase from 40 cents/square foot per year to 50 cents/square foot per year. The rate increase will result in the City recovering approximately 24% of the costs incurred to maintain these gardens. Additional rate increases will be proposed in future years in an effort to reduce the current two to three year wait list. 3.Group admissions to the Junior Museum and the Zoo are proposed for modification to increase the upper range of fees for larger groups. This adjustment is expected to increase revenue by approximately $2,500. 4.Two modifications are proposed for swimming fees. First, a $2 entrance fee is proposed for children age two and under. Second, the resident coupon book for youth (age 17 and under) is proposed to increase to encourage residents to utilize the membership card, which will make the admissions process more efficient. The two aforementioned changes are expected to increase revenues by approximately $7,000. 5.Fees for the Cubberley Community Center have been restructured into rental packages with options for additional hours. The change will simplify the rental process by combining several fees incurred by the most frequent rentals into package prices. The Department does not anticipate overall revenues will change as a result of these fee May 25, 2011 Page 3 of 4 (ID # 1673) modifications. Planning and Community Environment 1.The Planning and Community Environment (PCE) Department is proposing new permit fees for electric vehicle charge stations and graywater systems and increased permit fees for photovoltaic (i.e. solar)) systems. These fees are based on estimated levels of staff time for the plan check review and installation inspection processes. The Department estimates that the new/increased fees will generate approximately $22,750 in FY 2012. Several title changes are proposed for fees in the Building Division and the fee for reactivation of expired building permits is proposed to be modified to ensure full cost recovery. 2.Some of the Green Building Program fee titles and descriptions are proposed to change to make them consistent with recent code changes. 3.Development Impact fees for Parks, Community Centers and Libraries are proposed to increase by 4.4% based on the San Francisco Bay Area Construction Cost Index change (4.4% between March 2010 and March 2011). Revenues are projected to increase by $25,343 based on this change. 4.A new permit fee is proposed for wireless facilities due to the additional staff time required for these projects. The department estimates this fee will generate an additional $28,000 in FY 2012. 5.College Terrace residential parking permits for guests and lost guest permits are proposed to increase to $40/year in order to bring the program to a full cost recovery. These are Special (i.e. not General Fund) revenues that are used to offset the cost of this program. Library 1.The Library is proposing two new fees for non-profit organizations to rent a meeting room at the Downtown Library when that branch is re-opened in July 2011. The proposed rental fees were computed based on rental fees for a comparable room at the Lucie Stern Community Center. The fees reflect a 50% discount for non-profit organizations. The Department estimates these fees will generate approximately $1,500 in FY 2012. 2.The Department also proposed deleting fees for inter-library loans. Utilization has been very low in recent years due , in part, to implementation of the Link + cooperative book lending program. Resource Impact Approval of the proposed changes to the Municipal Fee Schedule is projected to result in a net General Fund revenue increase of approximately $100,000. Actual revenues may vary based on changes in utilization or volume. Policy Implications These recommendations are consistent with existing City policies. In accordance with Proposition 26, the amount of the new or increased fees and charges is no more than necessary May 25, 2011 Page 4 of 4 (ID # 1673) to cover the reasonable costs 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 city service. Environmental Review Adjustment to the Municipal Fee Schedule does not constitute a project as defined in Public Resources Code Section 21065 for the purposes of the California Environmental Quality Act. Attachments: ·Attachment A: Fee Changes (XLS) Prepared By:Gail Wilcox, Management Specialist Department Head:Lalo Perez, Director City Manager Approval: James Keene, City Manager Description Change 2012 Est. Cost 2012 Est. Rev % Recovery Registrations 2011 FEE 2012 FEE Junior Museum and Zoo Group Admission (for organized groups of 15 to 25, larger groups shall be subdivided with additional group admission fee) Fee:$50.00 - $100.00 Non-resident:Fee plus up to 50% Fee:$50.00-$125.00 Non-resident: Fee plus up to 50% $607,384.00 $25,000.00 4% Tours Fee: Palo Alto & Ravenswood School Districts, $3.00/student Non-Resident: $75.00/group Fee: Palo Alto & Ravenswood School Districts, $3.00- $4.50/student Non-Resident: $75.00-$125.00/group $528,574.00 $27,500.00 5% Infant (age 2 and under) none Fee:$0.00 - $2.00 Non-Resident: $0.00-$3.00 $551,212.00 $448,140.00 81% Youth (17 and under) Fee $20.00-$27.00 Non-Resident:Not Applicable Fee $25.00-$35.00 Non-Resident:Not Applicable see above Organic Garden Plots $.40/square feet/year $.50/square feet/year $110,779.00 $26,290.00 24% Lucie Stern Community Center Ballroom (Room S) Fee: $114.00/hour Non-Resident: $171.00/hr Fee: $132.00/hour Non-Resident: $198.00/hr $258,727.00 $110,000.00 43% Community Room (Room R) Fee: $78.00/hour Non-Resident: $117.00/hr Fee: $96.00/hour Non-Resident: $144.00/hr see above Fireside Room (Room D) Fee: $66.00/hour Non-Resident: $99.00/hr Fee: $76.00/hour Non-Resident: $114.00/hr see above Kitchen Fee: $24.00/hour Non-Resident: $36.00/hr Fee: $28.00/hour Non-Resident: $42.00/hr see above Patio Fee: $70.00/hour Non-Resident: $105.00/hr Fee: $80.00/hour Non-Resident: $120.00/hr see above Exclusive Use Package - 5 hour minimum, includes facility attendant Fee: $1,130.00/ for 5 hours; $226.00 for each additional hour Non-Resident:$1,695.00/ for 5 hours; $339.00 for each additional hour Fee: $260.00/hr Non-Resident:$390.00/hr see above Fireside Room and Patio Package Fee: $86.00/hour Non-Resident: $129.00 Fee: $100.00/hr Non-Resident:$150.00/hr see above Community Room and Patio Package Fee: $96.00/hour Non-Resident: $144.00 Fee: $110.00/hr Non-Resident:$165.00/hr see above 2011 FEE 2012 FEE Theatre Performance Standard 2 hour fee Non-profit:$270.00/hr Non-profit (off peak):$185.00/hr Basic rate:$430.00/hr delete Each additional hour Non-profit: $85.00/hr Non-profit (off peak): $65.00/hr Basic rate:$120.00/hr delete Theater Rehearsal Dressing Rooms Standard 1 hour fee $40.00 delete Each additional hour $40.00 delete Theatre building rate Non-profit:$45.00/hr Non-profit (off peak):$36.00/hr Basic rate: $60.00/hr delete Dressing Room, M-3 (6) $17.00/hr Non-profit:$17.00/hr Basic Rate:$20.00/hr $214,032.00*$200,000.00 93% Dressing Room, M-2 (6) $19.00/hr Non-profit:$19.00/hr Basic Rate:$23.00/hr see above Dressing Room, M-4(6) $19.00/hr Non-profit:$19.00/hr Basic Rate:$23.00/hr see above 1) Resident, nNon-profit music/dance/theatre groups, in-residence at Cubberley, may receive a 25% discount on room rental fees when used for weekly rehearsals. Cubberley Community Theatre Production Fee Meeting/Activity Rooms Proposed Changes to the 2011 Municipal Fee Schedule Arts and Science COMMUNITY SERVICES DEPARTMENT Resident Coupon Book-10 tickets (available to Palo Alto Residents only)* Facility Admissions - Community Garden Recreation Actiivities Swimming Pools - Rinconada Complex and PAUSD pools when operated by the City - Ages 2 & under -- Free Attachment A Open Space and Parks Package Rentals Facility: Lucie Stern Community Center Rentals and Reservations Cubberley Community Center: Facility Rental Summary Page 1 of 4 City of Palo Alto Description Change 2012 Est. Cost 2012 Est. Rev % Recovery Proposed Changes to the 2011 Municipal Fee Schedule 2 hour production fee $150.00 delete Each additional hour $75.00 delete Performance Day Package (3) (4) (5) (8) (9) none Non-profit: $840.00 Basic rate: $1,200.00 see above Additional Performance (8) (9) none Non-profit: $210.00 Basic rate: $300.00 see above Additional performance hours past four per performance (8) (9) none Non-profit: $70.00/hr Basic rate: $100.00/hr see above Additional performance hours past ten (8) none Non-profit: $56.00 Basic rate: $80.00/hr see above Performance Day Package (3) (7) (8) (9) none Non-profit: $700.00 Basic rate: $1,000.00 see above Additional Production hours past ten (8) none Non-profit: $105.00 Basic rate: $150.00/hr see above Rehearsal day Package (3) (8) (9) (11) none Non-profit: $525.00 Basic rate: $750.00 see above Additional rehearsal hours past ten (8) none Non-profit: $70.00/hr Basic rate: $100.00/hr see above Downtown Library Program Room Rental- resident none $34.00/hr (1)$850.00 (1) Downtown Library Program Room Rental- non-resident none $51.00hr.(1)$650.00 (1) Inter-Library Loan delete Inter-Library Out of State Loan delete Building Permit Fees 2011 FEE 2012 FEE $1,000,000.01 and up $8,964.92 for the first $1,000,000.00 plus $5.83 for each additional $1,000.00 or fraction thereof. If valuation exceeds $10,000,000.00 an alternative deposit and payment schedule arrangement may be made at the discretion of the Chief Building Official . $8,964.92 for the first $1,000,000.00 plus $5.83 for each additional $1,000.00 or fraction thereof. If valuation exceeds $5,000,000.00 an alternative fee arrangement may be established by the Chief Building Official to achieve full cost recovery. title change Electric vehicle charge station Residential (All types)none $315.00 $9,600.00 $9,600.00 100% Commercial (Levels 1 &2)none $975.00 plus $100.00 for each additional charge station. $6,660.00 $6,660.00 100% Commercial (Levels 3 &4)none $1,450.00 plus $150.00 for each additiaonal charge station. $5,040.00 $5,040.00 100% Residential Installations System $200.00 each $320.00 $7,680 $7,680 100% Commercial installations System (<10 kW)$10.00 for each photovoltaic panel $565.00 $1,130 $1,130 100% Commercial installations System (<10 kW - 49 kW)$10.00 for each photocoltaic panel $1,890.00 $7,560 $7,560 100% Commercial installations System (>49 kW)$10.00 for each photocoltaic panel $3,775.00 $7,550 $7,550 100% Photovoltaic Installations Systems (Does not include plan check fee) Electrical Permits 9- 20% discount for half-day rentals,(6 or less hours either concluding before 2 pm or startting after 4 pm) or rentals of 6 hours or less book booked before or after an existing rental on the same day 11- All other building use falls under this category, including rehearsals, load-in and restore days PLANNING & COMMUNITY ENVIRONMENT DEPARTMENT Building Division 1 - Department used cost per square foot for a similar room in Lucie Stern Community Center and applied 50% discount for non-profits Photovoltaic systems 6 - M-2, M-3 and M4 dressing room fees are assessed only when used as dressing rooms for theatre rentals 5- Performance defined as activity onstage with a live audience present. Performance packages include one performance block up to 4 hours time. 4 - Rental groups may use volunteers in unshering positions subject to approval by the theatre manager and compliance with all rules and procedures 3 -Fee package includes event Supervisor, the M-11 drsesing room and all dedicated theatre equipment. Additional technical staff may be required. Theatre Packages LIBRARY DEPARTMENT 7- Production is defined as videography of onstage activity without a live audience, or similar usage 8 - A 20% discount is given for bookings on off-peak days Monday through Thursday * Does not reflect annual lease payments to Palo Alto Unified School District for use of facility and covenant to not develop - approximately $7 million payment in FY 2012 Summary Page 2 of 4 City of Palo Alto Description Change 2012 Est. Cost 2012 Est. Rev % Recovery Proposed Changes to the 2011 Municipal Fee Schedule Graywater Systems Clotheswasher System none $50.00 $100.00 $100.00 100% Simple System none $55.00 plus plan review at cost $405.00 $405.00 100% Complex System none $85.00 plus plan review at cost $765.00 $765.00 100% Permit and Application Extension Extension of Building Permit or Building Permit Application $50.00 $50.00 title change Application Reactivations of Expired Building Permit Application $150.00 plus plan check fees as applicable $150.00 plus plan check fees as applicable title change PermitReactivations of Expired Building Permit (for Final Inspection Only) $335.00 $335.00 or original Building Permit fee, whichever is less title change PermitReactivations of Expired Building Permit (All Others)$335.00 or building permit fee 50% of original Building Permit Fee not to exceed the full cost to perform remaining inspections as determined by the Chief Building Official. $2,500 $2,500 100% Residential: A. Single Family and Two Family New constructions plus additions> 1.250 sf1, and rebuilds City Verification Review: $604.00 Outside Verification Review: $160.00 City Verification Review: $604 Outside Verification Review: $160.00 title change B. Single Family and Two Family, existing home additions or rebuilds > 1,250 sf1 City Verification Review: $544.00 Outside Verification Review: 100.00 Delete C.B. Single Family and Two Family, Any existing home renovations, rebuilds and/or additions totaling > 250 sf and < 1,250 sf and/or> $100,000 valuation. City Verification Review: $50.00 Outside Verification Review: n/a City Verification Review: $50.00 Outside Verification Review: n/a title change D.C.. Multi-Family New Construction of 3 or More (attached) Units1 City Verification Review: $1,062.00 (1-10 units), $1,239.00 (11-24 units), $1,505.00 (25 or more units) Outside Verification Review: $618.00 City Verification Review: $1,062.00 (1-10 units), $1,239.00 (11-24 units), $1,505.00 (25 or more units) Outside Verification Review: $618.00 title change E.D. Multi-Family renovations or alterations > 50% of the existing unit sf and that include replacement or alteration of at least two of the following: HVAC system, building envelope, hot water system, or lighting system1 City Verification Review: $1,062.00 Outside Verification Review: $618.00 City Verification Review: $1,062.00 Outside Verification Review: $618.00 title change F. Multi-Family Renovations, additions, and/or rebuilds to individual units > 250 sf and valuation > $100,000 in a single unit1 City Verification Review: $327.00 Outside Verification Review:n/a Delete Non-Residential: A. New construction > 1,000 sf (including additions to existing buildings and rebuilds) City Verification Review: $1334.00 Outside Verification Review:$800.00 City Verification Review: $1334.00 Outside Verification Review:$800.00 title change B. New Construction > 500 sf and < 5,000 sf (including additions to existing buildings) City Verification Review: $1,044.00 Outside Verification Review: $600.00 Delete C.B. Tenant improvements, renovations or alterations > 500 sf and > $100,000 in valuation and/or landscape renovations 21,000 sf that do not fall under Project Type C, above1 City Verification Review: $871.00 Outside Verification Review:427.00 City Verification Review: $871.00 Outside Verification Review:427.00 title change C. Tenant improvements, renovations or alterations > 500 sf and> $100,000 in valuation and/or landscape renovations 21,000 sf that do not fall under Project Type C, above1 City Verification Review: $327.00 Outside Verification Review: n/a City Verification Review: $327.00 Outside Verification Review: n/a title change Documents 2011 FEE 2012 FEE Zoning interpretation, or other zoning letter Administrative extensions and zoning letters $150.00/hour; 1 hr min.$150.00/hour; 1 hr min.title change Development Impact Fees Green Building Program Fees Plumbing Permits General and Miscellaneous Fees 1 Plus, if applicable, Construction & Demolition Ordinance Fee in the Refuse Fund under Special Fees on page 21-4. Summary Page 3 of 4 City of Palo Alto Description Change 2012 Est. Cost 2012 Est. Rev % Recovery Proposed Changes to the 2011 Municipal Fee Schedule Parks Residential: Single family1 $9,971/residence (or $14,890/residence larger than 3,000 square feet); Multi-family $6,527/unit (or $3,300/unit smaller than or equal to 900 square feet). Nonresidential: Commercial/Industrial, $4,234 per 1,000 square feet or fraction thereof; Hotel/Motel $1,915 per 1,000 square feet or fraction thereof. Residential: Single family1 $10,360/residence (or $15,471/residence larger than 3,000 square feet); Multi-family $6,782/unit (or $3,429/unit smaller than or equal to 900 square feet). Nonresidential: Commercial/Industrial, $4,399 per 1,000 square feet or fraction thereof; Hotel/Motel $1,990 per 1,000 square feet or fraction thereof. $15,468.00 $15,468.00 100% Community Centers Residential: Single family1 $2,585/residence (or $3,870/residence larger than 3,000 square feet); Multi- family $1,700/unit (or $858/unit smaller than or equal to 900 square feet). Nonresidential: Commercial/Industrial, $239 per 1,000 square feet or fraction thereof; Hotel/Motel, $108 per 1,000 square feet or fraction thereof. Residential: Single family1 $2,686/residence (or $4,021/residence larger than 3,000 square feet); Multi-family $1,766/unit (or $891/unit smaller than or equal to 900 square feet). Nonresidential: Commercial/Industrial, $248 per 1,000 square feet or fraction thereof; Hotel/Motel, $112 per 1,000 square feet or fraction thereof $7,424.00 $7,424.00 100% Libraries Residential: Single family1 $902/residence (or $1,344/residence larger than 3,000 square feet); Multi- family $539/unit (or $296/unit smaller than or equal to 900 square feet). Nonresidential: Commercial/Industrial, $228 per 1,000 square feet or fraction thereof; Hotel/Motel, $96 per 1,000 square feet or fraction thereof. Residential: Single family1 $937/residence (or $1,396/residence larger than 3,000 square feet); Multi-family $560/unit (or $308/unit smaller than or equal to 900 square feet). Nonresidential: Commercial/Industrial, $237 per 1,000 square feet or fraction thereof; Hotel/Motel, $100 per 1,000 square feet or fraction thereof. $2,451.00 $2,451.00 100% Use Permits - Wireless Facilities none Initial Deposit of $3500 plus legal fees and other Application Fees $35,000 $35,000 100% Guest Permit - College Terrace $25.00/permit $40.00/permit $10,000.00 $10,000.00 100% Lost Guest Permit - College Terrace $25.00/permit $40.00/permit $150.00 $150.00 100% Transportation Fees Residential Parking Permit Program Summary Page 4 of 4 City of Palo Alto