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