2024 User Fees and Charges Study and
2024
-
25 Master Fee Schedule
May 21, 2024
City Council
What are User
Fees?
Local governments adopt user fees to recover costs
to fund programs and services that provide
individual benefit.
Many City services benefit the broader community,
and these are funded by tax related revenue
sources. (Examples: Police and Fire Suppression,
Infrastructure, tree maintenance)
A comprehensive Fee Study is completed every 5
years with the last Fee Study in 2018-19.
Reviewed Planning, Building, Code Enforcement,
Public Works, Fire Inspection and Emergency
Medical Services (EMS).
Fees are then increased annually by CPI. No fees
were increased during COVID-19 (2020-21 and
2021-22).
2City of Alameda, User Fee Study
Types of Fees and Charges
• Example: Building Permits,
Planning Entitlements
Cost-Based User Fees – Prop 26
Fees limited to recovering the cost of providing
the service
• Example: Facility Rentals
Use Gov’t. Property: Prop 26
The City can charge a price the market will pay
(must be competitive)
• Example: Parking tickets
Fines and Penalties – Prop 26
Fines are not subject to cost recovery rules and
may be set by Council
• Example: Returned Check FeeFees Set by Law
Some fees are set by Federal or State Law
• Example: Utility Rates, Impact
Fees
Rates (Prop 218), Impact Fees (AB
1600)
Separate legislative authority and process
Focus of
this Fee
Study
Not
Studied
3City of Alameda, User Fee Study
Cost Recovery/Fee Setting
Full Cost of
Service ($)
Revenue from
Current Fee ($)
Funding from Increased
Fee or Funded by City
Subsidy
Current Cost
Recovery Level
Maximum Cost
Recovery 100%
Minimum Cost
Recovery 0%
Building
Permit Fees
• Reorganized fee categories to simplify fee
calculations per AB 2234
• Restructured fees to support “Express Permits”
• Increase cost recovery from the 79% to 100%,
excepting:
Recommend 75% cost recovery for fees supporting
climate goals:
1. EV charging
2. Residential electric panel upgrades
3. Heat pump water heaters
4. Heat pump air conditioners and furnaces
5. Earthquake gas shutoff valves
Planning
Entitlement
Fees
Increase cost
recovery from the
79% to 100%
Tiered fees for
small residential
and businesses
Continue flat fees
for routine items
Continue deposits
for large projects
Code
Enforcement
Fees
• 75% of Code Enforcement expenses are covered by a
"4x Investigative Fee" charged for permit-related
violations
• 25% is funded by the General Fund for non-permit
violations (e.g., leaf blower, noise, vegetation)
• The City Attorney recommends replacing
the Investigative Fee with a new fee structure for
permit-related violations.
• NBS and staff recommend an hourly fee based on
steps involved in Code Enforcement activities.
• As Code Enforcement handles more violations
unrelated to permits, additional General Fund
resources may be required and would be requested as
part of a future mid-year budget request, if needed.
Special Event
Permits
• Current fee is $750 dollars (waived for non-profits)
• Actual City Cost:
• $300-$3,000 for permit review
• Additional staff costs (traffic control, Police,
Fire inspections) ~$200 - >$1,000
• Updated Fee Schedule reflects Cost Recovery
• Updated Fee Schedule retains Non-Profit Fee
Waiver
• $200k grant program for non-profits funds
additional staffing costs for City Departments
(included in FY 24-25 recommended budget)
Public Works
Fees
• Increase cost recovery from ~38% to ~100%
• Fee increases primarily
for plan/permit reviews and inspections
• Delete fees that are no longer needed,
reorganized existing fees and add new fees
(example: parklet fee)
• Residential encroachment permit fees and No
Parking sign processing fees are recommended
below cost recovery because they provide
broader public benefit
• Parking fines and late payment penalties included
as required by State law (parking enforcement
program moved from APD)
Fire EMS Fees
• County Board of Supervisors sets EMS fees for
cities within the county. By contract, City can
increase its user fees to match County rates.
• Medicare, Medi-Cal, and insurance pay 95.7% of
EMS bills
• Only 4.3% is billed to private payors
• AFD charges a separate $413 First Responder Fee
to offset City staff costs and this fee is not
increasing.
• Hardship Waiver is available to anyone who uses
EMS services, based on federal poverty guidelines.
Fire
Prevention
Fees
• Fees typically associated with new construction
are recommended at 100% recovery
• Annual inspection fees cost
recovery recommended at:
• 30% for office/small businesses and small
landlords (less than 20 units)
• 55% for all other
• Continue phasing in increased cost recovery on
fee-related work with City Council approval
required annually.
Finance Dept
Fees
Combine application/renewal fees into one flat fee of
$27
New $50 “Administrative Fee” for businesses or
taxpayers who require a payment plan due to financial
hardship
New $50 “Collection Fee” for businesses who make no
effort to renew license
The new fees provide payment options for the
community and help prevent uncollected debts from
being lost
Recreation
and Park Fees
ARPD is increasing semi-private and
private swim lesson fees to cover
increasing costs and conducted analysis
to ensure the fees are comparable
within Alameda and other cities
NBS conducted a high-level review of
how Recreation and Parks Fees are
established and confirmed the process
conforms with best practices.
Fee
Comparison
Compared to Berkeley,
Fremont, Hayward, San
Leandro, and Walnut Creek:
• 146 of the fees were
comparable to these other
cities
• 54% of the fees fell in the
middle range
• 29% of the fees were
among the highest
compared to the other
cities
• 11% of the fees were the
lowest compared to the
other cities
• Recommendation based on
Alameda cost of service
29%
54%
11%
Percentage of Fee Items
Highest
Middle
Lowest
Public
Outreach
• January 2024: Local realtors
• February 2024: Business Community
(DABA, WABA, Chamber of Commerce)
• March – April 2024: Permit Center
applicants and Developers
• May 2024: DABA Outreach Committee
15City of Alameda, User Fee Study
Staff Recommendation
February - May May 21, 2024 August 1, 2024
Review
Draft/Public
Workshops
City Council
Adoption Hearing
Effective Date
for New Fees
(60 days after)
Adopt the proposed 2024-25 Master Fee Schedule
Questions