DATE: April 15, 2024
TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Edmund Suen, Finance Director
Waqas Hassan, Assistant Finance Director
Mimi Lam, Financial Services Manager
DEPARTMENT: Finance
SUBJECT: PUBLIC HEARING ON MASTER FEES AND SERVICE CHARGES FOR FY 2024-2025
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors hold a public hearing on the proposed changes to the Master Fees and Service Charges Schedule. After considering the staff report and public testimony, it is further recommended that the City Council/EMID Board adopt the attached resolutions approving the Master Fees and Service Charges Schedule for Fiscal Year 2024-25, effective July 1, 2024.
EXECUTIVE SUMMARY
At the March 25, 2024 Budget Study Session, the City Council/EMID Board reviewed and provide direction for City staff to update the Master Fees and Service Charges Schedule (“Schedule”). The updated schedule (Attachment 3) has incorporated such direction and includes fees and charges adjustments from the Community Development, Parks and Recreation, and Public Works Departments. At this time, it is appropriate to hold a public hearing on these proposed changes and, subject to public testimony and other direction provided by the City Council/EMID Board, approve the Master Fees and Service Charges Schedule for FY 2024-25 with an effective date of July 1, 2024.
BACKGROUND
The last time the City/District conducted a user fee study (along with a cost allocation plan) was in 2023 (for use in the FY 2023-24 Master Fees and Service Charges Schedule). It is generally considered best practice to update user fee studies every 4 to 6 years. A user fee study provides a defensible methodology for calculating fees for service and determining the full cost recovery potential of individually-based services.
The City’s selected consultant, Willdan Financial Services conducted the update last year and staff from the various City departments presented their suggested fee adjustments for cost recovery purposes; the updated Schedule was approved by the City Council/EMID Board on May 1, 2023
Staff from various departments brought forward their suggested updates again this year and sought policy guidance from the City Council/EMID Board at the March 25, 2024 Study Session. Based on the direction provided by Council/EMID Board, Staff has prepared recommended Schedule (Attachment 3) for the City Council/EMID Board’s approval for the April 15 public hearing.
ANALYSIS
It is recommended that the City Council/EMID Board hold a public hearing prior to approving adjustments to the fees and charges in the Schedule for FY 2024-25 with an effective date of July 1, 2024 (after allowing for a minimum 60 days for development fee adjustments to take effect). As noted in the March 25, 2024 Staff Report, the Building Division recommends using the annual California Department of General Services Building Cost Index to adjust its building fees annually. Impact fees (Affordable Housing Commercial Linkage Fees, Below Market Rate Housing In-Lieu Fees, Parks Facilities Impact Fees, Public Safety Impact Fees, Transportation Impact Fees, Water Connection Fees, and Wastewater Connection Fees) will be adjusted annually using December Engineering News Record Construction Cost Index (ENR CCI) as indicated in previously completed Impact Fee studies. Other fees and charges will be adjusted annually using the San Francisco Area (San Francisco-Oakland-Hayward) December 12-month CPI-U cost inflator. For other fees and charges adjustments from the Community Development, Parks and Recreation, and Public Works Departments, refer to the March 25, 2024 Staff Report: Link
As directed by Council during the Study Session, for the Parks and Recreation Department, staff has updated the Schedule to include a line item for the patio area as an available reservation option in the proposed Vibe Rental Structure. Staff has also noted the direction to delay review of the proposed Community Garden Fees until staff has had an opportunity to present the Community Garden Pilot Program at a future Council meeting.
Additionally, in the current Schedule, “Notary Fee” is inadvertently listed as “$15 per document”, whereas it needs to be corrected to state “$15 per signature”. All notarization in the state of California is subject to the California Government Code Section 8211. California law has put a cap on the maximum fees a notary may charge, without exceeding the maximum limit, which is $15 per signature in California. This includes writing the certificate, affixing the notary stamp, and acknowledging the signature. The $15 fee is also the maximum charge for performing a jurat and affixing the seal to the document. Therefore, Staff would like to correct the current fee from $15 per document to $15 per signature to be in line with what most other retailers who provide this service, like UPS, would charge for such a service. Staff would also like to note that it does take more staff time to process additional signatures, and charging per signature versus per document would ensure that there is accurate cost recovery for notarial services.
Lastly, a separate public hearing for increases in water and wastewater rates is planned for June 3, 2024, based on Proposition 218‘s 45 day noticing requirements.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not Applicable
FISCAL IMPACT
The adoption of an updated Master Fees and Service Charges Schedule provides for the cost recovery of various individually based services.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Proposed Master Fees and Services Charges Schedule for FY 2024-25