Fremont City Council Meeting: 12/12/23 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Fees & Rates
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5036) DOC ID: 5036
Updated: 12/8/2023 9:14 AM by Susan Gauthier Page 1
UPDATE TO ENGINEERING FEE SCHEDULE - Public Hearing (Published Notice) to Consider Adopting a Resolution Amending the Master Fee Schedule to Update Various Public Works – Engineering Fees to Reflect Current Cost of Services and to Ensure Accurate Cost Recovery
Contact Persons:
Name: Tiffany Curotto Hans Larsen
Title: Management Analyst II Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-494-4548 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to facilitate updating fees charged for Public Works Engineering services to align with the City’s goals to deliver quality services in a timely manner and to achieve cost recovery for those services. The focus of this update is on services requiring an encroachment permit for construction in the street right -of-way.
The recommended fee changes will be effective 60 days from the date of City Council action.
BACKGROUND: The City of Fremont has a Master Fee Schedule (MFS) for a variety of City services that includes Planning and Development, Recreation Services and Activities, Animal Services, Human Services, Public Works, Public Safety, and Miscellaneous. A current copy of the MFS is posted on the website for the Finance Department (see weblink below). The MFS is established by City Council Resolution No. 8672 and is updated as needed by supplemental City Council actions.
Over the past few years there has been a significant change and increase in activities that require a Public Works Encroachment Permit for work within the City street right-of-way.
This work typically includes:
• excavation within streets to install, improve, and connect to underground utilities such as water, sewer, electricity, gas, and communication lines; and then restoring the street afterwards to a good condition.
• construction of new or improved sidewalks, curbs, drainage gutters, and driveways, in a manner that conforms with City standards.
• placement of traffic control signs and devices to safely manage traffic around a construction work zone within the street right-of-way.
Since FY 2019/20, the amount of staff time committed to processing encroachment-related permit activity has increased by approximately 60%. The increase in work is attributed primarily to work by utility companies to upgrade or provide new connections to their underground infrastructure. Also, increased work by private property owners to remodel their homes, including the addition of accessory dwelling units (ADUs), is contributing to more underground utility connections and improvements to sidewalks and driveways. The permit activities performed by Public Works Engineering staff generally includes review and approval of plans for construction affecting street infrastructure, and the inspection of work Council Staff Report (ID # 5036) Meeting of December 12, 2023 Updated: 12/8/2023 9:14 AM by Susan Gauthier Page 2
to ensure safe construction practices and to have the completed work conform with City standards.
DISCUSSION/ANALYSIS: Pursuant to state law requirements, fees must not exceed the reasonable cost of providing the services. Staff has conducted a rigorous analysis of the time and cost to provide various encroachment permit services. Costs have been based on employee time reporting data collected from the past three years. It is noted that the existing fee structure for Public Works Encroachment Permits was established in 2014 and is deemed to be generating revenue that is 55% of cost recovery. With encroachment permit work activity increasing in significance as a Public Works service, staff recommends “right sizing” the fees to align with the cost of the service. Additionally, with properly set fees, more Public Works staff can be assigned to support encroachment permit activities to provide timely service to its permit customers.
It is noted that encroachment permit fees are primarily used for small development projects and minor utility construction work. Approximately 80% of the permits are issued to utility companies/agencies that include PG&E, Alameda County Water District, Comcast, AT&T, and Verizon. For larger projects and developments, Public Works engineering fees are estimated separately based on the scope of work and are set to be 100% cost recovery. For these larger projects, “billable work orders” are established with an upfront deposit for estimate d City expenses, and then final costs are reconciled based on full cost recovery.
Assuming current encroachment permit activity, recommended fee changes would increase current fee revenues by approximately $780,000 annually. Exhibit A (attached) identifies the recommended changes to the fee categories. Provided below are examples of encroachment permit changes for typical activities:
• Trench excavation (more than 20 square feet) in a neighborhood street and restoration to provide a new underground electrical service connection (typical for a new ADU project.) Current fee for permit application and inspection is $1,230; proposed new fee is $1,650.
• Construction or reconstruction of a new driveway (less than 60 feet wide). Current fee for permit application and inspection is $725; proposed new fee is $1,315.
• Traffic control for closing a traffic lane on a busy street for working at a manhole to access underground utilities. Current fee for permit application and inspection is $502; proposed new fee is $690.
The changes also include the deletion of fee categories which are considered obsolete.
These include fees for block parties (no longer managed by Public Works); curb painting of house numbers (no longer needed due to electronic mapping technology); and paving of park strip areas (no longer allowed by City design standards). Consistent with state law, the recommended fee changes would be effective 60 days from the date of City Council action.
FISCAL IMPACT: The recommended actions have a positive fiscal impact by providing a more precise cost recovery of encroachment permit services, thereby ensuring fiscal sustainability and avoiding potential subsidy by the General Fund.
Council Staff Report (ID # 5036) Meeting of December 12, 2023 Updated: 12/8/2023 9:14 AM by Susan Gauthier Page 3
ENVIRONMENTAL REVIEW: The recommended actions are exempt from the California Environmental Quality Act (CEQA) because they are an administrative fiscal activity and not projects pursuant to CEQA Guidelines section 15378.
LINK: Master Fee Schedule
www.fremont.gov/home/showpublisheddocument/13864/638300253322870000
ATTACHMENTS:
• Draft Reso Engineering Fees
• Exhibit A – Master Fee Schedule with Track Changes to Relevant Pages
RECOMMENDATIONS:
1. Hold a Public Hearing; and
2. Approve a resolution amending the Master Fee Schedule to reflect the changes in the proposed updated Master Fee Schedule (Exhibit A to Resolution) for Public Works Engineering Fees, effective as of February 10, 2024.