City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 16, 2022
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: René L. Mendez, City Manager
SUBJECT: Resolution No. 2022-30 Establishing the Cost of Services Fee Schedule for Fiscal Year 2022-2023
RECOMMENDATION
Staff recommends the City Council approve Resolution No. 2022-30, A Resolution of the City Council of the City of Gonzales Establishing the Cost for Services Fee Schedule for Fiscal Year 2022-2023.
BACKGROUND
Gonzales City Code 1.44.020 General Fee Schedule Established: “The City Council shall, by resolution, adopt and may, by resolution from time to time amend, a schedule of fees and charges applicable to City services and functions not otherwise specifically provided for in this code. Said schedule shall be known and designated as the general fee schedule of the City.” Prior to the beginning of each fiscal year, staff recommends a fee schedule to the City Council for inclusion in the proposed budget for the fiscal year beginning July 1st. Staff proposes fees that are legal, applicable, cost effective, and cover the expected cost for City provided services and material. The adoption is publicly noticed as evidenced by the attached notice.
REVIEW AND ANALYSIS
The proposed service and utility fees were increased by the Bureau of Labor Statistics Price Index (CPI) as of February 2022. This year, the CPI increase is 5.2% as shown in Attachment 3.
AGENDA
ITEM
24 For City impact fees, pursuant to Gonzales City Code Section 1.48.050 C1 : the appropriate index is the
Engineering-New Record Construction Cost Index for December of the prior year, which would result in an increase of 8.0% as shown in Attachment 4.
Solid Waste fees are established under the Solid Waste Franchise Agreement with Tri-Cities Disposal and Recycling as authorized by the Salinas Valley Solid Waste Authority. The proposed Solid Waste fees are shown in Attachment 5.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Collecting appropriate fees provides the needed resources to maintain and improve Gonzales’ safe, clean, and family-friendly community.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: The attached fee schedule provides only the needed resources for continued excellent services. Fees do not provide the full cost of services but tries to recover reasonable fees.
City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and wellbeing of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: Using this updated fee schedule is a cost-effective way to provide services and recover reasonable costs for those services.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education Yes No X N/A
Explain: Service and impact fees allow services to continue and improve. Keeping cost of living increases reasonable allow Gonzales to be more sustainable.
ALTERNATIVES
The City Council could direct staff to modify recommended fees or leave fees at this fiscal year’s fees.
Staff recommends against this option to keep fees and costs aligned as much as possible to reduce the need for future larger increases.
1 “Annual Adjustment of Fees: Notwithstanding substantive adjustment of impact fees based on reconsideration or updated analyses of those matters set forth in subsection A of this section, the fees established in subsection B of this section shall be adjusted every year on July 1, commencing July 1, 2007, to reflect the annual percentage change in the construction cost index for San Francisco as of December 1 of the previous year as reported in the ‘Engineering News-Record’.”
BUDGET IMPACT
If approved, the recommended fees will be incorporated into the proposed budget for Fiscal Year 2022- 2023.
CONCLUSION
Staff recommends the City Council approve Resolution No. 2022-30, A Resolution of the City Council of the City of Gonzales Establishing the Cost for Services Fee Schedule for Fiscal Year 2022-2023.
Attachments:
1. Resolution No. 2022-30
2. Fee Schedule FY 22-23
3. Consumer Price Index from Feb 2022
4. ENR Construction Cost Index from Dec 2021
5. Solid Waste fees under the Salinas Valley Solid Waste Authority Franchise Agreement
6. Public Notice – April 27 edition of Salinas Valley Tribune