City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 3, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-27 FY2024/25 Cost of Services Schedule
RECOMMENDATION
Staff recommends the City Council approve Resolution No. 2024-27, A Resolution of the City Council of the City of Gonzales Establishing the Cost for Services Fee Schedule for Fiscal Year 2024-2025.
BACKGROUND
Gonzales City Code 1.44.020 “General Fee Schedule Established” states “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.” Every year, staff recommends a fee schedule to the City Council for inclusion in the proposed budget for the upcoming 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
Staff performed a comprehensive review of the various city fees for this update. Staff collected the current fee schedules for the cities of Soledad, Greenfield and King and reviewed their fees to ensure our fees were in line with neighboring cities. And all departments were asked to review their respective fees and some adjustments were made, such as:
AGENDA
ITEM
24 1. Added fees for a Code Enforcement Division
2. Many fees within the Planning Department were revised or clarified to clearly identify the 10% administration fee
3. Water deposit fees for residential and commercial customers were increased to account for the increase in costs in garbage, water and sewer fees.
4. Business License fees have not been updated since 1972. Due to the business license fee schedule being an ordinance it is not included in the resolution. Staff is working on updating the fees as part of a separate resolution.
The proposed fees were increased by the Bureau of Labor Statistics Price Index (CPI) as of February 2024. This year, the index is 2.4% as shown on the attached document from the State’s website. This is the same index used each year. On January 1, 2025, water and wastewater fees will increase by 7% per Resolution No. 2023-67.
For the impact fees, pursuant to Gonzales City Code Section 1.48.050 C: the appropriate index to use is the Engineering-New Record Construction Cost Index from December of the prior year, which would result in an adjustment of 3.6% as shown in Attachment 4.
Solid Waste collection fees are established by and the Salinas Valley Solid Waste Authority (SVSWA) and Tri-Cities Disposal (franchise hauler). Tri-Cities Disposal is receiving a CPI increase of 2.37%, and SVSWA pass-through fees include no increases to its organics processing fee, along with its annual AB939 fee adjustment which resulted in a 23.31% increase.
Attachments to this staff report are the adopting resolution, the proposed fees for Fiscal Year 2024-2025, with any increases in bold, the Consumer Price Index increases, the Construction Cost Index for the impact fee increases and the explanation of the fees including current and proposed fees. This item is a Public Hearing and the published Public Notice is also attached (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 try 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 allows Gonzales to be more sustainable.
ALTERNATIVES
The City Council could direct staff to modify recommended fees or leave fees at last year’s values. Staff recommends against this option to keep fees and costs aligned as much as possible to avoid the need for future larger increases.
BUDGET IMPACT
The recommended fees are incorporated into the proposed budget for Fiscal Year 2024-2025.
CONCLUSION
Staff recommends the City Council approve Resolution No. 2024-27, A Resolution of the City Council of the City of Gonzales Establishing the Cost for Services Fee Schedule for Fiscal Year 2024-2025.
Attachments:
1. Resolution 2024-27
2. Cost of Service Fees FY 24-25
3. CPI Index for Feb 2024
4. ENR Index for Dec 2023
5. Public Notice of Fee Schedule