Presentations
WS 24-023
Presentation of City of
Hayward User Fee Study
(Report from Finance
Director Gonzales)
Comprehensive User Fee Study
City of Hayward
2 What are User Fees
• Provide private benefit with limited to no community benefit • State law requires that 1) individual use of the service must be voluntary, and 2) fees must reasonably relate to the services provided
• Fee levels determined through City Council fee adoption • Does not include development impact fees, utility rates, taxes, etc.
3 User Fee Objectives & Steps
• Determine full cost of providing services or programs o Review fee schedules based on service delivery
o Identify potential new fees (not currently collected) o Remove obsolete fees
o Using fully-burdened rates, calculate full cost recovery • Update fees for services based on cost analysis
o Incorporate or establish cost recovery goals
o Identify appropriate fee levels that:
✓ Enhance reasonability and applicability
✓ Maintain consistency with local policies and objectives ✓ Maintain legal compliance with state law
4 Summary Steps of the Study
Model
Development
Data
collection
Build fee
model
Overhead and
FBHR
Calculation
Cost Analysis
Staff meetings
Update fee
schedules
Staffing and
time data
Full cost for
services
Set Cost
Recovery
Current cost
recovery
Target cost
recovery
Fee Study
Report
Create draft
report
Staff report
review
Finalize report
Updated Fee
Adoption
Public Hearing
5 Airport
▪ Program cost analysis performed along with time based fees for select City staff provided services
o Operations found to be at around 70% cost recovery
▪ Suggested fee notes:
o An increase to 11 fees
o 1 new fee, Commercial Operator/Fixed Base Operator Waste Oil Fee, would be added
o 32 fees would remain as currently set
o Average fee change would be an increase of 1%
6 City Clerk
▪ A mixture of user fees and others set by the State
▪ The analysis found that most services are currently set below the full cost of providing them
▪ Suggested fee notes:
o An increase to 4 fees
o The remaining fees would remain as currently set
o Average fee change would be an increase of 1%
7 Building
▪ Time based cost analysis
▪ Analysis found that most services are currently not in line with the cost of providing them
▪ Suggested fee notes:
o An increase to 83 fees
o 2 fees would decrease
o 10 fees would remain as currently set
o Average fee change would be an increase of 28% for flat fees • Program analysis for Building Permits
o Analysis determined current cost recovery is at 88%
o Recommendation is to set program at full cost recovery 8 Code Enforcement
▪ Time based cost analysis
• Analysis found that the majority of fees are currently set below full cost
▪ Suggested fee notes:
o An increase to 31 fees
o 1 fee would decrease
o 3 new fees would be added
o 1 fee would change to flat penalty from a percentage based fee o 37 fees would remain as currently set
o Average fee change would be an increase of 7% for flat fees 9 Planning
▪ Time based cost analysis
▪ Analysis found that the current fees are under funding the cost for most services
▪ Suggested fee notes:
o An increase to 19 fees
o 1 fee would decrease
o 1 new fee would be added
o 1 fee would change to flat from a deposit based fee
o 47 fees would remain as currently set
o Average fee change would be increase of 1% for flat, non-deposit fees 10 Housing
▪ Time based cost analysis
▪ Analysis found that most services are currently set below the full cost of providing them
▪ Suggested fee notes:
o An increase to the Hearing Fee
o 17 fees would remain as currently set
o Average fee change would be increase of 23%
11 Police
▪ Time based cost analysis
▪ Analysis found that current fees are not in line with the full cost of providing some services
▪ Staff is recommending all fees remain at their current amounts ▪ 1 new fee, Citation Sign Off – Outside Agencies would be added 12 Utilities
▪ Time based cost analysis
▪ analysis found that fees are currently set below the full cost of providing service
▪ Suggested fee notes:
o An increase for 71 fees
o 32 fees, including connection fees, would remain as
currently set
o Average fee change would be increase of 27%
13 Engineering
▪ Time based cost analysis
▪ Analysis found that most services are currently below the cost of providing them
▪ Suggested fee notes:
o An increase to 47 fees
o 5 fees would decrease
o 2 new fees would be added
o 27 fees would remain as currently set
o Average fee change would be an increase of 4%
14 Finance
▪ Time based cost analysis
▪ Analysis found that current fees are not in line with the full cost of providing some services
▪ Suggested fee notes:
o An increase to 11 fees
o 1 new fee, credit card convenience fee, would be added o The remaining fees would remain as currently set
o Average fee change would be an increase of 90%
15 Information Technology
▪ Time based cost analysis
▪ Analysis found that most services are currently below the cost of providing them
▪ Suggested fee notes:
o An increase to 2 fees
o Average fee change would be an increase of 72%
16 Fire
▪ Time based cost analysis
▪ Analysis found that most services are currently below the cost of providing them
▪ Suggested fee notes:
o An increase to 245 fees
o 1 fee would decrease
o 13 new fees would be added
o 9 fees would remain as currently set
o Average fee change would be an increase of 14%
17 Library
▪ Time based cost analysis
▪ Analysis found that most flat rate fees are currently set below the full cost of providing the service
▪ Suggested fee notes:
o An increase to 12 fees
o 34 new fees, mostly Material and Tech Lending Library fees, would be added
o 12 fees would remain as currently set
o Average fee change would be an increase of 9%
18 Animal Control
▪ Time based cost analysis
▪ Analysis found that the majority of fees are currently set below the full cost of providing the service
▪ Suggested fee notes:
o An increase to 4 fees
o 6 fees would decrease
o 4 new fees would be added
o 2 fees would change to RTO from a flat fee
o 1 fee would change to flat from an RTO fee
o 35 fees would remain as currently set
19 Maintenance Services
▪ Time based cost analysis
▪ Most fees are use of government property and are set based on policy, usage, & market factors
▪ Staff have suggested reasonable fee adjustments to the fee schedule with increases to the City Hall use related fees only
20 Street Maintenance
▪ Time based cost analysis
▪ Analysis found that most flat rate fees are currently set below the full cost of providing the service
▪ Suggested fee notes:
o An increase to 8 fees
o 3 fees would remain as currently set
o Average fee change would be an increase of 21%
21 Credit Card Transaction Fee (new)
• Implement 4% credit card transaction fee on transaction over $300 • Credit card usage has increased over the last couple of years, and the City has absorbed the transaction costs.
• Example of cost:
• A transaction at $1,000 would result in an $40 transaction fee paid by the customer.
22 Comparison
• A sample comparison analysis was done for Building Engineering, and Planning fees
o Comparison cities: San Leandro, Fremont, Union City, Berkley, San Mateo, and Milpitas
o The analysis found that the Hayward’s current and suggested fees are either in line or lower than the average of comparison cities • There is not anticipated to be any drop in participation or use in services as a result of the suggested fee changes
23 Revenue Effect Projections
• Revenue
projections are
based on the
average fee
change applied to
current budgeted
fee revenue
Department/Fund
Average Fee
Change
Projected Revenue
Based on Average
Fee Change
Building (Fund 100) 16% $820,973
Planning ( Fund 100) 1% $10,504
Code Enforcement (Fund 100) 7% $123,681
Revenue ( Fund 100) 90% $45,037
Fire (Fund 100) 14% $479,617
Maintenance Services (Fund 100) 21% $218
Police - Records (Fund 100) 9% $43,132
Public Works (Fund 100) 4% $13,508
Projected Revenue (Fund 100) $1,536,670
Housing (Funds 285, 286) 23% $57,732
Utilities (Funds 605, 610, 615) 26% $10,756
Airport (Fund 620) 1% $170
Projected Revenue (Other Funds) $68,658
Total Projected Revenue $1,605,328
24 Policy Considerations
• General standard: individuals or groups who receive private benefit from service pay 100% of cost
• In certain situations, subsidization is an effective public policy tool:
o Encourage participation
o Ensure compliance when cost is prohibitive to residents o Promote access to services
• Implementation of a new credit card transaction fee
• Recommend that City utilize inflation factor to annually adjust fees based on CPI, MOU, or another factor
• Comprehensive analysis every 5 years
Questions
26 Municipal Advisor Disclaimer
The City of Hayward further represents, acknowledges, and agrees that:
(i) The City uses, or may use, the services of one or more municipal advisors registered with the U.S. Securities and Exchange Commission (“SEC”) to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues); (iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder; (iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and
(v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.
WS 24-024
Special Events: Provide
Feedback on Updates to
Special Event Permitting
and Grant Processes and
Priorities for Marquee
Events (Report from
Assistant City Manager
Youngblood)
SPECIAL EVENTS FUNDINGTUESDA Y , AUG. 20, 2024 | COMMUNITY & MEDIA RELA TIONS
COMMUNITY & MEDIA RELATIONS
GRANT FUNDINGAPPLICATION PROCESS —•Grant application period opens in June, closes in May of the following year (or when funds are exhausted) APPLICATION REVIEW —•Applications reviewed by Community and Media Relations staff based on eligibility, request level, and event's ability to enrich Hayward's cultural, social, and economic vitality. •Prior performance, public feedback, and fiscal responsibility will also be considered.
POST-EVENT EVALUATION —•CMR will conduct a post-event evaluation to measure an event’s success. •Process allows CMR to audit grantees, ensure City-funded events provide community benefit
PROCESS
3 Parades, races, and walks involving full or partial street closures.
TIER II:
TIER IV:
TIER III:
TIER I: GRANT AWARD AMOUNTS & CATEGORIES —
High-impact events requiring street or plaza closures, amplified noise, and attendance of 500+ people.$10,000 $5,000
$2,500
$2,500
Low-impact events with minor closures and fewer than 500 attendees.
Minimal-impact events with off-street venues and fewer than 200 attendees
COMMUNITY & MEDIA RELATIONS
AWARDSGRANT FUNDING120 Days Prior
90 Days Prior
45 Days Prior
120 Days Prior
4 COMMUNITY & MEDIA RELATIONS
SPECIAL EVENTS BUDGETSpecial Events Spending FY 2024
Special Event Cost$156,208
MSD Overtime$52,488
BUDGET
BUDGET
Community-sponsored event grants$81,708
MSD Overtime$52,468
3 “Marquee” Events$59,500
Juneteenth$15,000
5 Event OrganizerFunding SourceEstimated AttendanceFunding*100K Trees for HumanityCommon VisionSpecial Event Grant2,400 proposed in application (actual not confirmed)$13,000Cinco de Mayo FestivalLa Alianza de HaywardSpecial Event Grant12,000 proposed in application (actual not confirmed)$3,858Community Resource FairLa FamiliaSpecial Event Grant250 proposed in application (actual not confirmed)$5,000Hearts of HaywardCity Manager’s OfficeSalary Savings260 proposed in application (actual not confirmed)$13,000Hawaiian May DayKumu Hula AssociationSpecial Event Grant 7,000 proposed in application (actual not confirmed)$13,000JuneteenthWest Coast Blues SocietySpecial Event Grant4,000 estimated from day-of count$6,000JuneteenthThe Best MeCouncil Allocation4,000 - same as above$15,000KawanzaaVelda GoeSpecial Event Grant500 proposed in application (actual not confirmed)$13,000Latin Jazz FestivalHayward Business AssociationSpecial Event Grant16,000 proposed in application (actual not confirmed)$5,000Light Up The SeasonCity Manager’s OfficeSpecia Event Grant & salary Savings1,000 estimated based on food portions$41,500Dr . Martin Luther King Jr . Birthday CelebrationCity Manager’s OfficeSalary Savings318 in person, 372 watched online$5,000Summer Concert SeriesHayward Municipal BandSpecial Event Grant1,500 proposed in application (actual not confirmed)$7,085Treasures UnleashedTreasures UnleashedSpecial Event Grant300 proposed in application (actual not confirmed)$4,970Vintage Alley Car ShowHayward Business AssociationSpecial Event Grant12,000 proposed in application (actual not confirmed)$5,795Wellness & Resource FairBuilding Opportunities for Self-SufficiencySpecial Event Grant150 proposed in application (actual not confirmed)$5,000 FY 2024 FUNDED SPECIAL EVENTS
COMMUNITY & MEDIA RELATIONS*Funding is the City’s cash contribution and does not include Maintenance Services staff overtime of fee waivers 6 COMMUNITY & MEDIA RELATIONS
ASKS FOR COUNCIL
Changes made to streamline the processThe criteria for ranking which events to support first, given limited resourcesWhich marquee events are the highest priority for council, given the limited staff capacity In summary, staff is seeking Council feedback on the following three items at this work session:
7