AGENDA REPORT
TO: Edward D. Reiskin FROM: Erin Roseman
City Administrator Director of Finance
SUBJECT: Amending FY 2021-22 Master Fee
Schedule (MFS)
DATE: May 13, 2022
City Administrator Approval Date: May 26, 2022
RECOMMENDATION
Conduct a Public Hearing And Upon Conclusion Adopt an Ordinance Amending Ordinance No. 13678 C.M.S. (The Fiscal Year 2021-22 Master Fee Schedule), As Amended, To Establish, Modify And Delete Fees And Penalties Assessed By Offices, Departments, Bureaus, And Agencies of The City Of Oakland Referenced Herein.
EXECUTIVE SUMMARY
The Fiscal Year (FY) 2022-23 Master Fee Schedule (MFS) documents the fees and charges accruing to the City's General Purpose Fund (GPF) and selected fees within other funds. The fees proposed in this document are assumed in the revenue estimates contained in the FY 2022-23 Proposed Midcycle Budget.
During the budget development process, all fee programs were reviewed to ensure that the amounts being assessed would remain comparable in the market where appropriate, maintain current levels of cost recovery, and would not be cost prohibitive.
The attachments included in this report contain detailed analysis and documentation of the proposed fees and estimated costs for the services for which the fees are assessed. A detailed explanation of department fees and findings are found in the Director Department Narratives and presented in Attachment A, attached hereto.
BACKGROUND / LEGISLATIVE HISTORY
The proposed ordinance shows proposed changes to the FY 2021-22 MFS for the departments listed in Table 1.
Table 1.
City Departments
Department of Transportation
Oakland Public Library
Oakland Public Works
Oakland Parks, Recreation and Youth Development
Housing and Community Development
New fees were introduced by a few City departments to recover the necessary cost of services. The changes in fees are intended to meet the requirements of Proposition 26. In areas where fee comparisons are applicable, the City’s fees and charges are similar to those of other neighboring jurisdictions.
Edward D. Reiskin, City Administrator
Subject: Amending FY 2021-22 Master Fee Schedule
Date: June 7, 2022 Page 2
ANALYSIS AND POLICY ALTERNATIVES
A few City departments proposed modifying fees under their jurisdictions in an effort to recover the reasonable costs of their direct services. Departments have confirmed in the individual departmental submissions, attached hereto, that the newly proposed fees and changes to existing fees comply with Proposition 26 and are comparable to the market rate where applicable. To meet this requirement, each Department submitted fee analyses to document findings and fee calculations for all fees proposed.
The FY 2022-23 MFS Department Director Proposals are as follows:
A-1 Department of Transportation
A-2 Oakland Public Library
A-3 Oakland Public Works
A-4 Oakland Parks, Recreation and Youth Development
A-5 Housing and Community Development
The proposed FY 2022-23 MFS Ordinance includes the proposed fee revisions by departments, attached to the Ordinance as Exhibit A.
FISCAL IMPACT
The revenues anticipated from fees are assumed in the FY 2022-23 Proposed Midcycle Budget, and any modifications to the fee proposal may impact budget balancing.
Anticipated revenues will help offset costs to provide services for which the fees are assessed, with no net gain to the City’s overall budget.
PUBLIC OUTREACH / INTEREST
This item requires a Public Hearing, with newspaper notification of said hearing, allowing for public comment at that time.
COORDINATION
This report was prepared in coordination with the Budget Bureau of the Finance Department, the City Administrator’s Office, the City Attorney’s Office and other City departments.
SUSTAINABLE OPPORTUNITIES
Economic: Revenues generated from the fees listed in the MFS are to fund essential City services.
Environmental: There are no direct environmental impacts associated with the City Council action requested in this report.
Race & Equity: There are no direct race or equity impacts associated with the City Council action requested in this report.
ACTION REQUESTED OF THE CITY COUNCIL
City Council
June 7, 2022
Edward D. Reiskin, City Administrator
Subject: Amending FY 2021-22 Master Fee Schedule
Date: June 7, 2022 Page 3
Staff Recommends Approval Of An Ordinance Amending Ordinance No. 13678 C.M.S. (The Fiscal Year 2021 -22 Master Fee Schedule), As Amended, To Establish, Modify And Delete Fees And Penalties Assessed By Offices, Departments, Bureaus, And Agencies of The City Of Oakland Referenced Herein.
For questions regarding this report, please contact Rogers Agaba, Acting Revenue & Tax Administrator, (510) 238-7009.
Respectfully submitted,
ERIN ROSEMAN
Director of Finance
Finance Department
Reviewed by:
Rogers Agaba, Acting Revenue & Tax
Administrator
Finance Department
Prepared By:
Charles Maurer
Principal Revenue Analyst
Revenue Management Bureau
List of Department Contributors:
Ariel Espiritu Santos, Strategic Planning
and Administration Manager
Department of Transportation
Janelle Montu Veresa, Administrative
Services Manager II
Oakland Public Library
Tom Morgan, Agency Administrative
Manager
Public Works
Reena Kumari, Administrative Services
Manager II
Public Works
Neil Valle, Administrative Services Manager
II
Oakland Parks, Recreation and Youth
Development
Lilian Falkin, Administrative Services
Manager II
Housing and Community Development
City Council
June 7, 2022
Edward D. Reiskin, City Administrator
Subject: Amending FY 2021-22 Master Fee Schedule
Date: June 7, 2022 Page 4
Attachments (1):
A-1 Department of Transportation
A-2 Oakland Public Library
A-3 Oakland Public Works
A-4 Oakland Parks, Recreation and Youth Development
A-5 Housing and Community Development
City Council
June 7, 2022
DEPARTMENT OF TRANSPORTATION
(DOT)
DIRECTOR NARRATIVE
FY 2022-23 MASTER FEE SCHEDULE
ATTACHMENT A: A-1
INTER OFFICE MEMORANDUM
TO: Edward Reiskin FROM: Ryan Russo
City Administrator Dept. Of Transportation
SUBJECT: FY 2022-23 Master Fee Schedule DATE: March 10, 2022 DOT Amendments
The DOT proposes master fee changes for FY 2022-23, including modifications and additions to the current assessed fees in compliance with the state’s voter-approved Proposition 26.
Below are the key highlights and rationale for the amendments proposed in FY 22-23:
Consultant Support – Line items added to recoup the actual cost for outsourcing various tasks to keep projects moving when internal resources are insufficient.
Parcel Map Waiver – this fee was re-calculated to reflect actual work hours spent.
Corrections – A handful of fees were outdated due to missed updates from previous years.
Overall Fiscal Impact: Anticipated revenue from adjustments will offset costs to provide services for which the fees are charged, with no net gain to the City’s overall budget.
Ryan Russo
Director, Department of Transportation
For questions, please contact Ariel Espiritu Santo, Assistant Director at (510) 421-8691
OAKLAND PUBLIC LIBRARY
DIRECTOR NARRATIVE
FY 2022-23 MASTER FEE SCHEDULE
ATTACHMENT A: A-2
INTER OFFICE MEMORANDUM
TO: Ed Reiskin FROM: Jamie Turbak
City Administrator Library Director
SUBJECT: Library FY 2023 Midcycle Master Fee Changes DATE: March 16, 2022
JUSTIFICATION
The Oakland Public Library proposes to remove meeting room fees for Library community rooms.
The primary purpose of making Library community rooms available for booking (outside of library programming needs) is to provide adequate access to neighborhood groups and government agencies to engage with the community for the purposes of its betterment. Because of high demand, a tiered meeting room fee structure has been in place to promote access to these organizations.
However, in practice this fee structure has proven to be a barrier to access for small neighborhood organizations, proving a deterrent to intended use, especially in East Oakland. The American Library Association in its Library Bill of Rights cautions that libraries who charge fees for their meeting rooms “may abridge or deny access for some community members,” and Oakland Public Library removed overdue fines on our materials in 2019 for the same reasoning, given disproportionate impacts to library borrowers in zip codes most impacted by factors in the Oakland Equity Indicators report.
Some of our neighboring jurisdictions such as San Francisco Public Library and Berkeley Public Library do not charge for their meeting room use.
COST SUMMARY/IMPLICATIONS
Oakland Public Library meeting room fees provide an insignificant source of revenue, which has averaged $2,800 over the last four years. Rather than a prohibitive fee structure, we can use other procedures to ensure equitable community access to our meeting room spaces.
The removal of this fee will not result in a revenue budget adjustment since revenues from this source have been historically low and excluded from the budget.
Thank you for your time and consideration of this proposal. For questions, please contact Janelle Montu Veresa at 510-238-6609.
Respectfully submitted,
Attachment:
FY 2023 OPL Proposed Fee Change
Jamie Turbak
Library Director
OAKLAND PUBLIC WORKS
DIRECTOR NARRATIVE
FY 2022-23 MASTER FEE SCHEDULE
ATTACHMENT A: A-3
CITY OF OAKLA D INTER OFFICE MEMORANDUM
TO: Edward D. Reiskin
City Administrator
SUBJECT: FY 2022-23 Master Fee Schedule
OPW Amendments
FROM: G. Harold Duffey
Public Works Director
DATE: March 1, 2022
The City of Oakland Public Works Department (OPW) proposes Master Fee Schedule (MFS) amendments for FY 2022-23, including modifications and additions of the current assessed fees in compliance with the state's voter -approved Proposition 26. Anticipated revenue from proposed fee changes will help offset costs of providing services for which the fees are charged with no net gain to the City's overall budget.
Below are the key highlights and rationale for amendments proposed in FY 2022-23:
Environmental Services
Construction & Demolition Non-Exclusive Franchise -Administrative Fee (J2.): Staff has assessed the actual time spent to administer this program to monitor compliance with O.M.C.
15.34. The increase includes a true up in staff time, equipment, and software subscriptions
Respectfully submitted,
q
G. Harold Duffey
Director, Oakland Public Works
May 3, 2022
For questions regarding this report, please contact Tom Morgan, Agency Administrative Manager at (510) 238 -7953.
Attachments:
Department Fee Calculations
OAKLAND PARKS, RECREATION AND
YOUTH DEVELOPMENT
DIRECTOR NARRATIVE
FY 2022-23 MASTER FEE SCHEDULE
ATTACHMENT A: A-4
INTER OFFICE MEMORANDUM
TO: Edward Reiskin FROM: J. Nicholas Williams
City Administrator Director, OPRYD
SUBJECT: OPRYD Policies & Procedures: DATE: April 8, 2022 Donations
Oakland Parks, Recreation and Youth Development proposes master fee changes for FY 2022-23.
Below are the key highlights and rationale for the amendments proposed in FY 22-23:
• Golf rates at Lake Chabot Golf Course – The proposed rate changes updates the rates to market rate. These fees are included for information only; they are charged directly by service providers and not by the City of Oakland.
• Golf rates at Metro Golf Course – The proposed rate changes updates the rates to market rate. These fees are inclu ded for information only; they are charged directly by service providers and not by the City of Oakland.
J. Nicholas Williams
Director, OPRYD
(signed by Neil Valle for J. Nicholas Williams)
For questions, please contact Neil Valle, Administrative Services Manager II at 510-238-3926.
HOUSING AND COMMUNITY
DEVELOPMENT
DIRECTOR NARRATIVE
FY 2022-23 MASTER FEE SCHEDULE
ATTACHMENT A: A-5
To: Edward D. Reiskin, City Administrator
Subject: FY 2022-23 DHCD Master Fee Schedule
Date: March 10, 2022 Page 1
INTER OFFICE MEMORANDUM
TO: Edward D. Reiskin FROM: Shola Olatoye
City Administrator Director, DHCD
SUBJECT: FY 2022-23 HCD Master Fee Schedule DATE: March 10, 2022- rev 5/26/2022
RECOMMENDATION
The Housing & Community Development (HCD) Department has analyzed its fees and proposes increases that are reasonable and fairly apportioned in compliance with Proposition 26 and recommend the City Council approve proposed fee revisions, which includes fee increases to full cost recovery or closer to fully cost recovery. The HCD calculations are presented in an attachment to this memo.
ANALYSIS
As mentioned above, HCD reviewed its fees in order to determine at what level the fees would be full cost recovery. Personnel costs were determined by reviewing the classifications involved in each activity, plus the current retirement, fringe and overhead rates that were applied. The average amount of time required to provide the service was estimated by staff. Additionally, any other costs were incorporated, such as recorder fees the City pays.
At the time, the Asset Monitoring Fees were established approximately seven years ago, the fee covered developments that nearly exclusively were City-assisted affordable housing developments with long -term affordability restrictions. Since that time, a growing number of non -assisted developments have been taking advantage of the Density Bonus/Affordable Housing Impact Fee Waiver provisions for including some affordable housing units within market rate developments, or (in a few cases) completing 100% affordable housing developments without City loan assistance.
The following changes in asset monitoring fees are proposed to replace the existing single fee structure and to reflect full cost recovery or move closer to full cost recovery for the following projects, which has also been an opportunity to fine-tune the projected costs of service delivery:
1. City-Assisted Projects that have received direct financial assistance from the City of Oakland, either in the form of a loan or grant.
2. Restricted Unassisted Projects that include Density Bonus Projects, Affordable Housing Impact Fee On -site Affordable Projects, and other Projects that did not receive direct financial assistance from the City.
To: Edward D. Reiskin, City Administrator
Subject: FY 2022-23 DHCD Master Fee Schedule
Date: March 10, 2022 Page 2
G. Housing Development Services Loan Fees
1 Loan Origination Fee (Except HOME funded
portion of loans)
3% Loan
2 Loan Modification Fee
3 Subordination Fee
4 Re-Sale Fees
5 Loan Assumption Fee
6 Monitoring Fee
3200.00 Loan
1400.00 Loan
1600.00 Loan
2000.00 Loan
140.00 Per unit per yr -100%
6 Annual Monitoring Fee - City-Assisted Projects Base fee per project + $610.00 base fee + 8.00/unit per unit charge 100%
7 Annual Monitoring Fee - Restricted Unassisted Projects (3+ Restricted Units) Base fee per project + $387 base fee + $5.00/unit per unit charge 100%
8 Annual Monitoring Fee - Restricted Unassisted Projects (1-2 Restricted Units) $140 Per unit charge 100%
Housing asset monitoring fees have been set flat at $140 per unit. Most city -assisted housing projects have more than five units. Most restricted unassisted projects have more than three units.
This means that the revised fee schedule will be more cost friendly for most developers from reduced monitoring fees. For example, a non- assisted market rate project with 10 restricted units would have paid $1,400 annually under the prior fee, but would only pay $437 ($387 project base + $5/ restricted unit) under the proposed fee structure. However, to avoid a drastic increase in the monitoring fee for 1-2 unit projects, staff proposes continuing to charge those projects $140 /restricted unit/year, without any additional costs borne by the properties with larger numbers of restricted units.
FISCAL IMPACT
The volume for asset monitoring fees is difficult to project – as such, no revenue adjustment is proposed. These revenues are collected in various non-General Purpose funds.
Attachments:
HCD Proposed Fees
Fee Calculation Worksheet
Shola Olatoye
Director, Department of Housing & Community
Development