FEES AND CHARGES STUDY
CITY OF RIVERSIDE , CALIFORNIA
Final Draft Report of Findings
May 29, 2024
M GTC ONS ULTI NG. COM
M GTC ONS ULTI NG. COM
City of Riverside , California
F E E S A N D C H A R G E S S T U D Y
April 15, 2024
TABLE OF CONTENTS
CHAPTER 1. EXECUTIVE SUMMARY ......................................................................................................................... 1-1 INTRODUCTION .................................................................................................................................... 1-1 STUDY SCOPE AND OBJECTIVES ........................................................................................................... 1-1 STUDY FINDINGS .................................................................................................................................. 1-3 METHODOLOGY ................................................................................................................................... 1-5 CHAPTER 2. USER FEE SUMMARIES BY DEPARTMENT ...................................................................................... 2-1 COMMUNITY DEVELOPMENT............................................................................................................... 2-1 PUBLIC WORKS ..................................................................................................................................... 2-8 POLICE ................................................................................................................................................ 2-12 FIRE ..................................................................................................................................................... 2-19 PARKS, RECREATION AND COMMUNITY SERVICES ............................................................................ 2-29 CITY CLERK .......................................................................................................................................... 2-36 FINANCE ............................................................................................................................................. 2-38 LIBRARY .............................................................................................................................................. 2-42 RIVERSIDE PUBLIC UTILITIES ............................................................................................................... 2-47
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 1-1
CHAPTER 1. EXECUTIVE SUMMARY
Introduction
MGT is pleased to present the City of Riverside with this summary of findings for the recently updated fees and charges study for related city departments.
The City of Riverside ha d not had an external cost of service study performed since 201 5. The City contracted with MGT in May of 2021 to perform a cost-of-service study using fiscal year 2020-2021 budgeted figures, staffing, and operational information.
After MGT completed the cost analysis for the departments’ fees and charges, the final phase of the study, including fee recommendations and presentation to council, was put on hold by the City. In 2023, the City elected to have their own staff, with training and guidance from MGT, update MGT’s costing models with fiscal year 2023-2024 budgeted expenditures and salaries/benefits, and 2023 annual volume statistics.
The findings in this report represent a combination of MGT’s original cost analysis and the City’s updates.
This report is the culmination of an extensive study conducted by MGT in collaboration with the City’s management and staff. MGT would like to take this opportunity to gratefully acknowledge all management and staff who participated in this project for their efforts and coordination. Their responsiveness and continued interest in the outcome of this study contributed greatly to its success.
Study Scope and Objectives
The study included a review of fee-for service activities within the following departments:
Community Development:
o Building & Safety*
o Code Enforcement
o Planning*
o Arts and Cultural Affairs
Public Works:
o Engineering*
o Public Parking
o Animal Services
Police
Fire
Parks, Recreation and Community Services
City Clerk
Finance
Library
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 1-2
Riverside Public Utilities
o RPU Electric
o RPU Water
*Note that the following Development Services departments’ cost analysis results are not included in this report and will be presented at a later date:
Community Development Building & Safety
Community Development Planning
Public Works Engineering
The study was performed under the general direction of the Finance Department with the participation of representatives from each department. The primary goals of the study were to:
Determine the City's costs to provide specific fee-related services. Determine whether there are any opportunities to implement new fees. Identify service areas where the City might adjust fees to better reflect the full cost of services or to subsidize fees with general fund revenue to reflect other economic or policy considerations. Develop fiscal projections based on recommended increases (or decreases) to fees. Provide comparative data for what neighboring cities are charging for similar services. Review potential disproportionate impact of existing and recommended City fees and charges on sectors of the community and recommend mitigating actions to ensure/enhance equity in the application of City fees.
The information summarized in this report addresses each of these issues and provides the City with the tools necessary to make informed decisions about any proposed fee adjustments and the resulting impact on restricted and general fund revenues.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 1-3
Study Findings
The study's primary objective was to provide the City's decision makers with the basic data needed to make informed pricing decisions. This report details the full cost of each service for which a fee is charged and presents proposed fees and fiscal projections based on recommended cost recovery levels. The fee analysis adheres to Proposition 26 which is based on the "estimated reasonable cost of providing a service". Recommendations were based upon careful consideration of the results of the cost analys is, historical cost recovery levels, and market comparisons.
The exhibit on the following page displays the costs and projections of each department/division into the following categories:
Column A, User Fee Costs – This column represents what the actual cost is for each of the departments to provide annual user fee services based on the annual volume statistics. In total, this study evaluated $24,574,079 in costs to provide user fee services. It is this amount that was the focus of this study and represents the total potential for user fee-related revenues for the City.
Column B, Current Revenues – This column represents what the City is currently recovering in revenue for these same services based on the annual volume statistics. Based on current fee recovery levels, the city receives fee-related cost recovery in the amount equal to $10,987,660 and is experiencing an overall 45% cost recovery level. Cost analysis of individual fees for each department may be found in subsequent sections of this report.
Column C, Current Subsidy – Current fee levels recover 45% of full cost, leaving 55%, or $13,586,418, to be funded by other sources. This subsidy represents an opportunity for an updated and more focused cost recovery effort by the City for fee-related services.
Column D, Recommended Cost Recovery – It is estimated that adoption of the recommended fees would increase cost recovery to $18,985,788. This would bring the overall cost recovery level up to 77%.
Column E, Increased Revenue – Assuming activity levels remain relatively static , approximately $7,998,127 in additional cost recovery could be received by the City. This would represent a 73% increase over the amounts currently being collected for these activities by the City on an annualized basis.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 1-4
City of Riverside
User Fee Cost & Revenue Analysis
FY 2024-2025
Current Recommended
(A) Full Cost
(D) Cost Recovery Policy (E) Increased
Revenue User Fee Department User Fee (B) Current Revenue (C) Current Subsidy Services
Community Development
Code Enforcement $ 1,447,978 $ 181,011 13% $ 1,266,967 87% $ 1,447,978 100% $ 1,266,967 Arts & Cultural Affairs $ 467,497 $ 19,104 4% $ 448,393 96% $ 33,525 7% $ 14,421 Public Works
Public Parking $ 29,297 $ 18,584 63% $ 10,713 37% $ 29,297 100% $ 10,713 Animal Services $ 2,048,540 $ 775,823 38% $ 1,272,717 62% $ 1,013,760 49% $ 237,937 Police $ 1,081,158 $ 478,866 44% $ 602,292 56% $ 913,344 84% $ 434,478 Parks, Recreation, & Comm Svcs $ 7,268,654 $ 2,898,945 40% $ 4,369,709 60% $ 3,367,500 46% $ 468,555 City Clerk $ 35,355 $ 48,000 136% $ (12,645) (36%) $ 35,355 100% $ (12,645) Finance $ 42,112 $ 19,557 46% $ 22,555 54% $ 26,702 63% $ 7,145 Fire $ 2,305,836 $ 1,751,248 76% $ 554,588 24% $ 2,305,836 100% $ 554,588 Library $ 41,345 $ 5,792 14% $ 35,553 86% $ 6,184 15% $ 392 RPU Electric $ 7,343,651 $ 3,883,940 53% $ 3,459,711 47% $ 7,343,651 100% $ 3,459,711 RPU Water $ 2,462,656 $ 906,791 37% $ 1,555,866 63% $ 2,462,656 100% $ 1,555,866
Totals: $ 24,574,079 $ 10,987,660 45% $ 13,586,418 55% $ 18,985,788 77% $ 7,998,127
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 1-5
Methodology
A cost-of-service study is comprised of two basic elements:
Hourly rates of staff providing the service.
Time spent to provide the service.
The product of the hourly rate calculation multiplied by time spent yields the cost of providing the service.
Hourly Rates
The hourly rate methodology used in this study builds indirect costs into city staff hourly salary and benefit rates to arrive at fully burdened hourly rates. Fully burdened hourly rates are a mechanism used to calculate the total cost of providing services. Total cost is generally recognized as the sum of the direct cost together with a proportionate share of allowable indirect costs. The proper identification of all costs (including labor, operating expense, department administration and citywide support) as “direct” or “indirect” is crucial to the determination of the total cost of providing services.
Direct costs are typically defined as those that can be identified specifically to a particular function or activity, including the labor of persons working directly on the specific service for which the fee is charged, and possibly materials or supplies those people use for the task. Indirect costs are those that support more than one program area and are not easily identifiable to specific activities. Examples of indirect costs are: 1) departmental administrative and support staff, 2) training and education time, 3) public counter and telephone time, 4) some service and supply costs, and 5) citywide overhead costs from outside of the department as identified in the City’s cost allocation plan.
MGT’s hourly rate calculation methodology includes the following:
Personnel Services Analysis – each staff classification within the department or division is analyzed in the study. The first burden factor is comprised of compensated absences such as vacation/holidays/sick leave days taken in a year’s time. Staff classifications are then categorized as either direct (operational) or indirect (administrative or supervisory) labor. In some cases, a classification will have both direct and indirect duties. The total indirect portion of staff cost is incorporated into hourly overhead rates.
Indirect Cost Rate – a ratio of indirect cost to direct labor (salaries plus benefits) is established. There are three elements of indirect cost incorporated, including:
Indirect Labor – includes total compensation, administrative and supervisory staff costs. Other Operating Expenses – most services and supplies are included as a second layer of indirect cost and are prorated across all fees and services. There are some service and supply expenses classified as “allowable” direct. Some examples of these are professional services expenses, or sports supplies. These allowable direct expenses would be directly associated with specific fees or programs, as opposed to being allocated across all activities through the indirect overhead. External Indirect Allocations – this represents the prorated portion of citywide overhead (from the City’s cost allocation plan) which is attributable to the service for which the fee is charged.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 1-6
Fully Burdened Hourly Rates – incorporates all the elements that comprise the hourly rates used in this cost analysis.
Each direct or operational staff classification is listed, together with the average annual salary. The hourly salary rate is calculated by taking the annual salary of an employee and dividing by 2,080 available productive hours in a year.
The benefit rate reflects the average benefit rate as a percentage of the salary rate. Multiplying this percentage by the hourly salary rate determines the benefit rate to be included in the fully burdened rate.
The overhead rate is derived by multiplying the internal and external indirect cost rates against the salary plus benefit rates.
The total combines the salary, benefits, and overhead rates. This is the fully burdened rate for each staff classification. MGT prepared indirect overhead rates and corresponding hourly rate calculations using FY 2020-21 budgeted expenditures, and City staff updated the rates using FY 2023-2024 budgeted expenditures.
Time Spent
Once fully burdened hourly rates were developed for city staff, the next step in the process was to identify staff time spent directly on each of the user fee activities. Each staff person involved in the user fee services identified time spent to complete each task associated with all user fee services. Annual volume statistics were also gathered in order to develop total annual workload information. This information is provided in detailed user fee workbooks which were provided to the City upon completion of the study.
Fee Calculations and Revenue Projections
Given this information, MGT was able to calculate the cost of providing each service, both on a per-unit and total annual basis (per-unit cost multiplied by annual volume equals total annual cost). As mentioned above, costs were calculated by multiplying per-unit time estimates by the hourly labor rates; additional operating expenses directly associated with certain services were also added in. Finally, if other departments or divisions provided support for certain user fee activities, this time was accounted for and added into the analysis as a crossover support activity. Full costs are then compared to current fees/revenues collected, and subsidies (or over-recoveries) are identified.
User fee summaries by department may be seen in Chapter 2 of this report.
Legal, Economic & Policy Considerations
Calculating the true cost of providing city services is a critical step in the process of establishing user fees and corresponding cost recovery levels. Although it is an important factor, other factors must also be given consideration. City decision makers must also consider the effects that establishing fees for services will have on the individuals purchasing those services, as well as the community as a whole.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 1-7
The following legal, economic and policy issues help illustrate these considerations. State law - In California, user fees are limited to the "estimated reasonable cost of providing a service" by Government Code section 66014(a) and other supplementary legislation. California voters approved Proposition 26 in November of 2010, which defined “taxes” as “any levy, charge, or exaction of any kind imposed by a local government” subject to seven exceptions. Most of the exceptions require that the City charge a fee which does not exceed the reasonable cost to the City to provide the service for wh ich the fee is charged. Thus, if the fee exceeds the reasonable cost of service, it may be considered a “tax” which must be approved by the voters. We have calculated each fee to recover no more than the reasonable cost of each service so that none of the fee adjustments recommended herein will be considered taxes under Proposition 26.
Additionally, it should be noted that some fees (e.g., certain animal control fees or oversize permit fees) may be capped by state law and may not change, regardless of any cost analysis performed. Economic barriers - It may be a desired policy to establish fees at a level that permits lower income groups to use services that they might not otherwise be able to afford. Community benefit - The Council may wish to subsidize some user fees in order to reflect policy considerations which supersede cost recovery. For example, many Community Services fees have very moderate cost recovery levels. Some programs are provided free of charge or for a minimal fee regardless of cost. Youth and senior programs tend to have the lowest recovery levels.
Miscellaneous classes tend to have a moderate cost recovery level and adult sports programs typically have a higher cost recovery level.
Private benefit - If a user fee primarily benefits the fee payer, we recommend the fee be set at, or close to, 100% full cost recovery. Development -related fees generally fall into this category; however, exceptions are sometimes made for services such as appeal fees or fees charged exclusively to residential applicants.
Service driver - In conjunction with the third point above, the issue of who is the service recipient versus the service driver should also be considered.
Managing demand - For those fees which are not subject to pure cost recovery limitations, other market considerations may inform recommended fee levels. Elasticity of demand is a factor in pricing certain city services; increasing the price of some services results in a reduction of demand for those services, and vice versa.
Competition - Certain services, such as recreation classes, may be provided by neighboring communities or the private sector, and therefore demand for these services can be highly dependent on what else may be available at lower prices. Furthermore, if the City's fees are too low, demand enjoyed by private-sector competitors could be adversely affected. Incentives - Fees can be set low to encourage participation in a service, such as a youth sports program or the issuance of a water heater permit.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 1-8
Comparative Data - One additional tool that many agencies use when considering how to establish fees for services is a comparison of what other agencies are charging for similar services.
As part of this study, MGT collected fee schedules from surrounding area cities and ex tracted a sampling of fees to compare with fees charged by the City of Riverside. Based on the Council adopted market basket of cities , the City’s Executive Steering Committee selected six agencies, including neighboring agencies and the County of Riverside, that would provide the best comparison. The fees to compare were selected by the departments with guidance from MGT.
The results of the comparative survey may be found for each department within their respective summary sections.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-1
CHAPTER 2. USER FEE SUMMARIES BY
DEPARTMENT
Community Development
The user fee/cost analyses for this department mirrors the structure of City’s fee schedule and was developed separately for each division:
Code Enforcement
Arts and Cultural Affairs
Fees are charged in a variety of ways including:
Flat (or fixed) fees – the fee is always the same, regardless of size or complexity of the service provided in each instance.
Per square (or linear) foot – the fee is calculated based on the size of the project under review. Hourly (or time -and-materials) – city staff track time and materials expense, and fees are calculated to recover actual costs.
Actual cost – this fee is charged to recover consultant costs as billed to the City. Percentage of permit – the fee is calculated as a percentage of the original permit fee.
Code Enforcement
Code enforcement fees recover the cost of enforcing city codes and regulations. This promotes compliance by residents and businesses, ultimately achieving the City's goal of a safe and attractive community for all.
Within the Code Enforcement division, current fees recover 13% of the total costs to provide services for which fees are charged. Recommended fees are set at 100% of cost. Assuming no loss in demand, recommended fee adjustments will result in an additional $1,266,967 revenue per year.
Recovery levels for Code Enforcement fees range from 0% to 159%. Two fees are currently recovering over 100% of cost. In keeping with State law, the target cost recovery percentage must be set at 100%.
The User Fee Summary Sheet following this narrative provides further details of MGT’s fee analysis for Code Enforcement.
Arts and Cultural Affairs
The Arts and Cultural Affairs division services offer significant economic and community benefits within the City. By keeping film permit fees below cost recovery, the City can attract film productions, boosting the local economy and enriching the community with cultural experiences. Additionally, subsidizing special event permits for non-profits allows them to host enriching events that promote social good,
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-2
cultural experiences, and economic activity. Due to the community benefit, program fees historically have been heavily subsidized by the general fund. This is in line with industry standards and with surrounding comparable agencies.
Within the Arts and Cultural Affairs division, current fees recover 4% of related fee-for-service costs.
Staff has recommended a small increase to some fees to recover 7% of cost. Assuming no loss in demand, recommended fee adjustments will result in an additional $14,421 revenue per year.
The User Fee Summary Sheet following this narrative provides further details of MGT’s fee analysis for Arts and Cultural Affairs.
Comparative Data
Surveys showing a selected group of Building, Code Enforcement, Planning, and Arts and Cultural Affair’s fees in comparison to neighboring agencies can be found following this narrative. Overall, the department fees are within the range of their peers.
Disproportionate Impact
The department did not identify any fees that may present a disproportionate impact on low-income or other sectors of the community.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-3
Code Enforcement User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-4
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-5
Arts & Cultural Affairs User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-6
Code Enforcement Fee Comparisons
Activity Riverside
Current Fee
Riverside
Proposed Fee Anaheim Corona County of Riverside Long Beach Moreno Valley Pasadena
DANGEROUS BUILDING INSPECTIONS -
Demolitions (Per abatement
(administrative))
$4,394 $3,808 Actual Cost Actual Cost
Violation Notice - $505
Do Not Occupy Notice - $225
Nuisance Abatement Levy -$300
Nuisance Abatement Inspection - $310
N/A Actual Cost
TRASH/NUISANCE ABATEMENT
(Per re-inspection for non-
compliance)
(No additional fee if corrected)
$118 $383 $398
Non-Compliance Fee:
$35 for first offense
$100 for second offense
$200 for each additional
offense
(12 Month Period)
N/A
Level 1 (4 hours or less)
$263.00 each
Level 2 (More than 4 hours)
$97.00 hourly
N/A
VEHICLE ABATEMENT
(Final inspection and removal) $236 $724 Actual Cost Free Nuisance Abatement Levy - $135
Inspection - $135
Prepare Towing Contract - $190
$320 $170
WEED ABATEMENT
(Abatement administrative charge) $177 $379 $398 Actual Cost Lot Cleaning Levy - $135
Inspection - $205
Prepare Lot Cleaning Contract - $250
$240 $181
Code Violation Fee - $450.04
Non-Compliance Fee - $630.24
Extension Fee - $247.40
Abatement Fee - $1,665.86
Hearing Fee - $878.50
Plus Any Additional Abatement
Costs
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-7
Arts & Cultural Affairs Fee Comparisons
Activity Riverside
Current Fee
Riverside
Proposed Fee Anaheim Corona County of Riverside Long Beach Moreno Valley Pasadena Film Permit Fee (Requires Street
Closure) $414 $600
*Fees for a business license are
as follows:
• $68.00 – License
• $35.00 – Processing Fee
• $10.00 – For Each Employee
Working on Film
$883 +
Encroachment
charge
Film Permit Waived
Encroachment Fee -
$129/Day
Inspection Fee -
$105/Day
$525.00
$388 Film Permit Fee
plus
$80 Road Encroachment
Permit Fee
Traffic Lane Closure
for Parking - Filming
Fee $630
Film Permit Fee (No Street Closure) $204 $400
*Fees for a business license are
as follows:
• $68.00 – License
• $35.00 – Processing Fee
• $10.00 – For Each Employee
Working In Film
$883 Film Permit Waived $525 $388 Standard filming: $283 per hour
Professional Corporation, Businesses,
and Other Organizations (Special Event
Permit) - Permit Fee
$107 $500 $332 $133 N/R $410 $217
Filming and Special
Events Coordination
$78,
Special Event Permit
(less than 30 days)
$160
Professional Corporation, Businesses,
and Other Organizations (Special Event
Permit) - Cancellation Fee (Large
Production)
New $300 N/A N/A N/R $410
Loss of Deposit + 50% of
Rental Fees (5-31 days
prior) / 100% of Rental
Fees (0-4 days prior)
N/A
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-8
Public Works
The user fee/cost analyses for this department mirrors the structure of City’s fee schedule and was developed separately for each division. Divisions that are included in the cost analysis include:
Public Parking
Animal Services
Fees are charged in a variety of ways including:
Flat (or fixed) fees – the fee is always the same, regardless of size or complexity. Per square (or linear) foot – the fee is calculated based on size of the project under review. Hourly (or time -and-materials) – city staff track time and materials expenses, and fees are calculated to recover actual costs.
Actual cost – this fee is charged to recover consultant costs as billed to the City. Per work activity – these fees are for blanket flat fees for annual citywide utility excavation permits issued to utility companies.
Per connection or installation – the fee is calculated based on the number and type of physical connections to the City’s infrastructure, or the number of units of a particular device installed by the City on behalf of a private person.
The User Fee Summary Sheet following this narrative provides further details of MGT’s fee analysis for Engineering.
Public Parking
Public parking regulations manage the use of on-street parking to assist residents with valid permits and their guests in finding parking near their homes. These efforts benefit both the local community and residents and are eligible for cost recovery. Within the Parking division, current fees recover 63% of costs to provide services for which fees are charged, leaving 37% to be subsidized by other funding sources. This 37% represent a total dollar amount of $10,713 annually. Staff recommends increasing recovery levels to 100%. Assuming no loss in demand, fee adjustments result in additional annual revenues of $10,713 per year for an overall recovery.
The User Fee Summary Sheet following this narrative provides further details of MGT’s fee analysis for Parking.
Animal Services
The City of Riverside contracts with the County of Riverside to provide shelter and field services through the Riverside County Department of Animal Services (RCDAS). Dog licensing and kennel permit services are provided by City staff within the Public Works department.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-9
Most fees are charged on a flat (or fixed) fee basis – the fee is the same, regardless of size or complexity, and based on the time required to provide the service applied to the fully burdened hourly rate. Fines and penalties are not limited to cost.
Animal Services fees benefit those individuals or businesses specifically requesting or utilizing the services and are therefore eligible for cost recovery. Animal services also provide a benefit to the community at large. As such, m ost public agencies subsidize animal control services with the idea that licensing compliance and responsible pet ownership are more important than additional revenue collection.
Current fees recover 38% of total costs to provide the services for which fees are charged. Department staff recommend that animal services fees be increased by 31% overall, while most of them will still remain subsidized due to the community benefit of providing these services.
One new penalty fee proposal is included in this analysis to incentivize timely renewal of kennel\Cattery licenses and recover the cost of additional staff time:
Kennel/Cattery License Late Fee – The proposed fee is $50.
Assuming no loss in demand, fee adjustments will result in an increase of $237,927 in revenue next year, recovering 49% of total cost.
Comparative Data
Public Parking and Animal Services fees were not included in the comparison survey.
Disproportionate Impact
When meeting with the above divisions in Public Works , MGT and the staff together reviewed their current and proposed fees to determine if there may be any potential disproportionate impact on a sector of the community.
Public Parking did not identify any fees with potential disproportionate impact.
Animal Services: Providing a discount for altered dog licenses is typical of most animal service agencies to encourage owners to spay and neuter their dogs. The Animal Services division recommended an additional discount on altered dog license fees for senior citizens, since charging the full cost may present disproportionate impact on fixed or low-income seniors. Revenue from Unaltered Dog Licenses penalties may serve as a source of subsidies for citizen dog license fees.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-10
Public Parking User Fee Summary Sheet
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-11
Animal Services User Fee Summary Sheet
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-12
Police
Most of the Police department fees are charged on a flat (or fixed) fee basis – the fee is the same, regardless of size or complexity, and based on the time required to provide the service applied to the fully burdened hourly rate. Exceptions are copy fees, which are charged on a per page basis, along with several fees such as DUI accident response investigation that are charged at actual cost and billed in arrears. The reason for setting fees at “actual cost” instead of a fixed amount is that the time spent can vary greatly. In addition, false alarm fines and penalties, which escalate with each additional occurrence, are not limited to cost. The department also has other fines on their fee schedule that were not part of this study.
Police records and permit services benefit those individuals or businesses specifically requesting or utilizing the services and are therefore eligible for cost recovery. The recommended policy is to generally - but with some exceptions - set fees to recover 100% of all costs associated with providing fee-for-service activities.
Current fees recover 44% of total costs to provide the services for which fees are charged. Department staff recommend that fees be increased by 91% overall. Most police records and permit fees have recommended fees set at 100% of cost. Some fees will remain subsidized due to State law which caps the fee that can be charged.
The department has fourteen (14) fees that will need to be reduced to comply with California laws regarding user fees, since the current fees are greater than the full cost of service.
Two fees are recommended for removal from the City’s Master Fee Schedule because the services are no longer being provided. Each proposed fee removal is noted with a Remove notation in the Fee Description column on the User Fee Study Summary Sheet following this narrative.
Assuming no loss in demand, fee adjustments will result in an increase of $434,478 in revenue next year, recovering 84% of total cost.
Comparative Data
The survey showing a selected group of the Police department’s fees in comparison to neighboring agencies can be found following this narrative. Overall, the department fees are within the range of their peers.
Disproportionate Impact
The department did not identify any fees that may have a disproportionate impact on the community.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-13
Police User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-14
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-15
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-16
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-17
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-18
Police Fees Comparison
Activity Riverside Current
Fee
Riverside
Proposed Fee Anaheim Corona County of
Riverside Long Beach
Moreno Valley
(Riverside County
Sheriff)
Pasadena
Entertainment Permit - New $1,225 $561 N/R $304 N/R $783 N/A N/R Entertainment Permit - Renewal $649 $561 N/R $339 N/A $391 N/A N/R Second Hand Dealer Permit - New $871 $561 N/R $83 N/A $233 N/A N/A Second Hand Dealer Permit -
Renewal $759 $561 N/R $83 N/R $233 N/A N/A
Patrol Unit Video - per 10 minute
recording $50 $49 Body Cam - $33 for
walk in request $42 N/R N/A N/A $79
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-19
Fire
The user fee/cost analysis for this department follows the basic structure of City’s fee schedule and was developed at the department level. All divisions within the department are included in the cost analysis.
Fees are charged in either of the following ways:
Flat (or fixed) fees – the fee is always the same, regardless of size or complexity. Hourly or Actual Cost – city staff track time and materials expense, and fees are calculated to recover actual costs.
The Fire fee schedule includes rentals and fines which were not included in this study.
Fire prevention and other miscellaneous fire services benefit those individuals or businesses specifically requesting or utilizing the services and are therefore eligible for cost recovery. The recommended policy is to generally - but with some exceptions - set fees to recover 100% of all costs associated with providing fee-for-service activities.
Current fees are recovering 76% of total costs to provide the services for which fees are charged. The department’s recommended recovery level is 100% for all fees. Assuming no loss in demand, proposed fee adjustments will result in an increase of $554,588 in revenue.
The department has twenty-seven (27) fees that will need to be reduced to comply with California laws regarding user fees, since the current fees are greater than the full cost of service.
Nine (9) fees are recommended for deletion since they were redundant or duplicates of other fees.
Details can be found in the User Fee Study Summary Sheet following this narrative.
Twenty-one (21) new fee proposals are included in this analysis:
Third and Subsequent Plan Review Submittal
Final As-Built (Revision) Plan Check
Fire Protection Plan (FPP) Review
Hazardous Material Analysis Report
High Pile - 0-20,000 square feet
High Pile - 20,000+ square feet
Defensible Space Review/Inspection
Performance Based Review
Alternative Means and Method Review
Rocket Launch
Burn Permit
Blasting Permit
Fire Alarm Control Panel/Communicator - change out only Fire and Life Safety Self-Certification Inspection
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-20
Parking Structures: 500 square feet
Parking Structures: 5,000 square feet
Parking Structures: 10,000 square feet
Parking Structures: 100,000+ square feet
Residential Remodels and Additions
Single Family Dwellings and Duplexes
Accessory Dwelling Unit
Comparative Data
The survey showing the Fire department’s fees in comparison to neighboring agencies can be found following this narrative. Overall, the department’s fees are within the range of their peers.
Disproportionate Impact
The Fire department’s fees are primarily charged to developers and business owners. The department did not identify any fees that may present a disproportionate impact on low-income or other sectors of the community.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-21
Fire User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-22
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-23
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-24
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-25
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-26
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-27
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-28
Fire Fees Comparison
Activity Riverside Current
Fee
Riverside
Proposed Fee Anaheim Corona County of Riverside Long Beach Moreno Valley Pasadena Fire Alarm System Plan Check - 1-10
Devices $473 $380 0-10 devices $88 - 3/4 hr $611 $627 deposit - includes 3 reviews $790.00 $525 plan check $7 per
device inspection
Fire Alarm 0 to 25
Devices $565
Fire Alarm System Plan Check - 11+
Devices (per 10 devices) $244 $262
11-100 - $116 - 1 hr
101-400 devices $232 - 2 hrs
401+ devices $348 - 3 hrs
$617 + $6 per device $627 deposit -
includes 3 reviews
11 to 50 devices: $900;
51-200 Devices: $1,575;
201-500 Devices: $2,250;
501+ $3,600
$525 plan check
$7 per device
inspection
Fire Alarm 26 to 100
Devices $1,016
Fire Alarm Control
Panel/Communicator - change out New $236 N/A N/A N/A N/A N/A N/A Fire Sprinkler Plan
Check/Inspections - 1-99 sprinklers
(new residential or commerical)
$445 $655
0-50 sprinklers:
$58 per 1/2 hr
51-100 sprinklers:
$87 per 3/4 hr
1-100 Heads: $395 $614 deposit
(Residential & TI)
1-50 Heads Plan Check:
$790; 51 - 250 Heads
Plan Check: $1,350; 1-50
Heads
Inspection/Permit $780;
51-250 Heads
Inspection/Permit:
$1,175
$525 plan check
$7 per device
inspection
Sprinkler System New
Commercial -
1 to 25 heads $265
26 to 50 heads $355
51 to 100 heads $717
New Construction Plan
Check/Inspection: Commercial:
100,000+ Square Feet
$1,335 $600 Plan checks: $116/hr
Inspections: $220/hr N/A Building - $1,056
deposit
Based on valuation.
$1M+:
$3,285 + $1.64 per each
add'l $1,000
Plan Check: $600
Inspection: $600 N/A
New Construction Plan
Check/Inspection: Single Family
Dwellings and Duplexes
New $177 Plan checks: $116/hr
Inspections: $220/hr N/A Building - $1,056
deposit
Based on valuation.
$1M+:
$3,285 + $1.64 per each
add'l $1,000
Based on square
footage.
2000-4,999 sf: $187 plan
check, $187 inspection
N/A
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-29
Parks, Recreation and Community Services
The user fee/cost analysis for Parks, Recreation, and Community Services was developed for the following divisions that provide fee-for-service activities:
Recreation (520500)
Administration (520000)
Fees are charged in a variety of ways including:
Per participant/team/use or entry for recreation programs Per entry for community events
Hourly facility rentals
Flat fees for various permit fees
Sliding scale fees based on size of event, or user -type (resident vs. non-resident, commercial vs. non-profit, etc.)
The analysis for Parks, Recreation, and Community Services included typical parks and recreation fees like youth camps, adult sports, and rentals.
It should also be noted that not all the fees’ full costs are calculated at the individual level. In the table below some fees were grouped into “programs”, comparing annual program costs to annual revenues collected. The decision to analyze some of the fees this way is that it is often easier to conceptualize time spent by staff and costs associated with these fees on an annual scale rather than break down the information by the different fees charged within the program. As a brief example, a fee may have a resident and a non-resident charge, but the time and costs associated with each would be the same at the individual level. However, the revenues, and therefore, the cost recovery level, for each could be much different. The fees are grouped to show the full cost and revenues for the program to display a more accurate picture of cost recovery.
The User Fee Summary sheets on the following pages illustrate the department’s proposed fee adjustments by fee or program area and provide overall cost/revenue comparisons. If adopted, the adjustments to parks and recreation fees will result in an additional $468,555 for the City if demand for these services remains constant.
Comparative Data
The survey showing Recreation’s fees in comparison to neighboring agencies can be found following this narrative. Overall, the department’s fees are within the range of their peers.
Disproportionate Impact
A major tenet of any parks and recreation department is to provide activities and services that promote an active, healthy lifestyle to as many community members as possible. Getting outdoors, exercising, and participating in group or team activities not only positively affect our physical health and wellbeing
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-30
but our mental health as well. As such, pricing that results in a decrease in participation is rarely advised. In aggregate, parks and recreation programs typically do not recover costs, nor should they.
Using this as a background, the department and MGT team have decided to make only modest increases to select fees (see full listing in table). In fees and programs that primarily benefit youth and senior programs, the cost recovery recommendation remains low; often recovering 25% or lower of the full cost of providing the program. Additionally, programs such as an ESL class, that primarily serves lower income populations, are recommended to recover only 25% of the program costs. Higher recovery levels are primarily seen in programs such as facility rentals, that may be viewed as less essential, and adult programs, who often have more means to pay for the programs.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-31
Recreation User Fee Summary Sheet
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-32
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-33
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-34
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-35
Parks and Recreation Fees Comparison
Activity Riverside Current Fee Riverside Proposed
Fee Anaheim Corona County of
Riverside Long Beach Moreno Valley Pasadena
Transit Fee for Special
Transportation N/A N/A N/A
$4 for General Public
$2 for Seniors, Persons with
Disabilities, and Medicare
N/A $3 $3
$0.75 for eligible
passengers
$0.35 for Senior or
Disabled Fare
Youth Sports Fees
(Registration) $60
Youth Flag Football:
$70
Youth Basketball:
$73
Basketball Clinic: $40
Basketball League:
$82
Resident Fee: $83
Non- Resident: $124 N/R Ages 13-17:
$50 - $100
Resident:
$61 - $126.75
Non-Resident
$79.30 - $164.78
$0 to $125 Resident
$0 to $250 Non-
Resident
Golf Course Greens
Fees
Fairmont Golf Course:
Resident/Non-
Resident 1st Round
(9 Holes) - $15/$16
Resident/Non-
Resident 2nd Round
(18 Holes) - $23/$25
Fairmont Golf Course:
Resident/Non-
Resident 1st Round
(9 Holes) - $15/$16
Resident/Non-
Resident 2nd Round
(18 Holes) - $23/$25
Dad Miller Golf
Course: $65 per
day/session
Anaheim Hill: $90
per day/session
N/A N/R Adult 18 Holes - $17
Adult 9 Holes - $9
Adult 9 Holes - $10.25
(Weekday) $12.50
(Weekend)
N/A
Open Space Fee N/A N/A
Non-Resident:
$20/hr Resident:
$16/hr
N/A N/R $175
Park Area (Resident):
$27.25 Park Area
(Non-Resident):
$38.75
Special Event Area
(Resident): $61
Special Event (Non-
Resident): $79.25
Multi-Use & Open
Fields (Sports)
Nonprofit Group
$64 Resident/$98 Non-
Resident
Pirvate Individual
$64 Resident/$130 Non-
Resident
Commercial Group
$130 Resident/$196
Non-Resident
Swim Lessons $50 $60 Pearson Park Pool:
$42 - $79
Weekday Residents
(8 Sessions): $ 140
Weekday Non-Resident
(8 Sessions): $150
Weekend Residents
(4 Sessions): $70
Weekend Non-Resident
(4 Sessions): $75
N/R
Private Lesson:
$185/Session
Semi Private Lesson:
$124/Session
N/A
Private Youth and
Adult: $35 Resident /
$50 Non- Resident
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-36
City Clerk
The user fee/cost analysis for this department follows the basic structure of City’s fee schedule and was developed as a whole for the department. Most fees are charged at a flat fee basis with the exception of copy fees which are charged per page.
City Clerk fees benefit those individuals or businesses specifically requesting or utilizing the services and are therefore eligible for cost recovery. The recommended policy is to set fees to recover 100% of all costs associated with providing fee-for-service activities.
Four (4) of the City Clerk’s nine (9) fees are set by the state and cannot be changed. Only one of the fees, passport photos, had activity in the preceding year so revenue numbers and projections are based on that one fee.
The passport photo fee was shown to be recovering 136% of the cost to provide the service. The current fee is $8.00 and the total cost to provide the service is $6.00. As mentioned elsewhere in this report, California law states that a city cannot charge a customer more than it costs to provide the service; therefore, the department is recommending the fee be lowered to $6.00.
Assuming no change in demand, fee adjustments will result in a net reduction of $12,645 in revenue.
Four (4) fees were shown to be recovering less than full cost:
Document Certification
Electronic Data Records Request – CDs and DVDs
Electronic Data Records Request – Flash Drive
Document Duplication – per page
All four fees are being recommended to increase to full cost. As there was no activity reported for those fees in the preceding year, no revenue projections were able to be made.
Comparative Data
City Clerk fees were not included in the comparison survey.
Disproportionate Impact
The City Clerk did not identify any fees potentially presenting a disproportionate impact.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-37
City Clerk User Fee Summary Sheet
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-38
Finance
The Finance department’s user fees are primarily provided by the Business Tax and Accounts Receivable units. Their fees cover a variety of services including processing returned checks, processing tax -free certificates, and issuing street vendor and transit permits.
Highlights of this division’s analysis are as follows:
Fee Increases – Four fees were found to be under -recovering. Three of those are being recommended to increase slightly while still remaining under full cost , while one fee, Refund Processing Charge to cover administrative cost, is being recommended to stay at the current fee. Fee Decreases – Seven fees were found to be over–recovering; that is, the full cost was less than the current fee. Since the last study, processes have been streamlined requiring less staff time, resulting in a lower cost of service. These fees are being recommended to decrease to full cost, so as to be in compliance with California user fee law.
Assuming no loss in demand, fee adjustments result in a revenue gain of $7,145. Details on each fee can be found in the User Fee Summary Sheet on the following pages.
Comparative Data
The survey showing a selected group of the Finance department’s fees in comparison to neighboring agencies can be found on the following pages. Overall, the department’s proposed fees are within the range of their peers.
One item of note:
Credit card processing fees – Section 6159 of the State of California Government Code grants cities the authority to assess a fee, termed a “convenience fee”, for the use of a credit or debit card, not to exceed the transactional costs incurred by the City , to customers paying by credit or with debit card. The City's expenditures related to credit and debit card payments are approximately $2.3 million. This includes an estimated $441,744 for the General Fund.
Currently, the Parks and Recreation department charges a convenience fee to offset these processing costs. To cover these costs for most other transactions, the City will implement a convenience fee of 2.41% for online and in-person payments.
The Riverside Public Utilities (RPU) is currently evaluating a convenience fee structure to cover credit and debit card processing costs. RPU currently absorbs these costs, totaling approximately $1.9 million annually.
While processing fees can vary, all convenience fees are set at or below the City's actual costs. To minimize any burden from these fees, a free alternative for electronic check payments (ACH) will be available.
Details can be found in the survey.
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-39
Disproportionate Impact
The department did not identify any fees potentially presenting a disproportionate impact on residents.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-40
Finance User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-41
Finance Fees Comparison
Activity Riverside Current Fee Riverside Proposed Fee Anaheim Corona County of Riverside Long Beach Moreno Valley Pasadena Returned Check (NSF)
Processing - initial
returned check
$26.75 $30.00 $25 $22 Assessor-County Clerk-
Recorder: $32 $35 $34 Each
$25 for first
check; $35 for
each
subsequent
check
Street Vendor Permit -
new applicant/business
(1 cart per year)
$37.00 $30.00 Peddler/Solicitor
Permit Fee: $36.00
Solicitors/
Peddlers - $251 -
New/Renewal
Sidewalk Vending Permit: $79 $393 $29.75 - $363 per booth Food Vendor
Registration Fee
$133
Taxicab fees $543.00 $543.00
Quarterly Franchise
Fee: $100
Taxi Driver Permit Fee:
$100
N/A $50 $163 Biennial Permit
Annual Application:
$159
Taxicab driver permit
(Annual): $11
N/R
Convenience Fees
Parks & Recreation Online
Payments: 4.5% for
amounts $0-$149
3.5% for amounts $150 -
$4,499
Parks & Recreation In-
Person:
3.25% for credit card
payments
Parks & Recreation Online
Payments: 4.5% for amounts
$0-$149
3.5% for amounts $150 - $4,499
Parks & Recreation In-Person:
3.25% for credit card payments
All Other City Payments :
2.41% of payment amt for
debit/credit
ACH Transactions are free
No credit card fees. No credit card
fees.
Treasurer-Tax Collector:
$3.95 flat fee for debit cards
2.28% fee for credit cards
Superior Court:
Traffic citations: $5.95 for
full/initial payment, $2.96 for
all subsequent partial
payments (3rd party vendor)
Child Support Services:
1.9% of payment amt for
debit/credit
Building:
2.28% of payment amt for
credit card
$1.59 convenience
fee charged by
Kubra. City does not
receive the fee.
No credit card fees. No credit card
fees.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-42
Library
The Riverside Public Library’s fee schedule has fees for service as well as room rentals and fines. Meeting room rentals, as with all parks/facility/property use fees, need not be tied to cost-of-service and may be set at market rates; therefore, were not analyzed in this study. The Library currently collects fines for lost or damaged items. (In keeping with nationwide trends, the Library no longer charges fines for overdue items, so as to encourage use of Library services among all residents.) As with other penalty fees described in this study, these fees do not need to be tied to cost-of-service and were not analyzed in this study. Copy fees also have no recommendations for adjustments and were not included in this study as the Library copy machines are self-service and no staff time is involved.
The following existing fee-for-service activities were analyzed:
Inter-Library Book Retrieval – This fee is recommended to remain at $2.00. Reservation Processing Fee: Main Library – This fee is recommended to increase to $27.25. Reservation Processing Fee: Branches – This fee is recommended to increase to $24.75. Meeting Room Cleaning Fee – This fee is recommended to increase from $21.00 to $28.50. Replacement of Lost Cards – This fee is recommended to remain at no charge. Replacement of Lost Library Items – Processing – This fee is recommended to remain at $10.75. Replacement of Lost Library Items – Collection fee – This fee is recommended to remain at $10.00.
3D Printing Fee – this fee is recommended to remain at $0.10 per gram/filament.
Implementing the recommended fee adjustments will increase the Library’s user fee cost recovery rate from 14% to 15% and assuming no loss in demand, will generate an additional $392 in revenue on an annual basis.
Comparative Data
The survey showing a selected group of Library fees in comparison to neighboring agencies can be found following this narrative. Overall, the department’s fees are within the range of their peers.
Disproportionate Impact
As mentioned above, the Library has eliminated collecting fines for overdue materials, citing a nationwide movement to eliminate public library late fines; not only because the cost of staff time to process and collect the fines may exceed the revenue received, but also because there are concerns and recognition among jurisdictions that assessing fines on patrons for their missing an arbitrary due date when returning books may prevent lower income residents and children from benefitting from library services.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-43
Library User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-44
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-45
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-46
Library Fees Comparison
Activity Riverside Current
Fee
Riverside
Proposed Fee Anaheim Corona County of Riverside Long Beach Moreno Valley Pasadena Cleaning Fee - required if
refreshments are served and/or
use of craft materials
$21.50 $28 N/R N/R N/R N/A N/A N/R
Overdue Collection Fine Fine Eliminated Fine Eliminated $0.20 per day No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
Overdue Materials Processing
Fines (per item, per day): Books
(Maximum $5 Value)
Fine Eliminated Fine Eliminated $0.20 per day
No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
Overdue Materials Processing
Fines (per item, per day):
Juvenile Hardbacks, Paperbacks,
and all audio (Maximum $3
Value)
Fine Eliminated Fine Eliminated $0.20 per day
No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
Overdue Materials Processing
Fines (per item, per day):
Adult/Young Adult Paperbacks
Fine Eliminated Fine Eliminated $0.20 per day
No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
No fines for
overdue
materials
Adults: $0.25 per day
Children: $0.20 per day
DVDs: $0.25 per day
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-47
Riverside Public Utilities
The Riverside Public Utilities (RPU) department provides electric and water service to the city’s residents.
In addition to charging rates, which are governed by the public utility commission, the Electric and Water divisions also provide fees for service, such as turning service on and off, meter installation, and development-related services. MGT did not analyze electric or water rates but did analyze the full cost of the fees for service provided by the Electric and Water divisions.
Electric
The user fee/cost analysis for the RPU Electric division follows the basic structure of City’s fee schedule and was developed at the department level, meaning costs from all three divisions, Administration, Electric, and Water were included when developing fully burdened hourly rates. The indirect costs of the Electric division mirrors those of the Water division; both include administrative cost from the Administration division.
Fees are charged in either of the following ways:
Flat (or fixed) fees – the fee is always the same, regardless of size or complexity. Hourly or Actual Cost – city staff track time and materials expense, and fees are calculated to recover actual costs.
The fees for service provided by the Electric division benefit those individuals or businesses specifically requesting or utilizing the services and are therefore eligible for cost recovery. The City’s policy is to set fees to recover 100% of all costs associated with providing fee-for-service activities.
Current fees are recovering 53% of total costs to provide the services for which fees are charged. The department’s recommended recovery level is 100% for all fees. Assuming no loss in demand, proposed fee adjustments will result in an increase of $3,459,711 in revenue.
Three (3) fees are recommended for deletion since those services are no longer provided.
Seven (7) new fee proposals are included in this analysis:
Service Turn-on Charge for Customers with AMI
Service Reconnection for Customers with AMI
Meter Spot Initial Inspection
Plan Check for Building and Public Works
Cancellation Fee
Temporary Meter Removal for Main Breaker Repair
CEQA Review
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-48
Comparative Data
Electric fees were not included in the comparison survey.
Disproportionate Impact
The Electric division’s fees are primarily charged to developers and business owners. The division did not identify any fees that may present a disproportionate impact on low-income or other sectors of the community.
Water
The user fee/cost analysis for the RPU Water division follows the basic structure of City’s fee schedule and was developed at the department level, meaning costs from all three divisions, Administration, Electric, and Water were included when developing fully burdened hourly rates. The indirect costs of the Water division mirrors those of the Electric division; both include indirect cost from the Administration division.
Fees are charged in either of the following ways:
Flat (or fixed) fees – the fee is always the same, regardless of size or complexity. Hourly or Actual Cost – city staff track time and materials expense, and fees are calculated to recover actual costs.
The fees for service provided by the Water division benefit those individuals or businesses specifically requesting or utilizing the services and are therefore eligible for cost recovery. The City’s policy is to generally - but with some exceptions - set fees to recover 100% of all costs associated with providing fee-for-service activities.
Current fees are recovering 37% of total costs to provide the services for which fees are charged. The department’s recommended recovery level is 100% for all fees. Assuming no loss in demand, proposed fee adjustments will result in an increase of $1,555,866 in revenue.
Seven (7) fees are recommended for deletion since those services are no longer provided.
Five (5) new fee proposals are included in this analysis:
Water Service Connection Charges – ¾ inch meter (non-residential/4-lane street) Water Service Connection Charges – 1-inch meter (non-residential/4-lane street) Water Supply Assessment
Fire Flow Test
Plan Check for Building and Public Works
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-49
Additionally, the division is recommending changing two fees from the current flat rate to actual cost based on estimated cost of installation:
Water Service Connection Charges – 1 ½ inch meter
Water Service Connection Charges – 2-inch meter
This change is recommended because these meters are generally for commercial applications and the cost of installation can vary greatly depending on time and materials.
Comparative Data
Water fees were not included in the comparison survey.
Disproportionate Impact
The Water division did not identify any fees that may present a disproportionate impact on low-income or other sectors of the community.
City of Riverside, California May 2024
Fees and Charges Study Draft Report
P a g e | 2-50
RPU Electric User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-51
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-52
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-53
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-54
RPU Water User Fee Summary Sheet
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-55
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-56
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-57
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-58
City of Riverside, California April 2024
Fees and Charges Study Draft Report
P a g e | 2-59