Item #6
4/9/24
City of
Santa Clara
User and Regulatory Fee Update
City Council Meeting | April 9, 2024
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FINANCIAL CONSULTING
STUDY SESSION AND PUBLIC HEARING
• This Evening's Item
• City Council Study Session
• Review Proposed Fee Schedule Update for FY 24/25
• Follow-up on Reserved Field Use Fees Referral for Non- Profits and Sports Leagues
• April 23, 2024
• Public Hearing - FY 24/25 Fee Schedule Resolution
CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
POST MEETING MATERIAL
1 TYPES OF FEES EXAMINED
• Building Fees - construction permit processing,
lan check, and inspectior
Planning Fees - such as entitlement reviel
nd review for compliance with zoning cod
This update DOES
Enaineerina Fees - such as engineerin
NOT examine taxes, ncroachment, and excavation review an assessments, utility inspection
rates, etc.
• Sprin pee, and construction rehan for complaine
with Fire Code
• Non-Development Related Fees - such as
recreation fees, licensing, and permitting
CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
MUNICIPAL FEES
• Legal requirements
Why do Cities • Incred to serve private interest benefit Review Fees and
or respond to individual actions
Charge Fees for
Services? • Provides General Fund resources
• Enable continuity of service levels by
improving cost recovery levels
CLEARSOURCE PRESENTATION TO THE CITY OF CANTA CHAR
2 COST RECOVERY PRINCIPLES FOR THE CITY
• City Council Budget Principle Related to Cost Recovery for Fees "With limited exceptions, establish fees based on full cost recovery where individuals/businesses rather than the
community at-large are benefitting from City services.
This preserves limited unrestricted resources for
providing services that benefit the community as a
whole."
5 CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
Overview of Proposed Updates
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FINANCIAL CONSULTING
3 FEE CHANGE OVERVIEW
• Over 1,000 Fees Examined
• 79% of Fees are proposed to either decrease, remain unchanged, or reflect only minor adjustments (i.e., up to 10% or $10 change) • 15% of fees are proposed to increase by more than 10%. Primary drivers of increase are:
• Pre-established multi-year phase-in of under-recovery (this represents the vast majority (11%) of changes greater than 10%) • Increases in the costs of equipment and materials recovered via fees • Changes in personnel costs and services/supplies costs • Changes in service requirements
CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
FEE CHANGE OVERVIEW
• 22 New Fees are proposed
• Fees linked to enforcement of the California Fire Code • Cost recovery for preparation of technical reports or peer- review for development related applications (adding to fee schedule for fee schedule clarity)
• Cost recovery processing/transaction fees for below market property program
• Cost recovery fees for Review of Right of Entry Agreement and Permit to Enter Agreements onto City Property
• Cost recovery fees for processing requests for temporary use of hydrant meters and conducting development-related water efficiency reviews
CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
4 RESERVED FIELD USE FEES - BACKGROUND
• FY 22/23 fee schedule update included adoption of parks and recreation cost recovery policy and adoption of reserved field use fees for non- profits and sports leagues.
• Prior to FY 22/23 there was no charge ($0) for reserved field use for non-profits and sports leagues.
• Prior to adopting FY 22/23 fees, reserved field use fees were compared to neighboring agencies for reasonableness.
CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
RESERVED FIELD USE FEES - BACKGROUND
• Prior to FY 22/23 Fee Schedule Adoption
• Staff held open community meetings, that included three commissions:
Parks & Recreation, Senior Advisory, and Youth Commissions • Staff conducted a community survey. There were 234 survey responders (Commissioners and General Public)
• Goals of meetings and survey included:
• Establish a common understanding for evaluating Parks and Recreation financial needs and user fees
Receive Commission and public input on cost recovery policy affecting program cost recovery decisions
10 CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
RESERVED FIELD USE FEES - BACKGROUND
• Prior to FY 22/23 Fee Schedule Adoption
• Staff conducted regional comparison to determine whether proposed fees would align to the region. Findings included:
• Santa Clara Prior to FY 22/23 = $0 per hour (No Charge) • Santa Clara Proposed Effective FY 22/23 = $14 per hour • Campbell = $20 - $30 per hour with discount based on percentage of resident participation
• Mountain View = $8 per hour
• Novato = $9 - $15 per hour
• Palo Alto = $9 - $30 per hour
• San Rafael = $20 - $25 per hour
• Sunnyvale = $25 per hour or $175 per day
11 CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
RESERVED FIELD USE FEES - BACKGROUND
• Prior to FY 22/23 Fee Schedule Adoption
• April 5, 2022 - City Council Study Session to Review
• Proposed Fee Schedule Update
• Proposed Parks and Recreation Cost Recovery Policy
• April 19, 2022 - City Council Public Hearing to Consider • FY 22/23 Fee Schedule Resolution
• Parks and Recreation Cost Recovery Policy Resolution
12 CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
6 RESERVED FIELD USE FEES - BACKGROUND
• City staff recently met with representatives from Santa Clara youth sports organizations and interested community members to discuss the City's field and facility use program
• More than 30 individuals participated in meeting, including representatives of:
• Parks and Recreation Commission - Current and Former Members • Lions
• PAL
• SC Pony Baseball
• SC Residents
• SC Swim Club
• SC Youth Soccer League
• SC Unified School District
Westside Little League
13 CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
RESERVED FIELD USE FEES - BACKGROUND
• Recurring feedback of outreach meeting included, but was not limited to:
• Prioritizing Santa Clara youth for field allocations
• Safety of participants (i.e., having access to reserved fields that are not already being occupied by others, homeless entering field areas during programming, dogs on leashes, safe environment, etc.)
• Collaboration between City and Organizations for solutions to on-going challenges and identifying Santa Clara youth sports as valued / integral part of community fabric
• Effective use of Wade Brummal Scholarship funds
• Use of various fee collections
• City relationship with outside organizations
CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
14 7
RESERVED FIELD USE FEES
• FY 24/25 - No fee increases are proposed for reserved field use fees for non-profits and sports leagues
• As part of FY 23/24 fee schedule update, a referral was made from City Council to have a future discussion regarding reserved field use fees for non-profits and sports leagues.
• Staff has committed to continued discussion with youth sports organizations regarding topics of interest, including advanced notice of any future proposed fee changes to allow organizations time to provide feedback and develop budgets.
15 CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
Next Steps
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FINANCIAL CONSULTING
8 NEXT STEPS
• Complete Public Hearing on April 23, 2024
• Resolution Consideration for FY 24/25 fee schedule
• If Adopted, Fee Changes Are Proposed to Be Effective July 1, 2024
17 CLEARSOURCE PRESENTATION TO THE CITY OF SANTA CLARA
Questions or Feedback
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FINANCIAL CONSULTING
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