4/23/2024 ITEM #6
City Council
Item #6, RTC 24-101
SATA CHRA CATA
Public Hearing:
CITY OF Action on the
Adoption of the FY
1852
2024/25 Municipal Fee
THE MISSION CIT Schedule
April 23, 2024
Study Session and Public Hearing
• April 9, 2024 City Council Study Session
- Review Proposed Fee Schedule Update for FY 2024/25
- Follow-up on reserved field use fees referral for non-profits and sports leagues
• This Evening's Item
- Address feedback/questions from Study Session
- Public Hearing - FY 2024/25 Fee Schedule Resolution
City of
Santa Clara
The Center of What's Port bie
2 POST MEETING MATERIAL
1 Background
• The City maintains a Master Fee Schedule identifying applicable fees for various City services
• Fees are reviewed and updated every year
• Cities collect fees and charges for government services performed at the request of, or specifically for, a particular individual, business, or group as opposed to services performed for the community as a whole City of
Santa Clara
The Center of What's Poss ble
3 Municipal Fees
• Why do cities review fees and charge fees for services? - Legal Requirements
- Encourage direct recovery of costs incurred to serve private interests/benefit
- Provides General Fund resources
- Enable continuity of service levels by improving cost recovery levels City of
Santa Clara
The Center of Whats Pots ble
4 2
Types of Fees Examined
• This update DOES NOT examine taxes, assessments, utility rates, etc. • Building Fees - construction permit processing, plan check, and inspection • Planning Fees - such as entitlement review and review for compliance with zoning code
• Engineering Fees - such as engineering, encroachment, and excavation review and inspection
• Fire Prevention Fees - such as fire alarm, fire sprinkler, and construction review for compliance with Fire Code
• Non-Development Related Fees - such as recreation fees, licensing, and permitting
City of
Santa Clara
The Center of Whats Post he
5 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."
City of
Santa Clara
The Center of What's Port Bie
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
City of
Santa Clara
The Center of What's Post Be
7 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 conducting development-related water efficiency reviews
City of
Santa Clara
The Center of What's Potsibl
4 Average Cost Recovery Level by Department
Department Average Cost Recovery %
City Clerk's Office 100%
Community Development 91%
Electric Utility 100%
Finance 96%
Fire 99%
Parks and Recreation 14%
Cemetery 93%
Police 84%
Public Works 98%
Water and Sewer Utilities 68%
City of
Santa Clara
The Center of What's Possible
9 Reserved Field Use Fees
Referral
City of
10 Santa Clara
The Corter of What's Reactle
10 5
Reserve Field Use Fees - Background
• FY 2022/23 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 2022/23 Fee Schedule Adoption:
• No charge for reserved field use for non-profits and sports leagues • Reserved field use fees were compared to neighboring agencies for reasonableness • 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)
City of
Santa Clara
The Center of What's Possible
11 Reserve Field Use Fees - City Council Referral
• In response to a City Council referral during the adoption of the FY 2023/24 Municipal Fee Schedule, 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
City of
Santa Clara
12 The Center of What's Potsible
12 Reserve Field Use Fees - City Council Referral
• 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, unhoused individuals entering field areas during programming, dogs on leashes, safe environment, etc.)
• Collaboration between City and Organizations for solutions to ongoing 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
City of
Santa Clara
The Center of Whats Possible
13 Reserve Field Use Fees - City Council Referral
• FY 2024/25 - No fee increases are proposed for 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
City of
Santa Clara
14 7
Parks & Recreation Cost Recovery Policy Tiers
PROGRAM COST RECOVERY
BENEFICIARY TARGETED
6-Exclusive
91-100%+
Individual Benefit
5-Considerable
71-90%
Individual Benefit
4-Balanced Individual
41-70%
& Community Benefit
3-Considerable Community Benefit 21-40%
2-Mostly Community Benefit 1-20%
1-Entirely Community Benefit 0%
100%+ indicates minor exceptions where premiums above cost may be justified, such as market-based rents.
City of
Santa Clara
The Center of What's Poss ble
15 Parks & Recreation Cost Recovery Policy Tiers
PROGRAM COST RECOVERY
BENEFICIARY TARGETED
Non-Resident and Commercial 91-100%+*
Use of Facilities
Programs Providing Individual
71-90%
Benefit
Competition, Meets, and Tournaments; Drop-In Fitness /
41-70%
Recreation / Swimming; Youth Theater Programs; Resident 1-20% Target Facility Use; City Provided Programs
Example:
• Youth sports Early Learners (Pre-School Aged), Therapeutic Recreation 21-40% fields
Non-Profit Facility Use Serving the City of Santa Clara; Special Events; Resident Senior 1-20% Center Use; Senior Nutrition Program; Afterschool Program General, non-exclusive park, playground, open space, trails, restrooms, 0% and facility visitation and use
100%+ indicates minor exceptions where premiums above cost may be justified, such as market-based rents.
City of
Santa Clara
The Center of What's Post be
16 8
Parks & Recreation - Types of Services / Users
Aquatics Memberships Facility Rentals
(Regular access to City (Reserved and/or exclusive
(Lessons and recreational
facilities and ongoing permitted use of City
swim) facilities)
programs)
• Youth • Youth • Private groups
• Adult • Adult /individuals
• Senior • Senior • Non-profit
organizations
Classes • Community groups
• Commercial
(Detailed in Activity Guide)
organizations
• Youth • Competitions and
• Adult tournaments
• Senior
City of
Santa Clara
The Center of Whats Fossible
17 Parks & Recreation Cost Recovery Comparison
to Industry Benchmarks
Generated Revenue as Percent of Operating Expenditures
Santa Clara cost
recovery from
recreation-related City of Santa Clara 14%
user fees and
charges is below Industry-wide Average * 23%
industry standard
* Source: 2021 National Recreation and Park Association Agency Performance Review which contains data from 1,000 unique park and recreation agencies across U.S.
City of
Santa Clara
The Center of What's Possibl
18 Study Session Follow-Up
Updates to the Fee Schedule
City of
19 Santa Clara
The Carter of Whats Peste
19 Study Session Feedback/Questions
• Discussion of the youth sports fields rental fees
• Concerns expressed about the impact of the fees on access/participation • Concerns expressed about potentially eliminating fees • Requests for information about field use, field usage between residents and non- residents, revenue generated, use of fees
• Question regarding the Parks and Recreation Cost Recovery Policy • Questions about specific fees (Senior Center auditorium fees and equipment rental fees, Mills Act Fee) and overall revenue collection
• Question about whether racquet court reservations could be made available to the public • Potential use of volunteers to offset staff time
City of
Santa Clara
20 10
Responses to Questions/Feedback
• Responses to questions and comments included as Attachment 3 to RTC 24-101 • Questions focused on non-profit/youth field reservations # of # of Non-Profit Wade Brummel
Fiscal Year Bookings Hours Fee Revenue Scholarship Fund FY 2021/22 1,853 10,036 $0 $0 11 $30,575
FY 2022/23 2,435 8,193 $ 14.00 $ 114,695 16 $31,925
While hours are down, bookings are up - groups now only book fields they will use; previously, groups would not use all the reserved slots, limiting the number of available bookings - Better utilization of sports fields and greater opportunity to meet the needs of more user groups - Limited fee revenues (1-20% cost recovery) help maintain the fields and support on-site staff - Parks & Rec staff to continue to develop field use policies and will work with existing groups - Scholarships available for low-income participants
City of
Santa Clara
21 The Center of What's Post he
21 Responses to Questions/Feedback
Est FY 2024/25 Fee Revenue
• User and regulatory fees $37.3 M
Development Utility Funds,
are projected to generate Funds, $19.0 M, -$0.7 M, 1.9%
50.9% Housing
$37.3 M across all funds Funds, $0.1 M,
0.3%
• The recommended
increases would generate Parks Funds,
$0.9 M, 2.4%
$1.1 M additional revenue
(increase of 3%)
-General Fund,
$16.6 M,
44.5%
City of
Santa Clara 22
The Contero Whists Pots be
22 11
Responses to Questions/Feedback
• Mills Act fee collected to cover staff review of application and compliance with the state Mills Act law
• Senior auditorium use fees ($20 per meeting w/o kitchen and $20 per hour with kitchen); no extra charge if event occurs during regular operational hours unless it requires special equipment/clean-up; minimum of two staff for after hours events ($37/hour per person) • Equipment rental fees recoup cost of equipment over time • Racquet court reservations can be made online; staff will continue to streamline process • Use of volunteers requires proper training and oversight; a formal MOU would be required for groups providing volunteers
City of
Santa Clara
The Center of Whats Possible
23 Fee Schedule Updates After Study Session
• Updates to FY 2024/25 Municipal Fee Schedule
• Community Development Department
• Planning Division - no longer deleting the Development Area Plan Related to PD- MC Rezoning Fee
• Housing Division - added clarifying language to the Development Impact Fees City of
Santa Clara
the Centerowhat Foes be
24 12
Recommendation
City of
25 Santa Clara
25 Recommendation
• Recommendation
Adopt the "City of Santa Clara 2024/25 Municipal Fee Schedule" which by resolution (1) sets new Fees; (2) amends existing Fees; (3) retains unchanged Fees for various City departments; and (4) deletes certain fees with an effective date of July 1, 2024.
• Revised fees go into effect July 1, 2024
City of
Santa Clara
The Centero What Pose ba
26 13
City Councill
Item #6, RTC 24-101
ATTA CLARACHE
Public Hearing:
CITY OF Action on the
Adoption of the FY
1852
2024/25 Municipal Fee
THE MISSION CITY Schedule
April 23, 2024
27 14