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Comprehensive Citywide Fee Study Results
SOUTH SAN FRANCISCO, CA
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SOUTH SAN FRANCISCO, CA 1. Study Objectives
2. Methodology
3. Results
4. Recommendations
AGENDA
Comprehensive Citywide Fee Study
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Study Objectives
3 Consolidate and expand fees where appropriate to
better reflect existing services.
Streamline Fee Structures
Benchmark against other Bay Area jurisdictions.
Comparative Survey
Identify the average level of effort associated with
different permits and applications.
Average Time Assumptions
Ensure that the direct and indirect costs do not exceed current fees.
Compliance with Prop 218 and 26
Determine direct and indirect costs associated with
staff time.
Fully Burdened Hourly Rates
Provide an updated master fee schedule reflective of
current costs.
Updated Master Fee Schedule
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Fee Calculation Methodology
4 Avg staff time by
Position Title per
Permit / Application
Fully Burdened
Hourly Rate per
Position Title
Full Cost Fee
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Fee Study Results (1)
5 • Streamlined the Building Fee Schedule by expanding valuation-based fees for Single-Family Residential, Commercial, and Mechanical, Electrical, and Plumbing Permits.
• Created stand-alone permits for over-the-counter building permit fees. • Incorporated City Attorney, Engineering, and Police, Fire, and Building time assumptions into Planning fees, resulting in the applicant paying a single fee. • Added a separate valuation table in Fire Prevention to cover Fire Life Safety Inspection review.
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Fee Study Results (2) – Development Surcharges
6 • Technology Surcharge (Database Maintenance Fee) – covers the annual and potential replacement cost of TRAKiT. Calculated at 2% of the permit fee applicable to Building, Engineering, Fire Prevention, Planning, and Business Licenses.
• General Plan Maintenance Fee – covers the cost of updating long-range planning efforts, only applicable on Building Permits. Calculated at 0.30% of the Building Permit Valuation.
• Building Training Surcharge – cover annual training costs for Building staff, calculated at $7 per permit.
• Climate Surcharge – cover the costs of updating ordinances and plans based upon Climate policies. Calculated at 0.026% of Building Permit Valuation. matrix
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Fee Study Results (2)
7 Category
Current Fee
Revenue
Full Cost
Revenue Difference Cost Recovery
Housing $23,221 $32,104 ($8,883) 72%
Planning $1,114,668 $2,159,082 ($1,037,318) 52%
Building $9,220,734 $9,295,300 ($74,567) 99%
Fire $3,303,365 $2,951,803 $351,562 112%
Engineering $1,305,957 $1,722,166 ($416,209) 76%
Water Quality $92,421 $180,530 ($88,109) 51%
Total $15,060,366 $16,333,889 ($1,273,522) 92%
Overall, at 90% cost recovery level. Highest cost-recovery at 99% and 112% is for Building and Fire. Lower cost recoveries for Planning and Water Quality. matrix
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Cost Recovery Comparison
8 Fire is above typical cost recovery and Engineering and Water Quality are below the typical cost recovery ranges.
72%
52%
99%
112%
76%
51%
0%
20%
40%
60%
80%
100%
120%
Housing
Planning
Building
Fire
Engineering
Water Quality
Cost Recovery %
Current Revenue Cost Recovery vs. Typical Revenue Cost Recovery Typical Cost Recovery Current Cost Recovery
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City Staff Recommendations
9 • Parks and Recreation Fees are proposed at 3% increase per Parks and Recreation Commission and market-based analysis.
• All user fees are proposed at 100% cost recovery with exceptions for:
è Design Review – Signs & Single Family
è Categorical Exemption for Environmental Projects
è Fingerprinting and Tow Service Franchise Fee
• Fees should be annually updated based upon local CPI per best practices. matrix
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City Staff Recommendation Impacts
10 Category
Current Fee
Revenue
Recommended Fee
Revenue Revenue Change
Housing $23,221 $32,104 $8,883
Planning $1,114,668 $2,097,810 $983,142
Building $9,220,734 $9,295,300 $74,567
Fire $3,303,365 $2,951,803 ($351,562)
Engineering $1,305,957 $1,722,166 $416,209
Water Quality $92,421 $113,237 $20,816
Total $15,060,366 $16,212,420 $1,152,054
Based on City staff recommendations and prior year workload, implementing the recommended fees will result in approximately a $1.15 million increase in revenue.
Largest increases would be for Planning and Engineering. matrix
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Questions and Answers