Title
Resolution to Approve Fiscal Year 2009 Fee Adjustments for Public Services Area - Project Management, Customer Service, and Field Operations
Memorandum
Attached for your consideration and approval is the resolution approving fee adjustments for Public Services Area-Service Units for the 2009 fiscal year. The anticipated increase in fee revenue resulting from the adjustments is crucial to balancing expenditures and revenues in the proposed fiscal year 2009 budget. A public hearing was held on May 5, 2008.
Each year in conjunction with the preparation of the budget, Service Area/Service Units are requested to review license and fee amounts to determine if the cost of the services rendered are covered by the charges. When determining the costs of the services, Service Units take into account expenses such as: labor, material and supplies, equipment, and overhead costs. The increases recommended are intended as inflationary adjustments due to increases in expenses. In cases, where fee adjustments are proposed to be higher than a nominal 3% increase, cost detail is provided for the increase. Based on the fee analysis, revenues are then budgeted.
The Public Services Area is recommending approval of increases for activities in the Service Units in order to recover fully burdened costs for ancillary services provided to the customers. These fully burdened costs were based upon estimated time spent providing the service, vehicle expenses, materials & supplies and the municipal service charge.
In prior years, the Project Management Services Unit has incrementally raised its Private Development fees annually but has not recovered its annual burdened costs for the services provided. Each year we have continued to close the gap between the anticipated expenses and the revenues for services provided. This year's recommendations are to bring us to full cost recovery. Private Development activities are extremely variable, making it difficult to accurately estimate the future demands for specific services and therefore the revenue impact. A revenue estimate has been provided for the private development related services in total.
In the Customer Services Unit, we continue to achieve greater efficiencies with the implementation of the Automated Meter Reading System. The efficiencies have been reflected in some decreased fees to our customers for specific activities benefitting from this technology. Increased material costs resulted in a few instances of increased fees in this unit.
The following Service Units have requested fee adjustments:
Project Management
-Private Development
Customer Service Center Unit
-Meter Operations and Maintenance
Field Operation
-Solid Waste
-Traffic Signs & Signal
-Park Operations
Service Units have provided supplemental information for the recommendations attached to the fee resolution. Staff requests your approval of the proposed fee adjustments.
Staff
Prepared by: Sue F. McCormick, Public Services Administrator
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, Administrator
Body
Whereas, All Service Areas of the City government review their fees each year as part of the budget process;
Whereas, The Public Services Area Service Units have reviewed all of their fees as part of the FY 2009 budget submittal;
Whereas, Fees in several areas were not recovering fully burdened costs to provide these services; and
Whereas, Various fees have been reduced due to vendor pricing of new equipment;
RESOLVED, The fees in the Public Services Service Units be adjusted according to the attached schedules;
RESOLVED, That the attached fee schedules become effective July 1, 2008; and
RESOLVED, That City Council authorizes the City Administrator to take necessary administrative actions to implement this resolution.