Title
Resolution to Approve Fiscal Year 2011 Fee Adjustments for Public Services Area - Project Management, Customer Service, Systems Planning and Field Operations
Memorandum
Attached for your consideration and approval is the resolution approving fee adjustments for Public Services Area-Service Units for the 2011 fiscal year. The anticipated increase in revenue resulting from the fee adjustments is crucial to balancing expenditures and revenues in the proposed fiscal year 2011 budget.
Each year in conjunction with the preparation of the budget, Service Area/Service Units are requested to review license and fee revenues to determine if the cost of the services rendered are covered by the charges. When determining these costs, Service Units take into account increases in expenses such as: labor, material and supplies, equipment and overhead cost. Explanations are provided to give the rational for the increases. 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, IT costs, materials & supplies, and the municipal service charge.
In the prior years, the Project Management Services Unit has raised its Private Development fees incrementally to recover its annual fully burdened costs for the services provided. In order to avoid a large fee increase from one fiscal year to the next, the fees have been adjusted annually. With this year's adjustments, we are at parity for the inspection fees; however, are still in the process of establishing recovery for the plan review.
In the Customer Services Service Unit, we are experiencing increased material costs due to the expiration of our contract pricing associated with the implementation of the Automated Meter Reading System. Staff is currently in the process of exploring the available opportunities to receive advantageous pricing.
In the Field Operations Unit, we are adjusting our Solid Waste commercial rate structure based on experience from our commercial recycling program implementation.
The following Service Units have requested fee adjustments:
· Project Management
o Private Development
o Traffic
· Customer Service Center Unit
o Meter operations and maintenance
· Field Operations
o Solid Waste
o Traffic sign & signals
o Forestry - Canopy
· Systems Planning
o Grading Inspection Fees
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: Marti J. Praschan, Public Services Financial Manager
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 2011 budget submittal;
Whereas, Fees in several areas were found not recovering fully burdened costs to provide these services; and
Whereas, Various fees have been newly created to reimburse costs for services provided;
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, 2010; and
RESOLVED, That City Council authorizes the City Administrator to take necessary administrative actions to implement this resolution.