Legislative Public Meetings

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File #: 21-0615   
Type: Report to Council Status: Public Hearing/General Business
Meeting Body: City Council
On agenda: 6/8/2021
Title: Annual Review of Proposed Fees and Charges for Fiscal Year 2021/22
Attachments: 1. FY 2021-22 Recommended Fee Schedule, 2. 2021 Golf Fee Market Survey

Annual Review of Proposed Fees and Charges for Fiscal Year 2021/22

The fees and charges of the City are reviewed and adjusted each year in accordance with Council Policy 7.1.1 (Fiscal -Long Range Goals and Financial Policies). This annual evaluation ensures that all fees and charges of the City are aligned with the cost to provide fee-related services, except for those fees that are legally limited, market based, or subsidized per Council direction.

After a detailed staff review of fees, necessary adjustments have been made to the proposed Fee Schedule. Fees that are legally limited remain unchanged. Periodically, staff reviews various fees in detail and adjusts them for cost of service, usually once every three to five years. In the intervening periods, fees are adjusted by a general inflation factor. Those fees that did not receive a detailed cost of service review are proposed to be increased 4% based on changes in the City's labor rates. Fees related to construction price changes are proposed to increase 3% in accordance with the five-year Construction Cost Index (CCI) average year-over-year change for the period of December 2016 to December 2020, as reported by Engineering News-Record. Another benchmark used to assess the change in certain impact fees for commercial or residential real estate development is the Consumer Price Index for Urban Consumers for the San Francisco-Oakland-Hayward Area (CPI-U SF), which increased by an average of 3% year-over-year for the last three years.

The Recommended FY 2021/22 Fee Schedule (Attachment 1) details all proposed fees. Most fees become effective at the start of the new fiscal year, with exception of development processing and mitigation fees, which become effective 60 days after adoption pursuant to Government Code section 66017.

Each year, the City Council reviews recommended changes to the City's fees and charges. The June 8, 2021 public hearing is to al...

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