Staff Report.Fee and Fine
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/06/2022 ITEM NO: 11
DATE: November 21, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Amending the Comprehensive Fee Schedule for Fiscal
Year (FY) 2022/23 Amending Certain Fees, Rates, and Charges for FY
2022/23.
RECOMMENDATION:
Adopt a resolution amending the Comprehensive Fee Schedule for FY 2022/23 amending
certain fees, rates, and charges for FY 2022/23.
BACKGROUND:
The Town’s financial policies require that certain fees, rates, and charges for services be
maintained to allow for cost recovery based on the actual cost to provide Town services. “Fee”
activities are services and functions provided by the Town to individuals who receive some
direct material benefit above and beyond services offered to residents at general taxpayer
expense. Staff periodically reviews the cost of providing such services and recommends
appropriate increases in fees when supported by actual cost data.
DISCUSSION:
The Town currently charges 2.4% credit card processing fee if a customer pays by credit card in
person at the different Town Offices or on the Town administered online platform. The Town
initially set the charges to fully recover the cost of accepting online payments. Staff continues
to find efficiencies by providing services through third party vendors to streamline services and
provide additional online payment options.
Currently the Town has agreements with two vendors that accept electronic payments on
behalf of the Town. The Town currently utilizes Turbodata for Parking Citation and Permit
Payment Services and HdL for Business License Processing Services. The cost of these third-
PAGE 2 OF 2 SUBJECT: Fee Schedule for Fiscal Year 2022/23 DATE: November 21, 2022
DISCUSSION (cont’d):
party processing fees are paid by the customer utilizing the online payment services and varies
by payment type and vendor agreement. Staff recommends adding these third-party
processing fees to the FY 2022/23 Comprehensive Fee Schedule as detailed below:
Administrative Services
1. Third Party Vendor Business License Credit and Debit Card Processing Fee– 2.9% of
transaction amount, minimum of $2.00
2. Third Party Vendor Business License ACH/eCheck processing - $1.25 per transaction
3. Third Party Vendor Business License Returned Payments/NSF Fee - $25.00
4. Third Party Vendor Parking Citations and Permits Electronic Payment Processing Fee -
$3.95
If the Town contracts with new third party vendors or the current electronic processing fees are
changed, staff will bring forward updates to the Fee Schedule for Council review and
consideration.
CONCLUSION:
For the reasons stated in this report, staff recommends that the Town Council adopt a
resolution amending the Comprehensive Fee Schedule for Fiscal Year 2022/23 amending
certain fees, rates, and charges for Fiscal Year 2022/23.
FISCAL IMPACT:
Approving the additional fees do not have a fiscal impact to the Town, since the customers pays
for the credit card and other electronic processing fees directly.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Resolution approving Comprehensive Fee Schedule FY 2022-23, including Exhibit A
Proposed FY 2022-23 Comprehensive Fee Schedule – (Redline)