08 Staff Report.Fee and Fine
PREPARED BY: Stephen Conway
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: 09/01/2020
ITEM NO: 8
DATE: August 10, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Approving a Change to the Town’s Comprehensive Fee
Schedule Amending Library Fines and Charges.
RECOMMENDATION:
Adopt a resolution approving a change to the Town’s Comprehensive Fee Schedule amending
Library fines and charges.
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, decreases or changes. The Town’s last comprehensive cost allocation
and user fee study concluded last fiscal year and the Town Council approved the
recommendations with the adoption of the FY 19/20 Fee Schedule.
The proposed deletion of Library fines was originally intended to be presented as part of an
updated FY20/21 Comprehensive Fee Schedule reflecting all Town fees; however, due to the
resulting economic impact of the COVID-19 pandemic, a discussion of increases or amendments
to the Comprehensive Fee Schedule will be scheduled at a later date. Staff has determined that
there would be an immediate operational benefit to adopting the proposed change for Library
fines and charges now rather than later.
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SUBJECT: Modify Fee Schedule for Library Fines and Charges
DATE: August 10, 2020
DISCUSSION
The Library is proposing to remove daily overdue fines from the Comprehensive Fine and Fee
schedule. This reflects a new working model adopted by libraries throughout the State,
emphasizing the ease of renewals to encourage material use, eliminating the accumulation of
overdue fines, and recovering costs for items that are lost and/or damaged. Under this
proposed change, items checked out longer than nine and a half weeks (three week initial
checkout, plus two additional automatic renewals of three weeks each, plus a three day grace
period) are considered to be lost and will be billed for their actual replacement amount plus a
$5.00 processing fee for children’s materials or a $10.00 processing fee for all other materials.
Patrons with lost or damaged items alternatively have the option to replace that item with a
new, identical copy of the item plus a nominal processing fee of $2.00 as the staff time and
effort for acquiring a replacement copy has been largely offset by the patron in this
circumstance.
Over the past several years, revenues from overdue fines have dropped considerably. In
FY2017/18 overdue fines accounted for $12,734 in revenue, while in FY2018/19 it accounted
for only $3,323 in revenue. This drop was the natural result of instituting customer-service
practices related to more convenient renewing of materials, as well as not imposing fines as a
penalty for seniors or children. The former was the implementation of automatic renewals that
saved library patrons the need or hassle to call library staff, log into their account or make a trip
to the library to renew items. The latter is the combination of established practices in the
current fee schedule where seniors do not accrue overdue fines, and minors up to age 18 do
not accrue overdue fines until the item is overdue by six weeks.
Revenues from overdue fines have dropped to the point where the staff time invested in
collecting those fines now outweighs the revenue it generates. Administratively, it now makes
more sense for the Town to invoice an item as lost by the patron if it is not returned after this
time period rather than hold the item record open to accrue fines.
Data from libraries that have adopted this model show that the return rate of materials is not
impacted by this practice.
CONCLUSION:
It is recommended that Town Council approve the proposed adjustments to the
Comprehensive Fee Schedule. If the Council approves the changes, they become effective
November 1, 2020.
FISCAL IMPACT:
The Town’s adopted FY 2020/21 Operating and Capital Budget anticipated this change and
incorporated a decrease in revenue of approximately $3,400.
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SUBJECT: Modify Fee Schedule for Library Fines and Charges
DATE: August 10, 2020
COORDINATION:
This update of the Fee Schedule was coordinated with the Library Department and the Town
Manager and Town Attorney Offices.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Resolution approving Comprehensive Fee Schedule FY 2020/21, including Exhibit A
Proposed FY 2020/21 Comprehensive Fee Schedule (Redline)
2. Proposed FY 2020/21 Fee Adjustment, Reclassification, and Deletions