Approve Comprehensive Fee & Fine Schedule FY 2014/15we F MEETING DATE: 3/24/14
ITEM NO: 3J3
Boa subs COUNCIL AGENDA REPORT
DATE: March 17, 2014
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ADOPT RESOLUTION APPROVING THE COMPREHENSIVE FEE AND
FINE SCHEDULE FY 2014/15 TO CONTINUE AND AMEND VARIOUS
TOWN FEES, RATES, FINES AND CHARGES FOR FY 2014/15
RECOMMENDATION:
After opening and closing the required public hearing, adopt the attached resolution approving
the Comprehensive Fee and Fine Schedule FY 2014/15 to continue and amend various Town
fees, rates, fines and charges for FY 2014/15.
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 benefit above and beyond services offered to residents at general taxpayer expense.
Annually, the Council adopts a Comprehensive Fee Schedule, which lists all of the Town fees.
This year staff proposes to include fines as well to form one comprehensive fee and fine
schedule.
Staff periodically reviews the cost of providing fee -based services and, if supported by cost data,
fee modifications are recommended. The last user fee study was completed in April 2010. The
purpose of the study was to review the Town's fee schedule, calculate the total cost of fee -
generating services, analyze the cost recovery levels for each fee, and provide recommendations
on how to reclassify or adjust fees annually. The analysis also included a comprehensive cost
allocation study to determine the proper assignment of administrative overhead rates. While all
Town fees were evaluated, the user fee study primarily focused on Community Development
(Planning and Building), Engineering, Police, and other administrative fees.
DISCUSSION:
The Comprehensive Fee Schedule allows for an annual adjustment of fees by the average
increase in the Consumer Price Index (CPI) for the previous calendar year. The average increase
PREPARED BY: Stephen Conway, Administrative Services and Finance
Reviewed by:
Town Manager _bwn Attorney Finance
NAMGRNAdminWorkFi1m\2014 Council Re rtsVNarch 24NFee Schedule 2014 15 Council Reportdocx
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PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING THE COMPREHENSIVE FEE AND
FINE SCHEDULE FY 2014/15 TO CONTINUE AND AMEND VARIOUS
TOWN FEES, RATES, FINES AND CHARGES FOR FY 2014/15
March 17, 2014
in CPI for 2013 was 2.3 %. In addition, the attached schedule incorporates Town Fines to form
one comprehensive fee and fine schedule. Attached for Council reference is an updated and
recommended FY 2014/15 Comprehensive User Fee and Fine Schedule (Attachment 2)
reflecting all Town fees and fines (including proposed changes) and an itemized list of
recommended FY 2014/15 fee adjustments, reclassifications, and deletions, including those to be
adjusted by the average Consumer Price Index (CPI) (Attachment 3).
The proposed FY 2014/15 Comprehensive Fee and Fine Schedule accounts for modifications to
fees, including Administrative, Development, Police Fees, and Fines as explained below:
Administrative
At this time staff is not recommending any changes to Administrative Fees. However, changes
are anticipated by next fiscal year regarding credit card payment fees.
The Town of Los Gatos began accepting credit card payments from walk -in customers in August
2008. The 2010 Comprehensive Fee study established a Credit Card Fee of 1.62% of the
transaction, which was included in the fee schedule, but has not been enforced because the law
concerning public agencies charging such a fee was not clear.
Since 2008, increasing number of residents and businesses are paying by credit card. While
acceptance of credit card payments is a convenience to the customer, the rapid growth correlates
into an increased cost to the Town as the Town is currently absorbing credit card transaction
fees. Almost four times more revenues were collected through credit card payments from FY
2008/09 ($486,474) to FY 2013/14 ($1,842,279). Correspondingly, the credit card fees absorbed
by the Town during this same period rose from $11,000 in FY 2008/09 to an estimated $36,500
in 2013/14. Due to additional online payment options being pursued by the Parks and Public
Works and Library Departments, staff estimates that credit card payments will continue to rise.
Staff has surveyed other Santa Clara County cities to determine to what extent they are passing
on credit card surchages to their customers. The comparisons are difficult in that all jurisdictions
differ in services provided and various online payment options offered; however, staff did
identify that some Silicon Valley cities are now collecting fees for credit card usage in certain
circumstances, ranging from 4.35% of a charge to a flat $2.00 administrative collection fee.
Unless Council directs otherwise, staff will return next fiscal year with a recommended charge
based on a regional study of this practice to be conducted this summer by Stanford students in
consultation with San Jose, Los Gatos and other municipalities.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING THE COMPREHENSIVE FEE AND
FINE SCHEDULE FY 2014/15 TO CONTINUE AND AMEND VARIOUS
TOWN FEES, RATES, FINES AND CHARGES FOR FY 2014/15
March 17, 2014
Development
Development Fees have been modified to add fees to the schedule that were previously adopted
but not included in the Comprehensive Fee Schedule. The newly listeed fees are described
below:
Firearms Dealer Permit — Approved by Town Council and adopted in Town Ordinance
2217 on August 5, 2013, the regulatory firearms dealer permit fee includes both a
Planning Division and Police department fee. Staff anticipates that one firearms dealer
permit will be requested annually for anticipated revenue of $4,092.
2. Community Benefit — No standard schedule is proposed. A community benefit is offered
and applied per project when required. The policy regarding Community Benefit is
currently under discussion by the Town Council.
3. Below Market Price Housing Program In -Lieu Fee — Approved by Town Council
(Resolution 2009 -108), this fee is 6 % of the building permit valuation for the entire
project.
Parks and Public Works
The Parks and Public Works Department is recommending inclusion of the following fees in the
schedule as described below:
1. Traffic Impact Mitigation Fees — This fee, adopted in 1994, was not previously included
on the Comprehensive Fee Schedule. In addition, modifications may be made based on
Council discussion and direction on the preceding agenda item.
2. The Electric Vehicle Charging Fee — This fee was not included on the previous fee
schedule. Per the 12/6/2010 staff report, Council gave direction to staff to work with the
electric vehicle charging station vendor to develop a billing rate schedule. Currently, the
fee is a $3.00 flat fee per transaction.
Police
The Police Department is recommending a fee modification for the Commercial Alarm
Registration Fee as described below:
1. Commercial Alarm Registration Fee —In September 2009, the Town Council approved a
sliding fee schedule for false alarm calls. The Town of Los Gatos Police Alarm
Ordinance section 14.50.010 addresses police alarm fees for false alarms, payment,
appeals and no response status. The $50.00 commercial alarm registration fee is an
update to the fee schedule to reflect this previously authorized fee.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING THE COMPREHENSIVE FEE AND
FINE SCHEDULE FY 2014/15 TO CONTINUE AND AMEND VARIOUS
TOWN FEES, RATES, FINES AND CHARGES FOR FY 2014/15
March 17, 2014
Fines /Penalties
As previously mentioned, the staff has combined the Comprehensive Fee Schedule with existing
Fines and Penalties to provide one comprehensive fees and fines document for annual review.
Staff recommends incorporation of the following fines:
1. Single use carry -out bags —Chapter 11 of the Los Gatos Town Code was amended on
September 3, 2013 to add new fines for violation of the new single use carry-out bags
ordinance of $100 for the first violation, $200 for the second violation within one year,
and $500 for each additional violation within one year.
2. Park Fines — The Comprehensive Fee and Fine Schedule now includes fines for prohibited
acts within parks, dogs off leash, sanitation requirements, vehicles in parks and other
various park related fines. These fines were all previously established by resolution 2004-
97 and were updated on February 3, 2013. These fines range from $50 to $100 per
violation.
3. Off Street Parking: Electric Vehicles — The Town is adopting a fine for Vehicle Code
Section 22511.1 to provide enforcement of vehicles parked or left standing in a stall or
space designated pursuant to Section 22511 unless the vehicle is connected for electric
charging purposes.
4. Non - Permit Fine — Section 28 of the Town Code provides for issuance of a Certificate of
Public Convenience and Necessity for issuance of a taxicab driver's license and payment
of application fees and annual renewal fees in connection with a Taxi certificate and
license. Section 28 provides the Town the ability to enforce violations of noncompliant
passenger- for -hire vehicles. Town Code Section 28.20.255 establishes the non - permit fine
of $100.
CONCLUSION:
It is recommended that Town Council approve the recommended adjustments to the
Comprehensive Fee Schedule, including the incorporation of the Fines and Penalties into one
comprehensive document.
FISCAL IMPACT:
The Town's financial policies require that fees be maintained to provide for the recovery of costs
associated with Town services. The proposed fee adjustments reflect an increase in the CPI, and
therefore, better represent the cost to deliver services. Staff will incorporate the fee changes into
the Town's FY 2014 /15 Operating and Capital Budget using conservative activity projections.
Further fee increases will be brought to Council for its review during the budget process, to
move toward full cost recovery of fee -based services.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING THE COMPREHENSIVE FEE AND
FINE SCHEDULE FY 2014/15 TO CONTINUE AND AMEND VARIOUS
TOWN FEES, RATES, FINES AND CHARGES FOR FY 2014/15
March 17, 2014
Attachments:
1. Resolution approving the Comprehensive Fee and Fine Schedule FY 2014/15, to continue
certain and amend various Town fees, rates, fines and charges for FY 2014/15.
2. Proposed FY 2014/15 Comprehensive User Fee and Fine Schedule
3. Recommended FY 2014/15 Fee Adjustments, reclassifications, and deletions
THIS PAGE
INTENTIONALLY
LEFT BLANK
RESOLUTION NO. 2014 -
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE COMPREHENSIVE FEE AND FINE SCHEDULE FY 2014/15 TO
CONTINUE AND AMEND VARIOUS TOWN FEES, RATES, FINES AND CHARGES
FOR FY 2014/15
WHEREAS, the Town of Los Gatos financial policies require that the Town
establish and maintain all user charges and fees based on the cost of providing services; and
WHEREAS, the last update of the Town of Los Gatos Comprehensive Fee
Schedule was adopted on April 12013; and
WHEREAS, those fees currently in effect will remain in effect without interruption,
and certain of these shall be increased to reflect the increased cost of providing the respective
service.
WHEREAS, State law provides in Vehicle Code Section 40203.5 that parking
penalties shall be established by the governing body of the jurisdiction where the notice of
violation is issued; and
WHEREAS, Vehicle Section 22511.1 Off - Street Parking; Electric vehicle
prohibitions states that a person shall not park or leave a standing vehicle in a stall or space
designated pursuant to Section 22511 unless the vehicle is connected for electric charging; and
WHEREAS, with the establishment of a $100.00 fine associated with Vehicle Code
Section 22511.1 the Los Gatos /Monte Sereno Police Department can enforce parking violations
for stalling vehicles within the Town of Los Gatos.
WHEREAS, Town Code Section 28.20.255 Required; provides for issuance of a
Certificate of Public Convenience and Necessity for issuance of a taxicab driver's license and
payment of application and annual renewal fees in connection with a Taxi Certificate and
license; and
WHEREAS, with the establishment of a $100.00 fine associated with Town Code
section 28.20.255 certificate of Public Convenience and Necessity, the Los Gatos/Monte Sereno
Police Department can enforce violations of noncompliant passenger- for -hire vehicles.
ATTACHMENT 1
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS
GATOS DOES HEREBY RESOLVE:
1. That Resolution 2013 -004, "Resolution of the Town Council of the Town of
Los Gatos Adopting Continuing Department Fees, Rates, and Charges, and
Amending Certain Fees, Rates, and Charges" is hereby rescinded; and
2. The Town Council of the Town of Los Gatos, County of Santa Clara, State of
California, that the Town of Los Gatos hereby adopts a $100.00 fine to allow
enforcement of Vehicle Code Section 22511.1 Off - Street Parking: Electric
Vehicles: Prohibitions.
3. The Town Council of the Town of Los Gatos, County of Santa Clara, State of
California, that the Town of Los Gatos hereby adopts a $100.00 fine to allow
enforcement Town Code section 28.20.255 certificate of Public Convenience
and Necessity.
4. The Town Council of the Town of Los Gatos authorizes the fines to be added
to the Fees and Fines Schedule effective on July 1, 2014; and
5. The Town of Los Gatos Comprehensive Fee and Fine Schedule, attached
hereto as Exhibit A, shall become effective July 1, 2014.
PASSED AND ADOPTED at a special meeting of the Town Council held on the
24th day of March 2014 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
NAFINANCETee Schedu1e\2013- 14\Rm1ution.docx Attachment 1
RESOLUTION 2014-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING THE TOWN OF LOS GATOS
CONSTRUCTION ACTIVITY IMPACT MITIGATION FEES
WHEREAS, Chapter 15, Article IX of the Town of Los Gatos Town Code provides for
the mitigation of road impacts caused by construction projects; and
WHEREAS, the purpose of these fees is to assure that each new development or
expansion of use pays its fair share of the refurbishment needed to mitigate the impacts of
construction activities; and
WHEREAS, the Town Council adopted by resolution a construction activities mitigation
fee of one dollar per square foot added for both residential and non - residential development
effective July 1, 2010; and
WHEREAS, Section 15.90.035 (d) of the Town Code states that the dollar amount of the
adopted construction activities mitigation fee rates shall be adjusted on July 1 of each year to
account for changes in the cost of facilities; and
WHEREAS, no changes have been made since July 1, 2010 in the approved rates; and
WHEREAS, the increase in the Engineering News Record (ENR) Building Cost Index
for the San Francisco Region since July 2010 is 11.52 %; and
WHEREAS, Section 15.90.035 (d) of the Town Code cites the ENR Building Cost Index as the
benchmark for adjusting the Construction Activity Impact Mitigation Fee.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California that the Construction Activity Impact
Mitigation Fee shall be set at $1.12 per square foot added for new residential or non - residential
development.
ATTACHMENT
PASSED AND ADOPTED at a special meeting of the Town Council of the Town of
Los Gatos held on the 24`h day of March, 2014 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA