Exhibit CC 04-05-2016 Item No. 11 Proposed Fee Schedule FY 16-17 •
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FY 16-17 Proposed Fee
Schedule
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CUPERTINO
Jaqui Guzman, Assistant to the City Manager
Types of General Services
Both "Global"and
"Global" Specific Primary Benefit to an
Community Benefit Group/Individual Individual/Group
Benefit
• Police • Recreation/ • Building Permits
• Park Maintenance Community Services • Planning and Zoning
• Neighborhood • Fire Suppression/ Approval
Watch Prevention • Site Plan Review
• Engineering
Development Review
• Facility Rentals
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Findings - Development
Fee-Related Annual Surplus/ Current Fee
Division Revenue Cost Deficit Cost Recove
Buildin• $2,224,555 $2,983,276 $(758,722) 75%
• $527,765 $634,520 $(106,755) 83%
Plannin• $517,406 $1,018,683 $(501,277) 51%
This is the total revenue for fee related services and has been calculated utilizing workload and volume statistics provided by the
Department and current fee information.
This represents fee-related annual costs for providing services,including indirect overhead costs.
The revenue for building is annualized based upon about 70",01 permit volume data that could be translated.30%of permit volume
data was classified as general residential and commercial permits and could not be broken out into the appropriate fee categories.
Findings - Recreation
•
Current
FY 15 Direct+Indir Surplus/ Fee Cost
De.artment Revenue ect Cost Deficit Recover
Recreation&
•
Community Services $5,719,171 $13,748,454 $(8,029,283) 42%
FY 14!!15 Actual Revenue received by the Recreation and Community Services Department.
This represents FY 2014-15 expenditures in the Recreation and Community Services Department,including indirect
overhead costs.
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Comparison to Industry Standards
120% Current Cost Recovery vs.Typical Cost Recovery
100% 1 —
80% —M.
75% 83%
60% Iff typical Cost
Recovery
40%
51% 42%
20% —
0% r
Building Planning Public Works Parks&Rec
Key Take-Aways
Cupertino's development-related cost-
recovery levels are low compared to
what is typically seen
• Cupertino is currently subsidizing
development-related activities using
General Fund tax dollars, contrary to
Council directives
■ Without proper cost recovery,
adequate resources are not in place to
meet demands for services
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Recommendations
Fee increases are proposed at cost-
recovery levels for most Building,
Planning, Engineering, and General
services.
Some market-based increases in
Recreation
Restructuring of some fees in Building
and Engineering
Elimination of obsolete fees
Recommendations - General
Fees
Where applicable, fees are proposed to fully
recover the cost of service
• state regulated fees, penalties, and services with
community benefit
Administrative fee increase from 10% to 15%
PLEASE NOTE: 2 typos
• Solicitor Permit Renewal is $62
• Taxi Driver Permit Renewal is $62 (down from
$199)
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Recommendations - Engineering
Full cost-recovery with the exceptions:
• State-regulated fees
• Storm Drain fees (reviewed in 2012)
are proposed to increase by the CPI
(3.2%)
• Fully subsidizing - Block Parties (a
cost of $695 plus staff time) and
Permit Parking Bi-Annual Passes
($8)
13 fees proposed for deletion with some
restructured, others deemed obsolete
Recommendations - Planning
Full cost-recovery with subsidies for:
• Minor Architectural and Site
Approval
• R-1 permits
• Reasonable Accommodation
• Tree Removal Permits
• Appeals
Housing mitigation fee increases are
based on the Below Market Rate
Housing Mitigation Procedural Manual
approved by Council in 2015
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Recommendations - Building
Full cost Recovery
Restructured based on
construction material type
Reduce Solar Multi-Family
Residential/Commercial
Permits by $200
Recommendations - Recreation
Restructuring of current tiered facility
use fees to simplify client categories
Group Pro.osed Cate!ones Current Categories
Group 1 Non-Profit Cupertino Nonprofit
Non-Resident Non.rofit
Group 2 Resident Residents
Cu.ertino Business
Group 3 Non-Resident Non-Resident
Non-Resident Business
Increases proposed for some picnic areas,
swim passes, and green fees
• Have not been increased in over 10 years.
,a New fees for Environmental Education Center
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Proposed Cost Recovery Levels (estimate)
Current/Proposed Cost Recovery vs.Typical Cost Recovery
120% _ Proposed
100% 95% Cost
100°a Recovery
80%
80%
75% 83% — Current
60% ----- - Cost
Recovery
40%
51% 42% 45%
—■ BuTypical Cost
20% _ _ Recovery
0%
Building Planning Public Works Parks&Rec
Next Steps
• Comprehensive fee study every 7 years
• Annual fee schedule adjusted based on
• CPI for cost of materials
• Changes in Cupertino's labor costs
for staff time
• Update time estimates every 2-3 years
• Council to consider changes as part of
the annual budget process
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Community Outreach
Notification — 2 legal ads 10 days
before the meeting in the Cupertino
Courier
Meetings with nonprofit organizations:
Rotary Club, Chamber of Commerce,
YMCA, and other high volume rental
facility clients
Chamber Legislative Action
Committee presentation on April 1 ,
2015
Questions?
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