HomeMy WebLinkAboutCC AG PKT 2012-05-29 - Study Session STUDY SESSION-
AGENDA STAFF REPORT - := f
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DATE: May 29, 2012
TO: Honorable Mayor and.City Council
THRU: Jill R. Ingram, City Manager
FROM: Shally Lin, Interim Finance Director
SUBJECT: COST ALLOCATION PLAN AND PROPOSED
COMPREHENSIVE USER FEE
INCREASES/REVISIONS
SUMMARY OF REQUEST:
That the City Council authorize revisions to the 2012/2013 Proposed Fee
Schedule (redline version).
BACKGROUND AND ANALYSIS:
On June 13, 2011 the City Council approved the Matrix Consulting Group
contract to perform the Cost Allocation Plan and Comprehensive Fee Study. The
Consultant met with staff to discuss central services and receivers of services,
determine major services/functions provided, and allocate staff and departmental
costs to functions based on time estimates.
The Consultant determined fair and equitable bases for distribution of cost from
data collected. The final documentation and results were presented to staff for
review.
At the March 12th Cost Allocation Plan and Comprehensive Fee Resolution
review study session, the City Council directed staff to place on the agenda a
public hearing for consideration of the City's comprehensive fees that may be
adjusted annually on July 1st of each year in accordance with the increase in the
Consumer Price Index, at the discretion of the City Council. The Cost of
Services Study was also approved at this study session.
The "Consumer Price Index" means the revised consumer price index for All
Urban Consumers, Los Angeles-Long Beach-Anaheim, 1967 = 100, as prepared
by the Bureau of Labor Statistics of the United States Department of Labor, or if
any such agency shall cease to prepare such an index, then any comparable
index covering the Los Angeles and Orange County areas prepared by any other
Agenda Item Study Session
federal or state agency that is approved by the City Council. This would be
calculated from the period of December to December. The December 2011 CPI
was 2.2% (Resolution No. 6249 adopted 04/23/2012).
Staff used the 2.2% CPI as the basis to calculate majority of the fees; In addition,
staff contacted other agencies to inquire about their fee schedules and used
recommendations from the Matrix Consulting Group report to assist them with
determining the City fee schedule for July 1, 2012.
ENVIRONMENTAL IMPACT:
There is no Environmental Impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved as to form.
FINANCIAL IMPACT:
If Council approves the 2012/2013 Proposed Fee Schedule Red Line Version,
the following revenues are estimated to increase as follows:
Business License: $13,200
Parking Permits (avg. increase 10%) $13,500 (cost of production actual permit)
Charges for Services $5,911
Due to economic conditions, certain revenues cannot be projected.
RECOMMENDATION:
Authorize revisions to the 2012/2013 proposed Fee Schedule (redline version).
Staff will submit the actual Comprehensive User Fee Schedule to be adopted by
the City Council at the June 25, 2012 Council meeting.
SUBMITTED BY: NOTED AND APPROVED:
Pit
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Nally Lir) WR. Ingram, City ager
Interim Director of Finance
Attachments:
A. Redline—Comprehensive User Fee Schedule(under separate cover)
Page 2
Attachment "A"
Redline — Comprehensive User Fee
Schedule
(Available for review at the City Clerk's Office)
Page 3