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2 <br /> THE CITY OF <br /> in <br /> pLEAASANTON. CITY COUNCIL AGENDA REPORT <br /> April 7, 2015 <br /> City Manager <br /> TITLE: REVIEW UPDATE OF USER FEES FOR DEVELOPMENT RELATED <br /> SERVICES <br /> SUMMARY <br /> In 2009 as part of the streamlining of development services and the review of the City's <br /> cost of services in the General Fund, the City hired Public Resource Management <br /> (PRM) to conduct a comprehensive study (Study) of the user fees charged by the <br /> divisions within development services (i.e., building and safety, fire prevention, <br /> engineering and planning). Staff brought forward the recommendations from the Study <br /> for City Council approval in 2011 and at that time Council decided to postpone <br /> implementation of the recommended fee increases until the economy improved. Since <br /> that time, the economy has improved and development activity in the City has <br /> increased. Based on this, staff is once again bringing forth the review and has updated <br /> the findings from 2007/08FY to the current budget year (2014/15FY). The majority of <br /> the City's development related user fees have not been increased since the late 1980's. <br /> Since that time the consumer price index has increased 91.9% and the Engineering <br /> News Record Construction Cost Index (ENR-CCI) has increased 84.5%. Based on the <br /> updated review prepared by staff, the City will recover approximately 48% of the cost of <br /> development related services in 2014/15FY. Most cities in California, including <br /> Pleasanton, have a goal or policy of 100% cost recovery for development related <br /> services. The Study recommended that the City increase their cost recovery rate overall <br /> to approximately 88% and by doing this it would generate approximately $3.4 million in <br /> additional fee revenues. Staff decreased some of the recommended fee increases <br /> based on input from Council and the business community during discussions in 2011. <br /> Staff is now estimating the increase in revenue from the implementation of the proposed <br /> fee increases, assuming all proposed fee increases are implemented and development <br /> activity continues at its current level to be approximately $2.7 million for a 79% cost <br /> recovery rate. Staff reviewed the findings with the Finance Committee of the Council <br /> (Vice Mayor Brown and Councilmember Olson) (February 25, 2015) prior to bringing <br /> this item forward for Council's consideration. <br /> RECOMMENDATION <br /> Staff and the Finance Committee recommend the City Council review the recommended <br /> increases in user fees for development related services and direct staff to review the <br /> findings and recommendations with the Pleasanton Chamber of Commerce and the <br /> City's Economic Vitality Committee; incorporate their comments in the report and return <br /> to the City Council in June, 2015 with a recommended updated Master Fee Schedule <br /> for Council's approval. <br /> Page 1 of 9 <br />