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THE CITY OF 9/� ^ Eagle I pLEASANTON. CITY COUNCIL AGENDA REPORT June 16, 2015 City Manager TITLE: APPROVAL OF UPDATE OF USER FEES FOR DEVELOPMENT RELATED SERVICES SUMMARY In 2009 as part of the review of the City's cost of services in the General Fund, the City hired Public Resource Management (PRM) to conduct a comprehensive study (Study) of the user fees charged by the divisions within development services (i.e., building and safety, fire prevention, engineering and planning). Staff brought forward the recommendations from the Study for City Council approval in 2011 and at that time Council decided to postpone implementation of the recommended fee increases until the economy improved. Since that time, the economy has improved and development activity in the City has increased. Based on this, staff updated the findings from 2007/08FY to the current budget year (2014/15FY). The City's user fees have not been increased since the late 1980's. Since that time the consumer price index has increased 91.9% and the Engineering News Record Construction Cost Index (ENR-CCI) has increased 84.5%. Based on the updated review prepared by staff, the City will recover approximately 48% of the cost of development related services in 2014/15FY. The City's General Plan fiscal policy is 100% cost recovery for development related services. The 2009 study recommended that the City increase their cost recovery rate overall to approximately 88% and by doing this it would generate approximately $3.4 million in additional fee revenues. Staff decreased some of the recommended fee increases based on input from Council and the business community during discussions in 2011 and in 2015. Staff is now estimating the increase in revenue from the implementation of the proposed fee increases, assuming all proposed fee increases are implemented and development activity continues at its current level to be approximately $2.7 million for a 79% cost recovery rate. Prior to bringing this item forward for Council's consideration, staff reviewed the findings with the Chamber of Commerce (Economic Development and Government Relations Committee) on April 28, 2015 and the Economic Vitality Committee on May 20, 2015. RECOMMENDATION Staff and the Audit Committee of the Council recommend the City Council approve by resolution the Master Fee Schedule for development related services to be effective sixty days after adoption (8/17/2015). Page 1 of 10