REPORT TO THE CITY COUNCIL
November 6, 2014
FROM: R. RENENA SMITH, Assistant City Manager
BY: JANE SUMPTER, Budget Manager
Budget and Management Studies Division
SUBJECT
Title
***RESOLUTION - 521st amendment to the Master Fee Schedule ("MFS") Resolution No. 80-420 to add, adjust, revise or delete various fees
Body
RECOMMENDATIONS
It is recommended that the Council approve the 521st Amendment to the MFS Resolution No. 80-420.
EXECUTIVE SUMMARY
In prior years, the annual revision of the MFS was presented along with the Mayor's Proposed Budget. In changing the timing of the annual update, staff will be able to include the fee adjustments in the revenues estimated for the coming fiscal year. These updates include changes presented by the departments exclusive of UGM impact fees and development fees which will be presented to Council individually by the responsible department.
The attached resolution to adopt the 521st Amendment to the MFS Resolution No. 80-420 addresses fee changes, and annual routine revisions to the following departments: Airports, Parks, After School, Recreation and Community Services, Development and Resource Management and Public Utilities.
BACKGROUND
The annual revision of the MFS is being presented at this time to enable any adjustments approved by Council to be incorporated into the planning of next year's budget. Staff will proceed with estimating revenues for FY 2016 based on the adoption of these updates to the schedule. The following narrative details the proposed fee adjustments by department; a summary schedule of changes is also included.
Airports: The department is proposing to adjust Airway Golf Course Green Fees. This is not the annual adjustment required by the contract; those changes, to adjust the fees by the current CPI, will continue to be brought to Council after the updated CPI is available. This proposal was brought forward to "re-set" the current fee structure to better compete in the marketplace in certain fee categories. These changes, if adopted, will be effective January 1, 2015. The adjustments include:
· New weekday and weekend rates for nine-hole play; active military and for super twilight play. The nine-hole rate is offered by many courses; it is believed this new offering will help to drive additional rounds, as time is a limiting factor in today's market. The military discount is limited to active duty personnel only and is in response to many requests over the years. The "super twilight" fee of $10 will be offered after 4pm Pacific Standard Time and 5pm Pacific Daylight Time.
· Decreases are proposed in some tournament fees, senior and junior monthly and the frequent player surcharge. According to the department, these are to help Airways compete with other courses for tournament play and to bring its price structure in line with Riverside.
· There is also a proposed increase to the senior surcharge, however combined with the decrease in the senior monthly card rate the net result will be a decrease to the customer.
· There is one text change proposed, amending the Common Use Area Charge fee.
Parks, After School, Recreation & Community Service: PARCS is proposing various adjustments to their fee schedule which are described below.
· Riverside Municipal Golf Course Green Fees are being adjusted per the lease agreement, with the fees increase based on the June 2014 CPI. The increase totals 1.85 percent. These fees will be effective January 1, 2015.
· Deletion of certain fees, primarily due to the fee no longer being used by the department. Fees for the Japanese Garden photos and weddings are being deleted since by agreement these fees are collected by the Shinzen Friendship Garden Inc. and are retained by them for capital improvements to the garden. Fees for the Paintball Facility at the Regional Sports Complex are being deleted since these fees are set by contractual agreement with the concessionaire, subject to approval by the PARCS Director.
· Increases are proposed in the entrance fee to the Shinzen Garden to help off-set increasing operating and maintenance costs; in this instance, the City does retain all entrance fee revenue. If the increased revenue estimates are achieved, the new fees will allow for a cost recovery of 80 percent. Currently, cost recovery is at 56 percent.
· Increase in the entrance fee for special days is proposed because certain holidays result in vastly increased impacts at all three regional parks. This additional traffic causes an increased need for custodial services and security. In order to keep the parks in optimal condition for all citizens, an additional charge of $2 per vehicle is proposed for the following holidays: Easter, Cinco de Mayo (closest weekend), Mother's Day, Memorial Day, Father's Day, Independence Day (observed) and Labor Day. The increased revenues generated, estimated at $15,000 annually, would be used to fund additional security and janitorial services at the regional parks during and after the specified days.
· Also proposed is an adjustment to the Regional Parks Vehicle Pass. When the entrance fees were adjusted in FY 2013, no change was made to the annual pass fees. The original pricing of the annual pass was structured so that it would pay for itself within ten visits to the park. Currently it is recovered in eight visits. This adjustment will return to the approved pricing structure. Also, the FERA individuals' entrance rate is also being increased to remain at half the regular fee. The remaining increases are to aid cost recovery and reduce the General Fund subsidy of these activities.
· Text changes are proposed for the following:
o Consolidate the three entries for the regional parks entrance fees into one entry; since all the fees are the same, separate entries are not required. There is no change in the actual fee amount;
o Changing fee name from Roeding Park Tennis Courts to Tennis Courts to allow for rental of other City owned courts at various parks; and
o Consolidate fees from 1) instructional camps, and classes under action sports, 2) youth sports camps and 3) instructional leagues, with day camps to allow flexibility in the pricing of camps to cover a wider variety of camp offerings.
Development and Resource Management: The department submitted two fee adjustments which are annual adjustments to State of California fees and are pass-throughs to the state.
Public Utilities (Wastewater Management Division): The division is deleting text allowing a grace period from the Administrative Cost Recovery Charges, per a recommendation from the U.S. Environmental Protection Agency and the Central Valley Regional Water Quality Control Board.
Public Utilities (Solid Waste Management Division): The division is proposing to adjust the Container Exchange fee; Container Exchange for 64 & 96 gallon container fees; Solid Waste Special Hauls and Foreman's Charge fee. Each of these adjustments is based on cost of service. Also, the division will delete the Container Exchange fee; this was a fee tied to the commercial operation and was overlooked when the other commercial fees were deleted.
The attached resolution amends the MFS Resolution No. 80-420 per these proposed fee changes and annual routine revisions.
ENVIRONMENTAL FINDINGS
By definition in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the update of the MFS does not qualify as a "project" as defined by CEQA.
LOCAL PREFERENCE
Local preference not implemented because no "local business" participate in the MFS update.
FISCAL IMPACT
The FY 2016 budget will be built on the assumption that the fees contained in the 521st Amendment will be implemented. The effective date of this MFS amendment is July 1, 2015 unless otherwise noted.
Attachments:
Master Fee Schedule Summary
521st Amendment to the Master Fee Schedule Resolution