1 00:00:04,400 --> 00:00:06,080 Everybody's ready to go. Okay, let's 2 00:00:06,080 --> 00:00:08,320 start this meeting then. We'll call this 3 00:00:08,320 --> 00:00:10,800 Jeremy of the city council. 4 00:00:10,800 --> 00:00:13,280 All members except uh council member 5 00:00:13,280 --> 00:00:19,680 Lopez is present and u we'll have the workshop which is the master fee 6 00:00:19,680 --> 00:00:22,320 schedule presentation. And who wants to 7 00:00:22,320 --> 00:00:25,840 lead it off? You guys want to come up? Can you come up to the podium and I 8 00:00:25,840 --> 00:00:27,840 think you have a presentation? Not sure 9 00:00:27,840 --> 00:00:31,359 if Mikey's online or not. 10 00:00:31,359 --> 00:00:35,600 line and Mike, you there. 11 00:00:35,600 --> 00:00:37,440 >> Hey, John. Uh, hey, Mayor Drey, can 12 00:00:37,440 --> 00:00:38,320 everybody hear me? 13 00:00:38,320 --> 00:00:39,600 >> Yes, we can hear you. 14 00:00:39,600 --> 00:00:41,600 >> Okay, perfect. So, for tonight's 15 00:00:41,600 --> 00:00:44,640 presentation, we will be having Eric 16 00:00:44,640 --> 00:00:46,960 Johnson. He's the president of revenue 17 00:00:46,960 --> 00:00:49,840 cost services to be providing the 18 00:00:49,840 --> 00:00:52,399 PowerPoint presentation as well as 19 00:00:52,399 --> 00:00:55,039 Richard Wall from uh Special Legal 20 00:00:55,039 --> 00:00:57,600 Council from Best in Creger to help 21 00:00:57,600 --> 00:01:00,640 answer any other questions uh after the 22 00:01:00,640 --> 00:01:02,879 uh presentation. So Eric, if you'd like 23 00:01:02,879 --> 00:01:05,920 to go ahead and start, please do. 24 00:01:05,920 --> 00:01:07,520 >> Great. Thank you, Mikey. 25 00:01:07,520 --> 00:01:08,880 >> Thank you very much for being here. It's 26 00:01:08,880 --> 00:01:09,439 all yours. 27 00:01:09,439 --> 00:01:11,280 >> Great. Thank you. Well, good afternoon, 28 00:01:11,280 --> 00:01:12,720 uh mayor, members of the council. I am 29 00:01:12,720 --> 00:01:14,320 Eric Johnson from revenue and cost 30 00:01:14,320 --> 00:01:16,320 specialist. So it's good to be here to 31 00:01:16,320 --> 00:01:18,640 with you this afternoon this evening to 32 00:01:18,640 --> 00:01:20,479 present the cost of services study that 33 00:01:20,479 --> 00:01:22,880 we did for the city. So before we get 34 00:01:22,880 --> 00:01:24,880 into that just briefly a little bit 35 00:01:24,880 --> 00:01:27,200 about RCS revenue and cost specialist we 36 00:01:27,200 --> 00:01:29,759 are actually founded 1980 um with the 37 00:01:29,759 --> 00:01:31,840 wake of Proposition 13 and Proposition 4 38 00:01:31,840 --> 00:01:33,600 the founders realized the cities would 39 00:01:33,600 --> 00:01:35,200 need to know what their services cost. 40 00:01:35,200 --> 00:01:38,000 So since then we've studied u over 250 41 00:01:38,000 --> 00:01:40,159 agencies in five different states. I 42 00:01:40,159 --> 00:01:41,759 myself have been doing this in since 43 00:01:41,759 --> 00:01:44,000 1990 and I've worked with over almost 44 00:01:44,000 --> 00:01:47,280 150 agencies in in five states also. So 45 00:01:47,280 --> 00:01:49,439 this is what we do this these cost of 46 00:01:49,439 --> 00:01:52,479 services studies. So first off what is a 47 00:01:52,479 --> 00:01:55,360 cost study? So we've really recast the 48 00:01:55,360 --> 00:01:57,920 city budget with a business orientation. 49 00:01:57,920 --> 00:01:59,600 We did this because the voters told us 50 00:01:59,600 --> 00:02:02,719 to. In 1978 they passed Proposition 13 51 00:02:02,719 --> 00:02:04,640 which limited property taxes as we all 52 00:02:04,640 --> 00:02:06,880 know. Then a year later they passed 53 00:02:06,880 --> 00:02:09,200 Proposition 4 which said that fees that 54 00:02:09,200 --> 00:02:10,959 do not exceed the cost reasonably be 55 00:02:10,959 --> 00:02:13,520 born of providing the service are not 56 00:02:13,520 --> 00:02:16,160 considered taxes. They wanted government 57 00:02:16,160 --> 00:02:18,000 to act more like a business and know its 58 00:02:18,000 --> 00:02:20,239 cost. But while governmental accounting 59 00:02:20,239 --> 00:02:21,680 does a great job of identifying where 60 00:02:21,680 --> 00:02:23,280 the cost funds departments and 61 00:02:23,280 --> 00:02:25,280 divisions, it was never designed to 62 00:02:25,280 --> 00:02:28,480 identify the cost of services. 63 00:02:28,480 --> 00:02:31,200 So we had to create that information. 64 00:02:31,200 --> 00:02:32,959 So working with city staff, we identify 65 00:02:32,959 --> 00:02:34,720 what it costs, provide the full business 66 00:02:34,720 --> 00:02:36,720 cost of services to your customers, to 67 00:02:36,720 --> 00:02:40,229 the public. 68 00:02:40,239 --> 00:02:41,760 So there's no city council service. 69 00:02:41,760 --> 00:02:44,000 There's no city manager service. It's 70 00:02:44,000 --> 00:02:45,760 like when you go to the the grocery 71 00:02:45,760 --> 00:02:47,360 store and you buy a can of corn. You 72 00:02:47,360 --> 00:02:48,959 know when you buy that can of corn that 73 00:02:48,959 --> 00:02:51,200 it includes the cost of the farmer and 74 00:02:51,200 --> 00:02:53,680 the distributor and the trucker and the 75 00:02:53,680 --> 00:02:54,800 people at the grocery store and the 76 00:02:54,800 --> 00:02:56,160 chucker there in front of you. You know 77 00:02:56,160 --> 00:02:58,319 that. We've done that same kind of thing 78 00:02:58,319 --> 00:03:00,959 here. So the city council city manager 79 00:03:00,959 --> 00:03:03,200 overhead costs are part of the cost of 80 00:03:03,200 --> 00:03:06,319 providing that service. So when you so 81 00:03:06,319 --> 00:03:08,080 when we take a look at what is what are 82 00:03:08,080 --> 00:03:10,319 these costs that we're saying that 83 00:03:10,319 --> 00:03:12,239 you're providing to your customers, 84 00:03:12,239 --> 00:03:13,840 these are the full business costs 85 00:03:13,840 --> 00:03:15,360 including all these various overhead 86 00:03:15,360 --> 00:03:18,550 costs. 87 00:03:18,560 --> 00:03:20,319 So this is a comprehensive study. We've 88 00:03:20,319 --> 00:03:22,560 looked at user fees. We've looked at 89 00:03:22,560 --> 00:03:24,480 rents and use permits related to 90 00:03:24,480 --> 00:03:26,560 facility and ballfield rentals. We've 91 00:03:26,560 --> 00:03:28,000 looked at fines related to parking 92 00:03:28,000 --> 00:03:30,159 fines. This does not we are not looking 93 00:03:30,159 --> 00:03:32,319 at impact fees, inloo fees, utility 94 00:03:32,319 --> 00:03:34,560 rates, any form of grants or any form of 95 00:03:34,560 --> 00:03:38,720 taxes just these above services. 96 00:03:38,720 --> 00:03:40,159 So of course there are many good reasons 97 00:03:40,159 --> 00:03:42,640 to review these user fees. You want to 98 00:03:42,640 --> 00:03:44,400 update your current fees to be able to 99 00:03:44,400 --> 00:03:45,840 reflect what you're currently doing 100 00:03:45,840 --> 00:03:48,720 today. And we also looked at adding, 101 00:03:48,720 --> 00:03:51,040 removing, and redefining fees to again 102 00:03:51,040 --> 00:03:53,840 reflect what you're doing today. Want to 103 00:03:53,840 --> 00:03:55,120 make sure they're legally defensible. 104 00:03:55,120 --> 00:03:57,200 they do not exceed the cost reasonably 105 00:03:57,200 --> 00:03:59,680 born of providing the service. In some 106 00:03:59,680 --> 00:04:01,200 cases, we look at the revenue collection 107 00:04:01,200 --> 00:04:03,120 when we're taking a look at how is this 108 00:04:03,120 --> 00:04:05,599 fee currently performing. And there is 109 00:04:05,599 --> 00:04:07,360 many fees here that are more market 110 00:04:07,360 --> 00:04:09,200 oriented, especially your human services 111 00:04:09,200 --> 00:04:10,480 fees that we'll talk about a little 112 00:04:10,480 --> 00:04:13,120 later. 113 00:04:13,120 --> 00:04:14,799 As I mentioned, we're doing all this 114 00:04:14,799 --> 00:04:17,440 because the voters told us to. 115 00:04:17,440 --> 00:04:20,160 In pro in 1979 they passed proposition 4 116 00:04:20,160 --> 00:04:22,479 as I mentioned defined service fees as 117 00:04:22,479 --> 00:04:24,960 being limited to the full cost providing 118 00:04:24,960 --> 00:04:27,440 the service. Rents and fines are exempt 119 00:04:27,440 --> 00:04:30,479 from cost recovery limitations. In 1996 120 00:04:30,479 --> 00:04:32,960 they passed Proposition 218 which placed 121 00:04:32,960 --> 00:04:34,560 limits on the creation updates of 122 00:04:34,560 --> 00:04:37,040 certain property related fees. And then 123 00:04:37,040 --> 00:04:40,080 in 2010 they passed Proposition 26 which 124 00:04:40,080 --> 00:04:41,919 codified a lot of existing kind of fee 125 00:04:41,919 --> 00:04:44,479 setting practices as article 13C of the 126 00:04:44,479 --> 00:04:46,560 state constitution. But it also said 127 00:04:46,560 --> 00:04:48,639 that fees must be for for a service 128 00:04:48,639 --> 00:04:53,040 directly benefiting the fee payer. 129 00:04:53,040 --> 00:04:55,680 So how do we go about doing this? Well, 130 00:04:55,680 --> 00:04:57,840 our first step was to sit down with 131 00:04:57,840 --> 00:04:59,199 staff in all the various different 132 00:04:59,199 --> 00:05:00,720 departments and identify what are the 133 00:05:00,720 --> 00:05:01,759 services that you're currently 134 00:05:01,759 --> 00:05:04,720 providing. Talk about services I've seen 135 00:05:04,720 --> 00:05:06,639 in other places that maybe you want to 136 00:05:06,639 --> 00:05:08,720 add here. And we went through that list 137 00:05:08,720 --> 00:05:10,560 a couple of times to make sure that this 138 00:05:10,560 --> 00:05:11,919 is what we want to take a look at. These 139 00:05:11,919 --> 00:05:13,680 are the services that we're providing in 140 00:05:13,680 --> 00:05:15,840 each department. We then sat down with 141 00:05:15,840 --> 00:05:18,479 the departments again and in many cases 142 00:05:18,479 --> 00:05:20,320 many many meetings who's spending time 143 00:05:20,320 --> 00:05:22,479 on these services how much time is being 144 00:05:22,479 --> 00:05:24,960 spent how many of these are you doing in 145 00:05:24,960 --> 00:05:26,880 some cases in in planning area we broke 146 00:05:26,880 --> 00:05:28,960 it out into steps because there are many 147 00:05:28,960 --> 00:05:29,919 different steps in a planning 148 00:05:29,919 --> 00:05:32,000 application so we broke out all the 149 00:05:32,000 --> 00:05:33,680 various different steps identified time 150 00:05:33,680 --> 00:05:36,000 to it and then we also looked at how 151 00:05:36,000 --> 00:05:37,680 many of these you're doing so we could 152 00:05:37,680 --> 00:05:39,840 look at what does all that time add up 153 00:05:39,840 --> 00:05:42,080 to have we made sure that we're not 154 00:05:42,080 --> 00:05:43,919 allocating time that doesn't exist 155 00:05:43,919 --> 00:05:45,120 everyone everyone everyone only has so 156 00:05:45,120 --> 00:05:47,039 many hours they can work a year and so 157 00:05:47,039 --> 00:05:49,680 we reviewed that with that lens also. So 158 00:05:49,680 --> 00:05:52,000 not just how much time for one but 159 00:05:52,000 --> 00:05:53,759 what's that total time. So we added up 160 00:05:53,759 --> 00:05:56,160 and allocated 100% of the of the time 161 00:05:56,160 --> 00:06:00,639 for all positions doing something some of the time on fee services some of 162 00:06:00,639 --> 00:06:02,479 the time on what what we call tax 163 00:06:02,479 --> 00:06:03,759 supported services that we'll talk about 164 00:06:03,759 --> 00:06:06,080 in a moment some of the time on on on 165 00:06:06,080 --> 00:06:07,520 cost allocation plan services 166 00:06:07,520 --> 00:06:08,880 administrative services providing 167 00:06:08,880 --> 00:06:10,160 support to the other parts of the 168 00:06:10,160 --> 00:06:13,039 organization. 169 00:06:13,039 --> 00:06:15,360 We then developed a fully allocated 170 00:06:15,360 --> 00:06:17,680 hourly rate for every position. So we 171 00:06:17,680 --> 00:06:19,280 looked at the actual salaries for each 172 00:06:19,280 --> 00:06:20,560 position. We looked at the actual 173 00:06:20,560 --> 00:06:22,479 benefits for each position. We looked at 174 00:06:22,479 --> 00:06:24,319 the adopted budget for the non-personnel 175 00:06:24,319 --> 00:06:25,759 expenses, things like office supplies 176 00:06:25,759 --> 00:06:28,240 and contract services. 177 00:06:28,240 --> 00:06:29,680 Then we also looked at the overheads, 178 00:06:29,680 --> 00:06:31,199 citywide overhead where we allocated, we 179 00:06:31,199 --> 00:06:32,479 did a cost allocation plan where we 180 00:06:32,479 --> 00:06:34,479 allocated the the cost of city council 181 00:06:34,479 --> 00:06:36,720 and city manager and finance and city 182 00:06:36,720 --> 00:06:39,039 clerk and human resources and facility 183 00:06:39,039 --> 00:06:41,520 maintenance and um fleet maintenance, 184 00:06:41,520 --> 00:06:43,440 all those things that people need to be 185 00:06:43,440 --> 00:06:45,600 able to do their jobs. 186 00:06:45,600 --> 00:06:47,280 We also looked at departmental overhead, 187 00:06:47,280 --> 00:06:48,720 in some cases divisional overhead for 188 00:06:48,720 --> 00:06:50,240 the administrative support provided 189 00:06:50,240 --> 00:06:52,639 within a department. So we added all 190 00:06:52,639 --> 00:06:54,240 that up together and we developed a 191 00:06:54,240 --> 00:06:56,000 fully allocated hourly rate for every 192 00:06:56,000 --> 00:06:57,840 position, a billing rate, a business 193 00:06:57,840 --> 00:07:00,720 rate for every position. We then matched 194 00:07:00,720 --> 00:07:02,880 that up with a time detail and now we 195 00:07:02,880 --> 00:07:05,199 know what it costs provide that service. 196 00:07:05,199 --> 00:07:06,720 So then we went back to the departments 197 00:07:06,720 --> 00:07:08,960 and said here's the cost of the service, 198 00:07:08,960 --> 00:07:11,440 here's the current fee, and then here 199 00:07:11,440 --> 00:07:13,840 are some proposed fees. And then we went 200 00:07:13,840 --> 00:07:15,280 through that with the departments again 201 00:07:15,280 --> 00:07:16,800 a few times in in many of the 202 00:07:16,800 --> 00:07:20,000 departments to make sure that a a the 203 00:07:20,000 --> 00:07:21,919 information still looked good, but also 204 00:07:21,919 --> 00:07:24,160 that the fees that we're recommending 205 00:07:24,160 --> 00:07:26,240 here today are fees that if you were to 206 00:07:26,240 --> 00:07:28,319 adopt, they could use and go into place 207 00:07:28,319 --> 00:07:30,080 as something that would work at the 208 00:07:30,080 --> 00:07:34,950 counter if you chose to adopt them. 209 00:07:34,960 --> 00:07:37,120 So I mentioned tax services and fee 210 00:07:37,120 --> 00:07:38,639 services. 211 00:07:38,639 --> 00:07:40,720 tax services or what we call community 212 00:07:40,720 --> 00:07:42,720 supported services typically benefits 213 00:07:42,720 --> 00:07:45,120 the community as a whole 214 00:07:45,120 --> 00:07:46,720 and supported by tax dollars. Things 215 00:07:46,720 --> 00:07:48,800 like police and fire and streets and 216 00:07:48,800 --> 00:07:50,880 parks. Those things when people say what 217 00:07:50,880 --> 00:07:53,039 do my taxes pay for? This is what their 218 00:07:53,039 --> 00:07:56,639 taxes pay for. We also identify personal 219 00:07:56,639 --> 00:07:59,440 choice services, fee services. The 220 00:07:59,440 --> 00:08:01,360 customer is identifiable. The service is 221 00:08:01,360 --> 00:08:03,520 measurable. Most importantly, it 222 00:08:03,520 --> 00:08:05,759 benefits an individual or group and not 223 00:08:05,759 --> 00:08:08,080 the larger community. You can still 224 00:08:08,080 --> 00:08:09,599 choose to subsidize if it for whatever 225 00:08:09,599 --> 00:08:11,039 reason you as a council feel is 226 00:08:11,039 --> 00:08:13,520 appropriate. Planning fees, development 227 00:08:13,520 --> 00:08:15,360 fees, building fees, engineering fees 228 00:08:15,360 --> 00:08:18,000 are good examples of these types of user 229 00:08:18,000 --> 00:08:23,350 fees, personal choice services. 230 00:08:23,360 --> 00:08:26,000 So when we looked at this for 231 00:08:26,000 --> 00:08:27,520 Monontlair, we came up with this this 232 00:08:27,520 --> 00:08:30,720 subsidy here. But the difference between 233 00:08:30,720 --> 00:08:32,000 personal choice and and community 234 00:08:32,000 --> 00:08:33,839 supported, I'm kind of a picture person. 235 00:08:33,839 --> 00:08:35,599 So when I look at this, it makes a lot 236 00:08:35,599 --> 00:08:37,599 more sense to me. If we look at the 237 00:08:37,599 --> 00:08:39,200 yellow circle in the upper right, those 238 00:08:39,200 --> 00:08:41,760 are taxes. Taxes are there to support 239 00:08:41,760 --> 00:08:43,919 community supported services. In the 240 00:08:43,919 --> 00:08:46,000 upper left, we have fees and charges and 241 00:08:46,000 --> 00:08:47,600 they're designed to support personal 242 00:08:47,600 --> 00:08:49,920 choice services. But to the extent that 243 00:08:49,920 --> 00:08:51,839 the fee doesn't co cover the cost 244 00:08:51,839 --> 00:08:54,160 providing the service 245 00:08:54,160 --> 00:08:55,680 that co that money has to come from 246 00:08:55,680 --> 00:08:57,040 somewhere that services are being 247 00:08:57,040 --> 00:08:59,440 provided, the costs are occurring. So 248 00:08:59,440 --> 00:09:00,880 the only other place it can come from is 249 00:09:00,880 --> 00:09:03,920 tax dollars. 250 00:09:03,920 --> 00:09:06,720 So, we identified about a $7.9 million 251 00:09:06,720 --> 00:09:10,399 subsidy of fees that are that we've 252 00:09:10,399 --> 00:09:12,399 identified as personal choice services. 253 00:09:12,399 --> 00:09:13,839 Now, that's a big number. So, let's dive 254 00:09:13,839 --> 00:09:16,399 into that a little bit 255 00:09:16,399 --> 00:09:20,080 because you see at the bottom of that 256 00:09:20,080 --> 00:09:21,760 third column of numbers over we see the 257 00:09:21,760 --> 00:09:25,120 total subsidy $7.9 million. So we have 258 00:09:25,120 --> 00:09:27,200 community development subsidi being 259 00:09:27,200 --> 00:09:29,760 subsidized about 640,000. 260 00:09:29,760 --> 00:09:31,839 Um public safety, police and fire 261 00:09:31,839 --> 00:09:33,519 subsidi and code enforcement sub 262 00:09:33,519 --> 00:09:36,160 subsidized about 4.1 million. Human 263 00:09:36,160 --> 00:09:38,720 services about 3.1 million and 264 00:09:38,720 --> 00:09:41,120 administrative services about 60,000. 265 00:09:41,120 --> 00:09:42,720 Now if we look at the column on the far 266 00:09:42,720 --> 00:09:45,920 right, that's what we think with the fee 267 00:09:45,920 --> 00:09:47,279 recommendations that are in this report 268 00:09:47,279 --> 00:09:49,279 if you were to adopt is the revenue you 269 00:09:49,279 --> 00:09:51,600 would receive on an annual basis. It's a 270 00:09:51,600 --> 00:09:53,360 much smaller number. 271 00:09:53,360 --> 00:09:55,519 $736,000. 272 00:09:55,519 --> 00:09:57,200 And the reason for the difference, let's 273 00:09:57,200 --> 00:09:58,320 kind of walk through the reason for 274 00:09:58,320 --> 00:10:00,240 those differences. Community development 275 00:10:00,240 --> 00:10:03,839 services largely um 100% cost recovery, 276 00:10:03,839 --> 00:10:05,360 but there is one service in their 277 00:10:05,360 --> 00:10:07,120 general mainten general plan maintenance 278 00:10:07,120 --> 00:10:08,640 search charge where we recommended a 279 00:10:08,640 --> 00:10:10,959 subsidy that the development community 280 00:10:10,959 --> 00:10:13,839 pay for half of it and the the taxpayer 281 00:10:13,839 --> 00:10:15,360 pay for the other half of it. So that's 282 00:10:15,360 --> 00:10:18,079 about $100,000 difference in what we 283 00:10:18,079 --> 00:10:20,079 anticipate being the full cost. So 284 00:10:20,079 --> 00:10:22,560 that's why there's a difference. 285 00:10:22,560 --> 00:10:24,720 there on community development services, 286 00:10:24,720 --> 00:10:27,120 public safety services. There are things 287 00:10:27,120 --> 00:10:29,279 there are fee services in here which are 288 00:10:29,279 --> 00:10:31,600 not really designed to recover the full 289 00:10:31,600 --> 00:10:34,079 cost. Some of them are designed to get 290 00:10:34,079 --> 00:10:36,480 people's attention. Um code enforcement 291 00:10:36,480 --> 00:10:38,480 services, code enforcement inspections, 292 00:10:38,480 --> 00:10:42,399 police false alarm response. Um 293 00:10:42,399 --> 00:10:46,399 others are EMS response. There are EMS 294 00:10:46,399 --> 00:10:48,320 fees that are you currently have and 295 00:10:48,320 --> 00:10:49,680 we're making recommendations that 296 00:10:49,680 --> 00:10:51,600 change, but they're never designed to 297 00:10:51,600 --> 00:10:53,200 recover the cost of the program of a 298 00:10:53,200 --> 00:10:55,440 very large program like emergency um 299 00:10:55,440 --> 00:10:57,760 response, emergency medical response. 300 00:10:57,760 --> 00:10:59,279 So, there's still going to be a large 301 00:10:59,279 --> 00:11:01,120 subsidy there because this is one of 302 00:11:01,120 --> 00:11:02,959 those market based fees. You can't 303 00:11:02,959 --> 00:11:06,000 charge, you know, $5,000 for a response. 304 00:11:06,000 --> 00:11:09,120 Um it just it just won't work. Um we've 305 00:11:09,120 --> 00:11:10,640 also included engine company business 306 00:11:10,640 --> 00:11:14,240 inspections as a as a no fee service in 307 00:11:14,240 --> 00:11:16,000 here. Also, 308 00:11:16,000 --> 00:11:18,320 human services, as we all know, are very 309 00:11:18,320 --> 00:11:22,079 market based fees. They're they're a mix of providing services to 310 00:11:22,079 --> 00:11:24,320 the community as well as being services 311 00:11:24,320 --> 00:11:27,040 that you charge a fee for. So, there are 312 00:11:27,040 --> 00:11:28,560 some recommendations in here from for 313 00:11:28,560 --> 00:11:30,720 some modest changes and to better 314 00:11:30,720 --> 00:11:32,240 reflect what the department's doing 315 00:11:32,240 --> 00:11:35,040 today, but it's not designed to recover 316 00:11:35,040 --> 00:11:37,200 its cost. It's it's going to be 317 00:11:37,200 --> 00:11:39,519 subsidized um because otherwise, again, 318 00:11:39,519 --> 00:11:41,760 you can't charge $500 for a class. No 319 00:11:41,760 --> 00:11:44,480 one will come. Um, and so we wanted to 320 00:11:44,480 --> 00:11:45,839 be conservative here. Even though we 321 00:11:45,839 --> 00:11:52,240 recommended some some modest changes, we just put zero new revenue and let 322 00:11:52,240 --> 00:11:54,959 that uh that roll out to how it's going 323 00:11:54,959 --> 00:11:57,040 to roll out. And the administrative 324 00:11:57,040 --> 00:11:59,040 services are largely recovering their 325 00:11:59,040 --> 00:12:02,949 cost. Also, 326 00:12:02,959 --> 00:12:05,040 we are also recommending future 327 00:12:05,040 --> 00:12:07,519 increases for inflation be included in 328 00:12:07,519 --> 00:12:09,760 the resolution so that the city adopt a 329 00:12:09,760 --> 00:12:11,680 policy to increase fees annually for 330 00:12:11,680 --> 00:12:15,519 inflation based on the CPI so that on an 331 00:12:15,519 --> 00:12:18,720 annual basis you can have a two three 4% 332 00:12:18,720 --> 00:12:21,040 increase so that you don't get in a 333 00:12:21,040 --> 00:12:23,279 position where five years from now or 10 334 00:12:23,279 --> 00:12:24,639 years from now you have to make large 335 00:12:24,639 --> 00:12:26,639 increases to your fees. you've kind of 336 00:12:26,639 --> 00:12:29,200 kept up with it modestly to um keep up 337 00:12:29,200 --> 00:12:32,160 with your cost. 338 00:12:32,160 --> 00:12:36,399 Now, the report itself, 501 pages, um is 339 00:12:36,399 --> 00:12:38,880 a lot of information. And so, let me 340 00:12:38,880 --> 00:12:42,000 just kind of walk you through how to 341 00:12:42,000 --> 00:12:43,920 read the report and and get the 342 00:12:43,920 --> 00:12:46,959 information out of it that you want. 343 00:12:46,959 --> 00:12:49,279 The first 35 pages or so are explanatory 344 00:12:49,279 --> 00:12:50,800 text going over a lot of what I just 345 00:12:50,800 --> 00:12:53,120 said here in more detail um with with 346 00:12:53,120 --> 00:12:57,120 some more um background schedules. also 347 00:12:57,120 --> 00:12:59,519 chapter four there's when we first start 348 00:12:59,519 --> 00:13:01,760 seeing the S numbers service numbers 349 00:13:01,760 --> 00:13:03,839 what what we identified all your list of 350 00:13:03,839 --> 00:13:05,279 the services you're providing to the 351 00:13:05,279 --> 00:13:07,440 public that you could could either are 352 00:13:07,440 --> 00:13:10,480 or could be charging a fee for so on 353 00:13:10,480 --> 00:13:12,720 each of those um summary schedules 354 00:13:12,720 --> 00:13:14,880 broken out by development services 355 00:13:14,880 --> 00:13:17,120 public safety um human services and 356 00:13:17,120 --> 00:13:20,320 administration you'll see the S number 357 00:13:20,320 --> 00:13:22,959 the service title what the total fee 358 00:13:22,959 --> 00:13:25,360 revenue is and on an annual basis 359 00:13:25,360 --> 00:13:27,120 for that service, the total service cost 360 00:13:27,120 --> 00:13:28,959 on an annual basis and therefore either 361 00:13:28,959 --> 00:13:31,040 the profit or the subsidy because some 362 00:13:31,040 --> 00:13:32,560 services we are actually recommending 363 00:13:32,560 --> 00:13:34,560 that the fee go down because we're 364 00:13:34,560 --> 00:13:36,079 showing that the costs are less than the 365 00:13:36,079 --> 00:13:37,920 current fee 366 00:13:37,920 --> 00:13:39,519 and then the possible new revenue off to 367 00:13:39,519 --> 00:13:43,040 the right. Now remember that S number 368 00:13:43,040 --> 00:13:45,279 because when we get to appendex A after 369 00:13:45,279 --> 00:13:47,600 the text there's that S number again and 370 00:13:47,600 --> 00:13:49,440 there appendex A you can see in one 371 00:13:49,440 --> 00:13:50,959 place the current fee and the proposed 372 00:13:50,959 --> 00:13:53,200 fee side by side so you can kind of see 373 00:13:53,200 --> 00:13:55,200 what how the fees are changing on an 374 00:13:55,200 --> 00:13:57,360 individual service basis and if you're 375 00:13:57,360 --> 00:13:59,680 going why is this fee going up so much 376 00:13:59,680 --> 00:14:02,560 you turn to appendix B and appendix B 377 00:14:02,560 --> 00:14:04,560 for every one of these S numbers has 378 00:14:04,560 --> 00:14:08,000 this detail two matching pages on the 379 00:14:08,000 --> 00:14:10,079 left hand side will be a description of 380 00:14:10,079 --> 00:14:12,639 service. Below that, what the current 381 00:14:12,639 --> 00:14:15,760 fee is below that what the the current 382 00:14:15,760 --> 00:14:18,000 fee is recovering in revenue and what it 383 00:14:18,000 --> 00:14:20,639 cost on a on a total basis and a per 384 00:14:20,639 --> 00:14:23,199 unit basis. That cost detail comes from 385 00:14:23,199 --> 00:14:25,279 the righth hand page. And so you can see 386 00:14:25,279 --> 00:14:27,199 all the positions involved in providing 387 00:14:27,199 --> 00:14:29,120 that service, how much time they're 388 00:14:29,120 --> 00:14:31,519 spending on each one of these, what that 389 00:14:31,519 --> 00:14:33,360 turns into on a fully allocated hourly 390 00:14:33,360 --> 00:14:36,000 rate basis, how many of these the city's 391 00:14:36,000 --> 00:14:38,079 doing every year, and then the total 392 00:14:38,079 --> 00:14:40,480 cost, and then over in the lower 393 00:14:40,480 --> 00:14:43,279 lefthand corner will be that proposed um 394 00:14:43,279 --> 00:14:46,480 fee to in most cases recover 100% of the 395 00:14:46,480 --> 00:14:48,000 cost. 396 00:14:48,000 --> 00:14:49,920 So you can see all that detail from all 397 00:14:49,920 --> 00:14:51,519 the meetings that we had with staff to 398 00:14:51,519 --> 00:14:53,760 identify who's spending time, how much 399 00:14:53,760 --> 00:14:55,519 How are they spending? How many of these 400 00:14:55,519 --> 00:14:59,189 we're doing? 401 00:14:59,199 --> 00:15:00,480 There are some appendices in the back 402 00:15:00,480 --> 00:15:01,760 because some of them just have more 403 00:15:01,760 --> 00:15:04,240 detail. Um, 404 00:15:04,240 --> 00:15:06,320 building safety fees. You'll see the the 405 00:15:06,320 --> 00:15:08,000 details on the building safety fees. We 406 00:15:08,000 --> 00:15:09,279 went into a lot of detail with the 407 00:15:09,279 --> 00:15:12,800 department to to break out how much time 408 00:15:12,800 --> 00:15:14,320 is actually being spent on all the 409 00:15:14,320 --> 00:15:15,839 various different services whether it be 410 00:15:15,839 --> 00:15:17,519 new construction which is square footage 411 00:15:17,519 --> 00:15:19,680 based where some are going up some are 412 00:15:19,680 --> 00:15:21,920 going down 413 00:15:21,920 --> 00:15:23,600 buildings and then the um the trade 414 00:15:23,600 --> 00:15:25,440 permits mechanical electrical plumbing 415 00:15:25,440 --> 00:15:27,760 permits are in a separate schedule in 416 00:15:27,760 --> 00:15:29,920 appendix C. So you can see the time 417 00:15:29,920 --> 00:15:32,160 involved there and in most cases these a 418 00:15:32,160 --> 00:15:33,120 lot of these fees are actually going 419 00:15:33,120 --> 00:15:34,560 down when we looked at the time spent 420 00:15:34,560 --> 00:15:37,600 and the updated cost. So you can see all 421 00:15:37,600 --> 00:15:41,120 of that detail there. Appendix D has the 422 00:15:41,120 --> 00:15:45,839 fire prevention fees which are really a pass through from your um fire 423 00:15:45,839 --> 00:15:47,760 prevention consultant. So wanted to keep 424 00:15:47,760 --> 00:15:50,480 up to date so that it's um the city's 425 00:15:50,480 --> 00:15:53,040 not having to subsidize because the the 426 00:15:53,040 --> 00:15:56,079 consultant is charging more than um you 427 00:15:56,079 --> 00:16:00,310 guys are charging the applicant. 428 00:16:00,320 --> 00:16:02,720 Parking enforcement fines. Those are u 429 00:16:02,720 --> 00:16:04,240 we did a survey of the of the 430 00:16:04,240 --> 00:16:06,480 surrounding area to see what other other 431 00:16:06,480 --> 00:16:08,320 cities are charging for similar fines 432 00:16:08,320 --> 00:16:10,079 and found that the city is is pretty 433 00:16:10,079 --> 00:16:11,839 much in line with surrounding cities. 434 00:16:11,839 --> 00:16:14,320 So, we did not recommend any any changes 435 00:16:14,320 --> 00:16:18,720 to the parking enforcement fines, 436 00:16:18,720 --> 00:16:20,399 human services fees. As I mentioned, we 437 00:16:20,399 --> 00:16:24,000 do had some um recommendations in here 438 00:16:24,000 --> 00:16:26,000 to make changes to the human services 439 00:16:26,000 --> 00:16:28,000 fee schedule. So, anywhere from the 440 00:16:28,000 --> 00:16:30,320 program fees to the facility and field 441 00:16:30,320 --> 00:16:33,360 rental fees there there are not large 442 00:16:33,360 --> 00:16:34,560 changes in the dollar amounts, but 443 00:16:34,560 --> 00:16:37,839 there's a lot of structural changes. the existing fee schedule just didn't 444 00:16:37,839 --> 00:16:40,240 reflect um what the department was 445 00:16:40,240 --> 00:16:42,480 currently doing. So you'll see a lot of 446 00:16:42,480 --> 00:16:47,040 services where the just remove this fee, and in some cases we 447 00:16:47,040 --> 00:16:49,920 broke out in different detail. 448 00:16:49,920 --> 00:16:52,959 So all of that is in this 501 pages to 449 00:16:52,959 --> 00:16:54,959 provide this information to help you 450 00:16:54,959 --> 00:16:56,880 make a decision 451 00:16:56,880 --> 00:16:58,399 because our goal really is to identify 452 00:16:58,399 --> 00:17:00,000 the full cost for all the various 453 00:17:00,000 --> 00:17:03,040 services that the city's providing. 454 00:17:03,040 --> 00:17:04,559 We have made fee recommendations for 455 00:17:04,559 --> 00:17:06,400 every service that we think you can 456 00:17:06,400 --> 00:17:08,559 either are charging a fee for and stay 457 00:17:08,559 --> 00:17:10,480 within your cost or could charge a fee 458 00:17:10,480 --> 00:17:12,480 for and still of course stay within your 459 00:17:12,480 --> 00:17:14,720 cost. But of course, it's up to the city 460 00:17:14,720 --> 00:17:17,199 council to decide which services should 461 00:17:17,199 --> 00:17:19,039 be charged the full cost, which services 462 00:17:19,039 --> 00:17:21,120 are subsidized with tax dollars because 463 00:17:21,120 --> 00:17:23,280 again, the services are being provided, 464 00:17:23,280 --> 00:17:25,280 the costs are occurring. The question 465 00:17:25,280 --> 00:17:26,880 now is who's going to pay for it, 466 00:17:26,880 --> 00:17:29,039 taxpayer or the person or group 467 00:17:29,039 --> 00:17:32,240 receiving the service? 468 00:17:32,240 --> 00:17:35,440 So that concludes the presentation. So 469 00:17:35,440 --> 00:17:37,600 certainly available for questions. 470 00:17:37,600 --> 00:17:39,440 >> Okay. Well, thank you very much. Uh I 471 00:17:39,440 --> 00:17:40,960 want to ask my council colleagues they 472 00:17:40,960 --> 00:17:42,880 have any questions. I have no speaker 473 00:17:42,880 --> 00:17:45,360 currently on the queue. Anybody? 474 00:17:45,360 --> 00:17:50,400 No. Nobody. 475 00:17:50,400 --> 00:17:52,799 Okay. Well, um I would just say that I 476 00:17:52,799 --> 00:17:56,320 think uh uh you guys done a pretty good 477 00:17:56,320 --> 00:17:58,880 job in u calculating or updating the 478 00:17:58,880 --> 00:18:02,000 fees for the city. 479 00:18:02,000 --> 00:18:04,880 And uh I don't have an issue with it. I 480 00:18:04,880 --> 00:18:06,880 think it's something that uh we haven't 481 00:18:06,880 --> 00:18:10,320 done this in several years. And uh it's 482 00:18:10,320 --> 00:18:11,840 good that we update our fees, but at 483 00:18:11,840 --> 00:18:13,440 least we also when we update fees, we 484 00:18:13,440 --> 00:18:14,799 also justify how we're going to go about 485 00:18:14,799 --> 00:18:16,400 it. Making sure we're not technically 486 00:18:16,400 --> 00:18:18,720 making a profit that we actually are 487 00:18:18,720 --> 00:18:20,799 covering fees for the costs that that 488 00:18:20,799 --> 00:18:23,280 been incurred. Uh Council Member Mendes, 489 00:18:23,280 --> 00:18:25,120 go ahead. 490 00:18:25,120 --> 00:18:29,600 >> Yeah. Um I I went through this um 491 00:18:29,600 --> 00:18:32,960 500page report u which is u very 492 00:18:32,960 --> 00:18:35,840 impressive. Um yeah and I understand you 493 00:18:35,840 --> 00:18:38,559 know the costs of services and you know 494 00:18:38,559 --> 00:18:41,039 trying to charge fees and you know just 495 00:18:41,039 --> 00:18:44,480 going through them all. Um I mean I know 496 00:18:44,480 --> 00:18:46,960 that human services is a very important 497 00:18:46,960 --> 00:18:49,200 pro program with youth and senior 498 00:18:49,200 --> 00:18:52,320 programs and afterchool programs but it 499 00:18:52,320 --> 00:18:55,200 just seems like that's a lot that we're 500 00:18:55,200 --> 00:18:58,640 not recouping and just I just feel like 501 00:18:58,640 --> 00:19:01,120 maybe there can be some other way to you 502 00:19:01,120 --> 00:19:03,360 know and I know you give suggestions in 503 00:19:03,360 --> 00:19:06,160 there and I know it says you know zero 504 00:19:06,160 --> 00:19:09,360 no we're not going to do anything but um 505 00:19:09,360 --> 00:19:10,880 I I think it's just something maybe we 506 00:19:10,880 --> 00:19:12,960 can look at even closer. 507 00:19:12,960 --> 00:19:14,799 you know, just because I I feel like 508 00:19:14,799 --> 00:19:18,000 there's a lot of room there and um you 509 00:19:18,000 --> 00:19:19,520 know, right now, you know, budgets are 510 00:19:19,520 --> 00:19:21,679 tight and, you know, we're trying to 511 00:19:21,679 --> 00:19:23,840 figure everything out and, you know, 512 00:19:23,840 --> 00:19:27,440 sometimes cuts need to be made just to 513 00:19:27,440 --> 00:19:30,320 survive. But like I said, you know, I 514 00:19:30,320 --> 00:19:32,559 I'll talk with my colleagues about that. 515 00:19:32,559 --> 00:19:35,440 But, uh, everything it's a great report. 516 00:19:35,440 --> 00:19:37,280 I like what you guys did and put it 517 00:19:37,280 --> 00:19:38,880 together and like I said, I I went 518 00:19:38,880 --> 00:19:40,880 through it and, um, it's very 519 00:19:40,880 --> 00:19:44,960 explanatory, too. So appreciate that you make it user friendly. 520 00:19:44,960 --> 00:19:46,640 >> So but that's just my comments right 521 00:19:46,640 --> 00:19:49,909 now. 522 00:19:49,919 --> 00:19:51,760 » Well, thank you. Can you discuss that a 523 00:19:51,760 --> 00:19:53,520 little bit about human services? I know 524 00:19:53,520 --> 00:19:56,320 the total fee revenue was projected to 525 00:19:56,320 --> 00:19:59,679 be well total service cost is 5 million. 526 00:19:59,679 --> 00:20:02,160 Total revenue fee revenue estimate is 527 00:20:02,160 --> 00:20:03,760 1.9 528 00:20:03,760 --> 00:20:07,280 with a being under 3.1. I'm assuming 529 00:20:07,280 --> 00:20:09,200 there's a good justification for that. 530 00:20:09,200 --> 00:20:12,799 Marsha, you want to tie in on this one? 531 00:20:12,799 --> 00:20:14,080 Whoever wants to take the lead. 532 00:20:14,080 --> 00:20:16,640 >> Uh, I don't know that you mentioned um 533 00:20:16,640 --> 00:20:20,720 about grants that we receive. So, uh, 534 00:20:20,720 --> 00:20:23,200 for example, the afterchool program, we 535 00:20:23,200 --> 00:20:25,840 receive over a million dollars in grant 536 00:20:25,840 --> 00:20:26,400 funding. 537 00:20:26,400 --> 00:20:28,000 >> So, that's part of this $5 million 538 00:20:28,000 --> 00:20:29,840 service cost. Okay. All right. 539 00:20:29,840 --> 00:20:31,919 >> And we don't charge for the afterchool 540 00:20:31,919 --> 00:20:34,400 programs, right? So, you know, those are 541 00:20:34,400 --> 00:20:35,039 things to 542 00:20:35,039 --> 00:20:36,400 >> So, there's really a million. So, it's 543 00:20:36,400 --> 00:20:39,280 really $2.9 million if you throw the uh 544 00:20:39,280 --> 00:20:43,039 the granny into it. Okay. 545 00:20:43,039 --> 00:20:44,880 All right. 546 00:20:44,880 --> 00:20:46,559 Anything else on that question? Anybody 547 00:20:46,559 --> 00:20:49,120 else? Council Rue. 548 00:20:49,120 --> 00:20:52,480 >> Yes. Thank you, Mr. Mayor. Um, 549 00:20:52,480 --> 00:20:56,720 very good report. Well done. 550 00:20:56,720 --> 00:21:00,880 I too had a question or comment 551 00:21:00,880 --> 00:21:04,480 on human services 552 00:21:04,480 --> 00:21:06,880 in many and and I understand where we're 553 00:21:06,880 --> 00:21:09,600 going with some of this and I appreciate 554 00:21:09,600 --> 00:21:13,039 where we can keep the costs low. Many of 555 00:21:13,039 --> 00:21:15,360 our families have felt the economic 556 00:21:15,360 --> 00:21:18,159 impact of this economy. You know, gas is 557 00:21:18,159 --> 00:21:21,679 over $6 a gallon. In many cases, their 558 00:21:21,679 --> 00:21:24,320 food bills have gone up quite a bit. 559 00:21:24,320 --> 00:21:26,320 They're struggling. They, excuse me, 560 00:21:26,320 --> 00:21:28,480 they may not have 561 00:21:28,480 --> 00:21:31,600 necessarily had a raise. And in some 562 00:21:31,600 --> 00:21:33,600 cases, these families just can't afford 563 00:21:33,600 --> 00:21:37,840 it. And these programs are lifelines for 564 00:21:37,840 --> 00:21:40,799 them. And so, as much as we can, if we 565 00:21:40,799 --> 00:21:44,080 can try to keep the costs low, I 566 00:21:44,080 --> 00:21:46,240 appreciate getting grants. I know we 567 00:21:46,240 --> 00:21:48,799 were in Washington DC. We talked with 568 00:21:48,799 --> 00:21:51,679 Congress member Torres and uh Congress 569 00:21:51,679 --> 00:21:53,520 member Cisneros as well as a number of 570 00:21:53,520 --> 00:21:55,760 different departments about funding we 571 00:21:55,760 --> 00:21:57,600 might be able to get for some of these 572 00:21:57,600 --> 00:21:59,360 programs. And I think we're going to 573 00:21:59,360 --> 00:22:01,760 have to continue to pursue that because 574 00:22:01,760 --> 00:22:04,080 for a lot of our families and our 575 00:22:04,080 --> 00:22:06,720 seniors, these programs are all they 576 00:22:06,720 --> 00:22:09,360 really have. And so whatever we can do 577 00:22:09,360 --> 00:22:11,919 to continue to keep the costs low, it 578 00:22:11,919 --> 00:22:18,710 would be greatly appreciated. Thank you. 579 00:22:18,720 --> 00:22:21,280 Uh yes. 580 00:22:21,280 --> 00:22:23,679 Did any of your 581 00:22:23,679 --> 00:22:25,840 analysis or studies did you take into 582 00:22:25,840 --> 00:22:27,600 account the income levels of our 583 00:22:27,600 --> 00:22:29,600 residents? Did you look at those 584 00:22:29,600 --> 00:22:30,480 demographics? 585 00:22:30,480 --> 00:22:32,880 >> No, we just look at here are here are 586 00:22:32,880 --> 00:22:34,400 the costs. We did break out a resident 587 00:22:34,400 --> 00:22:37,039 versus non-resident, but it was working 588 00:22:37,039 --> 00:22:38,960 with staff to okay because obviously 589 00:22:38,960 --> 00:22:40,400 staff knows the community a lot better 590 00:22:40,400 --> 00:22:44,960 than I do and and trying to set fees at 591 00:22:44,960 --> 00:22:48,559 a level that will most people will be 592 00:22:48,559 --> 00:22:50,960 able to afford um and and because you 593 00:22:50,960 --> 00:22:52,000 don't want to get to a point where 594 00:22:52,000 --> 00:22:53,360 you're you're pricing yourself out of 595 00:22:53,360 --> 00:22:54,640 the market. 596 00:22:54,640 --> 00:22:57,120 Um, I've seen other agencies where 597 00:22:57,120 --> 00:23:00,159 they'll do scholarships for um, 598 00:23:00,159 --> 00:23:01,760 residents that may not be able to afford 599 00:23:01,760 --> 00:23:04,000 the fees that are in place. Uh, is one 600 00:23:04,000 --> 00:23:06,880 option, but that ultimately is up to the 601 00:23:06,880 --> 00:23:09,200 council to decide what level you want to 602 00:23:09,200 --> 00:23:12,880 set the fees at. Well, the last time 603 00:23:12,880 --> 00:23:14,320 figures were released on our 604 00:23:14,320 --> 00:23:16,080 demographics with respect to income, I 605 00:23:16,080 --> 00:23:18,080 believe it was at 60,000 for a family of 606 00:23:18,080 --> 00:23:20,640 four, which is not a lot given today's 607 00:23:20,640 --> 00:23:22,799 economic uh expenses that are required 608 00:23:22,799 --> 00:23:26,559 of a family. Um, 609 00:23:26,559 --> 00:23:28,720 and I know that there are presently we 610 00:23:28,720 --> 00:23:31,039 don't have mass residents showing up to 611 00:23:31,039 --> 00:23:32,559 meetings or even community events 612 00:23:32,559 --> 00:23:35,120 saying, "I can't afford your fees." or 613 00:23:35,120 --> 00:23:36,480 whenever they're asked to pay, they're 614 00:23:36,480 --> 00:23:38,240 too high because we've keep we've kept 615 00:23:38,240 --> 00:23:40,000 them down and they've been very 616 00:23:40,000 --> 00:23:45,200 affordable. Um, so I I I 617 00:23:45,200 --> 00:23:46,880 at this time and especially after what 618 00:23:46,880 --> 00:23:49,760 my colleague just said, I would have to 619 00:23:49,760 --> 00:23:52,720 back him up and agree with him as to the 620 00:23:52,720 --> 00:23:55,520 current state of the economic uh 621 00:23:55,520 --> 00:23:57,440 situation where they are paying more for 622 00:23:57,440 --> 00:23:59,840 gas, for food, healthc care expenses are 623 00:23:59,840 --> 00:24:01,600 high and I know those are external 624 00:24:01,600 --> 00:24:04,000 issues that don't come to us directly 625 00:24:04,000 --> 00:24:05,600 but Nonetheless, our residents are still 626 00:24:05,600 --> 00:24:08,960 feeling the pinch. Now, I think you 627 00:24:08,960 --> 00:24:11,679 might folks might even say, well, the 628 00:24:11,679 --> 00:24:13,200 bulk of these fees, like development 629 00:24:13,200 --> 00:24:14,880 fees are paid by developers or those 630 00:24:14,880 --> 00:24:16,640 that have property and can afford it. 631 00:24:16,640 --> 00:24:18,240 And that might be true to a certain 632 00:24:18,240 --> 00:24:21,039 extent, but even then, um you can't 633 00:24:21,039 --> 00:24:22,559 squeeze blood out of a turnup and you 634 00:24:22,559 --> 00:24:24,720 can't get going to the well all the 635 00:24:24,720 --> 00:24:26,880 time. It there's a cap and a limit to 636 00:24:26,880 --> 00:24:28,720 that where even right now some 637 00:24:28,720 --> 00:24:31,120 developers may um be holding back 638 00:24:31,120 --> 00:24:33,840 because of interest rates and whatnot. 639 00:24:33,840 --> 00:24:36,880 uh qualifying for loans with banks to 640 00:24:36,880 --> 00:24:38,400 invest in their properties might be a 641 00:24:38,400 --> 00:24:40,080 little bit too high for them right now. 642 00:24:40,080 --> 00:24:42,559 So there is this um angst if you will or 643 00:24:42,559 --> 00:24:44,000 some are just keeping their cards to 644 00:24:44,000 --> 00:24:45,279 their vest close to their vest and 645 00:24:45,279 --> 00:24:47,200 withholding from doing anything. I just 646 00:24:47,200 --> 00:24:48,480 don't think this is an appropriate time 647 00:24:48,480 --> 00:24:50,080 to do this. I know we maybe haven't done 648 00:24:50,080 --> 00:24:52,320 it in a while. Um but I think our 649 00:24:52,320 --> 00:24:55,760 budgets are absorbing whatever um 650 00:24:55,760 --> 00:24:57,600 outstanding expenses that we are having 651 00:24:57,600 --> 00:25:00,559 to face and endure. Um, and I think the 652 00:25:00,559 --> 00:25:02,400 present situation is working and I would 653 00:25:02,400 --> 00:25:05,279 hope that we would have some other uh 654 00:25:05,279 --> 00:25:08,640 revenue streams coming in perhaps marijuana that we're going to 655 00:25:08,640 --> 00:25:10,799 look at in a month or two. Um, that we 656 00:25:10,799 --> 00:25:12,159 might have some additional income where 657 00:25:12,159 --> 00:25:13,919 this probably isn't going to be so much 658 00:25:13,919 --> 00:25:17,840 of a factor, but um, anyhow, if you have 659 00:25:17,840 --> 00:25:19,600 any more comments, I'm welcome to hear 660 00:25:19,600 --> 00:25:20,559 them. 661 00:25:20,559 --> 00:25:22,880 >> No, ultimately this this does come down 662 00:25:22,880 --> 00:25:25,760 to the the will of the council um, as to 663 00:25:25,760 --> 00:25:26,960 like I said, these are market based 664 00:25:26,960 --> 00:25:29,039 fees. We set them at a level that we 665 00:25:29,039 --> 00:25:30,400 working with departmental staff was 666 00:25:30,400 --> 00:25:33,279 appropriate for the market, but not 667 00:25:33,279 --> 00:25:35,200 obviously everybody. And so it's up to 668 00:25:35,200 --> 00:25:37,840 you as a council to decide where we want 669 00:25:37,840 --> 00:25:39,679 to set these fees. And again, costs are 670 00:25:39,679 --> 00:25:41,360 occurring, services are being 671 00:25:41,360 --> 00:25:42,640 subsidized. They're going to continue to 672 00:25:42,640 --> 00:25:44,880 be subsidized no matter what. It's just 673 00:25:44,880 --> 00:25:46,159 a question of what level do you want to 674 00:25:46,159 --> 00:25:48,080 subsidize it because these are something 675 00:25:48,080 --> 00:25:49,279 services that are important to the 676 00:25:49,279 --> 00:25:50,320 community. 677 00:25:50,320 --> 00:25:52,080 >> Um, it's not just our residents that 678 00:25:52,080 --> 00:25:54,880 sometimes have to pay fees. I understand 679 00:25:54,880 --> 00:25:56,559 it's business owners, folks that don't 680 00:25:56,559 --> 00:25:58,000 live in the city, but nonetheless, they 681 00:25:58,000 --> 00:25:59,600 invest in the city because of their 682 00:25:59,600 --> 00:26:02,640 business. And that's predominantly um 683 00:26:02,640 --> 00:26:05,520 the main uh source where I can see folks 684 00:26:05,520 --> 00:26:07,279 having to pay for fees, changes, 685 00:26:07,279 --> 00:26:10,400 permitting, you name it, habitually or 686 00:26:10,400 --> 00:26:12,080 continually more so than a resident 687 00:26:12,080 --> 00:26:14,000 because I believe you stated you you 688 00:26:14,000 --> 00:26:16,240 phrased it very well and I wanted to 689 00:26:16,240 --> 00:26:21,760 quote you on it. The fees are e are 690 00:26:21,760 --> 00:26:24,000 identifiable. They're measurable. the 691 00:26:24,000 --> 00:26:26,400 benefits benefit an individual or group 692 00:26:26,400 --> 00:26:28,159 and they are like a development permit 693 00:26:28,159 --> 00:26:30,080 or inspection and that's very much an 694 00:26:30,080 --> 00:26:33,360 accurate description. But that said, um 695 00:26:33,360 --> 00:26:35,679 I just know you know folks that are even 696 00:26:35,679 --> 00:26:38,080 having to do or wanting to do ADUs 697 00:26:38,080 --> 00:26:40,960 presently and they're having to pay a 698 00:26:40,960 --> 00:26:42,480 high number of fees and they're even 699 00:26:42,480 --> 00:26:45,279 paying fees to the school district um 700 00:26:45,279 --> 00:26:47,520 that is in the thousands and that's even 701 00:26:47,520 --> 00:26:49,039 out of our hands but it's something that 702 00:26:49,039 --> 00:26:51,039 is asked of them from a separate entity. 703 00:26:51,039 --> 00:26:53,039 So, we're asking them to pay for 704 00:26:53,039 --> 00:26:55,200 inspections and permitting and yet 705 00:26:55,200 --> 00:26:56,720 they're having to also pay another 706 00:26:56,720 --> 00:27:00,320 entity for for um requirements for 707 00:27:00,320 --> 00:27:03,520 school uh fees and whatnot. So, um I've 708 00:27:03,520 --> 00:27:04,720 always just been a little bit leerary of 709 00:27:04,720 --> 00:27:06,559 this stuff whenever it comes up, but 710 00:27:06,559 --> 00:27:09,039 thanks for your time. And if you didn't 711 00:27:09,039 --> 00:27:10,960 look at the income of our residents, 712 00:27:10,960 --> 00:27:12,480 staff should have, and I'm disappointed 713 00:27:12,480 --> 00:27:18,390 that they didn't. 714 00:27:18,400 --> 00:27:20,559 » Mr. Mayor, if if I may respond, go 715 00:27:20,559 --> 00:27:21,039 ahead. 716 00:27:21,039 --> 00:27:23,520 >> You know, I think the point here is that 717 00:27:23,520 --> 00:27:27,440 the city is subsidizing fees by the tune 718 00:27:27,440 --> 00:27:30,640 of $8 million on an annual basis. And if 719 00:27:30,640 --> 00:27:32,080 we're only going to be recovering by 720 00:27:32,080 --> 00:27:34,400 making adjustments here, the tune of 721 00:27:34,400 --> 00:27:38,799 about uh uh $736,000. 722 00:27:38,799 --> 00:27:41,279 I I think that the city is still making 723 00:27:41,279 --> 00:27:44,480 an annual massive subsidy uh on fees 724 00:27:44,480 --> 00:27:46,960 that are basically personal driven 725 00:27:46,960 --> 00:27:50,080 personal choice services. Um, and so if 726 00:27:50,080 --> 00:27:51,760 you're not going to make an adjustment 727 00:27:51,760 --> 00:27:54,320 in relation to the fee schedule that is 728 00:27:54,320 --> 00:27:56,159 being recommended here this evening, you 729 00:27:56,159 --> 00:27:58,320 have to realize that in an effort to try 730 00:27:58,320 --> 00:28:00,880 and uh protect low-income households 731 00:28:00,880 --> 00:28:03,200 from not paying a personal choice 732 00:28:03,200 --> 00:28:05,919 service fee, you're making them pay and 733 00:28:05,919 --> 00:28:10,240 subsidize for any other household or a 734 00:28:10,240 --> 00:28:12,000 developer that, for example, wants to do 735 00:28:12,000 --> 00:28:14,799 a project. So, uh, either way, if you're 736 00:28:14,799 --> 00:28:17,200 going to adjust the fees slightly and it 737 00:28:17,200 --> 00:28:19,679 does impact, uh, households that are of 738 00:28:19,679 --> 00:28:21,120 low income that have made a decision 739 00:28:21,120 --> 00:28:23,600 that they want to, uh, get involved in 740 00:28:23,600 --> 00:28:27,679 something that is a personal choice, um, 741 00:28:27,679 --> 00:28:29,919 that seems to me to be a fair oppos 742 00:28:29,919 --> 00:28:32,159 proposition as opposed to making those 743 00:28:32,159 --> 00:28:36,080 individuals uh, subsidize everyone else 744 00:28:36,080 --> 00:28:38,480 in the community uh, even those who are 745 00:28:38,480 --> 00:28:41,200 higher income as well as developers uh, 746 00:28:41,200 --> 00:28:42,960 in order to preserve serve and protect a 747 00:28:42,960 --> 00:28:44,880 lower cost fee for them. So, as the 748 00:28:44,880 --> 00:28:46,320 council goes forward and wants to weigh 749 00:28:46,320 --> 00:28:48,720 this issue, uh I think this is an 750 00:28:48,720 --> 00:28:50,799 important decision for you to make, but 751 00:28:50,799 --> 00:28:53,679 also keep in mind that uh I think the 752 00:28:53,679 --> 00:28:56,559 discussion in the report points out uh 753 00:28:56,559 --> 00:28:59,440 revenues coming into cities are um 754 00:28:59,440 --> 00:29:02,159 strained as it is now. uh particularly 755 00:29:02,159 --> 00:29:05,039 with uh uh what is going on across the 756 00:29:05,039 --> 00:29:07,200 nation uh right now in relation to the 757 00:29:07,200 --> 00:29:10,000 impact on uh local revenue sources and 758 00:29:10,000 --> 00:29:12,080 as we continue to struggle with trying 759 00:29:12,080 --> 00:29:14,880 to produce a balanced budget for your 760 00:29:14,880 --> 00:29:16,320 consideration. The fees that you're 761 00:29:16,320 --> 00:29:18,720 asking to be the fees you're asked to 762 00:29:18,720 --> 00:29:21,120 consider not tonight but at another time 763 00:29:21,120 --> 00:29:23,200 when this comes back to you are part of 764 00:29:23,200 --> 00:29:25,760 the effort to try and recover uh from 765 00:29:25,760 --> 00:29:27,120 what is happening. And one of the big 766 00:29:27,120 --> 00:29:29,120 issues that the council is struggling 767 00:29:29,120 --> 00:29:32,880 with is in relation to sales tax revenue 768 00:29:32,880 --> 00:29:35,600 and how other larger cities that have 769 00:29:35,600 --> 00:29:38,320 brought in Amazon and other fulfillment 770 00:29:38,320 --> 00:29:39,760 centers into their communities have 771 00:29:39,760 --> 00:29:41,600 entered into tax sharing agreements with 772 00:29:41,600 --> 00:29:44,080 them and in turn have changed the point 773 00:29:44,080 --> 00:29:48,080 of sale uh to that particular community. 774 00:29:48,080 --> 00:29:51,120 Uh those taxes for everything that is 775 00:29:51,120 --> 00:29:53,440 purchased online is going to those 776 00:29:53,440 --> 00:29:55,039 cities. it's not going to the cities of 777 00:29:55,039 --> 00:29:57,360 Montlair or the 430 other cities in the 778 00:29:57,360 --> 00:29:59,279 state of California that do not have 779 00:29:59,279 --> 00:30:01,440 fulfillment centers. Uh so we're losing 780 00:30:01,440 --> 00:30:03,120 tax revenues from that perspective as 781 00:30:03,120 --> 00:30:05,279 well. So this is one effort to try and 782 00:30:05,279 --> 00:30:07,600 recover and I ask that the council uh be 783 00:30:07,600 --> 00:30:09,200 open-minded when we do bring it forward 784 00:30:09,200 --> 00:30:12,950 for your consideration. 785 00:30:12,960 --> 00:30:16,640 » Okay. C Mayor Pen Martinez. 786 00:30:16,640 --> 00:30:18,880 >> Hi. No questions. I just wanted to thank 787 00:30:18,880 --> 00:30:20,880 you for your time and your presentation 788 00:30:20,880 --> 00:30:22,799 and the thoroughess of your report. It's 789 00:30:22,799 --> 00:30:24,720 very well written, well thought out. 790 00:30:24,720 --> 00:30:26,480 >> Right. Thank you. 791 00:30:26,480 --> 00:30:28,480 >> Well, thank you very much. Uh I think 792 00:30:28,480 --> 00:30:32,080 the biggest uh cost uh in the city of 793 00:30:32,080 --> 00:30:34,480 Montlair, which is many cities, is 794 00:30:34,480 --> 00:30:37,279 public safety. Uh which very few of that 795 00:30:37,279 --> 00:30:39,279 cost is recovered. Kind of wish, you 796 00:30:39,279 --> 00:30:41,120 know, somebody commit a crime, send them 797 00:30:41,120 --> 00:30:44,559 a bill, and then uh you know, covers our 798 00:30:44,559 --> 00:30:46,080 cost for that. It doesn't it's not the 799 00:30:46,080 --> 00:30:48,399 way it works. But you know I I I 800 00:30:48,399 --> 00:30:50,880 understand that uh you know we are 801 00:30:50,880 --> 00:30:53,919 dealing with tiding propositions right 802 00:30:53,919 --> 00:30:55,760 now as far as economy is concerned. I 803 00:30:55,760 --> 00:30:58,240 realize budgets here in Monontlair 804 00:30:58,240 --> 00:31:00,399 family budgets are also getting tighter. 805 00:31:00,399 --> 00:31:03,279 Um I think uh when council member uh 806 00:31:03,279 --> 00:31:05,200 Mendes brought up human services, you 807 00:31:05,200 --> 00:31:07,039 know, we're talking about $5 million in 808 00:31:07,039 --> 00:31:11,039 cost, but uh we're doing a 38.4% 809 00:31:11,039 --> 00:31:13,760 recovery based on this proposal. 810 00:31:13,760 --> 00:31:15,919 Um and then we go to community 811 00:31:15,919 --> 00:31:17,600 development services which is really 812 00:31:17,600 --> 00:31:21,360 greatly based on uh those those costs 813 00:31:21,360 --> 00:31:24,240 and revenues are really based on um the 814 00:31:24,240 --> 00:31:27,039 development community um who come to the 815 00:31:27,039 --> 00:31:29,600 counter uh want to build something want 816 00:31:29,600 --> 00:31:33,360 to have a use or or have other uh 817 00:31:33,360 --> 00:31:36,240 service demands. Um this you know we're 818 00:31:36,240 --> 00:31:38,960 looking at a 65.7% recovery here or 819 00:31:38,960 --> 00:31:41,760 642,000 which I think is reasonable uh 820 00:31:41,760 --> 00:31:44,720 for those services. um for here in 821 00:31:44,720 --> 00:31:46,159 Montlair and that's pretty typical with 822 00:31:46,159 --> 00:31:47,679 a lot of other cities too. This is kind 823 00:31:47,679 --> 00:31:49,440 of usually community development but the 824 00:31:49,440 --> 00:31:52,159 building department the uh the planning 825 00:31:52,159 --> 00:31:54,559 division public works division again 826 00:31:54,559 --> 00:31:56,880 deal with a lot of the developers um 827 00:31:56,880 --> 00:31:59,039 that's where uh those those costs are 828 00:31:59,039 --> 00:32:02,399 usually uh a high percentage of that is 829 00:32:02,399 --> 00:32:04,960 recuperated by the cities those costs 830 00:32:04,960 --> 00:32:07,600 the service provider those costs so at 831 00:32:07,600 --> 00:32:11,440 this time um I will move that we just uh 832 00:32:11,440 --> 00:32:13,360 direct staff to put this on future city 833 00:32:13,360 --> 00:32:14,799 council meeting can I get a second that 834 00:32:14,799 --> 00:32:16,640 motion 835 00:32:16,640 --> 00:32:18,159 I We'll second that. 836 00:32:18,159 --> 00:32:19,760 >> Got to second the motion. Any objections 837 00:32:19,760 --> 00:32:22,159 to the motion? If there's no objections 838 00:32:22,159 --> 00:32:24,720 to the motion, that's so ordered. 839 00:32:24,720 --> 00:32:26,000 Thank you very much. 840 00:32:26,000 --> 00:32:26,399 >> Thank you. 841 00:32:26,399 --> 00:32:28,480 >> Uh this is the opportunity for members 842 00:32:28,480 --> 00:32:32,559 of the public to uh address the uh the 843 00:32:32,559 --> 00:32:34,320 council. I don't think any members of 844 00:32:34,320 --> 00:32:35,760 the public want us want to talk to us 845 00:32:35,760 --> 00:32:37,679 right now. So, we're ajourned. Thank 846 00:32:37,679 --> 00:32:40,679 you.