TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Peter Fernandez, Public Works Director
SUBJECT:
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Proposed FY 2017-18 Public Works Fee Schedule
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
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ISSUE:
Shall the City Council adopt Resolution No 2017-30 setting fees for City of Salem Public Works?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2017-30 setting fees for City of Salem Public Works.
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SUMMARY AND BACKGROUND:
City Council considers proposed fees in the spring of each year for the following fiscal year. The fee schedule is separated into utilities, development, parks facilities and special events, recreation, and Center 50+. Most fees are proposed to be effective July 1, 2017; recreation fees are proposed to change January 1, 2018 to avoid mid-season adjustments.
Recommended fees for service are set at levels necessary to recover the costs incurred by the City to provide the permit or service. Some fees are based on actual costs and are billed upon completion. Some fees may require a deposit before work is to commence.
FACTS AND FINDINGS:
Each section of the proposed fee schedule (Attachment 1) lists the current rate, proposed rate, percentage of change, and the method or factor used for the adjustment. Fees are indexed annually based on either the Engineering News Record (ENR) or the Portland-Salem Consumer Price Index - All Urban Consumers (CPI-U). The applicable index for each fee is identified in the schedule. The Portland-Salem CPI-U for the second half of 2016 was 2.60 percent. The ENR adjustment from January 2016 to January 2017 was 3.94 percent.
The change column is displayed in whole numbers and may vary somewhat from the adjustment factor due to rounding. Fee amounts are rounded to the nearest dollar. Fees less than one dollar are shown in cents.
Fees that did not exist in a previously adopted fee schedule are identified as new. Fees that have been recalculated in 2017 based on average cost for service are identified as an update. New fees and updated calculations are explained below.
Utility Account and Service Fees
Utility Account and Service Fees include customer account fees, water service fees, and wastewater service and permit fees. Customer account and water service fees are set at a rate comparable to other utilities and are not adjusted annually. They are reviewed periodically to ensure the fee covers the cost of providing the service and that they are comparable to other utility providers. One permit fee has been updated, and five new fees have been added.
The fee for Significant Industrial Users has been updated to reflect each user’s share of the fee assessed to the City of Salem by the Department of Environmental Quality per Oregon Administrative Rule 340-045-0075: Permit Fee Schedule table 70E.
Utility service rates are adopted by separate resolution of Council every two years and are not included in this resolution or the published fee schedule. A separate utility rate schedule is published for utility customers. The current utility rates were adopted on October 10, 2016, to be effective January 1, 2017, and January 1, 2018. A new utility rate proposal is anticipated to be before Council in fall 2018.
Development and Service Fees
Most development permit and service fees have been adjusted by CPI-U or ENR. Where no adjustment is recommended, the current fee is sufficient to cover the cost of the service provided. The proposed fee schedule has been shared with representatives of the Home Builders Association of Marion and Polk Counties and the Salem Area Chamber of Commerce.
Three installation fees for 3-inch, 4-inch, and 6-inch water meters have been reduced to reflect the current average cost of installation.
A new hourly rate is proposed for after school programs provided through the Youth Environmental Educational Program.
Parks Facilities and Special Event Fees
There are no new fees proposed for Parks Facilities and Special Events. Tennis courts at Highland Park have been restriped to accommodate pickleball use, and rental of these facilities will be charged at the same rate as tennis.
Recreation Fees
Recreation fees have been reviewed and evaluated based on the market rate for similar programs offered by other providers.
a. A new fee has been added for a 10-kilometer run.
b. New 16-week and 14-week options for leagues have been added.
c. A new Six v. Six v. Six league is being established that places three teams with a smaller number of players on the field at once with one team hitting, the second playing infield, and the third playing outfield.
d. Salem tournament fees, quick-dry field product, and free agent pricing for kickball league have be updated to reflect current market conditions.
e. A 10-week and 12-week league and free agent options have been added for kickball, and free agent prices for 6-week and 8-week have been updated
f. New fees have been added for rental of the Wallace Marine Softball Complex for activities that unrelated to softball. Rates are based on the number of participants.
g. Fees set by another entity, such as a national softball association, and collected by the City of Salem, are included in the proposed schedule.
Center 50+ Fees
Classes at Center 50+ are taught by instructors who are under contract with the City of Salem. The class fees are set by contract. Fees shown in the schedule reflect rates in the agreements for FY 2017-18 but may be subject to change based on contract amendments or providers of services.
Room rental rates have been updated to reflect current market conditions, and a discount is offered to groups reserving and paying for ten or more rentals in advance.
Other Fees
The Systems Development Charges (SDCs), Connection Fees, and Public Works land use fees are not adopted as part of this resolution. SDCs are adjusted annually per Salem Revised Code (SRC) 41.170(e) based on the index identified in the resolution establishing each fee. Connection Fees are calculated based on SRC 21.180 and 21.290. Development District fees are set by agreement. Although not set by resolution of the City Council, SDCs, Connection Fees, and Development District fees will be included in the published fee schedule.
Public Works land use fees:
Condominium Plat Check/Master Plan
Post Monumentation Subdivision Plat Check/Master Plan
Standard Subdivision and Replat Plat Check/Master Plan
Traffic Impact/TPR Analysis (Comp Plan Change or Zone Change)
Traffic Impact Analysis (Site Plan Review or Subdivision)
Driveway/Sidewalk Variance
Class 2 Driveway Access Permit
Floodplain Development Variance
Petition for Street Naming
Petition for Vacation of Public Property
The Public Works land use fees are included in the Planning Fee Resolution 2017-34 on the June 12 City Council agenda. These fees will be included in the published fee schedule. Fees associated with Public Works land use actions are subject to a public hearing with notice to the state Department of Land Conservation and Development.
Fees set through a separate resolution of Council, such as noise variances or photocopy charges, are not included in this resolution but are collected and may appear in the published fee schedule at the last adopted rate.
Fees set by contract through a competitive bidding process are included in the proposed schedule at the current rate and identified as variable.
Alicia A. Blalock
Administration Division Manager
Attachments:
1. Resolution No. 2017-30
2. Exhibit 1 - Proposed FY 2017-18 Public Works Permit Charges and Service Fees