HomeMy WebLinkAbout2/20/2024 Item 8a, McDonald - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 16, 2024
TO: Mayor and Council
FROM: Whitney McDonald, Assistant City Manager
Prepared By: Rebecca Bernstorff, Business Manager – Community Service Group
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 8a – STUDY SESSION TO RECEIVE AN UPDATE AND PROVIDE
DIRECTION REGARDING THE CITYWIDE USER AND REGULATORY
FEE STUDY
As staff have been preparing for the Fee Study Session, they have been concurrently
working on finalizing the results of the final User Fee Study Report with an outside fee
expert. In order to ensure accuracy, efficiency and ample time for review and public
outreach before implementation of an updated fee schedule, staff are recommending
deferring the March 19 Public Hearing recommendation that is currently in the Council
Agenda Report.
Due to project manager staffing changes, and resources dedicated to the Parking Rate
Study scheduled this Spring 2024, delaying the Fee Study will provide additional time for
staff to review report results and share them with the community before returning to
Council for any recommended actions.
As such, a change to the Recommendation section of the Council Agenda Report, is
noted below in blue:
RECOMMENDATION
1. Hold a study session and receive a presentation on the City’s user and
regulatory fees; and
2. Receive public input and provide guidance to staff regarding
recommended fee-related structural changes and any adjustments to
current policies or practices; and
3. Direct staff to defer the Public Hearing to be in alignment with the timing
of the Impact Fee Study, which is anticipated to be completed by January
2025, perform outreach to interested parties consistent with the Public
Engagement and Noticing Manual ahead of the public hearing scheduled
for March 19, 2024, to consider approving new user and regulatory fees
consistent with the completed fee study.
Item 8a. Comprehensive Fee Study Overview Study Session Page 2
The Public Engagement section of the Council Agenda Report states:
Public Engagement
Staff began public engagement to inform stakeholders and the public
regarding the fee study and update process in the beginning of February
and are currently on the agendas for the February 15 Developer’s
Roundtable meeting, and the March 6, 2024 Parks and Recreation
Commission meeting which may include recreational community user group
representatives associated with sport field and facility rentals (e.g. roller
hockey rink, swim center, and golf course).
While staff did present an overview of the user and regulatory fee study and the
information included in this agenda item at the Developer’s Roundtable on February 15,
2024, and received preliminary feedback from the group at that time, it is recommended
that the Parks and Recreation Commission presentation be delayed until late 2024 or
early 2025 when the final draft fee study is completed. However, staff will provide a brief
status update to the Parks and Recreation Commission consistent with this
recommended change in timing at the March 6, 2024 meeting.
Additionally, to align with the new recommendation, staff recommends changes to the
Alternatives section of the Council Agenda report, as noted below in blue:
ALTERNATIVES
The Council could direct staff to not continue the finalization of the fee
study and delay completion of the fee study until a later date. This
action is not recommended in order to be in alignment with the Fee Cost
Recovery Goals within the City’s Fiscal Policies, including that fees are
reviewed and updated on an ongoing basis (every five years and in the
interim annually by CPI) to ensure that they keep pace with changes in the
cost-of-living as well as changes in methods or levels of service delivery. It
is important to complete a comprehensive fee study to be in alignment with
our policies. Delaying consideration of the final draft user and regulatory fee
study to coincide with the impact fee study in early 2025 would still be in
alignment with ensuring cost recovery.
Schedule the hearing on March 19, 2024, this is not recommended as
Staff’s assessment is that more time is needed, and that organizational
capacity needs to focus on delivering a thorough and comprehensive
Parking Fee analysis coupled with alternatives and recommendations.