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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.