Title
Report regarding a resolution approving the Fiscal Year 2019-20 Master Fee Schedule. (Christina Crosby, Interim Director of Finance).
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving the Fiscal Year (FY) 2019-20 Mater Fee Schedule
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BACKGROUND/DISCUSSION
The Fiscal Year (FY) 2019-20 Master Fee Schedule reflects the City's comprehensive update of user fees that took place FY 2016-17 via a Cost Allocation Plan (CAP) and fee study. The next comprehensive review of the City's fees will take place in the next year. In the intervening years, the City can apply the change in the Consumer Price Index (CPI) for the San Francisco - Oakland - Hayward area of 3.5 percent to the fees listed in the Master Fee Schedule with the following exceptions:
* Fees that are prescribed by state law, such as the cost of copies, or the cost for a returned check; and
* Library Department fees, which are set by the Peninsula Library System.
New Fees
The only additions to the Master Fee Schedule for FY 2019-20 are fees related to Database Management and a new transaction fee for payments made with credit cards. The Database Management fee currently exists in the City's Economic and Community Development Building Division for building permits and the Finance Department for business licenses. This Database Management fee was established to offset the software maintenance and upgrade cost of the permitting software. Enabling all departments that utilize the software to charge the Database Management fee when applicable will better fund the existing maintenance needs.
The 2.2 percent credit card transaction fee will be utilized across the city for all transactions over one thousand dollars ($1,000). The credit card transaction fee is primarily a cost recovery tool to offset the interchange fees that the City pays to the banks via merchant account transactions. These interchange fees vary based on credit card issuer...
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