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<br />3 <br />Current Cost Recovery Levels <br /> Current fees for building recover the full cost of providing fee-related services <br /> Current fees for planning and fire prevention services are insufficient to cover the full cost of <br />providing fee-related services. The City is subsidizing a portion of the cost of services. <br /> <br />Options for Ongoing Fee Management <br />1) No change to current practice <br />a. The City is not currently over-recovering for fee services, consequently it could leave fee <br />categories unchanged and continue its current practices <br />b. This would result in the continued use of the complex building and safety fee structure <br />and on-going under-recovery of Planning and Fire Prevention fees. <br />2) Move to full cost recovery <br />a. The City could immediately recalibrate fees for ease of use and target full cost recovery <br />3) Use a phase-in approach to increase cost recovery levels <br />a. This approach would include implementation of a simplified building fee structure and <br />enhance cost recovery levels, but avoid attempting to recover the entire amount of <br />under-collection in a single year. Instead it would recognize the subsidy being provided <br />for services and consider increases over a multi-year period to reach targeted cost <br />recovery levels which, in some cases, may be less than 100%. <br />b. This approach also allows the City to easily identify service areas targeted for long-term <br />subsidy and set specific cost recovery levels for individual services rather than an across- <br />the-board targeting of full cost recovery. <br /> <br />Staff Recommendations for Ongoing Fee Management <br />1) Use a phase-in approach to increase cost recovery levels <br />a. Implement a simplified building fee structure effective July 2017, intended to allow <br />applicants and staff to more effectively forecast and calculate fees for specific projects. <br />b. Modify most planning and fire prevention fees in order to recover roughly half of <br />existing under-recovery via fee adjustments effective July 2017. <br />c. Monitor fee changes and consider additional recalibration, as-needed, over the next <br />two years. The current contract with ClearSource Financial Consulting (ClearSource) <br />includes an evaluation of fees and rate recommendations for two additional years. <br />d. Since the Community Development Department relies heavily on user and regulatory <br />fees to sustain operations, the Department will: <br />i. Consider recalibration of fees over the next two years <br />ii. Review and refine fee calculation methodologies as necessary <br />iii. Implement systems for enhanced revenue tracking. <br /> <br />15