AgdaPkt 2017-06-26 Closed and Joint SA PFA

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CITY OF REDWOOD CITY, CALIFORNIA Cost of Services (User Fee) Study Matrix Consulting Group Page 5 As the graph shows, City Clerk and Finance and Parks, Recreation & Community Services divisions are maintaining a cost recovery level higher than typically seen for other jurisdictions, while Library at 14% and Public Works at 99% are within the typical range of cost recovery for their respective services. In recent years, more local jurisdictions have adopted formal cost recovery policies at the department / division level. The Matrix Consulting Group considers a formalized cost recovery policy for various fees for service an industry Best Management Practice. The cost recovery policy defines a different level of cost recovery for each department / division directly related to the service it provides to the public. If it is a department that is primarily related to providing services that benefit residents as a whole such as police, fire, or parks and recreation the cost recovery policy is typically lower than departments / divisions such as Building or planning which primarily benefit private users of service. Therefore, having clear policy goals, enables City staff and council to set fees that are in compliance with that policy as well as serve the overall philosophy of the City. (2) Adopt an Annual Fee Update / Increase Mechanism The purpose of a comprehensive update is to completely revisit the analytical structure, service level estimates and assumptions applied to the previous fee schedule, and to account for any major shifts in cost components or organizational structures. The Matrix Consulting Group believes it is a Best Management Practice to perform a complete update of a Fee Assessment every 3 to 5 years. In between comprehensive updates, the City could utilize published industry economic factors such as CPI or other regional factors to update the cost calculations 7.A. - Page 17