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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />April 9, 2018 <br /> <br />SUBJECT <br />Amendment and Adoption of Certain Fees for the City's Community Development <br />(Building, Engineering, and Planning) and Fire Departments and amending the <br />Redwood City Code to Authorize Cost Recovery for Code Enforcement and Deferral of <br />Payment for Development Fees <br /> <br />RECOMMENDATION <br />1) Hold a public hearing; <br />2) Waive first reading and introduce an Ordinance adding Section 1.10.9 of the <br />Redwood City Code related to cost recovery for code enforcement; <br />3) Waive first reading and introduce an Ordinance authorizing the deferral of <br />payment of fees for development projects; <br />4) Adopt a Resolution amending and adopting certain fees for Community <br />Development and Fire Departments; and <br />5) By motion, direct staff to administratively incorporate the proposed fees into the <br />City’s Master Fee Schedule <br /> <br />BACKGROUND <br />In June 2016, the City entered into a professional services agreement with Matrix <br />Consulting Group (Matrix) to conduct a Comprehensive Fee Study for services <br />provided by departments across the City. Included in the study were <br />recommendations to align the City’s development-related fees with cost recovery as <br />the goal. The study determined that cost recovery should be based on three major <br />cost components: <br /> <br />1) Direct staff time and materials, <br />2) Department and citywide overhead (based on the City’s Cost Allocation Plan), <br />and <br />3) Direct and indirect costs from other divisions to provide the service. <br /> <br />These components serve as a model the City can use to calculate fully burdened <br />rates as they relate to providing specific services. Using these components, the study <br />7.A. - Page 1