SUBJECT:       Resolution to Amend the FY 2003/04 Master Fee Schedule - Temporary Traffic Controls and Update on Other Potential Fees

REPORT IN BRIEF

City Council is being asked to amend Section 8.11 of the existing Fiscal Year 2003/04 Master Fee Schedule in order to revise an existing fee for City services associated with the setup and breakdown of temporary traffic controls during non-City sponsored events. This fee was identified during the budget review process last Spring and approved in concept, as a potential new revenue source in the final FY 2003/04 Budget, approved by City Council in June 2003.  The Temporary Traffic Control Fee is expected to offset the approximately $20,000 spent each year on these activities by staff in the Field Services Division of Public Works. This fee will be adjusted annually as part of the Fee Schedule update process.  Staff recommends approval of a resolution to amend the FY 2003/04 Master Fee Schedule.

BACKGROUND

A public hearing on proposed fee changes for the Recommended FY 2003/2004 Budget was held on June 3, 2003.  As part of the City Manager’s 6-Point Action Plan, staff reviewed city services for potential cost recovery. As a result of this review, staff proposed increases in fees for services that were previously not recovered and therefore subsidized by the City. These fees were mentioned in the Service Reduction Implementation Plan of the Recommended FY 2003/2004 Budget as potential new sources of revenue.

In the Public Works Department, an increase in fees for temporary traffic controls, engineering review and a new shopping cart removal fee were proposed.

Staff has completed the study of fees for temporary traffic controls and proposes the new fees as described in Attachment B.   An update on the remaining two Public Works fees is provided at the end of the Discussion Section.

DISCUSSION

Over 750 hours and $32,000 were spent in Fiscal Year 2002/03 providing temporary traffic controls, this included over 200 different scheduled non-emergency events that accounted for almost two-thirds of the costs, about $20,000. These scheduled events ranged in scope from providing traffic controls for the annual Sunnyvale Art and Wine Festival to cordoning off residential streets for block parties. 

Setup for a typical event involves preliminary traffic control design, closing of a public roadway, and installation and removal of traffic barricades (with or without safety lights) and / or cones. Many events occur after regular work hours and therefore involve overtime costs.

Staff is recommending that the revised temporary traffic control fee be charged according to the duration and size of the event, the number and size of streets impacted, and the number of staff resources required. A minimum fee of $100 will be charged for the smallest events.  Because of the complexity and costs involved, some of the larger events in the City, such as the annual Art and Wine Festival, are expected to be covered under a separate agreement.  Similar agreements exist to handle a variety of issues, including liability, public safety costs, clean-up as well as traffic control for the Sunnyvale Summer Series and the Lakewood Village Parade. Agreements for the larger events (Type 4 events on the attachment) will incorporate cost breakdowns for Public Works labor and equipment. 

The Department of Public Safety (DPS) administers, coordinates and issues the permit for certain small events, such as block parties, that request temporary traffic control.  Collection of the standard fees will be handled at the City’s One-Stop Permit Center.

It should be noted that the Saturday Downtown Farmer’s Market is currently operating under the terms of an existing agreement that allows the permittee to install their own traffic controls.  This agreement expires in December 2004 and staff will be evaluating whether this arrangement should be continued.

There are various options that could be considered for handling ongoing street closures ranging from 1) allowing the applicant to administer the closure per an approved plan, 2) allow applicant to install some or all of the traffic control but require Public Works field review, and 3) Public Works to place and remove all traffic controls.  Staff will continue to look at ways to minimize the cost to applicants for closing streets while ensuring that safety needs are adequately addressed.

Costs will be adjusted each year based on any increase in labor and equipment costs during the past year, and periodically reviewed to verify appropriateness and cost recovery.  Public Works staff (Traffic and Field Services Divisions) will work closely with staff in the Office of the City Manager, Finance, Public Safety and Community Development Departments in order to communicate clearly to applicants information about the revised fee and to effectively administer collection and the permit process.

Originally, staff was scheduled to present this new traffic control fee at a January 2004 meeting. However, once staff began to work with other departments, it became clear that a unified system was needed in order to address the different types of events that would be covered under the fee.  The current process involved applicant requests being handled by either the department of Public Safety or Community Development.  The Communications Division of the Office of the City Manager now handles coordination of community events, including supplying, receiving and distributing event applications.  While acting as initial point of contact for applicants, the Communications Division works with the Project Review Committee on larger events to process and distribute applications to appropriate departments for approval, this providing the public with a single point of contact.  This reduces the frustration level some applicants have expressed by not knowing whom to call with questions during an application process; it also ensures consistent correct information is provided to applicants.

A new fee for the collection and disposition of abandoned shopping carts and a review of engineering permit review fees was also included in the City’s Service Reduction Implementation Plan in June 2003.   The following is a progress report on these two potential revenue sources.

An initial review of issues associated with shopping cart fees by the Department of Public Works and City Attorney’s Office revealed a variety of complexities that were not envisioned in the original proposal.  For example, after speaking with other cities that have recently implemented shopping cart ordinances, it became clear that soliciting feedback from the business community and residents was crucial to creating a successful program.   Also, there are a number of different ways to administer a program, ranging from the City playing an active role in providing a storage facility, hiring a contractor and billing back businesses to a more indirect approach where the businesses would administer their own program.  In light of these issues, a task force has been formed consisting of staff from the departments of Public Works, Community Development, Public Safety and the City Attorney’s Office to collaborate in the creation of a shopping cart program. The scope of work for this group includes conducting research with other jurisdictions, holding outreach meetings for the business community and residents, developing administrative procedures and creating a draft ordinance for Council consideration.  The Task Force goal is to bring a recommendation to City Council sometime within the next six to nine months.

Staff is also currently considering whether to increase an existing Engineering Fee charged for private development review. A thorough examination of staff costs, indirect and direct, compared to fees charged will determine whether such an increase is appropriate.  Any change to the existing Fee will be included and discussed in the Master Fee Schedule Section of the Annual Budget Adoption RTC that will be presented to City Council in June.

FISCAL IMPACT

The revised fee for temporary traffic controls is expected to generate approximately $20,000 each fiscal year to the City’s General Fund, which will help offset costs in the Pavement Operations Program (Program 116) that has been subsidizing the provision of non-emergency traffic control devices. This estimate is reduced from an earlier projection of $30,000 due to identifying that about one-third of the expenses in this service area are actually for public purposes such as responding to emergencies and closure of streets for other transportation and construction purposes.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk’s Office. Contact was also made with the Sunnyvale Chamber of Commerce.

ALTERNATIVES

1)  Approve the resolution amending the FY 2003/04 Master Fee Schedule to revise an existing temporary traffic control fee in order to recover the majority of costs associated with providing these services to businesses and community and neighborhood groups.

2)   Do not approve the revised fee for temporary traffic controls

RECOMMENDATION

Staff recommends approval of Alternative 1.

Prepared by
James Craig
Superintendent of Field Services

Reviewed by
Marvin A. Rose
Director of Public Works

Reviewed by
Mary J. Bradley
Director of Finance

Approved
Amy Chan

City Manager

Attachments (All in MS Word Format):

A: Resolution Amending the FY 03/04 Master Fee  Schedule
               Exhibit A of Attachment A
B: Amended Section 8.11 of FY 03/04 Master Fee Schedule