2016-81 Amending City Code Chapter 37 Construction and Excavation in Streets

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Financial Management DATE: 11/14/2016 MEMO: Letter to the City Council Financial Management Department#2016-25 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason,City Manager Gregg Zientara,City Treasurer&Director of Finance SUBJECT: Ordinance Approving Amendments to City Code for the Purpose of Setting the Price for Certain Licenses and Permits Issued by the City SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached series of Ordinances amending City Code for the purpose of setting the price of certain licenses and permits issued by the City. BACKGROUND: On August 15,2016,a study session was conducted with the City Council for the purpose of a License,Permit and Major Revenue Overview. The study session was intended to present a prelude or preliminary review of the development of the City's major revenue streams as the City Council begins to discuss and evaluate the 2017 budget. In addition,the study session presented the current status of certain license and permit fee prices charged for the privilege afforded by the City for the intended purpose of the license or permit,with comparison to the cost incurred by the City in the review, approval and issuance of the license or permit. The study,as conducted by the Office of the City Treasurer,included a review of the following: Staff time involvement to inspect, review, approve and issue licenses and permits to ensure compliance in accordance with City Code, Cost incurred by the City to inspect,review,approve and issue using cost accounting methodology including the 2016 actual personnel costs including employee benefits, Inclusion of cost accounting methodology for the determination of applicable overhead costs to capture the full cost incurred by the City in the inspection,review and issuance of licenses and permits. The results of this study were presented to the City Council in the study session delivered to Council on August 15,2016. The conclusion of the study indicated that many licenses and permits issued by the City are at a current price or fee below the cost incurred by the City to perform the required tasks to issue the license or permit for the.privilege afforded by the City for the intended purpose of the license or permit. In conclusion,City Administration was directed with Council instruction to implement cost based fees in conjunction with the 2017 budget. City Administration therefore recommends City Council approval of the attached series of Ordinances amending City Code for the purpose of setting the price of certain licenses and permits issued by the City. POTENTIAL OBJECTIONS: There are no known objections to this resolution request. INPUT FROM OTHER SOURCES: No input from other sources. STAFF REFERENCE: Tim Gleason,City Manager Ms.Wendy Morthland,Corporation Counsel Gregg D.Zientara,City Treasurer&Director of Finance BUDGETITIME IMPLICATIONS: Upon approval by Council,the licenses and fees,as defined in the attached series of ordinances will take effect and be the price charged by the City for privilege afforded by the City for the intended purpose of the license or permit.