Council agrees to study for cost
recovery of fee charged services
March 20, 2015
By Peggy Kelly
Santa Paula News
The City Council agreed to fund a study on cost recovery for non-developmental city services at the March 16 meeting after hearing that the city is on the losing end of the fiscal stick.
Although the last fee study was done in 1999, the report by Finance Director Sandy Easley noted that fees have been raised for various services but “not to full cost recovery.”
The issue has been a sore point for some past council members who questioned where the line is for the expenditure of tax revenues for services and residents’ pockets. Increases occurred in 2011 and 2013 but the city claims it is only recovering up to 50 percent of actual costs to provide services. Among those increases were for park usage that brought out parents in droves objecting to the costs, especially as they were handling major park maintenance on a volunteer basis.
A consultant is currently doing a study on development impact fees and Easley requested that an overall fee study be incorporated into the existing contract or that a separate company be engaged for the study.
She told the council that the city is currently doing a utility rate study.
Councilwoman Ginger Gherardi asked for specifics on what fees would be studied and Easley said all services “not related to development … ”
After some discussion, Vice Mayor Martin Hernandez said, “The point is we’re not getting full cost recovery now and that concerns me. If we were closer to 80 or 90 percent,” of recovering costs it would be a different issue but the gap is too large.
He noted the city lacks a written policy: “We want the city reimbursed whether it’s 1,500 homes in Limoneira or my kitchen,” improvements.
Said Hernandez, “Just think of the things we could be doing if we have a couple hundred of thousands more each year … ”
Gherardi agreed but said parks should be in a different category as they serve youth and she suggested the issue be addressed during the council’s study and goal setting sessions.
“It’s a no brainer,” said Hernandez, “it’s just pennies on the dollar,” for increases.
Sometimes you have to spend money to make money said Councilman Jim Tovias who urged that the projected $45,000 cost for the fee study would have a much higher return.
Several council members said they wanted a request for proposal (RFP) for a fee study and Hernandez wanted to ensure that a “template for full cost recovery” would be brought back.
Upon learning that $45,000 for the fee study was only an estimate Gherardi moved that an RFP be generated as well as a template for full cost recovery.
City Attorney John Cotti said he would assist Easley in preparing the RFP that would be done as soon as possible.
