AGENDA #7a(2)

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      User Fee Schedules and Policies

DATE:            June 26, 2006

The attached resolution would approve user fee policies, fee schedules, and facility use policies for various Town services and facilities.  Proposed changes for 2006-07 are summarized below.  See Attachment 1 for more detail.  Also attached are copies of the proposed policies and fee schedules for each department for 2006-07 (see Attachment 2). 

For several departments, including Town Clerk, Finance, Fire, Inspections and Police, we propose no changes in fees or policies for fiscal year 2006-07.  Recommended changes for other departments are as discussed below.  Changes are minor in amount and in the number of parties affected. 

Recommended Changes in Engineering Department Fees (Begins on page 2).

We propose increasing existing fees to recover costs of providing specific services as noted below: 

• Increase current charge for inspection of full or partial street improvements from $4.00 to $4.25 per linear foot.
• Increase current charge for inspection of utility service improvements from $1.10 to $1.25 per linear foot.

The increase in engineering inspection fees would allow the Town to recover costs incurred for the review and inspection of construction activities that affect public streets and rights-of-way.

Recommended Changes in Library Department Fees (Begins on page 21).

We propose increasing fees in 2006-07 as follows:

• Increase adult and young adult book replacement cost, when actual price is not available, from $25.00 to $40.00.

• Increase juvenile book replacement cost, when actual price is not available, from $17.00 to $20.00.

• Increase replacement binding with book jacket cost from $6.18 to $7.00.

• Increase replacement binding with copy-cover fees from $6.47 to $7.00.

• Increase Paperback replacement binding fees from $4.50 to $5.00.

Recommended Changes in Parks and Recreation Department Fees (Begins on page 22).

We propose updating fee requirements for 2006-07 as follows:

• Update skateboard park information based on the contract with the skateboard park contractor.

• Add a 20 percent surcharge to all facility rental to groups that are not Town of Chapel Hill or Orange County residents.  (This surcharge is already being assessed for Parks and Recreation programs.)

• Require a three hour minimum on Hargraves Center rentals.

Recommended Changes in Planning Department Fees (Begins on page 37).

At the recommendation of the Community Design Commission:

• Include a $300 fee for concept plan review.

• Increase the Community Design Commission fee for building elevations, lighting plans and alternative buffers by 10 percent, from $300 to $330.

The Council adopted a one year policy to waive user fees for façade improvements in the Downtown Service District in 2006-07.

Recommended Changes in Public Works Department Fees (Begins on page 41).

We recommend the following changes to the fee schedule:

Solid Waste Fees

• Increase the cost of yard waste containers by 7 percent, from $43 to $46, to reflect actual purchase cost of containers.  Additional revenue will be offset by increased expenditures.

Street Cut Repair Fees

• Increase repair fees an average of 38 percent to cover the increased cost of asphalt repairs. Additional revenue will be offset by increased expenditures.

• Increase penalties from $100 to $125.

• Increase restoration work from $500 to $625.

Recommended Changes in the Transportation Department Fees (Begins on page 43).

We recommend that overnight parking by permit be discontinued effective July 31, 2006, due to an increased demand for hourly parking.

RECOMMENDATION

That the Council adopt the attached resolution establishing the 2006-07 user fee policy.

ATTACHMENT

1. Proposed Fee Changes (p. 5).

2. Proposed Policies and Fee Schedules for Each Department for 2006-07 (begins new page 1).