DATE: April 11, 2023
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Amendment to the Master Schedule of Fees, Charges, and Recovered Costs Section 3800 - General Services
RECOMMENDED ACTION(S):
TITLE
Conduct second hearing and adopt the Master Schedule of Fees, Charges, and Recovered Cost Section 3800 - General Services, where new subsection 3814 - “Downtown Parking Rate” is to be added; waive the reading on the Ordinance in its entirety.
REPORT
There is no additional Net County Costs associated with the recommended action, which will revise Section 3800 - General Services of the Master Schedule of Fees, Charges, and Recovered Costs (MSF) Ordinance to add subsection No. 3814 entitled “Downtown Parking Rate”, based on the anticipated Internal Services Department - Facility Services’ (ISD) cost projection for Fiscal Year 2022-23. The proposed subsection will be used to recover the full cost of parking services provided by ISD to user departments, by having relevant County departments pay the costs associated with the County’s parking program. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may direct staff to not add the new rate or propose an alternative rate, which may not recover 100% of costs.
FISCAL IMPACT:
There is no increase in Net County Costs associated with the recommended action. The proposed rate represents a redesign of the County’s existing employee parking program. All lease and labor costs associated with that program, along with the needed expansion to satisfy the County’s parking needs will be associated with this new rate. These costs will total approximately $185,000 per month. It is anticipated that with approval of the proposed rate of $65 per stall per month, ISD will recover the full costs of the County’s parking program through charging this rate to departments for each parking space they use downtown. These include parking leases ($126,644 per month), labor charges ($2,930 per month), and maintenance of county owned parking facilities ($55,799 per month) which include the Plaza building, Crocker Building, and the B1-B2 garage. The total estimated recovery cost for parking services is approximately $185,380 per month.
DISCUSSION:
On March 28, 2023, your Board conducted the first hearing to amend Section 3800 - General Services. As an Internal Service Fund (ISF) department, ISD must recover all operating expenses by charging user departments for services ordered and rendered.
At the direction of the County Administrative Office, ISD is in the process in reevaluating parking in the downtown area. In County building lease agreements, the cost for parking is usually included in the leased cost of the facility and is considered an operating cost of doing business. This new program will provide parking for all County employees working in the downtown area and account for County vehicles parked downtown. The proposed rate will recover all costs related to the County’s parking program from County departments. This new rate will cover all related cost in this new program. If the proposed amendment is adopted, departments will pay monthly for downtown parking for their respective parking needs, both for employees and for County vehicles. The County will provide approximately 3,000 parking stalls.
The proposed amendment to the MSF would amend Section 3800 - General Services to add a new rate of $65.00 per parking stall per month, subsection No. 3814, entitled “Downtown Parking Rate.” The recommended rate was established by estimating the annual operating cost of the components of the County’s parking program, and then dividing the cost by the projected usage of all user departments and public agencies. The rates indicated are for services utilized by both internal and external customers and would make up a portion of the total revenues of ISD’s ISF.
Attachment A is a summary of the proposed revision of fees, and illustrates the proposed rate change. The recommended rate, including the calculation and methodology applied for cost recovery, is currently under review by the Auditor-Controller/Treasurer-Tax Collector (ACTTC). Should the ACTTC find material errors in the rate development, ISD will return to your Board for an adjustment at that time. The proposed rate changes will take effect 30 days after the second hearing, if adopted by your Board. If the recommended action is approved by your Board, the rate will take effect May 11, 2023.
REFERENCE MATERIAL:
BAI # 13, March 28, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A
Ordinance
CAO ANALYST:
Ahla Yang