Public Works last increased its right-of-way permit fees five years ago.  At that time, Engineering was part of the general fund and full cost recovery was not a component in establishing the fees.  In FY 2010, Engineering was transitioned out of the general fund to an internal service fund; and consequently, must generate enough revenue for operations by charging the costs of its services to those that use the services.  Staff has performed an analysis of the cost of administration and inspection services incurred with regards to right-of-way permits and is recommending each fee be based on full cost recovery principles.  Staff recommends increases that range from $0 to $85 with an average increase of about $45.  Attachment A provides a comparison between the current fees and the recommended fees which incorporate 100% cost recovery.   At the direction of the City Council, Public Works will be proposing fee increases on a more regular basis to reduce the impact of larger increases on the community and will be analyzing its fees each year. 

The City Council may approve or disapprove this resolution.  Not approving the resolution will perpetuate the discrepancy between the cost of providing the service and the right-of-way permit fees, resulting in subsidizing these services with other revenues.

Approving this resolution and increasing the right-of-way fees will provide approximately $85,000 of revenue to the Engineering Division in FY 2013.

Staff recommends that City Council approve this resolution for an increase in right-of-way permit fees.