Each year, departments review their fees to determine if any updates are necessary that require modifying, eliminating, or adding a new fee. Updates may be necessary to reflect an increased cost of a service provided, or a need to establish fees for new or enhanced services or facilities. All fees charged to citizens or businesses (except those exempted by City Code section 2-17) are reflected in the Citywide Fee Schedule and follow the requirements detailed in the City Code to establish or modify fees. Charging fees for use of facilities or services benefiting specific groups ensures taxes charged to support general services benefit all. Effort is made to consolidate fee changes and submit them as part of the annual budget process, although they can be set later to accommodate communication, posting, system changes, or process. Attached to this item are Resolution No. 5696 and the Citywide Fee Schedule ,with edits noted on pages 8 and 34 as Exhibit A. Based on the requirements of Chandler City Code 2-17, all recommended new or modified fees have been summarized in the Summary of Proposed New or Modified Fees (attached). This notification was posted on the City’s website on May 19, 2023, for 60 days, and a Notice of Intention to Amend the Citywide Fee Schedule (attached) was published in the Arizona Republic on July 6, 2023, as well as through social media to inform the public of the proposed fee changes to be discussed at the July 20, 2023, City Council meeting as an action item to allow for public comment. The following proposed fee changes are brought forward by the Management Services and Public Works & Utilities Departments: Management Services: Adds a new Short Term Rental (STR) License fee of $250 and Renewal fee of $250 In 2022, SB 1168 was enacted that required STR operators to obtain a license (as opposed to joining a registry) and be subject to a nonrefundable fee, prohibits STRs from being used for non-residential uses, requires a point-of-contact to be available for emergencies or non-emergency complaints, requires written neighbor notification to all surrounding residential properties, requires license and contact information to be conspicuously placed in the rental, and allows a municipality to suspend an STR license for repeated violations. City Council adopted Ordinance No. 5048 on April 13, 2023, updating the City Code Chapter 22 to match the new state law and allowing City Council to establish an STR License fee and renewal fee by resolution. This process allows the City to track STR and share information with Police should there be violations. The maximum fee that can be charged is $250 (each); staff has reviewed the costs of administering this license, which exceeds the amount allowable by law. Public Works & Utilities: Changes the Right of Way Vacation application fee for residential properties (currently $400) to match the non-residential property fee of $1,000 Changes the Extinguishment of Easement application fee for residential properties (currently $200) to match the non-residential property fee of $500 These fees are used when a property owner seeks to vacate existing City right-of-way or extinguish an easement that is no longer needed for public use. Presently, the fees are differentiated for residential and non-residential customers, although the actual cost to the City to perform these real property services is the same in either situation. These fee changes consolidate the residential and non-residential fees into single categories and delete the fee categories that will no longer be used. The proposed amount of the new consolidated fee better reflects the actual costs associated with staff time to research and complete the process of vacating right of way or extinguishing an easement. |
The amendments to the Citywide Fee Schedule are estimated to generate approximately $121,500 for the General Fund, $112,500 from short term rentals (only $25,000 in the first year until all new and existing licenses have their renewal due), and $9,000 from Right of Way disposal and Easement Extinguishment. |