Recommendation
Staff recommends that the Mayor and Council adopt the attached resolution.

Discussion
During the FY 2010 budget process, City staff analyzed current user charges and fee schedules to ensure that the City is meeting cost recovery goals, and that City fees are consistent with the current market conditions. As part of this process, the Police Department's Community Enhancement and Code Enforcement division recommended increases in current licensing fees for single family dwellings, multi-family dwellings, and hotels. The following chart compares the current fees to the FY 2010 revised fees included in the attached resolution:

Revenue Source	Current Fee	Revised Fee
Rental License for Single Family Dwelling and Accessory Apt.	$150.00	$200.00
Rental License for Multi-Family Dwelling	$50.00	$100.00
Hotel Fee	$10.00	$20.00

Note: Fees are per unit. The Single Family Dwelling and Accessory Apartment fees are collected every two years,
while the Multi-Family Dwelling fee and the Hotel fee are collected yearly.

In addition to evaluating all user fees internally, the City is currently undergoing a formal cost allocation plan and user fee study. This study will analyze all current users fees, customer charges, and internal administration charges to determine if fees are being appropriately charged and if overhead is being fairly allocated. The results of this study will be available during FY 2010, in preparation for the FY 2011 budget process.

Mayor and Council History
The Mayor and Council last revised these rental licensing fees on July 14, 2003. A memo recommending the current fee revisions was sent to the Mayor and Council prior to the first Budget Worksession on April 20, 2009. At the second Mayor and Council worksession on April 27, 2009, the Mayor and Council unanimously agreed to increase these fees and include the additional $200,000 in General Fund revenue in the FY 2010 budget.

Fiscal Impact
Staff estimates that an additional $200,000 in General Fund revenue will be generated from these fee revisions for FY 2010.

Attachments
Attachment A - Resolution

Department Head:



Gavin Cohen, Director of Finance
Approved on: 05/05/2009

City Manager:

Scott Ullery, City Manager
Approved on: 05/06/2009