TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Department Director
Libby Bretthauer, Financial Services Manager
Emy-Rose Hanna, Revenue Services Supervisor
SUBJECT:Title
Consideration of Fees Paid for Long-Term Commercial Usage of City Property (Finance Director Charelian).
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council discuss and provide direction on the potential waiver of fees paid for Long-Term Commercial Usage of City Property.
FISCAL IMPLICATIONS:
The financial impact of waiving/reimbursing the fees paid for long-term commercial use of City property will depend on which of the four options is selected, as described below:
Options: Total Amount
a) Consider no fee waiver $ 0
b) Consider waiving fees covering July 1, 2021 - October 1, 2021 $ 9,348
c) Consider waiving fees covering January 1, 2021 - October 1, 2021 $23,370
d) Consider waiving fees covering July 1, 2020 - October 1, 2021 ______$37,392
These potential fee waivers would result in reduced revenues in the General Fund for FY 2021-2022.
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BACKGROUND:
In January 2000, the City Council established monthly encroachment fees for the long-term commercial use of the public right-of-way (MBMC 7.36). The initial monthly fee was set in 2000 at $1.00 per square foot and increased to $3.00 per square foot during the Citywide User Fee Study in March 2015. The fee is based on the square footage utilized for commercial purposes that is partitioned or restricted from public use.
It is important to note that the fees for the long-term commercial use have been in place since 2000, and are treated as monthly recurring payments in the same manner as tenant leases for City-owned properties, rentals, and other recurring receivables, none of which have received fee ...
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