TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Libby Bretthauer, Financial Services Manager
Emy-Rose Hanna, Revenue Services Supervisor
SUBJECT:Title
Consideration of Fee Adjustment for Long-Term Commercial Usage of Public Right-of-Way on City Property (Finance Director Charelian).
(Estimated Time: 30 Min.)
ADOPT RESOLUTION NO. 22-0106
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council consider adjusting the monthly fee for long-term commercial usage of public right-of-way on City property from $3.00 to $4.00 per square foot.
FISCAL IMPLICATIONS:
The financial impact of the proposed fee adjustment of $1.00 per square foot for long-term commercial use of public right-of-way on City property would result in an annual increase of $9,348 in General Fund revenues, as described below:
- $37,392 Estimated Annual Revenues Based on Proposed Fees
- $28,044 Current Annual Revenues Based on Existing Fees
- $ 9,348 - Estimated Increase in Annual Revenues
BACKGROUND:
In January 2000, the City Council established monthly encroachment fees for the long-term commercial use of the public right-of-way (Manhattan Beach Municipal Code Chapter 7.36). The initial monthly fee was set at $1.00 per square foot. The monthly fee was increased in March 2015 to $3.00 per square foot during the Citywide Fee Study, and has remained unchanged for the last seven years.
This encroachment fee is administered in the same manner as other monthly recurring payments, including tenant leases for City-owned properties, rentals, and other recurring receivables, and billed as a monthly fee calculated based on square footage. The table below lists the four current businesses that have long-term encroachment permits with their square footage, current fee and proposed fee.
Business Address Sq. Ft. Current Fee Propose...
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