Item B: Update on Street and Lighting Fee Development

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direction, staff will bring information back to council, in order to weigh the policy value against the administrative cost. In this early stage of fee development, precise trade offs are unknown; however, in general, some policy objectives increase the need for complexity and likely increase administrative expense. For example: ?A fee that requires a new unit of measurement in the billing system (e.g. building square footage as an estimating unit for parking spaces, along with land use types by customer) would require more resources to implement than one which is tied to a current unit (e.g. impervious area associated with existing stormwater accounts); ?A fee that requires new customer categories would require more resources to implement than one which corresponds to a current category; ?A fee that allows for variability based on changeable customer characteristics or behaviors requires more resources than one which remains fixed for a site across time. Staff recommends implementing a fee structure that best meets policy objectives while achieving a balance with administrative efficiency. Example Rate Structure and Fees While a rate and fee structure incorporating requisite data and all applicable rate factors and assumptions has not yet been established, staff has prepared example rates and generalized fees using a rate model based on broad assumptions and the best currently-available data. Based on this preliminary rate model, using a target revenue of $6.5 million and estimating approximately 240,000 parking spaces being billed within the utility results in a monthly rate of about $2.25 per parking unit (space). Table A provides an example of a simple rate structure’s customer categories and rate per unit of size for each category. This is purely an example to provide context for the various options and factors considered in this memorandum. Table A – Example Draft Customer Categories and Monthly Fee per Unit of Measure Category Description Unit of Estimated Fee per Measure Parking Unit of per Unit Measure of Measure Residential Single-family home on an individual lot is one Dwelling 2.0 $4.50 Customersdwelling unit. Duplexes, triplexes and apartments Unit (assuming a single treated as multiple dwelling units. category) Non-residential Example based on sampled ratio of parking spaces 1000 Sq. 2.1 $4.75 Customersper 1000 square feet of available parking area Ft. (assuming a single across a variety of non-residential customer types. Available category) Parking Area B,SUF P67 ATTACHMENT TREET TILITY EE AGE OF