Recording in progress.

Okay, so it's four o'clock and I call you over to the City of Cellulator Finance Committee meeting.

Today is Wednesday on the second says four o'clock.

Would you please take their role?

Mayor Gonzalez.

Vice Mayor Miguel Salton.

And Councilmember Eggler would not be present today.

And would you please take your answer?

After each agenda item is presented, the mayor will ask for committee member comments and then take public comment.

You will have two minutes for your comment.

The compound member will appear for the convenience of the speaker and attendees.

There you are.

The floor is yours.

Yes, thank you.

Felicia Silva, Assistant Finance Director, Mayor Gonzalez.

Finance Committee here to present the fiscal year 2027 proposed master fee schedule update.

We do bring this forward every year to update the council council approved fees while we ensure cost uh accessibility while trying to maximize cost recovery.

Um the authority to be able to charge the fees.

We're looking at proposition 26, California government code 66014, and the key point here is we are allowed to charge fees for um cost recovery of services, but reasonable fees.

Um, so always looking at the estimated reasonable cost for our fees.

And uh additional authority, we have proposition 218.

Um we see this um governing our fees associated with our utilities such as wastewater and uh store water.

We also have development impact fees, um, which are fees that are um designed to mitigate the impact of um development on the community.

Um so for example, we have our our park um acquisition and improvement fee and traffic um mitigation fees or impact fees.

Um where we've been and where we're headed.

Uh we did do an in-depth um fee study that we presented to council last year.

This um presentation uh to council with proposed fees built on that fee study.

Um it also incorporates um any fees that were approved throughout the year to give us the quote unquote master fee schedule.

Um typically, again, looking at um trying to make sure that we're balancing cost recovery and accessibility.

Um we adjust by inflation for most of our services for uh fees that are related to construction related activities.

We have what we call the construction cost index for the Bay Area that we use, which um is set at 2.8 percent, and then we also have some fees that are governed by um state statute or municipal code that uh may have a cap or may other um lies be um inflated based on that governing information, and then um some other fees may be updated uh regarding uh market alignment and or direct cost um depending on again looking at um our estimated reasonable cost and um trying to maximize cost recovery what we can.

I do want to point out that the revenue impact associated with the recommended fees are included in the proposed fiscal year 2027 mid-cycle budget.

In addition to fees, um we also have um three um taxes that are um by uh chapter two of the municipal code um allowed to be adjusted for inflation, and that's our business license tax, uh, our emergency medical services tax, and as well as our emergency communication system access tax.

Again, looking at that uh CPI um index for uh our region in the Bay Area, we're proposing a three percent CPI increase.

And what we're asking from finance committee today, we're asking that um finance committee recommend that the master fee schedule be presented to um city council for adoption by resolution, and we're also recommending that the three percent CPI um increase that we're proposing for those three taxes be presented to city council for adoption of ordinances.

And with that, I'm here to answer any questions.

And we also have some of the departments here for any questions regarding specific fees.

Do we have any questions?

Okay.

So we'll pass the floor over to the Vice Mayor.

Thank you for all your work into getting us to hear today.

And do we have the city managers office here to discuss parking can be they're coming out?

Thank you.

And I know that the parking uh, the new parking fees, and it has all been revamped due to usage and kind of just up, just bringing it up to the I don't know when was the last time I think we're reviewed, but what we have here today, I did want to elevate some of the concerns from uh the downtown businesses that they came to council, particularly around the East 14th, um the East 14th delineation, um the east side of East 14th of the best building is having parking years, but not the other side.

Um I do know I do notice that there are some um the zones have been changed and the hour maximum has been changed.

Can you talk a little bit about um the best building lot three, downtown core, the one, two, three.

There's through two downtown corps and a downtown run and the downtown south.

Can you tell a little bit about what that um what's the delineation of those zones?

Uh certainly there is a map available on MarcusL.com that has kind of a map overview of where those different areas are with regards to the best building.

I can talk about that and have to provide some information, as well as the relationship of that parking lot to the west side, because this in this schedule, as you correctly noted, there's been some feedback from the business community highlighting those distinctions.

And so, what I would say is the west side, the references I understand it, is related to basically the parking lot by the safety and washing class.

And the reason that those stalls are free is because of what's the existence of what is known as the Marea, which is an acronym, but essentially it's a historic agreement between the City of San Leandro and the Regent City Center that goes back many decades, sort of a long time ago in a very different world.

And in that document basically establishes that we're prohibited from charging for parking in those areas in perpetuity, and there's no sunset date to it, and this is the legacy of legacy document that goes back before any of us were here or involved with the city of San Lando governance.

So that's a challenge.

Um vis-a-vis the best building parking lot, which is city-owned, is not subject to the Marea.

Um, that is currently charged at a dollar an hour currently.

Um, and which is um was actually modified in in deference based on feedback from the business community.

We are also actively evaluating that law in particular and in coordination with our city manager and others to explore that rate going forward, and I would go through the fee schedule here, of course.

You know, essentially setting up a ceiling for lack of a better term.

Um so based on data and usage and analysis, which is ongoing.