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COUNCIL COMMUNICATION
City Manager’s Office
GENERAL INFORMATION
Agenda Date: May 23, 2005 Communication No.: 05-270
Agenda Item Type: Resolution Roll Call No.:
Submitted by: Jeb E. Brewer, P.E., City Engineer
SUBJECT—
Approval of FY 2005-06 Annual Management Fee and Right of Way Management Program Budget
SYNOPSIS—
Approval of the Fiscal Year (FY) 2005-06 annual management fee in the amount of 0.96 cents per equivalent lineal foot of right-of-way usage for the Right-of-Way (ROW) Management Program, as submitted by the City Engineer, and approving the proposed FY 2005-06 ROW Management Program budget, showing the anticipated revenues from permit fees and annual management fees.
FISCAL IMPACT—
The proposed FY 2005-06 operating budget for the Right-of-Way Management Program is $332,966. Approval of the annual management fee in the amount of 0.96 cents per lineal foot of ROW usage will allow the City to collect a portion of the annual cost of the program from right-of-way users. The remaining portion of the program costs will be collected through ROW permit fees. The rate for FY 2004-05 is 0.57 cents per foot, but has increased substantially due to the end of a budget surplus carryover into this enterprise fund in 2004-05 and a reduction in the estimated permit revenue for both 2004-05 and 2005-06.
RECOMMENDATION—
Approval.
BACKGROUND—
The City Engineer has calculated and hereby submits for City Council consideration the FY 2005-06 annual management fee in the amount of 0.96 cents per equivalent lineal foot of ROW usage. This fee is charged to all ROW users on the basis of their reported or estimated usage of City ROW as required by Section 102-711 of the City Code. Right-of-way users have utilities or other facilities in our public rights-of-way, either underground or overhead. Program costs that can be attributed to specific users (allocable costs) are recovered through permit fees charged to those users. Program costs that cannot be attributed to specific users (non-allocable) are recovered through an annual management fee, which is charged to all users, including the City, on the basis of their pro-rata occupancy of City ROW.
All users of City right-of-way are required to report to the City Engineer the amount of equipment they own and operate in the City ROW and update it on an annual basis. The amount of the annual management fee charged to each user is calculated on their reported or estimated usage.