Fremont City
California

Staff Report
3741

AMEND MASTER FEE SCHEDULE TO CONFORM TO AB1379 - Adopt a Resolution Amending the Master Fee Schedule to Implement Changes to Conform to Assembly Bill 1379 Requiring Collection of a $4.00 Annual Fee with the City's Business Tax for the Purpose of Increasing Disability Access and Compliance with ADA Guidelines

Information

Department:RevenueSponsors:
Category:Fees & Rates

Item Discussion

Executive Summary: The purpose of this report is to recommend that the City Council approve conforming changes to the Master Fee Schedule, to reflect State Assembly Bill 1379 which increased the Senate Bill 1186 State-mandated fee from $1.00 to $4.00, effective January 1, 2018. This fee is collected with the City’s business tax.

Body

BACKGROUND: In September 2012, Senate Bill 1186 was enacted, requiring all local governments to collect a State-mandated fee of $1.00 for the purpose of increasing disability access and compliance with ADA guidelines, as well as developing education materials for businesses to assist in compliance. City Council Resolution 2012-62 was adopted on December 4, 2012 to collect this fee, and this law took effect on January 1, 2013.

 

DISCUSSION/ANALYSIS: On October 11, 2017, Assembly Bill 1379 was passed, which increased the State-mandated fee from $1.00 to $4.00, on and after January 1, 2018, and until December 31, 2023, for the purpose of increasing disability access and compliance with ADA guidelines, as well as developing education materials for businesses to assist in compliance. The City’s HdL business tax application and renewal forms were subsequently updated to support this increase, and the $4.00 fee has been collected by the City from businesses since January 1, 2018. Staff is recommending that City Council approve conforming changes to the Master Fee Schedule to increase this State-mandated fee from $1.00 to $4.00

 

FISCAL IMPACT: All businesses are required to pay the $4.00 State-mandated fee. This fee generates approximately $80,000 on an annual basis, with around $8,000 (10%) forwarded to the State, and the remaining approximately $70,000 (90%) retained by the City for compliance with AB 1379. There is no increase in City General Fund revenue nor is there a cost increase to the City as a result of this mandate.

 

ENVIRONMENTAL REVIEW: None required.

Document Comments

RECOMMENDATION: Adopt a resolution to amend the Master Fee Schedule to increase the State-mandated fee from $1.00 to $4.00 pursuant to Assembly Bill 1379, effective January 1, 2018.