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Agenda Item # 18

  Date: September 7, 2004
  Committee Meeting Date: September 16, 2004
  Board Meeting Date: October 7, 2004
  ACTION    X      DISCUSSION   ___ INFO   ___

BOARD MEMORANDUM

TO: Administration and Finance Committee
 Santa Clara Valley Transportation Authority
 Board of Directors
  
THROUGH:Peter M. Cipolla
 General Manager
  
FROM:Jack J. Collins
 Chief Construction Officer
  
SUBJECT: Valley Transportation Authority (VTA) Permit Fee Policy


RECOMMENDATION:

Adopt an amended permit fee schedule and policy adding charges for Restricted Area Access Permits, allowing the General Manager to enter into mutual fee waiver agreements with other public entities, and exempting projects undertaken pursuant to VTA cooperative agreements from fee collection requirements.

BACKGROUND:

Utility companies and others from time to time desire to undertake construction or other activities on or near VTA property and facilities. Similar to other local municipalities, VTA requires that access permits be obtained so that it can control and monitor the activities and make sure that the work is done safely.   Construction Access Permits are required for construction activities.   When construction or other activities take place on or near light rail lines Restricted Access Permits are also required.  Currently VTA charges fees in connection with Construction Access Permits but not for Restricted Access Permits. 

Government Code Section 66014 provides that if fees are charged by a local agency in connection with permit issuance the fees may not exceed the estimated reasonable cost of providing the service for which the fee is charged.   Prior to June 1998 VTA utilized the County permit policy and fee schedule because VTA charged only what was authorized by the County.   In 1998 the VTA Board approved a Permit Fee Schedule and in 2003 it adopted a revised Fee Schedule whereby fees were increased. 

DISCUSSION:

As a further step in implementing the Ad Hoc Financial Stability Committee recommendations that VTA become more cost efficient staff is proposing to expand the Policy to provide for recovery of costs associated with Restricted Access Permits such as bus bridges, rail power downs, rail power ups, and roadway worker protection training.   The proposed permit fee rates are based upon the fully allocated costs for issuing permits, performing inspection services and other permit related services. Costs to be charged for various labor services will be calculated on a fully allocated cost basis. Non-labor costs will be directly charged as appropriate.

VTA has determined the minimum cost of reviewing, processing and monitoring permits, as shown in Attachment B to the Policy.   The minimum application and inspection fees for Construction Access Permits have been reduced from those approved in 2003 as a result of an adjustment in allocated rates.   The appropriate fee to be collected will be determined when the permit is issued based on the type, anticipated scope and duration of the project. 

Staff is also proposing to amend the policy to authorize the General Manager to enter into mutual fee waiver agreements with other public entities, and to exempt projects undertaken pursuant to VTA cooperative agreements from fee collection requirements if consideration for permit fees is included in the cooperative agreement.

ALTERNATIVES:

With regard to cost recovery the Board could adopt a different fee structure or choose not to recover fees but VTA cannot charge more than the estimated reasonable cost of the services provided.   The Board could decline to adopt fees for Restrictive Access Permits, to authorize reciprocal fee waiver agreements or to approve an exemption from fee collection requirements for cooperative agreements.

FISCAL IMPACT:

Revenue received from the proposed permit fee schedules will be used to recoup the fully allocated costs incurred by VTA, which include labor and non-labor costs that would otherwise be paid for from general revenues.

Attachments:
Proposed VTA Permit Policy with Fee Schedule
Cost Basis Attachment

Contact Board Secretary's Office for Attachments.

 

Prepared by: William A. Kindrick
  

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