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HomeMy WebLinkAboutItem 1a - Establishing Library and Museum Services Department Fee for Passport Services DATE: February 6, 2018 TO: Honorable Mayor and City Council FROM: Darlene Bradley, Director of Library and Museum Services SUBJECT: RESOLUTION NO. 7199 ESTABLISHING LIBRARY AND MUSEUM SERVICES DEPARTMENT FEE FOR PASSPORT SERVICES; AND FINDING THAT THIS RESOLUTION IS EXEMPT FROM THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) Recommendation: Adopt SUMMARY As approved by the City Council in the Fiscal Year 2017-18 Budget, the Arcadia Public Library will soon become a Passport Acceptance Facility, offering a new enhanced service to the community and surrounding areas as a pilot project. The passport program is envisioned as a separate program, self-funded through a $25 Execution Fee charged for each passport processed at the Library, as well as optional fees for additional services. Although the $25 Execution Fee is set by the U.S. Department of State, and cannot be altered by the City Council, this fee is considered a new City fee for passport services and requires a public hearing and consideration for adoption by City Council. In addition, the Library is proposing to offer passport photos for the cost of $15 per photo (which is optional for the customer), as well as a $35 expedited postage fee (also optional to the customer). These fees are set independently of the U.S. Department of State. Resolution No. 7199 establishing Fee for Passport Services at the Library February 6, 2018 Page 2 of 4 Proposed Passport Services Fees Passport Execution Fee $25.00 Passport Photo Fee (Optional) $15.00 Expedited Postage Fee (Optional) $35.00 As a pilot project, this service would be offered 40 hours per week by appointment only. Staff is confident that the costs can be offset by the revenues and even generate some revenue for the City. The net revenue from the fee is estimated to be approximately $$37,000 for the General Fund. Should Resolution No. 7199 be adopted by the City Council, the new fees would become effective February 7, 2018. BACKGROUND While traditionally located in U.S. Post Offices, Passport Acceptance Facilities can be offered at any public-sector office that is designated to accept passport applications on behalf of the U.S. Department of State. Passport Acceptance Facilities complete the verification required of the U.S. Department of State for applicants applying for a passport on a DS-11, which includes all minor and first-time applicants. These verified applications are then sent directly to the U.S. Department of State, where they are then processed and a passport is issued if appropriate. The U.S. Department of State sets the various fees, depending upon which product a customer is purchasing. (Currently a passport book is $110, passport card is $30, passport book and card is $140). The Arcadia Public Library will collect these fees on behalf of the U.S. Department of State and send those fees directly to the U.S. Department of State. The Arcadia Public Library also will collect a $25 Execution Fee for each passport processed. This fee is set by the U.S. Department of State, and although it cannot be raised or lowered by the City, it becomes City revenue minus the cost of offering this service (postage, supplies, and staff hourly salary). Because the Execution Fee is considered a City fee, it is subject to a public hearing and consideration for adoption by City Council. Additional proposed fees for a passport photograph and express postage for delivery of the application to the U.S. Department of State will also provide additional revenue to the City. Resolution No. 7199 establishing Fee for Passport Services at the Library February 6, 2018 Page 3 of 4 DISCUSSION City fees are reviewed on a regular basis for the purpose of making sure they are consistent with the cost of providing the service. Fee amounts are set at a rate that enables the City to recover all or a portion of the cost of the service. Before changing or setting a fee, staff conducts a cost analysis study to determine the actual cost of providing service. In addition to reviewing such things as staff and supplies, the cost analysis takes into account the impact to the end user and the amount charged by other municipalities for similar services. This ensures that the established fees do not overburden the rate payer. The $25 Execution Fee is the currently adopted federal rate set by the U.S. Department of State, thus the City cannot raise or lower this fee. The cost of providing this service per passport is $20 ($16 for staff time and $4 for postage and supplies). Some agencies also offer optional services often requested by customers, including passport photos and express mail. Although the cost for passport photos is approximately $5.00 for photo paper and equipment, most surrounding public libraries charge $15 to cover the time to take and process the photos. This is in line with the costs for Arcadia staff to do the same. The express mail charge of $35 is in line with the cost of staff time ($10) and postage ($24.95). These optional enhanced service (passport photo and express mail) fees are within the parameters of what other local municipalities are charging for these services, including Monrovia, San Marino, Altadena Library District, and Los Angeles County Library. The two additional services, passport photos and express mail, make the proposed service even more convenient for customers. The Passport Service is being offered as a stand-alone program so that all revenues generated offset the costs. The proposed currently adopted federal rate for the Execution Fee ($25) and the costs of offering this service (additional staff, supplies, and equipment) will offset each other. Offering two additional optional services, including passport photos and express mail, will provide services that would provide another level of convenience for the customer. ENVIRONMENTAL ANALYSIS This Resolution is exempt from the requirements of the California Environmental Quality Act (“CEQA”). PUBLIC COMMENTS/NOTICE Consideration of Resolution No. 7199 requires a public hearing, which was noticed to the public in the Arcadia Weekly newspaper on January 25, 2018, and February 1, 2018. As of the time this report was written, no comments had been received. Resolution No. 7199 establishing Fee for Passport Services at the Library February 6, 2018 Page 4 of 4 FISCAL IMPACT The federal government’s currently adopted Passport Services Execution fee is set at $25 for each new passport processed at the Library. The cost to provide this service is $16 for 30 minutes of staff salary and $4 in postage, supplies, and equipment. Based on the U.S. State Department’s projected increase in demand for passports in the next two years, the Library anticipates that providing this service 40 hours per week, 52 weeks per year, at least 4,160 new passports could be issued per year. This would create an estimated $20,810 in revenue per year. In addition, by offering passport photos, (estimating approximately 1,619 photos per year at $15 minus the $5 cost), an additional $16,190 revenue could be generated. The net annual revenues from the $25 Execution Fee, $15 Photo Fee, and $35 express postage fee are estimated to be $37,000 for the General Fund, although it should be noted that this estimate is dependent on the number of passports processed per year. If approved, this service could begin as early as February 8, 2018, and it is estimated that 25% ($9,250) of this revenue could be anticipated this Fiscal Year. These proposed new fees are not reflected in the Fiscal Year 2016-2017 budget. RECOMMENDATION It is recommended the City Council adopt Resolution No. 7199 establishing Library and Museum Services Department fee for Passport Services; and find that this Resolution is exempt from the requirements of the California Environmental Quality Act (“CEQA”). Attachment: Resolution No. 7199 Exhibit “A” - United States Passport Fees Submitting incorrect passport fees could delay the processing of your application. For further information regarding passport application fees, please contact the National Passport Information Center by dialing 1-877-487-2778, TDD/TTY: 1-888-874-7793. ADULT RENEWALS (Age 16 Years and Older) Please see Special Requirements for Adult Renewals. What are you renewing?Use Form Application Fee Acceptance Fee(Execution Fee)Total Adult Passport Book DS-82 $110 Not Required $110 Adult Passport Card A passport card is valid only for travel by land and by sea to the following locations: Canada, Mexico, Bermuda, and the Caribbean. DS-82 $30 Not Required $30 Adult Passport Book & Card DS-82 $140 Not Required $140 ALL MINOR APPLICANTS (Under Age 16) Please see Special Requirements for Children Under Age 16. What are you applying for?Use Form Application Fee Acceptance Fee(Execution Fee)Total Minor Passport Book DS-11 $80 $25 $105 Minor Passport Card A passport card is valid only for travel by land and by sea to the following locations: Canada, Mexico, Bermuda, and the Caribbean. DS-11 $15 $25 $40 Minor Passport Book & Card DS-11 $95 $25 $120 + + + = = = OTHER FEES Expedite Fee Paid per application, in addition to required fees. Provides faster processing than routine service. Click here for current processing times.$60 Overnight Delivery Paid per application for overnight delivery of an issued passport book from the Department of State to the customer. Only applies to mailing addresses within the United States. Not valid for passport cards. $15.89 File Search Fee A file search is necessary when an applicant is unable to present evidence of U.S. citizenship or verification of a previously issued U.S. Passport or Consular Report of Birth Abroad. Applicant must submit Form DS-11 and a written request for a file search. $150 UNITED STATES PASSPORT FEES Updated January 2018 ADULT APPLICANTS (Age 16 Years and Older) Please see Special Requirements for Adult Applicants. What are you applying for?Use Form Application Fee Acceptance Fee (Execution Fee)Total First-time Adult Passport Book DS-11 $110 $25 $135 First-time Adult Passport Card A passport card is valid only for travel by land and by sea to the following locations: Canada, Mexico, Bermuda, and the Caribbean. DS-11 $30 $25 $55 First-time Adult Passport Book & Card DS-11 $140 $25 $165 Adult Passport Card For applicants who currently have a valid passport book.DS-82 $30 Not Required $30 + + = = += Payment Instructions: The application fee is paid directly to the Department of State. The Acceptance/Execution fee is paid directly to the acceptance facility. Two separate payments are required.