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HomeMy WebLinkAbout13 - Approval of the Life Safety Services Fee Study UpdateTO: FROM CITY OF NEWPORT BEACH City Council Staff Report September 11, 2018 Agenda Item No. 13 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Dan Matusiewicz, Finance Director - 949-644-3123, dmatusiewicz@newportbeachca.gov PREPARED BY: Theresa Schweitzer, Senior Accountant, tchweitzer@newportbeachca.gov PHONE: 949-644-3140 TITLE: Approval of the Life Safety Services Fee Study Update ABSTRACT: The City's consultant, MGT of America (MGT) has updated the Life Safety Services (LSS) portion of the fee study. Staff recommends changes to the fee schedule with a six (6) month delayed implementation. RECOMMENDATION: a) Conduct a public hearing to receive comments on the LSS Fee Study Update; b) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; c) Adopt Resolution No. 2018-66, A Resolution of the City Council of the City of Newport Beach, California, Revising Certain Life Safety Services Fees within the Schedule of Rents, Fines, and Fees; and d) Introduce Ordinance No. 2018-15, An Ordinance of the City Council of the City of Newport Beach, California, Amending Exhibit A to Newport Beach Municipal Code Section 3.36.030 Related to Cost Recovery, and pass to second reading on September 25, 2018. FUNDING REQUIREMENTS: There is no expenditure of funds related to this item. BACKGROUND The City's consultant, MGT of America (MGT), has updated the portions of the fee study. Staff recommends changes to the fee schedule for the Community Development Department (CDD) LSS fees based on the latest fee study in accordance with the established cost recovery rates. 13-1 Approval of the Life Safety Services Fee Study Update September 11, 2018 Page 2 On June 14, 2018, the Finance Committee reviewed the recommended fee updates and unanimously recommended the fee updates, without change, to the City Council for adoption. As part of the community review process, staff discussed the changes to LSS fees with Adam Wood, the Director of Government Affairs at BIA over the last few months. At BIA's request, staff recommends a six (6) month delayed implementation for LSS fees to allow BIA to communicate with their membership. LSS and the other fee study updates were further discussed at the Study Session on July 10, 2018. If the fees are approved by Council as recommended, staff projects the City will recover an additional $58,000 on an annual basis. This does not account for the fees where the structure changed or for fees where volume statistics were unavailable. Any newly proposed fee or fee increase that is not approved will be absorbed through General Fund subsidy. DISCUSSION: Newport Beach Municipal Code (NBMC) Section 3.36, Council Policy F-4 (Revenue Measures) and Item 12 of the Fiscal Sustainability Plan (FSP) provide staff and the City Council with policy guidance related to setting cost recovery targets and updating user fees. User fees, or cost -of -service fees, are charged to a private citizen or group for services performed or provided by a government agency on their behalf. If the service benefits primarily an individual or group of people, then the burden of that cost should be borne by the person receiving the benefit. NBMC Section 3.36.030 sets the cost recovery for user fees at one hundred percent (100°/x) with the exception of the subsidized fees listed in Exhibit "A" of that same section, as well as those limited by California or Federal statutes. A recommendation for less than a hundred percent (100%) cost recovery rate occurs, for example, when a service is beneficial to the community at large along with specific individuals or groups, and/or when there is an economic incentive, or disincentive, to do so. In these cases, the General Fund is essentially subsidizing the service. Any newly proposed fee or fee increase that is not approved will be absorbed through General Fund subsidy. The Schedule of Rents, Fines, and Fees (SRFF) is a customer service document maintained by the Finance Department Revenue Division that contains fees and charges such as, but not limited to, cost -of -services fees, fines and penalties, rents, and other charges imposed by the City or mandated by the State of California. SRFF is available online under the Revenue webpage and is saved with both detailed and summarized versions for public viewing. 13-2 Approval of the Life Safety Services Fee Study Update September 11, 2018 Page 3 In order to establish fees on the basis of full cost recovery, it is necessary to determine the cost of services. MGT conducts a comprehensive review and update of the City-wide cost allocation plan and direct user fee calculations for each department on a rotating basis every three (3) to five (5) years. MGT uses well-established cost accounting methodologies to calculate our municipal fees on a full cost recovery basis and contracts with significant number of municipalities in California. Not all fee changes are detailed within the staff report; however, the studied fees can be found in Attachment A. MGT meets with each of the studied departments and discusses the services provided, the annual volume for those services, and the staff and time estimates for working on said services. MGT calculates the department staff's fully burdened hourly rate, which includes both internal administrative as well as citywide overhead costs. The fully burdened hourly rates are applied to the time estimates provided by staff and the fee is calculated. MGT reviews and cross checks the results to ensure the data is valid and asks each department to review the calculations for accuracy and reasonableness. Based on this review, department staff makes a recommendation of either the fee to be fully recovered or to change/introduce a subsidy pursuant to NBMC Section 3.36.030. All NBMC 3.36.030 Exhibit "A" changes can be found in Attachment C. An example of the process described above is provided in Attachment D. Below is a summary of how fees are chanaina: Department Increasing Decreasing New Fees Deleted Totals CDD - LSS 58 8 28 37 131 PCT of TOTAL 44% 6% 22% 28% 100% Community Development Department LSS Towards the end of Fiscal Year 2016, LSS transitioned from being solely within the Fire Department to being managed by CDD and working in conjunction with the Fire Department. Currently the staff remain under the Fire Department budget with the Chief acting as the Fire Marshal; however, the staff personnel report to the CDD Deputy Director and CDD manages the program. When reviewing the LSS fees, CDD simplified the fees by deleting fees that were not being used, combining like fees, and creating a new fee structure, where appropriate, that utilizes a base fee with incremental fees rather than fees that encompass a range. The Fiscal Year 2019 budget added a civilian Fire Marshal who, when hired, will report directly to the Fire Chief and receive technical direction from the CDD Director. The Fire Marshal will take a look at the fee changes and bring the fees back to Council if any additional changes are warranted. 13-3 Approval of the Life Safety Services Fee Study Update September 11, 2018 Page 4 In the interim, staff recommends that operational permits, including some state -mandated inspections, only increase ten (10%) percent over the current fee while all other fees remain at full recovery. This will require a subsidy to be coded into NBMC Section 3.36 Exhibit "A". Conclusion If the fees are approved by Council as recommended, staff projects the City will recover an additional $58,000 on an annual basis. This does not account for the fees where the structure changed or for fees where volume statistics were unavailable. Any newly proposed fee or fee increase that is not approved will be absorbed through General Fund subsidy. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to Government Code Section 66018(a) (two publications with at least five days intervening between the two dates), Government Code Section 66016(a) (notice mailed at least 14 days prior to the meeting to any interested party who files a written request) (mailed notice to Building Industry Association of Southern California, AT&T, Southern California Edison, and Southern California Gas Company on August 28, 2018), and the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2018-66 Attachment B — Ordinance No. 2018-15 Attachment C — Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes Attachment D — Application of Indirect Costs to the Calculation of Fees for Services 13-4 ATTACHMENT A RESOLUTION NO. 2018-66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, REVISING CERTAIN LIFE SAFETY SERVICES FEES WITHIN THE SCHEDULE OF RENTS, FINES, AND FEES WHEREAS, Newport Beach Municipal Code ("NBMC") Section 3.36.010 provides that services and programs that primarily benefit a person requesting the service are traditionally funded in whole or in part from fees charged to the person who initiates the service; WHEREAS, NBMC Subsection 3.36.010(C) further provides that to ensure fees charged for services are an accurate reflection of costs, the City of Newport Beach ("City") should conduct a fee study at least once every five years; WHEREAS, contemporaneous with this resolution the City Council introduced Ordinance No. 2018-15, amending Exhibit A to NBMC Section 3.36.030 (Cost Recovery for User Services); WHEREAS, Exhibit A to NBMC Section 3.36.030 contains cost recovery percentages for specific services, and provides that the City Council may modify the fee resolution upon a determination that there has been an increase or decrease in one or more cost factors relevant to the calculation of the actual cost of providing the service, WHEREAS, in 2010, the City retained MGT of America, Inc. ("MGT") to prepare the cost allocation plan and cost -of -services studies for City services ("Agreement"); WHEREAS, pursuant to its Agreement, MGT has conducted cost -of -services studies on a rotating basis by department; WHEREAS, pursuant to its Agreement, MGT prepared the Community Development Life Safety Services cost -of -services study; WHEREAS, pass through costs for actual services or tangible goods do not include staff time; and WHEREAS, statutory fees are mandated or capped by another authority, such as the state. 13-5 Resolution 2018 - Page 2 of 3 NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby revises the Schedule of Rents, Fines, and Fees ("SRFF"), in part, as depicted in Exhibit 1, attached hereto and incorporated herein by reference. Except where prohibited by law, all fees provided shall be rounded down to the nearest dollar. Except as explicitly revised by Exhibit 1, all other provisions of the SRFF shall continue in full force and effect. Section 2: Direct pass through, or actual, fees may be updated, without further action by the City Council, by the Finance Director as necessary to ensure recovery of cost. Section 3: All proposed fees and charges shall take effect six (6) months following adoption of this resolution. Section 4: Except as expressly modified in this resolution, all other City fees and charges and/or prior SRFF or Master Fee Schedule, or part thereof, shall remain unchanged and shall be in full force and effect. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative portion of this resolution. Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 7: The City Council finds the adoption of this resolution and revisions to the SRFF are not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 13-6 Resolution 2018 - Page 3 of 3 Section 8: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 11th day of September, 2018. Marshall "Duffy" Duffield Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: The City Attorneys' Office Aaron C. Harp City Attorney Attachment: Exhibit 1— Revision to the Schedule of Rents, Fines, and Fees 13-7 3 e IE 17 16 19 20 21 22 91 W Exhibit 1- Revision to the Schedule of Rents, Fines, and Fees Resolution Adoption (1st Reading): Sept 11, 2018 A B C D E F G H I J K L Ordinance Adoption {2nd Reading): Sept 25, 2018 2016 ad! Current Charges I Proposed Charges 1 1 2018 ad! ;..tl r -t 1Rn„n.rn.i ,!,nun 1 C- rnl Rnn.... n.,el ... SERVICE NAME Total or Base Fee Incremental Incremental if Total or If ( Base Fee ( a licable) applicable) Tota4 or Base Fee Incremental ( if TYPE a licable} Total or Base Fee Inc.remental - (if applicable) CPI Description / Notes Implementation Date COMMUNITY DEVELOPMENT -BUILDING Life Safety Services LSS - Fire Access Gate Fees were reviewed in detail and adjustments were made based on study results and not CPI ad ustments/ Closure Report Review Hourly 100% Loaded Hourly $228/hour COS -Fee Hourly Yes Per Hour - 1 Hour Minimum/ 3/11/2019 Commercial Battery: Inspection $ 220.00 COS -Fee $ 22D.73 Yes /New Fixed Fee 2018 3/11/2019 Commercial Battey: Plan Review $ 239.00 COS -Fee $ 239.26 Yes /New Fixed Fee 2018 3/11/2019 Fire Lane Plan Review (Fire Master Plan) Hourly 100. Loaded Hourly $228/hour COS -Fee Hourly Yes Per Hour- 1 Hour Minimum/ 3/11/2019 Fire, Life Safely Or Si Hazard Consultation Hourly 100% Loaded Hourly $228/hour COS -Fee Hourly Yes Per Hour - 1 Hour Minimum/ 3/11/2019 In Service Building Public Radio Coverage System Service 1n Private5tructures Pass Thru Pass Thru $ 415.00 COS -Fee $ 415.11 Service to privately owned bi-directional amplification systems/ New Yes COS 2018 3/11/2019 Inspection $ 145.45 $ 145.00 $ 151.00 COS -Fee $ 151.44 Yes / 3/11/2019 Inspection Tank Installation Or Removal $ 335.58 $ 335.00 5 407.00 COS -Fee $ 407.74 Yes Above Or Below Ground, Per Tank/ 3/11/2019 Plan Review 5 182.85 $ 182.00 $ 187.00 COS -fee $ 187.87 Yes / 3/11/2019 Plan Review Tank Installation Cr Removal $ 442.59 $ 442.00 S 342.00 COS -Fee 5 342.04 Yes Above Or Below Ground, Per Tank/ 3/11/2019 Pre -submittal Review Hourly 100% Loaded Hourly $228/hour COS -Fee Hourly Per Hour- 1 Hour Minimum; includes CEOA, EIR, and advanced Yes planning requests/ 3/11/2019 Reinspection or Si Inspection $ 220.00 COS -Fee $ 220.73 Yes /New Fixed Fee 2018 3/11/2019 Technical Assistance of Complex Fire Protection Systems Hourly 100°/ Loaded Hourly $228/hour COS -Fee Hourly Yes Cade Compliance Review - Plan Review and/or Inspection Services/ 3/11/2019 LSS - Fuel Modification New and/or Change to Existing Plan Fees were reviewed in detail and adjustments were made based on study results and not CPI adjustments/ Ins eetion $ 118.44 $ 118.00 $ 127.00 COS -Fee S 127.22 Yes / 3/11/2019 Plan Review/Update $ 131.95 $ 131.00 $ 136.00 COS -Fee $ 136.49 Yes / 3/11/2019 Transferred to the County - Deleted 2018/ - .:aals $ 132.98. 5�32�0 {� &32,w r.8b-Fea $ 132.98 Kes Galla . 290 Q W44R=o fl 5-6-EpeRreak S-154-80 _ S 3540.^. $ 364.08 E6g-Fee a 134 8 Fes > oF _ 55 Gallons, 20 n_�dq 4A4P419 q-10-GiremiEak $ !99.06 $ 358.x., CQ&F4-% Yes > or - 55 Gallons,2 f:, �':-reeF500-Poundsf �r„r�nxo $-237.0 6Bb-iee 5 2'x744 Yes �er=35 Ic,ns;-200-C-abaE-F��,44upd.r 3{}}{26}s1 COS -Fee *es a- 55-Galions'2nn Qi I Pounds.' 3/-1�-2i1.1g 2 -4 ucals G054ee Xes a-oF---Ss Gallens ,;41 C;Lli F -'_ r 3 r A4ere-:Fhan-48L#remica1s $-433.32 $-:35.00 $ 435 G95 -Fee $-433.32 Yes > OF --55 Gallons 200 c00-Poundi AA4,` 919 LSS - Inspection Fees were reviewed in detail and adjustments were made haled on study resuits and not CPI adjustments/ All Assembly (A), Factory (F) c or equal to -1500 3,000 square feet (also used for Business (B},Mercantile (M}, and Storage (5) occupancies when required) $ 335.58 5 335.00 $ 314.00 C05•Fee $ 314.23 Yes / 3/11/2019 All Assembly (A}, Factory (F) n 3;590 3,000 c or equal to 10,000 square feet aggregate (also used for Business (B),Mercantile (M), and Storage 5) occupancies when required) $ 417.65 $ 417.00 $ 407.00 COS -Fee $ 407.74 Yes / 3/11/2019 1 13-8 f 2 3 3 3 3 3 3 3• 3' 3; 3. 4{ 4. 4: 4- 41 41 4E 47 48 49 50 51 Exhibit 1- Revision to the Schedule of Rents, Fines, and Fees Resolution Adoption (1st Reading): Sept 11, 2018 A B C D E F G H I J K L Ordinance Adoption (2nd Reading): Sept 25, 2018 2016 adj Current Charges Proposed Charges 2018 adj rrnt r- a..,,...doa d.,.,,.. ee � onn.., r --I 1 .. _» SERVICE NAME Total or Base Fee Incremental Incremental Total or ([f Base Fee (If a licable) a licablc) - Total or Base Fec Incremental (if TYPE a plicable) Incremental Total or Base Fee (rf a [icable) CPI Description / Notes Implcmentat€on Date All Assembly (A), Factory (F)>10,000 s.f. aggregate (also used for Business (B),Mercantile (M), and Storage (5) occupancies when required) $ 580.77 $ 580.00 5 594.00 C05 -Fee $ 594.76 Yes / 3/11/2019 Day raFe Edkieateval (E) opinstituficinal Day Care (� 4141,690 uaFe feet aggregate ov-Day-Gare-id�#���,. Pertab{eer-re•locatable $ 212.98 6A& -Fee Yes Delete"018/ 3{13{2019 Day Care Educational (E) or Institutional Day Care (1-4) � 11900 square-feate $ 30857 $ 308,00 $ 430.00 COS -Fee $ 430.2$ Yes / 3/11/2019 Educatkona[ other than day care $ 308.57 $ 308.00 $ 430.00 COS -Fee $ 430.28 Yes / 3/11/2019 High -Hazard Groups H1, H2, H3, H4, or Laboratory ( Ll (Chemical Classification Technical Report Review fee also required) $ 417.65 $ 417.00 $ 501.00 COS -Fee $ 501.25 Yes ! 3/11/2019 Hi -Rise: Structures that are 75 ft. or higher measured from lowest point of fire department access $ 1,395.30 $ 1,395.00 $ 1,549.00 COS -Fee $ 1,549.01 Yes ! 3/11/2019 Mise. Inspection including elevators, elevator lobbies, generators, canopies, awnings Hourly 100% Loaded Hourly $209/hour COS -Fee Hourly Yes / 3/11/2019 R ;4ent.,r n - e e -, rrrotels ar�..�tr condominiums- Atb-4e $ 335.58 $ 323 0 $--3354;0 CG& -Fee $ 33538 Yes Oe4ete4-2918/ 3/-13f2p}g $ 444.67 $ $-444M 69& -Fee $ 444 Yes oele .018f 3!„! _..��•...,.. ... ..:- ^.:ao.a:-. partments- sendominrums-with-53-ie-1-59-dwe 11rag ,mt. PPF hWIl4;PJLS 580.77 5--589:00 $--690.00 69&-Fee589.:: Fes Deleted- GW 343{2B Residential RI or R2: Hotels, motels, apartments, condominiums (Base Fee) $ 333.00 COS -Fee $ 333.39 Yes /New Fixed Fee 2018 3/11/2019 Residential R1 or R2: Hotels, motels, apartments, condominiums (Per Unit, Per Building) $ 9.00 COS -Fee $ 9.35 Yes /New Per Unit Fee 2018 3/11/2019 Residential R4: licensed residentia€ care/assisted living facilities and similar uses serving >19 Clients $ 634.79 $ 634.00 $ 733.00 COS -Fee $ 733.34 Yes / 3/11/2019 Residential R4: licensed residential care/assisted living facilities and similar uses serving 7-19 clients S 417.65 $ 417.00 $ 501.00 COS -Fee $ 501.25 Yes / 3/11/2039 Fees were reviewed in detail and adjustments were made based on LSS - Inspection Fire Alarm Systems study results and not CPI adjustments/ FiFeai,........teM: e $ 417.65 $ 1',00 1 4179 GO -Fee $ z-'rt`3 Yes nere��nxar Firerlkwmsy�t^'..:.-,�.,.-� $ 212.98 $ 2 2.00 °, 2:�-..^,.^, 66&4ee $--21398 Yes 8eleted-4;8i gra,rry-yr2onao Fire alarm stem: Base Fee $ 220.00 COS -Fee $ 220.73 Yes /New Fixed Fee 2018 3/11/2019 Fire alarm system: Per Device $ 3.00 COS -Fee $ 3.12 Yes /New Per Device Fee 2018 3/11/2019 Fees were reviewed in detail and adjustments were made based on LSS - Inspection Fixed Fire Extinguishing 5 stems study results and not CPI adjustments/ Cernmerc a! I_ q inkleF system 'PIPPA 13)i 199 heads oF less $ 308.57$ 308...^.^, $-308-.00 cos -Fee $ 39g.sr7 Yes 810/ 3{3-1/2019 ......��....: .,.:..Lie.... ... lA CD ,a�.. Ptstem $ 362.59 $ 3629 S 362:041 6O&-1;oe $_962-59 Yes Deleted -taw 3/34/2913 cb..;.. eRdal Are sprinkler eaGh add,tel identica _ - _ _ __ $ 962.59 $ 362 $ 3621,0 G9b-Fee $--362:59 Yes Aele� a!„ l2n,o Commercial fire sprinkler system (NFPA 13): Base per head With 1 Riser $ 220.00 COS -Fee $ 220.73 Yes /New Fixed Fee 2018 3/11/2019 Commercial fire sprinkler system NFPA 13 : each add'[ head $ 3.00 COS -Fee $ 3.12 Yes /New Per Head Fee 2018 3/11/2019 Each Additional Commercial Riser $ 116.00 COS -Fee 5 116.04 Yes /New Per Riser Fee 2018 3/11/2019 Fire pump €nstailatior $ 362.59 $ 352.00 $ 407.00 COS -Fee $ 497.74 Yes / 3/11/2019 Fire sprinkler monitoring system, water flow & tamper switches; 172.46 $ 172.00 $ 267D0 COS -Fee $ 257.48 Yes / 3/1 112 01 9 Multi family r-buikfuag- $ 525.70 C9&-1:ee $ 525.70 Yes pgete� 3/4, rr-y_yr.2.oM 2 13-9 6E 7f 72 72 73 74 75 76 77 78 Exhibit 1- Revision to the Schedule of Rents, Fines, and Fees Resolution Adoption (1st Reading): Sept 11, 2018 A B C D E F G H I j K L Ordinance Adoption (2nd Reading): Sept 25, 2018 2016 adj Current Charges I Proposed Charges 201S adj r,dl r- on -A.d do '., ee n only., 1-.1 1 ­- 3 13-10 Total or Incremental Incremental Total Total Incremental Incremental Total Base Implementation SERVICE NAME I if (I f (If TYPE, (IF CPI Description /Notes Base Fee a licable) Base Fee a iicable) Base Fee a licable) Fee e applicable) Date Mult! family dwelling residential fire sprinkler_ system IAC ;W l .. . .. 3-ta-&6-crn' $ 417.6 $ 4}7 0 $ 417:00 C95 -Fee $--41.7,65 yes poet'� Mufti -family dwelling residential fire sprinkler system (NFPA 13R) Base Fee $ 220.00 C05 -Fee $ 220.73 Yes /New Fixed Fee 2018 3/11/2019 Multi -family dwelling residential fire sprinkler system (NFPA 13R) (per unit) $ 3.00 COS -Fee $ 3.12 Yes /New Per Unit Fee 2018 3/11/2019 Standpipes : NFPA 14 Class 1, II or III and includes all standpipes within a single building or boat dock $ 417.65 $ 417.00 $ 501.00 COS -Fee 5 501.25 Yes / 3/11/2019 ., ... mlTll_ NFPA 13 am - 21 100no GAGU'ah�$ 308.57 $�Oo-,00 �3A8:0© C94-Fea TenanWmprove nt lnl NPPAt 3 or 14R f'. Fe; pF:..Ller...-..mi r+laiians $ 362.59$ 362.^x^ ,$0&00 me -0e., Belated -39181 3/34�29i� Tenant iMpFevement ) NFRA 13 of 13R fire sprWiler systemi 4 20 head $ 212.98 $ ?12,00 G 212.00 E9& -Fee $ 2 98 afar Gee� Tenant Improvement (TI) NFPA 13 or 13R fire sprinkler system: base fee $ 173,00 COS -Fee $ 173.97 Yes /New Fixed Fee 2018 3/11/2019 Tenant Improvement (TI) NFPA 13 or 13R fire sprinkler system: perhead $ 3.00 COS -Fee $ 3.12 Yes /New Per Head Fee 2018 3/11/2019 Underground fire protection - New $ 362.59 $ 362.00 $ 407.00 COS -Fee $ 407.74 Yes / 3/11/2019 Underground fire protection - Repair $ 212.98 $ 212.00 $ 314.00 COS -Fee 5 314.23 Yes / 3/11/2019 Fees were reviewed in detail and adjustments were made based on LSS - Inspection Special Fire Protection Equipment stud results and not CPI adjustments/ Commercial Cooking Hood and {Duct ( per system) $ 199.48 $ 199.00 $ 220.00 COS -Fee $ 220.73 Yes / 3/11/2019 Pre -action firesprinkler system, includes alarm system $ 254.54 $ 254.00 $ 267.00 COS -Fee $ 267,40 Yes / 3/11/2019 Special extinguishing system: dry chemical, CO2, foam liquid system, inert gas (Halon, Inergen, etc.) $ 185.97 $ 185.00 $ 220.60 COS -Fee $ 220.73 Yes / 3/11/2019 Spray Booth, Spraying area $ 444.67 $ 444.00 $ 407.00 COS -Fee $ 407.74 Yes / 3/11/2019 Fees were reviewed in detail and adjustments were made based on LSS - operational and 5 ecial Event Permits study results and not CPl adjustments/ Candle Permit Program $ 47.79 5 47.00 $ 51.00 C05 -Fee $ 67.23 Yes First time and special event/761/.Recove er M.C. 3.36.030 Exhibit A 3/11/2019 Weeds, Rubbish And Other Nuisance. /Actual costs: pass through Nuisance Abatement Service Actual costs+staff time 10C% Loaded Hour! $209/hour COS -Fee Actual costs+staff tithe Yes rontract costs PILS staff time. 3/11/2019 Level 1 (new) - Cutting and welding carts, Dry cleaning plants- 1 to 2 machines, Liquefied petroleum gases, and Tents/40% Recovery per Operational Permits- New or Renewal $ 145.45 $ 145.00 $ 159.00 COS -Fee $ 398.39 Yes M.C. 3.36.030 Exhibit A 3/11/2019 Level 2 (new) - all other operations pursuant to CFL Section Operational Permits - New or Renewal $ 258.05 $ 260.00 $ 294.00 COS -Fee $ 772.02 Yes 105.6/38.1% Recovery per M.C. 3.36.034 Exhibit A 3/11/2019 6PeAatienaFPefiinii; ..e. $ 1}8,04 r 118,Oo $ }&8� 405•Fea $�z9-�� 1 eyel_l(.er.ewal) _ Cutting and welding carr. i : t ales 1111149--... efied p8tFelPHIMg •^f 3/}}{29P -Permits--Renewal $ 198.'.-48 $ }99,00 $ �LtB-0O 465 -Fee 4 1 . yes .tien-185:6/ 3,'-'=-1/20'=9 Special Event Permits $ 145.45 $ 145.00 $ 159.00 COS -Fee $ 180.62 Yes Sin le Event Permit/88% Recovery per M.C. 3.36.030 Exhibit A 3/11/2019 Special Event Permits Hourly 100°% Loaded Hourly $209/hour COS -Fee Hourly Yes Level III as defined by the Recreation Department/ 3/11/2019 Public Display. Fireworks - ground display only e.g. homecoming 5 - Special Event Permits $ 295.06 $ 295.00 $ 352.00 COS -Fee $ 352.05 Yes 10 minutes/ 3/11/2019 Special Event Permits $ 808.30 $ 808.00 $ 920.30 COS -Fee $ 920.05 Yes Public Display - Fireworks - aerial display > 10 minutes/ 3/11/2019 Temporary Chane Of Use Hourl 100% Loaded Hourly $228/hour COS -Fee Hourly Yes Use Of Retail Occupancy as a Elace of assembly -Special Use/ 3/11/2019 Weekend, Holiday, or Non Contiguous & After Hours Inspection Request Hourly 100% Loaded Hourly $209/hour COS -Fee Hourly Yes 2 Hour Minimum; hourly if contiguous to normal business hours./ 3/11/2019 Fees were reviewed in detail and adjustments were made based on LSS - Plan Review study results and not CM adjustments/ 3 13-10 7 9f 97 98 99 Exhibit 1- Revision to the Schedule of Rents, Fines, and Fees Resolution Adoption (1st Reading): Sept 11, 2018 A B C ❑ E F G H I j R L Ordinance Adoption (2nd Reading): Sept 25, 2018 2016 adj Current Charges Proposed Charges 2018 adj SERVICE NAME Total or Base Fee Incremental ( If a licable) Incremental Total or if Base Fee ( a Ilcable) total e Base Fee incremental (1f a Ilcable) TYPE Total Incremental - a Base Fee (If a plical CPI Desuiption/ Notes Implementation Date All Assembly (A), Factory (F) i or equal to 3000 square feet (also used for Buslness (B), Mercantile (M), and Storage (S) I occupancies when re aired) 2016 CBC $ 528.82 $ 528.00 $ 547.00 COS -Fee S 547.60 Yes / 3/11/2019 All Assembly (A), Factory (F) > 3,000 a or equal to 10,000 square feet aggregate (also used for Business (B), Mercantile (M), and I Storage 5 occupancies when required $ 701.29 S 701.00 $ 7.18.00 COS -Fee $ 718.90 Yes / 3/11/2019 All Assembly (A), Factory (F)>iQ000 s.f. aggregate (also used for Business (B), Mercantile (M), and Storage (5) occupancies when required) $ 1,048,29 $ 1,046.00 $ 901.00 COS -Fee $ 901,00 Yes / 3/11/2019 Aay-Ease-Fducat:,...�� (r�l or-.: „r.9,!,QW feet square aggregate oF Pay C;ara ,{€-ro:i-4:- AGgable..�.�-e� 5 k82,85 6-182,00 S 382.&83 E65 -Fee 5 ?52 5 Yes Deleted -2918f 3/W2019 Day -€fe-E aHQ-or�l.UiY Ga•.4))� 4.099 sql�rt,f S 585.96 �SSS00 $8§,00 GAS -Gee S 383:95 Yes nose,•- i 3/1-1/.2417 Daycare Educational €or Institutional Dai re i€-4 $ 444.00 COS -Fee S 444.81 Yes /New Fixed Fee 2018 3/11/2019 Educational other than day care $ 528.82 S 528.00 $ 547.00 COS -Fee S 547.60 Yes / 3/11/2019 High -Hazard Groups Hl, H2, H3, HA, or Laboratory ( L) (Chemical Classification Technical Report Review fee also required) 5 1,422.31 $ 1,422.00 $ 1,514.00 COS -Fee $ 1,514.90 Yes / 3/11/2019 HI -Rise: Structures that are 75 ft. or higher measured from lowest point of fire department access S 3,470,07 $ 3,470.00 $ 3,570.00 CDS-Fee $ 3,570.47 Yes / 3/11/2019 Misc. Plan Review including elevators, elevator lobbies, generators, canopies, awnings Hourly 100/4 Loaded Hourly $228/hour COS -fee Hourly Yes / 3/11/2019 Resider , $ 269.09 $269,QEl $ 2EA:00 695 -Fee $ 969:09 Yes oele-t ;o°/ ReSiElertiai�fl-�._no.a�,ae,,,,a,-,..,�..•-. n •,oEels�netel 4ng-0045_ rer-build' S 355.32 S 333-09 a-=5 00 C9S-Fee $ 355.32 Yes pelet ;.- Glg1 3%3-1{.2818 cendeminiu rAr th ildirg $ 528.825 52' S 's�6.00 E95 -Fee $ 5MR 4es GeIe r?' Residential R1 or R2: Hotels, motels, apartments, condominiums Base Fee $ 232.00 COS -Fee $ 232.94 Yes /New Fixed Fee 2018 3/11/2419 Residential RI or R2: Hotels, motels, apartments, condominiums Per Unit, Per Building) $ SAO COS -Fee $ 8,56 Yes /New Per Unit Fee 2018 3/11/2019 Residential R4: licensed residential care/assisted living facilities and similar uses serving >19 ciients $ 1,566.72 $ 1,566.00 $ 1,514.00 COS -Fee $ 1,514.90 Yes / 3/11/2019 Residential R4: licensed residential care/assisted living facilities and similar uses serving 7-19 clients $ 874.79 5 874.00 $ 900.00 COS -Fee $ 900.08 Yes / 3/11/2019 Fees were reviewed in detail and adjustments were made based on Ib5 - Plan Review Fire Alann Systems study results and not CPI adjustments/ $ 701.29 Yes Deleted -2A}8{ 4rte Fife X11 -60 -devices $ 442.59 9-442 GG 6O&T." $_� Yes n^letefl 'g 3A -1P619 Fire alarms stem: Base Fee $ 187.00 COS -Fee $ 187.87 Yes /New Fixed Fee 2018 3/11/2019 Fire alarms stem: Per Device $ 2.00 COS -Fee $ 2.74 Yes /New Per Device Fee 2018 3/11/2019 Fees were reviewed in detail and adjustments were made based an L55 - Plan Review Fixed Fire Extinguishing Systems study results and not CPI adjustments/ '©nHilerGidl-€11P3�ijpRle�-5y$[e}r-({i}Lpn 131. Inn Leads OF 19� stem $ 355.32 $---355,00 5 355,0^^0 6D.L-Fee X355:32 Yes Be4eted-2A18f 3n1���_V20 Camr: eFGi-i AFS .,..:..,::_. -,- -. . ..1°). Inn..-....�,.-. System $ 701.29 GGS-Fee ;-701-.2-9 Yes Deleted2818{ 3 4J201n Commercial firesprinkler system NFPA 13): Base Fee S 187.00 COS -Fee $ 387.87 Yes /New Fixed Fee 2018 3/11/2019 4 13-11 12'. 12: 12 12: 121 IX 121 125 :3[ 31 Exhibit 1- Revision to the Schedule of Rents, Fines, and Fees Resolution Adoption {1st Reading): Sept 11, 2018 A B C D E F G H I f K L Ordinance Adoption (2nd Reading): Sept 25, 2018 2016 adj Current Charges Proposed Charges 2018 adj C,.II fne♦ n.....re.r .1....... .... fl o..f.., 1..„t ..11 r... SERVICE NAME Total or Base Fee Incremental - I if licablel Total ease Fee e Incremental Total {d Base Fee a lica ble) Incremental (IF TYPE a licablu) Total or base Fee Incremental {If applicable) CPI Description /Notes implementation Date 3 Commercial fire sprinkler system (NFPA 13) : each acl head $ 3.00 COS -Fee $ 3.43 Yes /New Per Head Fee 2018 3/11/2019 I Fire pump installation $ 355.32 $ 355.00 $ 444,00 COS -Fee $ 444.82 Yes / 3/11/2019 Fire sprinkler monitoring system, water flaw & tamper switches, <44-netlfKatha*,devices $ 139.22 5 139.00 $ 165.00 COS -Fee $ 165.34 Yes / 3/11/2019 Malti-family-dwelRng�eside^•'��r.... ....:..i.i... sy. t m l.Jrnn , $ 442.59 -442..00 ;--44,2,W 49b4ee 5 442.59 Xes 9eleted-20-18f _dwelliPpe.:,i fire spFinkler system (Pc ol. F 3 to 16 units per building $ 298.18 $ 2" Yes 9eletedl 4A4kN } Multi -family dwelling residertial fire sprinkler system {NFPA 13R) s (ease Fee) $ 187-00 COS -Fee $ 187.87 Yes /New Fixed Fee 2018 3/11/2019 Multi -family dwelling residential fire sprinkler system (NFPA 13R) I(per unit) $ 3.00 COS -Fee 5 3.43 Yes /New Per Unit Fee 2018 3/11/2019 Standpipes : NFPA 14 Class I, II or III and includes all standpipes I within a sin ie building or boat dock $ 327.27 $ 327.00 $ 444.00 COS -Fee $ 444.87 Yes / 3/11/2019 TeRaRt ..a Irn n 5pFirWeFs .. >•i6B-Heads-ar-s i' $ 355.32$ 353 i-355,96 _ &65-Fe6 $- .'-.2 Yes Deleted4OW 3f34=44 ^ nt ImpFovernent (71 NFPA r -c -sprinkle: 1 �O�ead { t+ens S 182.85 $ 182.08 CQ&_I; e $ 182 3 yes (T -P ;Q head $ 139.22S 139.^x^ S 13988 665 -Fee $ 138:22 Yes Delete '°r 3/11/2918 Tenant Improvement [TI) NFPA 13 or 13R Bre sprinkler system: I base fee $ 136.00 COS -Fee $ 135.49 Yes /New Fixed Fee 2018 3/11/2019 Tenant improvement (TI) NFPA 13 or 13R fire Sprinkler system: per head $ 2.00 CDS-Fee $ 2.57 Yes /New Per Head Fee 2018 3/11/2019 Underground fire protection - New $ 355.32 $ 355.00 $ 376.00 COS -Fee $ 376.30 Yes / 3/11/2019 Underground fire prote0ion - Repair $ 139.22 $ 139.00 $ 187.00 COS -Fee $ 187.87 Yes / 3/11/2019 LSS - Plan Review Special Fire Protection Equipment Fees were reviewed in detail and adjustments were made based on stud results and not CPI adjustments/ Commercial Cooking Hood and Duct (per system) $ 124.67 $ 124.00 $ 136.00 COS -fee 5 136.49 Yes / 3/11/2019 Pre -action firesprinkler system, includes alarm system $ 442.59 5 44290 $ 547.00 COS -Fee $ 547.60 Yes / 3/11/2019 Special extinguishing system: dry chemical, CO2, foam liquid system, inert gas Halon, Ire, en, etc. $ 298.18 $ 298.00 $ 290.00 COS -Fee $ 290.65 Yes / 3/11/2019 Spray Booth. SprayinU area $ 585.96 $ 585.00 $ 547.00 COS -Fee $ 547.60 Yes / 3/11/2019 LSS -State Mandated Inspections Fees were reviewed In detail and adjustments were made based an study results and not CPI adjustments/ Care Facilities $ 349.08 $ 349.00 $ 38300 cos -Fee $ 1,062.61 Annual Fee 7-99 clients as defined in the California Building Code/36% Yes Recovery per M.C. 3.36.030 Exhibit A 3/11/2019 Care Facilities $ 444.67 $ 444.00 $ 488.00 COS -Fee $ 1,197.36 Annual Fee > 99 clients as defined in the California E;0ding Yes Code/40.81/ Recovery per M.C. 3.36.030 Exhibit A 3/11/2019 Commercial Day Care Facilities $ 199.48 $ 199.00 $ 218.00 COS -Fee $ 605.96 Yes Annual Fee/36% Recovery per M.C. 3.36.030 Exhibit A 3/11/2019 High Rise Buildings $ 1,001.54 $ 1,001.00 $ 1,249.00 COS -Fee $ 1,249.63 Yes Annual Fee/ 3/11/2019 Hospitals $ 6,752.08 $ 6,752.00 $ 7,791.00 COS -Fee $ 7,791.29 Yes Annual Fee 200 Or More Beds/ 3/11/2019 Hotels/Motels $ 199.48 $ 199.00 $ 218.00 COS -Fee $ 605.96 Yes Annual Fee 50 - 299 Rooms/36% Recovery per M.C. 3.36.030 Exhibit A 3/11/2019 Hotels/Motels $ 349.08 $ 349.00 $ 383.00 COS -fee $ 414.39 Annual Fee 300 Or More Rooms/92.4% Recovery per M.C. 3.36030 Yes ExhibitA 3/11/2019 Residential Care Facility Fre-License Inspection $ 25454 S 254.00 $ 279.00 COS -Fee $ 291.70 California Hea ith and Safety Code Section 13235/96% Recovery per Yes M.C. 3.36.030 Exhibit A 3/11/2019 State Fire Clearance 5 77.92 $ 77.00 $ 84.00 COS -Fee $ 102.69 Requests for commercial occupancies, Clinics, Offices, and Treatment Yes Facilities/82% Recovery per M.C. 3.35.030 Exhibit A 3/11/2019 Sure Centers $ 376.10 $ 376.00 $ 445.70 COS -Fee $ 445.56 Yes Annual Feel 3/11/2019 5 13-12 ATTACHMENT B ORDINANCE NO. 2018-15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING EXHIBIT A TO NEWPORT BEACH MUNICIPAL CODE SECTION 3.36.030 RELATED TO COST RECOVERY WHEREAS, the City of Newport Beach ("City") funds certain municipal services, which are typically performed without request by the user, benefit the public generally and are traditionally funded by tax revenue; WHEREAS, the City performs other services which are funded in whole or in part by the person requesting the service; WHEREAS, Newport Beach Municipal Code ("NBMC") Subsection 3.36.030(A) provides the cost recovery for user service fees specifically requested by a person shall be at one hundred percent (100°/x), unless the amount is modified by the City Council in Exhibit A to NBMC Section 3.36.030; WHEREAS, the Finance Department conducts regular fee studies and makes recommendations to the City Council regarding adjustments that may be made to the cost recovery amounts provided in Exhibit A to ensure compliance with the law, consistency with current practices, and the maintenance of a high level of customer service for our residents; WHEREAS, on June 14, 2018, the proposed revisions to Exhibit A were taken to the City's Finance Committee for review; and WHEREAS, the Finance Committee recommends the City Council adopt the proposed revisions as depicted in Exhibit A. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Exhibit "A" in NBMC Section 3.36.030 is hereby amended to read as follows: Exhibit A The City's cost of providing the following services shall be recovered through direct fees charged for services. Exhibit "A" limits cost recovery fees to the percentages or dollar amounts indicated below. 13-13 Ordinance 2018 - Page 2 of 9 13-14 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Community Development Building Appeals Board Hearing — 0% Applicant Successful Appeals Board Hearing 50% Applicant Unsuccessful Harbor Construction 50% Permit Issuance (Counter $35 Only) Electrical, Plumbing Preliminary Plan Review First Two Hours Free, Full Cost Thereafter Life Safety Services Candle Permit Program 76% Care Facilities 7-99 36% Clients Care Facilities >99 40.8% Clients Commercial Day Care 36% Facilities 13-14 Ordinance 2018 - Page 3 of 9 13-15 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Hotels/Motels 50-299 36% Rooms Hotels/Motels 300 or 92.4% more Rooms Operational Permits — 40% Level 1 Operational Permits — 38.1% Level 2 Residential Care Facility 96% Pre -License Inspection Special Event Permits — 88% Single Event State Fire Clearance 82% Planning Appeals to City Council 50% Appeals to Planning 50% Commission Reasonable 0% Accommodation Recreation and Senior Services Adult Sports 50%-95% 13-15 Ordinance 2018 - Page 4 of 9 13-16 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Administrative $5 Processing Fee Badge Replacement $5 After School/Camp Programs Camps 20%-50% After-School/Teen 20%-50% Program Pre -School Program 20%-50% Aquatics 20%-50% Contract Classes 50%-95% Class Refunds $74 or less $10 $75 or more $20 Youth Sports 20%-50% Special Events—Levels 1, 2,and 3 Resident, Level 1 and 0%-20% Late Fees for Level 1 Resident, Levels 2-3 and 20%-50% Late Fees for Levels 2-3 13-16 Ordinance 2018 - Page 5 of 9 13-17 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Nonresident, Levels 1-2 20%-50% and Late Fees for Level 1 Nonresident, Level 3 and 50%-95% Late Fees for Levels 2-3 Appeal to City Council 50%-95% Natural Resources 0%-20% Programs Senior Services Oasis Transportation $143 each way Contract Classes 20%-50% Fitness Center 50%-95% Library Services Passport Photo $10 Use Fees—Materials $1 Inter -Library Loan $5 Fire and Marine Emergency Medical Services Advanced Life Support $400 (ALS) — Non -Transport 13-17 Ordinance 2018 - Page 6 of 9 13-18 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Basic Life Support (BLS) $400 — Non -Transport ALS First Responder Fee $400 BLS First Responder Fee $400 Marine Junior Guards – $727 Participation Fee Police Bike Licenses 17% Secondhand/Pawn 0% Dealer Tag Check Registrant—Narcotics 0% Impound Fee Maximum Permitted by Contract Public Works Engineering Encroachment Permit 88% without Other Department/Division Review Encroachment Permit 157% 13-18 Ordinance 2018 - Page 7 of 9 13-19 Percentage of Cost or Amount to Be Recovered from Direct Service Fees with Other Department/Division Review Harbor Resources Appeal of Lease/Permit $100 under Section 17.60.080 Finance Payment Plans (except $25 Parking) Parking Hearings 0% Admin. Cite Hearings 0% Municipal Operations Construction Water 50% Meter Establishment Fats, Oils, and Grease 0% (FOG) Annual Permit City Council, Board, Commission, Committee or Any Individual Member Thereof when Acting within the Scope of Their Official Duties 13-19 Ordinance 2018 - Page 8 of 9 Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses or phrases be declared unconstitutional. Section 4: The City Council finds the introduction and approval of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Section 5: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance to be published pursuant to City Charter Section 414, and it shall be effective thirty (30) days after its adoption. 13-20 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Review from a Lower $0 Body or Official Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses or phrases be declared unconstitutional. Section 4: The City Council finds the introduction and approval of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Section 5: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance to be published pursuant to City Charter Section 414, and it shall be effective thirty (30) days after its adoption. 13-20 Ordinance 2018 - Page 9 of 9 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of , 2018, and adopted on the day of , 2018, by the following vote, to -wit; AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR ATTEST: MARSHALL "DUFFY" DUFFIELD LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S O FICE RON C. HA P, CITY ATTORNEY 13-21 Attachment C Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes 13-22 Attachment C: Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes 3.36.030 Cost Recovery Percentages.'-' SHARE IN A. The municipal functions the City Council has determined to be user services and for which the City Council has initially determined the actual costs and the appropriate cost recovery percentage are described in the fee resolution. The cost recovery percentage appropriate for each user service shall be one hundred (100) percent with the exception of the user services listed in Exhibit "A" and those services for which the fee is limited by statute. The City Council may include in the fee resolution a schedule to phase in specific fee increases over a period not to exceed four years. B. The City Council shall establish, pursuant to the fee resolution, the actual fee or charge for each user service described in the fee resolution. The fee or charge shall be based upon the actual cost of providing the user service, multiplied by the relevant cost recovery percentage C. The City Council may, without amending this chapter, modify (increase or decrease) the fee resolution to amend the amount of any fee or charge for, and the actual cost of providing, any user service upon a determination that there has been an increase or decrease in one or more of the cost factors relevant to the calculation of the actual cost of providing that service. D. The City Council may modify the municipal functions determined to be user services in the fee resolution and the cost recovery percentage for any service only by amending this chapter. E. Fees for service established in the fee resolution may be waived by the City Council. The City Manager may waive fees imposed on nonprofit organizations for nonprofit sponsored events in an amount not to exceed one thousand dollars ($1,000.00) per year. Exhibit A The City's cost of providing the following services shall be recovered through direct fees charged for services. Exhibit "A" limits cost recovery fees to the percentages or dollar amounts indicated below. 13-23 Attachment C: Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes 13-24 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Community Development Building Appeals Board Hearing — 0% Applicant Successful Appeals Board Hearing — 50% Applicant Unsuccessful Harbor Construction 50% Permit Issuance (Counter Only) $35 Electrical, Plumbing Preliminary Plan Review First Two Hours Free, Full Cost Thereafter Life Safety Services Candle Permit Program 176% Care Facilities: 7-99 Clients 36% Care Facilities: > 99 Clients 40.8% Commercial Day Care Facilities 36% Hotels/Motels 50-299 Rooms 36% Hotels/Motels 300 or more 92.4% Rooms Operational Permits — Level 1 40% 13-24 Attachment C: Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes Service Percentage of Cost or Amount to Be Recovered from Direct Fees Operational Permits – Level 2 38.1% Residential Care Facility Pre- 96% License Inspection Special Event Permits – Single 88% Event State Fire Clearance 82% Planning Appeals to City Council 50% Appeals to Planning Commission 50% Reasonable Accommodation 0% Recreation and Senior Services Adult Sports 50%-95% Administrative Processing Fee $5 Badge Replacement $5 After School/Camp Programs Camps 20%-50% After-School/Teen Program 20%-50% Pre -School Program 120%-50% Aquatics 20%-50% Contract Classes 50%-95% Class Refunds 13-25 Attachment C: Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes Service Percentage of Cost or Amount to Be Recovered from Direct Fees $74 or less $10 $75 or more $20 Youth Sports 20%-50% Special Events—Levels 1, 2, and 3 Resident, Level 1 and Late Fees for Level 1 0%-20% Resident, Levels 2-3 and Late Fees for Levels 2-3 20%-50% Nonresident, Levels 1-2 and Late Fees for Level 1 20%-50% Nonresident, Level 3 and Late Fees for Levels 2-3 50%-95% Appeal to City Council 50%-95% Natural Resources Programs 0%-20% Senior Services Oasis Transportation $1—$3 each way Contract Classes 20%-50% Fitness Center 50%-95% Library Services Passport Photo 1$10 13-26 Attachment C: Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes Service Percentage of Cost or Amount to Be Recovered from Direct Fees Use Fees—Materials $1 Inter -Library Loan $5 Fire and Marine Emergency Medical Services Advanced Life Support (ALS) — Non -Transport $400 Basic Life Support (BLS) — Non -Transport $400 ALS First Responder Fee $400 BLS First Responder Fee $400 State Mandated Inspections - Day Caro Facilities Marine Junior Guards – Participation Fee $727 Police Bike Licenses 17% Secondhand/Pawn Dealer Tag Check 0% Registrant—Narcotics 0% Impound Fee Maximum Permitted by Contract 13-27 Attachment C: Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes 13-28 Percentage of Cost or Amount to Be Recovered from Direct Service Fees Public Works Engineering Encroachment Permit without 88% Other Department/Division Review Encroachment Permit with Other 57% Department/Division Review Harbor Resources Appeal of Lease/Permit under $100 Section 17.60.080 Finance Payment Plans (except Parking) $25 Parking Hearings 0% Admin. Cite Hearings 0% Municipal Operations Construction Water Meter 50% Establishment Fats, Oils, and Grease (FOG) 0% Annual Permit City Council, Board, Commission, Committee or Any Individual Member Thereof When Acting 13-28 Attachment C: Redline Amended Newport Beach Municipal Code Section 3.36.030 Changes (Ord. 2016-14 § 1, 2016; Ord. 2015-29 § 1, 2015; Ord. 2015-9 § 1, 2015; Ord. 2013-18 §§ 1, 2, 2013; Ord. 2013-1 § 1, 2013; Ord. 2011-28 § 1, 2011; Ord. 2011-10 § 1, 2011; Ord. 2009-32 § 1 (Exh. A), 2010; Ord. 2009-21 § 1 (Att. 1), 2009; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 2004-4 § 3, 2004; Ord. 2002-26 Exh. A, 2002; Ord. 2000-24 § 1, 2000; Ord. 98-18 § 1, 1998; Ord. 97-8 §§ 1 (part), 2, 1997) 13-29 Percentage of Cost or Amount to Be Recovered from Direct Service Fees within the Scope of Their Official Duties Review from a Lower Body or $0 Official (Ord. 2016-14 § 1, 2016; Ord. 2015-29 § 1, 2015; Ord. 2015-9 § 1, 2015; Ord. 2013-18 §§ 1, 2, 2013; Ord. 2013-1 § 1, 2013; Ord. 2011-28 § 1, 2011; Ord. 2011-10 § 1, 2011; Ord. 2009-32 § 1 (Exh. A), 2010; Ord. 2009-21 § 1 (Att. 1), 2009; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 2004-4 § 3, 2004; Ord. 2002-26 Exh. A, 2002; Ord. 2000-24 § 1, 2000; Ord. 98-18 § 1, 1998; Ord. 97-8 §§ 1 (part), 2, 1997) 13-29 Attachment D Application of Indirect Costs to the Calculation of Fees for Services 13-30 Attachment D: Application of Indirect Costs to the Calculation of Fees for Services The purpose of this exhibit is to provide a detailed explanation of the methodology used by the City of Newport Beach to incorporate indirect overhead costs in the development of the municipal fee schedule. The nature of indirect overhead costs will also be described. A Community Development Department (CDD) Life Safety Services (LSS) Special Event Permits - Public Display - Fireworks Aerial Display Fee (Fee) facilitates the explanation. The 4th of July and Boat Parade are wonderful opportunities for people to enjoy spectacular fireworks shows right here in our own community. An incredible amount of time and energy goes into planning, preparing, inspecting, and ensuring that these events go smoothly. Safety is paramount. The permit application submitted to LSS must include proof of liability insurance, State Fire Marshal licenses, and a list of persons working the shoot. The LSS Specialists reviews the packet and provides a list of "Conditions" to the applicant to follow upon approval. The day of the shoot, the LSS Specialist does an onsite inspection in the morning, afternoon, and evening to ensure all safety requirements are met and verifies the pyrotechnician has their license and double checks its validity. The LSS Specialist is present during the show and after checking for possible fires, extinguishing fires should they occur, stopping the show at any time if necessary, and ensuring that all debris is cleaned up. The following steps demonstrate how the Fee is derived. Step 1: Calculate Hourly Staffing Rates and Burdened Factors The first step is to determine the hourly rates of staff providing the services associated with the fee. Table 1 below provides the hourly salary and benefit rates plus the hourly burden factors for the staff that are responsible for performing this task within CDD. Indirect overhead costs or "burdened factors" are costs that are not directly accountable to the expenses incurred for a user fee service, but are necessary and contribute to the total cost of that service delivery, i.e. - managerial administration, utilities, insurance, legal, information technology, payroll, and finance, which are all valid components to the analysis of what it costs the City to provide municipal services. Table 1- Hourly Rates for Salary, Benefit and Overhead Factors Salary and Benefits Burdened Factors Total Burdened Hourly Rate Hourly Rate Rate Life Safety Specialist II $95.45 + $91.57 = $187.02 CDD Permit Tech $58.15 + $75.95 = $134.10 Deputy CDD Director $137.99 + $132.39 = $270.39 The City's cost allocation plan consultant uses the Federal Office of Management and Budget (OMB) Super Circular 2 CFR Part 200 as a guideline to determine the allowable burdened, or indirect, cost elements. The Super Circular is a document that state and local governments use to identify allowable indirect costs when applying for reimbursement of cost from state or federal 13-31 programs. Although the calculation of user fee services is not specific to applying for reimbursement from any state or federal program, the underlying methodology of identifying costs is much the same. The relevant sections of the Super Circular that specify how direct and indirect costs shall be applied to the calculation of the Fee follows below. Composition of Cost Direct Costs 1. General. Direct costs are those that can be identified specifically with a particular final cost objective. 2. Application. Typical direct costs include: a) Compensation of employees for the time devoted and identified specifically to the performance of the operation. b) Cost of materials acquired, consumed, or expended specifically for the purpose of fulfilling the mission of the operation. c) Equipment and other approved capital expenditures.' d) Travel expenses incurred specifically to carry out the operation. Using the personnel identified in Table 1, the direct costs to perform a water service installation are found on line 1.1 (total salary and benefits on an hourly basis) in Table 1 a below. Table 1 a Fully Burdened Hourly Rates Life Safety Specialist II CDD Permit Tech Deputy CDD Director Annual Salary & Benefits: $198,527 $120,953 $287,027 1. Calculate hourly salary & benefits 1.1 Divide annual cost by 2,080 hrs $95.45 $58.15 $137.99 Total Salary and Benefits $95.45 $58.15 $137.99 2. Indirect Overhead LSS Building 2.1 Compensated Absences 13.4% 13.4% $12.79 $7.79 $18.49 (vacation, sick leave) 2.2 General Administration 20.8% 22.9% $19.84 $13.30 $28.69 (supervision, support services) 2.3 Operating Expense 32.7% 27.2% $31.21 $15.83 $45.12 (training, supplies, maint & repair) 2.4 Citywide Overhead 29.1% 67.1% $27.73 $39.02 $40.09 (Finance, City Manager, Human Resources) Total Indirect Overhead 95.9% $91.57 $75.94 $132.39 Total Burdened Rate: $187.02 $134.10 $270.39 1 Includes maintenance and/or depreciation expense only, not equipment purchases, which are capitalized over a number of years. 13-32 Indirect Costs 1. General. Indirect costs are those: (a) incurred for a common or joint purpose benefiting more than one cost objective, and (b) not readily assignable to the cost objectives specifically benefitted. The term "indirect costs," as used herein, applies to costs of this type originating from staff within LSS and CDD Building, their operating expenditures and administration support, as well as those incurred by administrative departments in supplying goods, services, and facilities. The cost of service analysis includes four types of indirect overhead categories or "cost pools" consisting of compensated absences, general administration, operating expenses, and citywide overhead. a) Compensated Absences — The compensated absences cost pool is used to account for employees' time off with pay for vacations and sick days. The City is obligated to pay for these days off and is required by the matching principle to record the expense when the employees are working, since the benefits are a part of the employees' compensation. It is estimated that 280 out of 2,080 total available hours per year per full-time equivalent (FTE) are taken as compensated absences. This translates into a 13.4% burden factor applied to the hourly salary and benefit rate as indicated on line 2.2 in Table 1 a above. b) General Administration — The general administration cost pool includes the cost of staff time spent on such activities as budget planning and staffing allocations; public counter and telephone time, meetings, and training and education. The wages of management staff and the workers engaged in administration and support activities are considered an indirect labor cost. It is calculated that 20.8% of LSS and 22.9% of CDD Building's overall workload is spent on this general administrative function as indicated on line 2.2 in Table 1 a above. c) Operating Expenditures — The operating expenditure cost pool consists largely of Internal Service Fund (ISF) charges to the divisions on a cost reimbursement basis. The City's internal service funds are used to allocate the cost of providing general liability insurance and workers' compensation; maintaining and replacing the City's rolling stock fleet; and the cost of maintaining and replacing the City's computers, printers, copiers, and telecommunication services. This cost pool also includes other general operating expenses such as publications, supplies, and training. The operating expenditure burden factor of 32.7% for LSS and 27.2% for CDD Building as indicated on line 2.3 in Table 1 a above is calculated by comparing the total cost of (allowable indirect) operating expenditures to the total (allowable direct) labor pool. d) Citywide Overhead - The Cost Allocation Plan (CAP) distributes the costs of City departments that serve a central service function supporting MOD and Revenue operations. These "Central Service Departments/Divisions" include: City Council, City Clerk, City Manager, Finance & Treasury Financial Planning, and Financial Reporting, as well as Human Resources Risk Management. The citywide overhead burden factor of 29.1% for LSS and 67.1 % of CDD Building is calculated by comparing the total cost of LSS and CDD Building's share of citywide overhead to the total (allowable direct) labor pool (see line 2.4 in Table 1 a above). Step 2: Calculate Time Spent on the Service The second step is to calculate the time spent on the service. The task and time in minutes estimated to complete the task is captured in Table 2 below. 13-33 Table 2: Task Descrintion & Time Estimates in minutes Step 3: Calculate the Cost to Provide the Service The third and final step is to calculate the cost to provide the service by converting the total minutes to hours per unit (or staff person). The product of the hourly rate calculation times the time spent yields the cost of providing the service (see Table 3 below). Table 3 — Fee is Product of Times and Rates Review application, conduct Schedule and Verify Process and Total Cost inspections morning, afternoon, Code Compliance File Permit Burdened and evening day of event Minutes Life Safety Specialist II 280 minutes the Service CDD Permit Tech 4.67 1 minute Deputy CDD Director 1 10 minutes Step 3: Calculate the Cost to Provide the Service The third and final step is to calculate the cost to provide the service by converting the total minutes to hours per unit (or staff person). The product of the hourly rate calculation times the time spent yields the cost of providing the service (see Table 3 below). Table 3 — Fee is Product of Times and Rates Summary The purpose of a CAP is to accurately, fairly, and reasonably distribute the City's central administrative costs to the operating departments in the City. The development of a CAP follows a series of general guidelines and principles, which originate from federal guidelines established in OMB Super Circular. These principles ensure that allocated costs are necessary and reasonable to the operation of the government. A cost analysis study is almost entirely reliant upon the data provided by the City. Since all study components are interrelated, bad data at any step in the process will cause the ultimate results to be flawed. To avoid accuracy problems and other quality flaws, the study included a series of quality control measures including reasonableness tests and validation; balance and cross checks; and internal City review. Finally it should be noted that private businesses typically add a layer of profit margin to their cost analysis, public agencies are not allowed to do so. 13-34 Total Fully Total Cost Total Hours per Burdened to Provide Minutes Unit Hourly Rates the Service Life Safety Specialist 11 280.00 4.67 $187.02 $872.75 CDD Permit Tech 1.00 0.02 x $134.10 = $2.23 Deputy CDD Director 10.00 0.17 $270.39 $45.06 $920.05 Proposed Fee $920.00 Summary The purpose of a CAP is to accurately, fairly, and reasonably distribute the City's central administrative costs to the operating departments in the City. The development of a CAP follows a series of general guidelines and principles, which originate from federal guidelines established in OMB Super Circular. These principles ensure that allocated costs are necessary and reasonable to the operation of the government. A cost analysis study is almost entirely reliant upon the data provided by the City. Since all study components are interrelated, bad data at any step in the process will cause the ultimate results to be flawed. To avoid accuracy problems and other quality flaws, the study included a series of quality control measures including reasonableness tests and validation; balance and cross checks; and internal City review. Finally it should be noted that private businesses typically add a layer of profit margin to their cost analysis, public agencies are not allowed to do so. 13-34