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Home My WebLink About2021-21 - Adopting and Revising Certain Fees within the Schedule of Rents, Fines, and Fees and Updating the Methodology for Annual Consumer Price Index CalculationsRESOLUTION NO. 2021-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING AND REVISING CERTAIN FEES WITHIN THE SCHEDULE OF RENTS, FINES, AND FEES AND UPDATING THE METHODOLOGY FOR ANNUAL CONSUMER PRICE INDEX CALCULATIONS WHEREAS, Section 3.36.010 of the Newport Beach Municipal Code ("NBMC") 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, Subsection 3.36.010(C) of the NBMC further provides that to ensure fees charged for services are an accurate reflection of costs, the City should conduct a fee study at least once every five years; WHEREAS, contemporaneous with this resolution the City Council introduced Ordinance No. 2021-7, amending Exhibit A to Section 3.36.030 (Cost Recovery for User Services) of the NBMC; WHEREAS, Exhibit A to Section 3.36.030 of the NBMC 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 2019, the City retained MGT of America, Inc. ("MGT") to prepare the cost allocation plan and cost -of -services studies for the City ("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 cost -of -service studies for the Harbor, Finance, Public Works, and Utilities Departments; WHEREAS, pass through costs for actual services or tangible goods do not include staff time; WHEREAS, statutory fees are mandated or capped by another authority, such as the state; Resolution No. 2021-21 Page 2 of 4 WHEREAS, the City Council adopted Resolution No. 2018-55, minimizing the percent increase and fiscal impact to the customer and maximizing the recapture of funds to the City through automatic annual Consumer Price Index ("CPI") adjustments using April of the prior year to April of the current year; WHEREAS, the City Council adopted Resolution No. 2020-29, updating the methodology for annual CPI adjustments using March of the prior year to March of the current year; WHEREAS, rental rates are not always studied at the same time as the cost of service fees and should not be limited to a maximum number of CPI adjustments; and WHEREAS, the City desires such studied fee changes and annual CPI adjustments become effective on a uniform date, beginning July 1 of each year. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby revise the Schedule of Rents, Fines, and Fees ("SRFF"), in part, as set forth in Exhibit 1, attached hereto and incorporated herein by reference. Except where prohibited by law, all cost of service fees of five dollars or more shall be rounded down to the nearest dollar and cost of service fees less than five dollars shall be rounded down to the nearest quarter, except Library Department per copy fees shall be rounded down to the nearest nickel. Any rounding providing by this Section shall not apply to Electric Vehicle ("EV") chargers per kWh and the EV Overstay Charge as set forth in the SRFF. 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: For those fees and charges modified by this resolution which have an implementation date of July 1, 2021, as set forth in the SRFF, Exhibit 1, the current fees and charges shall continue in full force and effect through June 30, 2021 and the modified fees or charges shall take effect on July 1, 2021. Section 4: The City Council hereby reaffirms all CPI adjustments to the SRFF that occurred prior to the adoption of this resolution. Resolution No. 2021-21 Page 3 of 4 Section 5: Except as provided in Section 6, beginning July 1, 2021, all fees and charges within the SRFF indicated by "Yes" under the CPI column shall be automatically adjusted to reflect the percentage change, from March of the prior year to March of the current year, as it may be prorated from the fee approval date, in the cost of doing business measured by the CPI, all cost of service fees of five dollars or more shall be rounded down to the nearest dollar and cost of service fees less than five dollars shall be rounded down to the nearest quarter dollar, except Library Department per copy fees shall be rounded down to the nearest nickel. Any rounding providing by this Section shall not apply to Electric Vehicle ("EV") chargers per kWh and the EV Overstay Charge as set forth in the SRFF. "CPI" shall mean the Los Angeles -Long Beach -Anaheim, CA Area, All Urban Consumers, All Items, Base Period (1982-84=100), or successor index, as published by the United States Department of Labor, Bureau of Labor Statistics. Automatic CPI adjustments to cost of service fees and/or charges, by department, shall occur annually on July 1 for a period of three (3) consecutive years following adoption of the studied department fees and/or charges. After the third (3rd) consecutive annual increase, automatic CPI adjustments shall cease until the departments' fees and/or charges are updated and adopted, at which time the automatic CPI adjustments will reset, commencing the following July 1. CPI adjustments shall be automatically adjusted for rental rates listed in the SRFF that are not adjusted by a separate resolution, and shall occur annually on July 1, 2021 and indefinitely beyond. This automatic CPI adjustment shall not apply to any fee that is subject to Proposition 218 (California Constitution Article XIIIC and Article XIIID, Government Code Section 53750.). Section 6: The first CPI adjustment to fees and charges adopted by this resolution, as set forth in Exhibit 1, shall occur on July 1, 2022. Section 7: Any portion of any prior resolution, the SRFF or Master Fee Schedule including, but not limited to, Section 4 of Resolution 2018-55 and Section 8 of Resolution 2020-29, that conflicts with this resolution or Exhibit 1, is hereby repealed as of the effective / implementation date of the applicable provision, fee or charge that is in conflict. Section 8: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 9: 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. Resolution No. 2021-21 Page 4 of 4 Section 10: The City Council finds the adoption of this resolution 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 11: 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 9th day of March 2021. ATTEST: E Leilani I. Brown City Clerk �ORIT4.%�;,10 APPROVED AS TO FORM: CITY ATTORNEY'S OFFIC Aar n C. 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Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2021-21 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 9th day of March, 2021; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Brad Avery, Council Member Noah Blom, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill NAYS: None ABSENT: Mayor Pro Tem Kevin Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 10th day of March, 2021. —,a 0 4_� Leilani I. Brown City Clerk Newport Beach, California