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HomeMy WebLinkAbout2025-8 - Amending the Schedule of Rents, Fines and Fees to Provide a Pass-Through of Credit Card Transaction Fees Charged by Third Parties Directly to the ConsumerRESOLUTION NO. 2025-8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE SCHEDULE OF RENTS, FINES AND FEES TO PROVIDE A PASS -THROUGH OF CREDIT CARD TRANSACTION FEES CHARGED BY THIRD PARTIES DIRECTLY TO THE CONSUMER WHEREAS, Section 3.36.010 (Findings) 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 requesting the service; WHEREAS, Subsection (A) of Section 3.36.030 (Cost Recovery Percentages) of the NBMC provides that the cost recovery percentage appropriate for each user service shall be one hundred percent (100%), unless the amount is modified by Exhibit A to Section 3.36.030 (Cost Recovery Percentages) of the NBMC; WHEREAS, Subsection (B) of Section 3.36.030 (Cost Recovery Percentages) of the NBMC provides that the City Council shall establish, by resolution, the actual fee or charge for each user service based upon the actual cost of providing the user service; WHEREAS, Subsection (C) of Section 3.36.030 (Cost Recovery Percentages) of the NBMC provides that the City Council may, by resolution, modify the amount of fee or charge 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, on April 23, 2024, the City Council adopted Resolution No. 2024-29, which revised the City's Schedule of Rents, Fines and Fees ("SRFF"), in part, to add a credit card convenience fee of 2.85% to offset the cost charged to the City by payment processors for credit card transactions; WHEREAS, third parties may provide services directly to the customer, which may include a credit transaction fee charged directly to the customer which differs from the fee charged by the City; and WHEREAS, the City Council desires to revise the credit card convenience fee within the SRFF to include a pass -through of the credit card transaction fee charged by a third party when charging the fee directly to the customer. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.. Resolution No. 2025-8 Page 2 of 3 Section 1: The City Council does hereby revise the SRFF, All Departments, Item No. 9, "Credit Card Convenience Fee," and corresponding comment "[e]," as set forth in Exhibit 1, which is attached hereto and incorporated herein by reference. 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 vary, without further action by the City Council, and rates may be updated by the Finance Director as necessary based on actual cost or to ensure recovery of cost incurred by the City. Section 3: The changes to the SRFF adopted by this Resolution shall be effective immediately. Any portion of any prior resolution or SRFF that conflicts with this resolution is hereby repealed and of no further force or effect. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: 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 6: 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. Resolution No. 2025-8 Page 3 of 3 Section 7: 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 February, 2025. ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE s`�-n..�� Agro6 C. Harp City Attorney q c��FORN% Attachment: Exhibit 1 - SRFF, All Departments, Item No. 9, "Credit Card Convenience Fee," and corresponding comment "[e]." City of Newport Beach - Schedule of Rents, Fines and Fees ALL DEPARTMENTS 9 Credit Card Convenience Fee n/a - New 2.85%, or pass - Subject Note to CPI through, as applicable [e] When the City is charged for processing the credit card transaction, the City's fee to the customer is 2.85%to offset the cost to the City. When the customer is charged directly to process the transaction, the fee is a pass -through directly to the customer. STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. 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. 2025-8 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 11th day of February, 2025; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Joe Stapleton, Mayor Pro Tern Lauren Kleiman, Councilmember Michelle Barto, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Sara J. Weber, Councilmember Erik Weigand NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 12th day of February, 2025. *"4�2m= Leilani I. Brown City Clerk Newport Beach, California ,� 1— U ����0 RN�i