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Home My WebLink AboutSS2 - Master Fee Schedule Update - PowerPointReceived After Agenda 10.8.13 Item #SS2 Municipal Fee Schedule Update City Council Study Session October 8, 2013 City of Newport Beach F'i're Department Summary of Proposed Fee Schedule A number of fees are decreasing or are being eliminated. No new fees proposed. In furtherance of Council policy, fee schedule aligns revenues with the actual (direct and indirect) costs of providing services. Fees are better defined to reflect the nature of work performed. Proposed Changes ' } U " Fire Standby Services Junior Guards Life Safety Planning and Development Life Safety Inspection Services • 20 (24%) Change %. Calculation Method • 19 (230) Increasing • 24 (290) Decreasing • 21 (26 %) Eliminated • 2 (2 %) No Change • 3 (4 %) Combined w /existing fees • All lower than OCFA Fees • No New Fees Proposed Changes • Fire Standby Services • Junior Guards • Life Safety Planning and Development • Life Safety Inspection Services Emergency Medical Services Presentation Outline Background (authority, Council policy, fee administration) Fee for Service Methodology Proposed Fees by Service Category Background Purpose Authority - NBMC 3.36.030 mandates 100% cost recovery (except for subsidies identified in the code) Council Policy Directive - 15 -Point Fiscal Sustainability Plan: Item 11: Establish appropriate cost - recovery targets and adjust fee structure to ensure that the fees continue to meet cost recovery targets. Council Policy Directive - F -4 Revenue Measures: The Finance Department may study, internally or using an outside consultant, the costs of providing services and recommend fees to each department. Fee for Service Methodology MGT of America performs cost of service analysis for developing user fees. MGT Scope of Work: • Calculate the fully burdened cost of providing (labor - based) user fee services; • Applied fully burdened labor rates to time requirement estimates and annual workload figures; • Review and cross check results to ensure data validity; and • Benchmark existing and proposed fees against those charged by the OCFA. Phased Approach - Fire fees last updated in 2008 Fee Calculation Example o� (Fire Pump Installation - Inspection) Cri Fee Calculation Example (Fire Pump Installation - Inspection) Step 1: Calculate Hourly Staffing Rates and Burdened Factors Salary and Bens Hourly Rate Administrative Assistant $51.10 Burdened Factors Hourly Rate + $60.42 Total Burdened Rate _ $111.51 Life Safety Specialist II $71.92 + $85.04 = $156.96 Fee Calculation Example o� (Fire Pump Installation - Inspection) Cri Step 2: Calculate Time Spent on the Service Task Descriotion & Time Estimates (in minutes): Research/ Permit/ Total Re- Counter Clerical Meeting Phone Re- Time Inspection inspection Drive Time Time Support Time Time issuance Min Administrative Assistant 5.00 5.00 Life Safety Specialist II 100.00 20.00 10.00 130.00 Fee Calculation Example o� (Fire Pump Installation - Inspection) Cri Step 3: Calculate the Cost to Provide the Service Proposed Fee $349.00 Fully Total Burdened Total Cost Total Hours per Hourly to Provide Minutes Unit Rates the Service Administrative Assistant 5.00 0.08 X $111.51 _ $9.29 Life Safety Sepcialist II 130.00 2.17 $156.96 $340.08 Proposed Fee $349.00 Proposed Fees by Service Category Fire Safety Services Junior Guards Life Safety Planning and Development Life Safety Inspection Services e JQTeT)/� �VIGeS �4:,4 0 Fire Safety Services Fee Service Description: Fire personnel rates for reimbursable services. These costs include staff time, equipment, materials, and the associated overhead provide requested fire safety services. Proposed Changes: Certain hourly rates within this category are deceasing while others are increasing to reflect the current cost of staff time, equipment, materials, and associated overhead. w Junior Guards U Junior Guards Fee Service Description: Provide children with training ocean safety and responding to emergency situatior Proposed Changes: Non - resident fee increasing $44 to align revenues with the actual cost of services. Resident rate subsidy increased to 17.5% per Finance Committee recommendation. r,f yi 'M e 03are De ,r Planning a, nC PlonmPnt Life Safety Planning and Development Fee Service Description: Staff services associated witr new construction and tenant improvements. Services include plan review and site inspection to ensure compliance with fire and life safety minimum requirements. Proposed Changes: Fees structure aligned with OCFA and will better define the nature of the work performed. Fees based on actual staff time to perform plan review and inspections, not percent of building permit fee. Due to change in methodology, it is difficult to predict exactly which and how many fees will increase or decrease, but staff has made likely assumptions in examples that follow. Life Safety Planning and o� Development Cont. Ui Example 1: Plan review inspection of a five story 20,838 square foot retail /residential mixed use development: Plan Review Architectural Fire Sprinkler System Fire Underground Service Line Fire Alarm System Tota I CURRENT PROPOSED VARIANCE $2,710 $934 - $1,776 $191 $675 $484 $60 $342 $282 56 426 370 $3,017 $2,377 -$640 Life Safety Planning and ��' Development Cont. Example 2: Applicant seeking plan review and safety inspections for a 4 unit residential $150,000 improvement project: CURRENT PROPOSED (VALUATION BASED) (FLAT FEE) VARIANCE Plan Review $354 $259 -$95 Inspections (estimated) $985 $323 -$662 Fire sprinklers Plan review $102 $176 $74 Fire sprinklers Inspections $188 $297 $109 Fire service underground plan review $58 $342 $284 Fire Service Underground Inspections 160 349 189 Total $1,847 $1,746 -$101 •Iz FA • oA }e U %d Life Safety Inspection Fee Service Description: Staff services associated with providing annual and special event permits, state mandated inspections, hazardous material inspection! and state - mandated operating permits. Proposed Changes: Various fees decreasing due to change in fee calculation methodology. Other fees increasing primarily to align revenues with the actual cost of services. Several fees are eliminated due to redundancy and combination with other existing fees. Life Safety Inspection cont. �I Example 1: Inspection of auto dealer /service facility that has 10 chemicals that require inspection CURRENT PROPOSED VARIANCE Inspection of 7 -10 chemicals each greater than or equal to 55 $696 $162 -$534 gallons, 200 cubic feet, or 500 pounds TOTAL $696 $162 -$534 ft 9 � Life Safety Inspection cont. �I Example 2: Annual permit renewal that requires inspection of dry cleaning plant with 2 or fewer machines using hazardous solvents Operational permit renewal - dry cleaning plants with 1 -2 machines TOTAL CURRENT ME $138 AN PROPOSED $114 $114 1'1 VARIANCE -$24 Life Safety Inspection cont. �I Example 3: Special event that requires a tent inspection CURRENT PROPOSED Operational permit $162 $140 Special event permit $195 $140 Inspection fee during business hours* 240 Total $597 $280 `Cost of inspection is included in the proposed special event permit fee VARIANCE -$22 -$55 -$240 -$317 Conclusion and Questions ,4a Municipal Fee Schedule Update City Council Study Session October 8, 2013