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HomeMy WebLinkAbout11 - Master Fee ScheduleCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 11 August 9, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Glen Everroad, Revenue Manager, 949- 644 -3144 eve rroad (a) city. newoort- beach. ca. us SUBJECT: Master Fee Schedule ISSUE: Should the Master Fee Schedule be amended to reflect the change in the cost of providing City services? RECOMMENDATION: Staff recommends the City Council conduct a Public Hearing; and adopt Resolution No. 2005 - updating the Master Fee Schedule. DISCUSSION: In 1996, the City of Newport Beach retained KPMG Peat Marwick LLP (KPMG) to conduct a cost of services study for City services requested and initiated by residents, businesses and others who most benefit from the City services. The KPMG study determined the actual cost of providing each of those services including direct labor costs, administration or "overhead" costs and the cost of materials and supplies based on actual 1994 -1995 costs. In 1997, the Council adopted Ordinance 97 -8 establishing Chapter 3.36 (COST RECOVERY FOR USER SERVICES) of the Municipal Code. The Ordinance codified the Council's decisions at that time regarding the percentage of cost to be recovered from direct user fees for the services studied. The remaining cost of those services is subsidized by tax revenues derived from the general population. At the same time, Council adopted Resolution 97 -15 establishing a Fee Schedule for City services. The fees in the Fee Schedule were based on the 1996 study and Chapter 3.36 of the Municipal Code. The intent was to update the Fee Schedule regularly by resolution to reflect changes in costs, and revise Chapter 3.36 of the Municipal Code whenever the City Council wished to change the percentage of cost recovery. Additionally, the Fee Master Fee Schedule August 9, 2005 Page 2 Schedule is intended to be the centralized location for the myriad of fees previously located in individual ordinances, resolutions and Council Policies. Since the adoption of the first Master Fee Schedule, the Schedule has been updated annually by Resolution of the City Council to reflect changes in costs as measured by the change in the Consumer Price Index and City staff compensation. There has been a 4.02% increase in the Consumer Price Index (CPI) (Los Angeles- Riverside - Orange County,) since the fee schedule adjustment of 2004. Using the methodology developed by KPMG to apply the percentage change in the CPI to the non -labor portions of the City fees, staffed prepared the proposed fee adjustment. Because the bargaining units have yet to complete negotiations for salary increases this year, staff has not applied a salary increase to the labor portions of the fees. That adjustment will be included in next year's update of the Fee Schedule. The Fee Schedule was distributed to the appropriate City departments for two reviews. During the first review, staff was asked to review the 2004 Fee Schedule and identify (a) any fees imposed for services that are no longer provided; (b) any services or products your department provides for which a fee is not currently imposed; (c) any change in the level of service for fees on the schedule (i.e. Are we spending more labor hours in reviewing the permit or providing the service ?); and (d) any fees that we can not adjust based on CPI or salary adjustments. Staff recommended changes include an additional fee in Administrative Services for processing Business License Applications (Initial and Renewals) and a deletion of the Animal Bite Reports fee. Planning adjusted its hourly rate, with more precision as to the level of staff working on various applications. The result is an increased hourly rate for applications that go to the Planning Commission and reduced rates for staff approvals and plan check. The impact of this change, as well an update of the amount of time spent on fixed fee applications, is an increase in four and a decrease in twelve fixed fees. The Building Department fees that are on Valuation Tables were recalculated and adjusted; this is done to keep the tiers in alignment. The Building Department also added a Plan Check Extension Fee. The Fire Department adjusted the fees for Emergency Operation Services and Lifeguard Services. The proposed Master Fee Schedule incorporates the increase in the Recycling Service Fee adopted in June 2005 (Resolution 2005 -38). Harbor Resources changed their fee methodology for Harbor Construction Plan Check from a valuation table to a time base fee. Harbor Resources also added an Appeal Board Hearing Fee and Wait List Fee for the Balboa Yacht Basin. The Library fees approved by the Board of Library Trustees are listed in the proposed schedule. The Police Department added a Massage License Fee for Holistic Health Practitioners and Managers. Public Works added fees for Traffic Control Plan Checks, Traffic Study, Records of Survey Review, Monitoring Wells, Special Request/Research and Crane Deposit. The Recreation and Senior Services fees adopted in April 2004 by Resolution 2004 -28 were adjusted by the CPI rate as stated above. Other changes in Recreation and Senior Services fees include a new fee for Refund Charges for all Programs and Facilities Rentals and a deletion of the McFadden Pier Quad Rental Fee. The Title 14 Amendment Master Fee Schedule August 9, 2005 Page 3 incorporating Water & Sewer Fee increases adopted in July 2004 by City Council are listed in the proposed schedule. The attached proposed Fee Schedule with department recommendations and the general adjustment to costs was then circulated for a second and final review and approval by staff. State law provides that fees for services charged by the City may not exceed the estimated reasonable cost for providing the services or the facility for which the fee is charged, and requires documentation of how the fee supports the cost of providing the service in a report to the Council before adoption. The KPMG cost of services study is the basis from which the annual fee adjustments are calculated in order to meet this legal requirement. Environmental Review: None Required. Public Notice: In addition to the public notice posted with the agenda, the public notice requirements imposed by Government Code Section 66000 et.seq. for planning fees were published in the Daily Pilot on July 28 and July 29, 2005. Prepared by: ,dam• F����, Glen Everroad, Revenue MaRager Submitted by: 4 e � _ Dennis Danner, Administrative Services Director Attachments: Proposed Resolution Proposed 2005 Fee Schedule RESOLUTION NO. 2005- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING THE CITY'S MASTER SCHEDULE OF FEES TO BE CHARGED FOR USER SERVICES WHEREAS, in 1996 the City of Newport Beach retained KPMG Peat Marwick LLP (KPMG) to conduct a cost of services study for City services requested and initiated by residents, businesses and others who are most benefited by the service; and WHEREAS, the KPMG study determined the actual cost of providing the services including direct labor costs, administration or "overhead" costs and the cost of materials and supplies based on 1994 -1995 actual costs for the majority of City fees for service; and WHEREAS, on February 10, 1997 the City Council of the City of Newport Beach adopted Ordinance 97 -8 establishing Chapter 3.36 (COST RECOVERY FOR USER SERVICES) of the Municipal Code; and WHEREAS, Chapter 3.36 of the Municipal Code contains cost recovery percentages for specific services contained in the 1996 study; and WHEREAS, the City Council of the City of Newport Beach adopted Resolution 97 -15 on February 10, 1997 establishing a Master Fee Schedule for municipal services based on the 1996 study and Chapter 3.36 of the Municipal Code; and WHEREAS, the City Council desires the Master Fee Schedule be updated to reflect the changes in the Consumer Price Index, incorporate the Recycling Service Fee approved in June of 2005, add new and delete old fees for City services. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section l: The schedule of fees for service attached to this Resolution as EXHIBIT "A" is hereby adopted. Section 2: The fees imposed by this Resolution shall take effect upon adoption for all but development fees which shall take effect on October 8, 2005. Passed and adopted by the City Council of the City of Newport Beach at the regular meeting held on the 9`h day of August, 2005. Mayor ATTEST: CITY CLERK O LL O rs E 2:1 J �vy 2 .2 o< < < < a¢ O LL O u R y d O Lo 3 v z w W N � O N 0 N L N Y LL u f 01 N m a° °o 0 0 O C L - LL N U N T - N - � y' _ _ _ _ _ _ _ _ _ _ _ _ _ _ zj a0 N Vf ^ n Ld n IM1 t� S Vf Vf Vf Vf Vf Vf Vf U1 Vf F _ — 1 F `a -° -° 5 m U - U 1 1 _ i'; K 5 9 = ❑ V: "f > > I > > > > F F F ta. 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