HomeMy WebLinkAboutSS2 - Master Fee Schedule UpdateReceived After Agenda Printed
CITY OF
Q SEW PORT
a NEWPORT EACH
Study Session Staff Report
Agenda Item No. SS2
October 8, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Finance Department
Dan Matusiewicz, Finance Director
949 - 644 -3123, tmatusiewicz @newportbeachca.gov
PREPARED BY: Evelyn Tseng, Revenue Manager
APPROVED: A.A
TITLE: Master Fee Schedule Update - Fire Department
ABSTRACT:
Chapter 3.36 of the Newport Beach Municipal Code ( "Municipal Code ") requires that
user fees for municipal services be recovered at 100 %, unless otherwise provided for in
Municipal Code Section 3.36.030. A comprehensive update to the Newport Beach Fire
Department ( "NBFD ") user fees was last completed in 2008. After careful analysis and
review by MGT of America, Inc. ( "MGT') and NBFD, staff developed and proposes the
attached update (Exhibit "A ") to the Fire fee schedule.
The proposed fee schedule reflects costs for work performed and, in furtherance of the
City Charter, Municipal Code and the City's 15 -Point Fiscal Sustainability Plan ( "FSP "),
aligns revenues with the actual (direct and indirect) cost of providing NBFD services.
For example, Fire fees related to planning and development are currently calculated by
using a percentage of building permit fees. The proposed fees are based on a flat rate,
calculated by estimating staff time for plan review and field inspections.
Proposed additional fee line items are not new fees, but are instead the result of an
analysis and refinement of the nature of the work performed, which, in turn, more
accurately reflects the actual cost of service. The proposed fee schedule does not
impose any new fees for service.
RECOMMENDATION:
Staff welcomes input and recommendations on the proposed Fire fee schedule. Based
on the direction of City Council, staff will return at a later date with a proposed Fire fee
schedule for formal approval.
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 2
DISCUSSION:
Background
The City Council has adopted prudent fiscal policies concerning its investments,
reserves, budget administration, competitive contracting, facility replacement planning,
and revenue initiatives. The City of Newport Beach's City Charter, Municipal Code and
FSP serve as the foundation for the City's financial planning and management. Council
Policy F -4 (Revenue Measures) and Item 11 of the FSP requires the City to establish
appropriate cost - recovery targets and adjust the fee structure to ensure that fees
continue to meet those mandated cost recovery targets. Municipal Code Section
3.36.030 provides that the cost recovery for user services shall be at 100 %, except for
the services listed in Exhibit A of Section 3.36.030. As a general rule, the City may not
recover from service users more than the cost incurred by the City to provide the
service.
The NBFD fees under current consideration are categorized and described in the
sections that follow. NBFD provides several different services to the public and has also
established programs for the benefit of certain individuals and /or entities that do not
necessarily benefit the general public. The fees associated with each of these services
and programs are charged directly to the parties requesting the specific services,
participating in these programs or incurring these costs. The actual fees charged for
each service are listed in the master fee schedule, which is established by resolution of
the City Council.
In order to establish fees on the basis of full cost recovery, it is necessary to determine
the cost of services. In 2010, the City entered into an agreement with MGT for a phased
six -year comprehensive review and update of the City -wide cost allocation plan and
direct user fee calculations, by department. The current phase of this agreement
required MGT to perform a comprehensive review of the NBFD user fees. Pursuant to
the City's cost recovery policies, staff was tasked with accurately reporting the true cost
of providing NBFD user fee - related services, and analyzing whether current fees
needed to be updated as a result of MGT's findings.
As part of this process, NBFD reviewed the current fee schedule and concluded that it
no longer accurately reflected the services being provided by the NBFD. Using the
Orange County Fire Authority ( "OCFA ") fee schedule as a model for analyzing Life
Safety Planning, Development, and Inspection Service fees, NBFD provided MGT with
the list of services to be cost - studied. Working with Fire Department staff, MGT
performed the following tasks for all fee categories:
• Calculated the fully burdened cost (labor- based) to provide user services;
• Applied fully burdened labor rates to time requirement estimates;
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 3
• Reviewed and cross checked results to ensure data validity; and
• Benchmarked existing and proposed fees against those charged by the OCFA.
NBFD staff then reviewed MGT's findings for accuracy and reasonableness, and based
upon this review, made its fee and subsidy recommendations pursuant to NBMC
Section 3.36.030. On June 24, 2013, the Finance Committee reviewed the proposed fee
schedule and offered its recommendations. The attached proposed fee schedule and
this staff report address the recommendations by the Finance Committee.
As a result of this review, staff proposes an update for all Fire Department fees with the
exception of fees for Emergency Medical Services. The exception is recommended
because a certified public expenditure program (State Plan Amendment 09 -024), just
recently approved by the federal government and adopted by the State on September 4,
2013, introduces a new process for eligible public ambulance providers to apply for
supplemental payments for Medi -Cal claims without cost to the State General Fund.
Participation is voluntary, but in order to qualify, the City must adopt the State's
standardized methodology for calculating emergency transportation services. This new
legislation could potentially decrease the City's subsidies to Medi -Cal through funds
provided by the State's certified public expenditure program. The City meets the
eligibility requirements for participation. Staff intends to bring Emergency Medical
Services fees to Council early next year, after reviewing the full impacts of the federal
program.
The recommended modifications to fees are attributable to utilizing a methodology to
calculate fees based on increases in direct and indirect costs since the last fee study.
Indirect overhead costs 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.
The update recommended by staff will include an increase in other non -Fire related fees
by the Consumer Price Index ( "CPI ") - All Urban Consumers for the Los Angeles -
Riverside- Orange County area from April to April of each year. As a result, staff
recommends that these fees be adjusted 2.44% upon Council's adoption of the Master
Fee Schedule.
Fire Safety Services (previously referred to as "Fire Response Services ") (Exhibit "B ")
The Fire Safety Services section of the proposed fee schedule lists the hourly rates for
all fire personnel that may be called upon to provide reimbursable services such as
hazardous material incident response, private lifeguard services, and fire safety officers
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 4
at special events that are not required to be permitted pursuant to Municipal Code
Section 11.03 - Special Events. This cost analysis reflects salaries, equipment,
materials, and the associated overhead to provide these standby safety services.
Certain hourly rates within this category are decreasing between $17 and $25, while
others are increasing between $9 and $188, to reflect the current cost of staff time,
equipment, materials, and associated overhead. The largest increase, $188, is
associated with the cost of a fire truck and four personnel. Staff proposes adding the
positions indicated below to provide more cost information for potential users of the
services that would require them.
Life Safety Specialist II Lifeguard I
Lifeguard Officer Lifeguard II
Lifeguard Captain Rescue Boat (two persons)
Lifeguard Battalion Chief
Junior Guards Program (Exhibit "C ")
The Newport Beach Junior Lifeguard Program was started in 1984 with about 50
participants made up of mainly friends and family of then current City employees. The
program grew over the next decade into hundreds of participants until it finally reached
over 1,000 participants in 1997. The program fills to capacity every year, which
included over 1,409 participants this year - the most ever in a single session. Since its
inception, it is estimated that over 28,000 children of our community, ages 9 -16, have
benefited from this program. The program reaches out to the community by hosting
events like the Hot Dog Dinner, Monster Mile, and Graduation, where attendance is
generally over 5,000 per event. Through extended families and friends, the Junior
Lifeguard Program has become one of the most popular programs the City of Newport
Beach offers annually.
The objective of the Junior Guard Program is to provide children between the ages of 9
and 15 with training in ocean safety. The program content consists of 50% ocean
safety, 15% physical development, 15% personal development, 10% emergency
response skills, and 10% competition. To accomplish the program's goals, the Fire
Department utilizes a combination of a classroom type environment and outside
activities to teach ocean safety and provide instruction to the Junior Guard how to
properly prevent injuries and respond correctly in emergency situations.
MGT's analysis reflects that the cost of the Junior Guard Program has increased from
$809 to $853. Residents have historically been provided an approximate 15% discount
from the cost of the Junior Guard registration fee. NBFD recommends continuing this
subsidy to encourage local participation. The Finance Committee has recommended
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 5
that the Junior Guard — Resident registration fee be reduced to $700, rather than using
the 15% discount, which would have been $725.00. Staff is therefore recommending a
17.50% subsidy, which will establish the Junior Guard — Resident fee at $700.
Staff also recommends the inclusion of a Junior Guard — Administrative Fee ($200) to
the fee schedule for any cancellations prior to June 1 (if the applicant cancels after June
1, the entire Junior Guard fee is forfeited). This Administrative Fee has historically been
assessed as a matter of policy and its inclusion in the master fee schedule will provide
more transparency. The Administrative Fee discourages facetious registrations, which
may shut out other participants in the program, and helps to reimburse the City for
equipment and items already delivered based on the number of registrations. Under
current policy, the entire Junior Guard fee may be refunded due to unforeseen
circumstances, i.e. — valid medical or hardship reasons.
Life Safety Planning and Development (Exhibit "D)
The Life Safety Services Division focuses on educating the community about the
benefits of proper safety practices and identifying and eliminating all types of hazardous
conditions, which pose a threat to life, the environment, and property. Furthermore,
proper and effective enforcement of fire and life safety codes helps prevent fires from
starting and minimizes the size and impact of fires that cannot be prevented. For
example, hazardous processes in a manufacturing building can increase the probability
of a fire starting, or a small fire in a crowded theater can have a devastating impact on
the occupants. Fire codes decrease direct and indirect costs of fire by reducing the
amount of fire associated damage.
Life Safety Planning and Development fees are imposed by NBFD for services
associated with new construction projects or facility improvements. These services
include building plan reviews and on -site inspections to ensure compliance with the
California Fire Code ( "CFC ") and the Municipal Code. The proposed fee structure is
based upon OCFA's fee schedule, which is relied upon by 23 of the 34 cities in Orange
County. Because the proposed service types and descriptions are similar to most other
county jurisdictions, the new fee structure will be more easily understood and utilized by
the developer /builder community.
Staff recommends revising the current fee schedule to better reflect the actual work
performed and align revenues with the actual costs associated with providing these
services. These costs include staff time for plan review and field inspections and will no
longer be based on a percentage of building fees. The additional service line items that
appear in the proposed schedule are NOT new fees, but are the result of refining the
nature of the work performed, which in turn, more accurately reflects the actual cost of
the service being performed.
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 6
Because Life Safety Planning and Development fees are currently based on a
percentage of permit fees, and the proposed fees are based on actual staff time, it is
difficult to predict exactly which and how many fees will increase or decrease as the
result of the proposed changes. However, to get a feeling for the impact of the change,
staff created the sample table below using actual permit examples, to compare the
costs of service between the current fee schedule and the proposed fee schedule. As
column E indicates, some of the sample fees are projected to increase between $130
and $478, while other fees, such as Plan Review Fire and Life Safety will decrease as
the result of changing the fee calculation methodology from a percentage of building
fees to the fully burdened cost of providing (labor- based) user fee services.
Although several fees may increase, the updated methodology is more cost efficient
when compared to OCFA for similar services. According to the comparison table, the
examples below are projected to be between $57 and $246 lower than OCFA's current
fees (see column G).
Fee Comparison Chart: Current to Proposed - Proposed to OCFA
A
B
c
D
E
F
G
Name
Description
Proposed
Current Fee:
Fee Difference:
OCFA
Difference:
Fee: Cost of
Actual
Proposed (C) -
Fee
OCFA (F) -
Service
Example -
Current (D)
Proposed
Based
Valuation
(E)
Based
Fixed Fire
Fire sprinkler
Protection
monitoring
Extinguishing
system, water
Systems
Flow & tamper
$300
$170
+$130
$415
-$115
switches
(includes 5
devices)
Fixed Fire
Tenant
Protection
Improvement
Extinguishing
NFPA 13/138
$339
$94
+$245
$396
-$57
Systems
fire sprinkler
system: 4 -20
heads
Fire Alarm
Fire alarm
Systems
system: 11 -60
$631
$153
+$478
$694
-$63
devices
Fire and Life
Mixed Use
Safely Plan
(A,B,S)
Review
Occupancy
$1,009
$2,667
- $1,658
$1,255
-$246
>10.000
square feet
After conferring with City staff and reviewing the proposed fees, the Director and
Governmental Affairs Officer of the Building Industry Association ( "BIA ") of Orange
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 7
County appreciated the transparency provided by staff, and understood the
methodology used to calculate the proposed fees. Staff also met with representatives
of The Irvine Company to review the proposed fees. Additionally, staff worked directly
with several stakeholders from a user group comprised of local architects, builders and
designers and incorporated their suggested modifications.
Life Safety Inspection Services (Exhibit "E ")
These fees reflect the cost of services to provide various services including issuance of
annual operational permits, special event permits, and providing State mandated
inspections, and other inspection services related to the hazardous material inventory
disclosure program. Although a few increases are proposed based on the actual cost of
service, as with Life Safety Planning and Development, NBFD's methodology reflects a
cost savings when compared to OCFA for like services (see comparison table below).
The City's sample fees below are projected to be between $146 and $2,649 less than
OCFA's current fees (see column G).
Life Safety Inspection Services - Fee Comparison Chart
A
B
C
D
E
F
G
Name
Description
Proposed Fee:
Current Fee:
Fee Difference:
OCFA
Difference:
Cost of Service
Actual
Proposed (C) -
Fee
OCFA (F) -
Based
Example -
Current (D)
Proposed
Valuation
(E)
Based
Operational
Liquefied
Permit Level 1
Petroleum Gas
$140
$162
-$22
$418
-$278
LPG)Issuance
Hazardous
Operational
Materials -
$192
$138
+$54
$338
$146
Permit Level 2
Corrosive
Renewal
Pyrotechnics —
Special Events
ground display
$306
$530 base
4779
$657
-$351
< 15 minute
fee + hourly
duration
Pyrotechnics —
Special Events
aerial bursts
$778
$530 base
-$307
$3,427
- $2,649
> 15 minute
fee + hourly
duration
Mandated
Inspections
High Rise—
Residential
$964
$815
+S149
$1,120
$156
Mandated
Ins pections
High Rise—
Buildings
$964
$1,160
$196
$1,120
$156
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 8
Operational Permits
These annual permits are required pursuant to the CFC in order for certain businesses
to operate in the City. No new operational permits are proposed by City staff. Level 1
permits are required for simple operations that need minimal staff time to review. The
CFC defines these operations as those involving cutting and welding carts, dry cleaning
plants with 1 to 2 machines, liquefied petroleum gases and tents. By streamlining the
review of these operations, staff was able to reduce the amount of time estimated for
Level 1 Operational Permit reviews. Based on this cost -of- services analysis, staff
recommends that the City reduce the fee for new Level 1 permits from $162 to $140
and reduce the fee for annual renewals from $138 to $114.
Level 2 permits are required for complex operations often requiring many hours of staff
time to complete. Staff recommends increasing the fee for new Level 2 permits from
$162 to $258 and increasing the fee for annual renewals from $138 to $192. The
proposed fee increases will, in furtherance of Council policy, align revenues with the
actual costs associated with providing review services. These costs cover the staff time
necessary to review these complex operations.
Special Event Permits
Special event services are related to one -time events that require inspection and
permitting by NBFD due to the type, size, and nature of the event. The special event
permitting process begins with an application to the Recreation & Senior Services
Department, and the application is then routed to NBFD for fire inspection services,
recommendations and general oversight. Not all special event permits require NBFD
services.
Staff recommends the reduction of the single event permit from $195 to $140 and the
public display (small ground based firework display) from $530 +hourly to a flat fee of
$306 to align the cost with actual amount of staff time to review these permits. Staff
also recommends changing the fee for the public display of fireworks (greater than 10
minutes) from a $530 base fee + hourly to a flat fee of $778. This change will result in
lower fees due to the elimination of the hourly component and NBFD's streamlining of
its workflow.
Staff recommends an hourly rate -based "Level 3" special event permit fee for large
scale events. This modification is consistent with the current practice of hourly billing for
NBFD personnel for events of this size. Level 3 inspections typically consist of attending
planning meetings, the issuance of required permits, and required field inspections.
Finally, staff recommends the elimination of numerous special permit fees due to the
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 9
limited frequency and duration of such activities and, as stated above, NBFD's
improvement of its staffing workflow.
Examples (special event fire fees only, does not include other departmental fees):
Level 1 or 2 Permit without tents or candles, on a weekday:
Current
Proposed
Special Event Permit fee: $195 Single Event Permit fee: $140
Inspection fee: $240
Total: $435 Total: $140
Level 1 or 2 Permit, with tents, on a weekend:
Current
Special Event Permit fee: $195
Operational Permit: $162
Weekend inspection fee (for 2 hours): $530
Total:
$887
Proposed
Special Event Permit fee: $140
Operational Permit, Level 1 (tent): $140
Weekend inspection fee $312
(hourly for Life Safety Specialist II, 2 hour
minimum, 2 hours x $156.00)
* Note: if on a weekday during business Total: $592
hours, the inspection fee is $240 with no
minimum. * Note: if on a weekday during business
hours, no separate inspection fee is imposed
and the total is $280.
Level 3 Permit, with tents, on a weekend (ex. Race for the Cure):
Current
Proposed
(These are time estimates based upon this
Special Event Permit fee:
$195 year's event, actual fees will vary)
Weekend, Holiday request:
$530
Hourly for Life Safety Specialist II:
$156
Total:
$725
Process permit:
1 hour
Meetings:
1 hour
Pre -event meeting:
1 hour
Inspection:
2 hours
Total (5 hours x $156): $780
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 10
Non - Permitted special events (ex. HOA barbecue with tent with inspection during
business hours):
Current
Proposed
Operational Permit: $162 Operational Permit, Level 1: $140
Inspection fee: $240
Total: $140
Total: $402
State Mandated Inspections
State mandated inspection fees include the inspection of facilities such as high -rise
buildings, care facilities, hospitals, surgery centers, and hotels. NBFD staff conducts
these inspections on an annual basis. Staff recommends the reduction of three fees
relating to the inspection of hospitals, high -rise buildings and certain commercial
occupancies due to greater staff efficiencies within the NBFD. Staff also recommends
combining residential and non - residential inspections as one fee type because the work
for each is very similar, and eliminating the 'Places of Assembly" fee because it is
captured under the existing operational permit Level 2 fee. Due to the staff time
required to inspect certain care and hotel /motel facilities, there are seven fees that are
proposed to increase between $5 and $187. These proposed fee increases will, in
furtherance of Council policy, align revenues with the actual costs associated with
providing the inspection services of these larger facilities.
Hazardous Material Inventory Disclosure Program
Hazardous material inventory disclosures are required by State and Federal statutes. All
the fees in this category have been reduced due to staff efficiencies and a change from
an annual to triennial inspection cycle as allowed by State statue. No new fees are
proposed.
Conclusion
Based on the input and comments from the Study Session, Finance staff will bring the
proposed recommendations to the City Council for formal approval.
Master Fee Schedule Update - Fire Department
October 8, 2013
Page 11
Prepared by:
Evelyn Tseng
Revenue Manager
Submitted by:
Finance Director
Attachments: A. Proposed Fire Fee Schedule
B. Fire Standby Services
C. Junior Guards
D. Life Safety Planning and Development
E. Life Safety Inspection Services
F. Response to BIA Newport Beach Fire Analysis
255
256
257
258
259
260
260
261
262
263
2"
265
2%
267
268
269
270
271
272
273
274
275
PROPOSED FIRE FEE SCHEDULE
EXHIBIT 'A"
2012 plus 2013 adjustments
Rounded down
m nearest dollar
Adjustment From
Previous rear
SERVICE NAME
DESCRIPTION
Totalfor Basc
Total or Base Fee
FIRE DEPARTMENT & LIFEGUARDS
Fire Safety Services
Battalion Chief Unit jone person)
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr. , Fee Per Hour
S 259.00
$ 00.00
Paramedic Unit two persons)
I Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr. , Fee Per Hour
$ 378.00
S 101.00
Fire En ne three persons)
1 Hr. Minimum To The Nearest IS Min. Increment Over 1 Mr. , Fee Per Hour
$ 575.00
S 156.00
Fire Truck four persons)
1 Hr. Minimum To The Nearest 15 Min. Increment Over I Hr., Fee Per Hour
$ 711.00
$ 188.00
Stand-by Firefighter (per person)
1 He. Minimum To The Nearest 15 Min. Increment Over I Hr. , Fee Per Hour
5 135.00
$ 31.00
Life Safety Specialist II
1 Hr. Minimum To The Nearest IS Min. Increment Over 1 Hr. , Fee Per Hour
5 156.00
N/A
Lifeguard Officer
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr. Fee Per Hour
$ 138.00
$ 72.00
Lifeguard Captain
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr. Fee Per Hour
$ 161.00
$ 9.00
Lifeguard Battalion Chief
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr. Fee Per Hour
$ 205.00
S3.00
Lifeguard 1
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr., Fee Per Hour
$ 05.00
$ 21.00
Lifeguard II
1 Hr. Minimum To The Nearest 15 Min. Increment Over I Hr. Fee Per Hour
$ 09.00
$ 17.00
Rescue Boat two persons)
1 H, Minimum To The Nearest 15 Min. Increment Over I Hr. Fee Per Hour
$ 175.00
5 25.00
Emergency Operations Services
Advanced Life Support Response & Transport
S 359.00
$
Basic We Support - Response & Transport
S 203.00
Emergency Arbulance Transportation
Transportation Charge
$ 72S.00
S
Emergency Ambulance Transportation
Mileage Charge
S 17.00
$
EmergencV Ambulance Transportation
Expendable Medical Supplies
$ 32.00
$
EmergencV Ambulance Transportation
OXygen
$ 81.00
Medical Supplies
Other Than Expendable Medical Supplies
Actual Cost
N/A
Paramedic Subscription Service
Annual Fee - Resident
Paramedic Subscription Service
Annual Fee - Business +l0 employees
Paramedic Subscription Service
Annual Fee - Business each additional 10 employees
Iunior Guards Program
276
277
278
279
280
281
282
283
284
'f:N
Fill
287
288
289
290
291
292
293
294
295
296
297
298
299
PROPOSED FIRE FEE SCHEDULE
2012 plus 2013
adjustments
Rounded down
Adjustment From
to nearest dollar
Previous Year
TotalBase
SERVICE NAME
DESCNPTION
Total or Base Fee
Fee
Junior Guard-Resident/City Em to ee
Per Participant
$ 700.00
5 5.00
Junior Guard- Nonresident
Per Participant
$ 853. DO
5 44. D0
Administrative Fee
Cancellation Per Participant
$ 200.00
N/A
FIRE DEPARTMENT IS UFEGUARDS
Life Safety Planning and Development
All Assembly (A), Factory IFI <or equal 10 1500 square feet (also used for Business (B), Mercantile (M), and Storage (S)
Plan Review Fire and life Safer
a' occu ancies when re aired
5 509.00
N/A
All Assembly (A), factory (F) > 1,500 < or equal to 10,000 square leer aggregate (also used for Business (B), Mercantile
It. M and Stoca e S occu ances when required)
$ 675.00
N/A
All Assembly (A), Factory (F)>10,000 s.f. aggregate (also used for Business (8), Mercantile (M), and Storage (S) occupancies
when re uiretl
5 1009.00
N/A
d.
High-Hazard Groups H1 H2 H3 H4 or Laboratory 1.
5 1,369.00
N/A
e. Hi -Rise: Structures that are 75 k. or hi her measured from lowest point of fire department access
5 3,340.00
N/A
Day Care Educational (E) or Institutional Day Care (14) < 1,000 square feet aggregate or Day Care Educational (EI or 14:
f
Portable or re- locatable
5 176.00
N/A
g' Day Care Educational E or Institutional Day Care N > 1,000 square feet aggregate
$ $64.00
N/A
h. Educational other than day care
S 509.00
NA
Residential Rl or Residential R2: Hotels, motels, apartments, condominiums with <or equal to 20 dwelling units per
bulltlin
$ 259.00
N/A
J' Residential R1 or Residential R2: Hotels motels a anments, condominiums with 21- 50 dwelling units per building
5 342.00
N/A
E. Residential R1 or Residential R2: Hotels, motels, apartments, condominiums with 51 to 150 dwelling units per building
S 509.00
N/A
Residential R4: licensed residential care /assisted living facilities and similar uses serving 7 49 clients
S 942.00
N/A
m' Residential 1114: licensed residential pare /assisted living facilities and similar uses serving >19 clients
5 1.508.00
N/A
n Misc. Plan Reviewuricluding elevators, elevator lobbies generators, cans Les awnings
Hourly
N/A
All Assembly JA), Factory (F) <or equal to 1500 square feet (also used for Business (B),Mercantile (M), and Storage (S)
Inspection Fire and Ufe Safer
a' occu ancies when re cored
S 323.00
N/A
All Assembly lA), Factory (F) > 1,500 < or equal to 10,000 square feet aggregate (also used for Business (B),Mercantile (M),
b' and Storage 5 occu ant, when required)
S 402.00
N/A
All Assembly (A), Factory (F) >10,000 sE. aggregate (also used for Business (B),Merantile (M), and Storage (S) occupancies
C, when req. red
5 559.00
N/A
d. High-Hazard Groups HI H2 H3 H4 or Laboratory L
$ 402.00
N/A
e.
Hi -Rise: Structures that are 75 k. or higher measured from lowest point of fire department access
$ 1343.00
N/A
Day Care Educational (E) or Institutional Day Care (44) < 1,000 square feet aggregate or Day Care Educational (E) or 14:
f
Portable or re- locatable
5 205.00
N/A
9 Day Care Educational E or Institutional Day Care 1.4 > 1,000 square feet aggregate
5 297.00
N/A
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
PROPOSED FIRE FEE SCHEDULE
2012 plus 2013
adjustments
Rounded down
Adjustment From
to nearest dollar
Pr.mms Year
SERM NAME
DESCRIPTION
Toni or Base
Total or Base Fee
Fee
h.
Educational other than day care
5 297.00
N/A
Residential R1 or Residential R2: Hotels, motels, apartments, condominiums wah <or equal to 20 dwelling units per
building
5 323.00
N/A
f' Residential R1 or Residential R2: Hotels, motels, apartments, condominiums with 21- 50 dwelling units per building
$ 428.00
N/A
Is.
Residential R1 or Residential R2: Hotels, motels, apartments, condominiums wish 51 to 150 dwelling units per building
5 559.00
N/A
L Residential R4: licensed residential pre /assisted living facilities and similar uses sm.unt 7.19 Clients
S 402.00
N/A
m' Residential R4: licensed residential care assisted living facilities and similar uses serving >19 Rlents
5 611.00
N/A
n' Misc. Inspection including elevators, elevator lobbies, generators, canopies, awnings
Houfty
N/A
FIRE DEPARTMENT& UFEGUARDS
Inspection Special Fire Protection Equipment
a. Spray BOOth, Spraying area
5 428.00
N/A
b. Commercial Cooking Hood and Duct jper em
$ 192.00
N/A
C. Special ealn uishin system: dry chemical, CO2 fosm liquid system, inert gas Halon, merger, etc.
$ 179.00
N/A
d. Prc -achon firesprinkler system, includes alarm system
$ 245.00
N/A
Man Review Special Fire Protection Equipment
a. Spraj, Booth, Spraying area
$ 564.00
N/A
b. Commercial Cooling Hood and Dun (per system)
5 120.00
N/A
C.
Special eAin idihin system: dry chemical, CO2, foam liquid system, inert gas Halon Iner en etc.
$ 287.00
N/A
d.
Pre-action Oresprinkler system. includes alarms stem
5 426.00
N/A
Inspection Fixed Fhe Eginguishing Extinguishing Systems
a. Commercial firesprinkler f stem jNFPA 13: 100 heads or less per system
5 297.00
N/A
b. Commercial firesprinkler system jNFPA 13): > 100 heads per system
5 349.00
N/A
C Commercial firesprinkler system jNFPA 13j: each additional identical system or per floor in buildings >3 stories
$ 349.00
N/A
d' Multi-family dwelling residential firesprinkler System NFPA 130.: 3 to 16 units per building
$ 402.00
N/A
e' Multi-family dwelling residential firesprinkler system NFPA 13R): s16 units per building
$ 506.00
N/A
f. Tenant Improvement I NFPA 13 or 13R fire sprinkler system: 4-20 heads
5 205.00
N/A
& Tenant Improvement NFPA 13 or 13R fire sprinkler system: 21.100 heads no calculations
5 297.00
N/A
h. Tenant Improvement (111 NFPA 13 or 13R firesprinkler system: >100 heads or requiring calculations
$ 349.00
N/A
i' Firesprinkler monitoring stem water flow &tamper switches < 11 notification devices
$ 166.00
N A
Underground fire prolmion - New
5 349.00
N/A
323
326
327
329
329
330
331
332
333
334
335
336
337
am
339
340
301
342
343
344
303
346
347
3a9
349
PROPOSED FIRE FEE SCHEDULE
2012 plus 2013
adjustments
Rounded down
Adjustment From
to nearest dollar
Previous year
Total or Base
SERVICE NAME
DESCRIPTION
Total ar Base Fee
Fe e
Fee
k'
Underground fire protection - Re air
5 205.00
N /. ^.
1'
Fire pump installation
5 30900
N/A
m'
Standpipes: NFPA 10 Class I, II or III and includes all standpipes within a single building or boat dock
5 002.00
N/A
Plan Review Fixed Fire Extinguishing Systems
a.
Commercial firesprinkler system NFPA 13): 100 heads or less per system
5 302.00
N/A
b'
Commercial firesprinkler system NFPA 13:> 100 heads per system
S 675.00
N/A
C.
Multi-family dwelling residential fires rinkler system NFPA 13R;: 3 to 16 units per building
5 287.00
N/A
d.
Multi-family dwelling residential firesprinkler s stem NFPA 131t): >16 units per building
5 026.00
N/A
e.
Tenant Improvement TI NFPA 13 or 138 firesprinkler system: 4 -20 heads
5 134.00
N/A
f.
Tenant Improvement I NFPA 13 or 13R firesprinkler system: 21.100 heads no calculations
$ 176,00
N/A
9
Tenant Improvement I NFPA 13 or 13R fires rinkler s em:>300 heads or requiring calculations
5 342.00
N/A
h'
Firesprinkler monitoring stem water flow & tamper switches < 11 notification devices
5 134.00
N/A
i'
Underground fire protection - New
$ 342.00
N/A
I'
Underground fire protection -Repair
$ 134.00
N/A
k'
Fire pump installation
5 342.00
N/A
1'
Standpipes: NFPA 14 Class I, II or III and includes all standpipes within a single budding or boat dock
5 31500
N/A
FIRE DEPARTMENT & LIFEGUARDS
Inspection Fire Alarm Systems
a.
Fire alarms stem: >60 devices
5 402.00
N/A
b'
Fire alarms stem: 11-60 devices
$ 205.00
N/A
Plan Review Fire Alarm Systems
a'
Fire alarm system : >60 devices
5 675.00
N/A
b.
Fire alarms stem: 11.60 devices
5 426.00
N/A
Fuel Modification New and/or Change to Esisting Plan
a'
Inspection
5 114.00
N/A
b.
Plan Review/Update
5 127.00
N/A
Fire Access Gate
a.
Inspection
5 140.00
N/A
b.
Plan Review
5 176.00
N/A
Technical Assistance of Complex Fire Protection Systems
Code Compliance Review- Man Review and/or Inspection Services
Hourly
N/A
Service to privately owned bi-directional amplification systems bythe Orange County Sheriff- Coroner Communications
In Service Building Public Radio Coverage System Service in Private
Division on behalf of the City Police and Fire Departments. 100% pass through of OC Sheriff- Coroner Communications
Structures
Division Charge
Pass Through
N/A
360
351
352
353
354
355
356
357
358
359
360
363
362
363
364
365
366
367
368
369
370
371
372
PROPOSED EIRE FEE SCHEDULE
2012 plus 2013 adjustments
Roundeddown
to nearest dollar
Adjustment From
PrevlousVWr
SERVICE NAME
DESCRIPTION
Total or Base
Total or Base Fee
Pre - submittal Review
Per Hour -1 Hour Minimum; Includes CEOA, EIR, and advanced planning requests
Hourly
N/A
Fire. Life Safety Or Special Hazard Consultation
Per Hour -1 Hour Minimum
Hourly
N/A
Closure Repo" Review
Per Hour - I Hour Minimum
Hourly
N/A
Fire Lane Plan Review (Fire Mager Plan )
Per Hour- 1 Hour Minimum
Hourly
N/A
Inspection Tank Installation Or Removal
Above Or Below Ground Per Tank
5 323.00
N/A
Plan Review Tank Installation Or Removal
Above Or Below Ground, Per Tank
5 426.00
N/A
FIRE DEPARTMENT& LIFEGUARDS
Operational and Special Event Permits
Operational Permits - New
Level new - Cutting and welding carts, Dry cleanin lams -1 to 2 machines Liquefied petroleum gases, and Tents
$ 140.00
$ 22.00
Level new -all other operations pursuant to CFC Seaton 105.6
$ 258.00
5 96.00
Operational Permits - Renewal
Level 1 renewal - Cutting and welding carts Dry cleaning lams -1 to 2 machines, Liquefied petroleum gases, and Tents
$ 114.00
$ 24.00
Level 2 renewal - all other operations pursuant to CFC Section 105.6
192.00
$ 54.00
Candle Permit Program
First time andspecial event
46.00
$ 5.00
Special Event Permits
level 1 & 2
$ 140.00
$ SSAO
Level JLSS II Inspector) Includes Candle Permit
Hourly
N/A
Public Display - Fireworks- ground display only e.. homecoming 5 -10 minutes
$ 284.00
N/A
Public Display - Fireworks - aerial display P 10 minutes
$ 778.00
N/A
Weekend, Holiday, or Non Contiguous & After Hours Inspection Request
2 Hour Minimum; hourly if contilluous to normal business hours.
Hourly
N/A
Nuisance Abatement Service
Weeds Rubbish And Other Nuisance. Actual costs: pass through contract cogs plus gaff time.
Actual Cost.
gaff time
N/A
Temporary Change Of Use
Use Of Retail Occupancy as a place of assembly - Special Use
Hourly
N/A
State Mandated Inspection,
State Fire Clearance
Requests for commercial occupancies, Clinics, Offices, and Treatment Facilities
$ 75.00 S
8.00
Care Facilities
Annual Fee 7 -99 clients as defined in the California Building Code
$ 336.00
$ 163.00
Care Facilities
Annual Fee> 99 clients as defined in the California Building Code
$ 428.00
S 175.00
Surgery Centers
Annual Fee
$ 362.00
$ 187.00
Hospitals
Annual Fee 200 Or More Beds
$ 6499.00
$ 684.00
3n
374
375
376
377
379
379
380
381
382
383
394
PROPOSED IMF FEE SUrt DU1F
rnumr.A-
2012 plus 2013 adjustments
Founded down
to nearest dollar
Adjustmem from
PreNOUS Year
SERVICE NAME
DESCRIPTION
Total or Base
Fee
Total or Base Fee
Hotels /Motels
Annual Fee 50 299 Rooms
5 192.00
5 6.00
Hotels /Motels
Annual Fee 300 Or More Rooms
5 336.00
$ 21.00
Commercial Day Care Facilities
Annual Fee
$ 192.00
S 65.00
High Rise Buildings
Annual Fee
964.00
S 1196.00
Residential Care Facility Pre - License Inspection
California Health and Safety Code Section 13235
S 245.00
S 5.00
Hazardous Materials Irrientory Disclosure Proliparn
14 Chemicals
> or = 55 Gallons 200 Cubic Feet 500 Pounds
S 128.00
5 455.00
5.6 Chemicals
>or - 55 Gallons, 200 Cubic Feet 500 Pounds
$ 149.00
$ 530.00
7 -10 Chemicals
> or =55 Gallons 2D0 Cubic Feet 500 Pounds
$ 162.00
S 534.00
11 -14 Chemicals
> or =55 Gallons, 200 Cubic Feet 500 Pounds
$ 209.00
$ 588.00
1530 Chemicals
> or =55 Gallons, 200 Cubic Feet, 500 Pounds
5 260.00
$ 632.00
2140 Chemicals
> or =55 Gallons, 200 Cubic Feet, 500 Pounds
312.00
614.00
More Than 40 Chemicals
> or =5S Gallons, 200 Cubic Feet. 500 Pounds
$ 419.00
$ (760.001
PROPOSED FIRE FEE SCHEDULE
FIRE SAFETY SERVICES
EXHIBIT "B"
REFERENCE
NO
FIRE SAFETY SERVICE NAME
DESCRIPTION
Proposed Fee
Current Fee
Difference
Cumentl
s d
OCFAFee
Difference
OCFAI
Prop osed
FIRE SAFETY SERVICES
255
Battalion Chief Una (one person)
1 Hr. Minimum To The Nearest 15 Mm. Increment Over 1 Hr., Fast Per Hour
$259
$219
$ao
WA
WA
256
Paramedic Unit (Iwo persons)
1 Hr. Minimum To The Nearest 1 5 Min. Increment Over 1 Hr.. Fee Per Hour
$078
$277
S 1 u 1
WA
WA
257
Fire Engine (three persons)
i Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr.. Fee Per Hour
$575
5419
$ 156
WA
WA
258
Fee Truck (four Persons)
I Hr, Minimum To The Nearest 15 Min. Increment Over 1 Hr.. Fee Per Hour
$711
$523
Sigh
WA
WA
258
Stand -by Freighter (per parson)
1 Hr. Minimum To The Nearest 15 Mtn. Increment Over 1 Hr., Fee Per Hour
$135
$104
531
WA
WA
260
Life Safety Specialist 11
1 Hr, Minimum To The Nearest 15 Min. Increment Over, 1 Hr., Fee Per Hour
$156
WA
WA
WA
NIA
261
Lifeguard Omcer
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr.. Fee Per Hour
$138
$1511
$72
WA
WA
262
Lifeguard Captain
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr.. Fee Per Hour
$161
$152
$9
WA
WA
263
Lifeguard Balla6on Chief
i HL Minimum To The Nearest 15 Min. Increment Over 1 Hr., Fee Per Hour
$205
$152
$53
WA
WA
264
Lifeguard I
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr., Fee Per Hour
S45
$06
321
WA
WA
265
Lifeguard II
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr.. Fee Per Hour
$49
$66
-$17
WA
NIA
266
Rescue Boat (MO Persons)
1 Hr. Minimum To The Nearest 15 Min. Increment Over 1 Hr.. Fee Per Hour
$175
$200
325
WA
NIA
PROPOSED FIRE FEE SCHEDULE
JUNIOR GUARDS PROGRAM
EXHIBIT "C"
REFERENCE
Difference
Difference
JUNIOR GUARDS SERVICE NAME
DESCRIPTION
Proposed Fee
Current Fee
Current /
OCFA Fee
OCFA /
NO
Promised
JUNIOR GUARDS PROGRAM
__-Proposed
276
Junior Guard- Resident/City Employee
Per Participant
$700
$695
$5
NIA
N/A
277
Junior Guard -Non Resident
Per Participant
$853
$809
$aa
N/A
NIA
278
Admi ustratrve Fee
Cancellation Per Participant
$200
$200
NIA
N/A
N/A
PROPOSED FIRE FEE SCHEDULE
LIFE SAFETY
PLANNING AND DEVELOPMENT
EXHIBIT "D"
REFEREN
PWN A OEVLOMEM SERE M
PfoW FN
summers.
OWanrw
Cumy
OCFA FM
NO
oud
/prop se
Ufa Safety Planning and Development
All Assembly (A), Farnry (F) . or equal 10 1500 swam feet (aIse used for Buvneaa (B). Meman4la IN), and
$509
20% 0.4in,
WA
888)
31]8
270
Plan Regrew Fee and Lire Safety
A.
Store 5 ecru naea when toed
Plan Cited Fee
b
Ai Assembly (A). Factory (F) > 1,500 a °rental 110.000 square feet aggragare (also used fdr Buwmess (B),
S675
20% Buido,
WA
8875
-8200
280
Merunule (MI. and Shen S ecru es%Anmn used
Plan Lhad Fee
All Assembly (AI. Factory (F),10.000 if. aggregate (also used for Business (B). MarunW (M), and Stomp (S)
20% Building
WA
$1255
281
G
occt ndes wenro u
11'109
Plan Ched Fee
-8246
282
A
Wgh-Halard Groups Ht, H2, H3, H4. or Laboratory (LI
$two
20% Bu"i
Plan Check Fee
WA
$1,525
31%
283
e.
HisRom Stutlurea Mal are 75 It a higher meawre0 from Intent pan Of Mot depnment access
83,340
20% Sued.,
Plan Check Fee
WA
84,417
-1110T7
I.
Day Gee Eloutanal Et or InsNUtanal Day Care (H) a 1.= squaw feel...... to o Dry Care Educational
$176
20% Building
WA
3561
5185
284
or Id: Portable er re- WCarebla
Plan Check Fee
205
¢
NY Cart Eduutenal (E) or motivlional Do, C nd (N) a 1,000 aqua. last aggreple
5564
20% Building
Plan Chet Fee
WA
$1,054
-8190
h.
Educational other than day cam
5509
20 %8.41.9
WA
$]18
3209
286
Plan Chad Fee
1
Residental Ft or ResidenualR2'. Hotels, ( mama, apmmenn. eenmomWms wait. or equal to 20 imaging units
5259
20 %Bummg
WA
WA
WA
257
r Dols
Plan Chess Fee
205
).
Resident al Rl or Revdenpl R2'. Hotels, motels, aMM nts. random wms wit 21.50 dwW g unis pr thdi ng
S342
20% SuMM9
Plan CMd Fee
WA
WA
WA
L
Resident.( At dr Roeem al R2. Hotels, manla, a moral comemmema rout 51 W 150 swing units pr
4509
20% Bu9dotq
WA
WA
WA
259
building
plan CMd Fee
2gg
I.
ResiOential R4' gwn d mseenuH umlas fisted long fadlaws and sboiar uses senadg 7 -19 q oM
11542
20 CMUd�Fas
WA
8919
ST
291
m
Residential R4 icenaed residential careemo is ed flying families and vmJar uses varying 419 door
$1,508
pan Cited Fee
WA
$1,54]
339
292
I.
MsA Plan Renew oedudng blayabM, ela%aWr Nbdas.9 movau,..0pms, awn,
HduM
p20%C,Bu F�a
WA
WA
WA
a.
AN Assembly (A). Factory (F) . or equal 10 1500 swan fast (at. used for Buvnus (BEMacantle N. and
5321
Hourly
WA
8534
3211
293
Nspecten -Fee and We Safely
St.... S occupansm. when required)
My
AY Assembly (A) Factory (F) >1, 500" or equal W 10,000 square feel aggreple (also used for Business
1402
Hourly
WA
2553
-5151
291
B Meruntie M and Store e (S) mw gum aea when Ind
a'
>I0000 s.f. aggregate (also used for Business (B).MarunW(M), and Storage (S)
$Sao
Hourly
WA
$687
312a
295
emncies M)enrrHOry(F)
288
at
HNh+w; nI Groups Ht, H2, H3, H4, or La d ralary (Lt
$402
Hourly
WA
$]OS
33N
297
a.
Hi- RIM: Structures that art 758. or higher measured from bwfl pnl of five depahmenl sett
71.243
Hourly
WA
Woof,
-ffi60
Day Can Eduubonal (E) or Institutional Day Co. (H) < 1,000 whose leas aggmgote or Day Can EduumnM
$20
HouM
WA
$256
-851
298
E o 14: Panable or rHOCatsek
299
g.
NY Can Educamnn(E)of InMWtwnd WY CO. M) a 1.000 "Us. fan agBrepM
S297
HeuM
WA
$324
327
MO
h.
Eduutwnal onto than day um
3297
Hourly
WA
5313
-546
I.
Re' deal RI or Residential R2. HOW, moMb, apmmenM, mnd°mnwma rah. or equal la 20 it"" units
8123
Hourly
WA
WA
WA
]p
302
I.
Residential Of or Residential R2. HnaM, heask , apMents. condomnwms rem 21-50 dw9.g units pr budding
1428
Hourly
WA
WA
WA
N
Residential Ri or Residential R2: Hoels, moot apmpnts, conmmniums win 51 W 150 doming units pr
IHN
HouM
WA
WA
WA
N3
304
I.
RasiOentsi Rl flunMd roseentialuroreasulad bong lsuNws and s.flaruses aerw9 ] -19 diesels
$402
Hourly
WA
8458
356
305
in
Residential R4: licensed residential earofasM3ned Who facSbas and 311nlar uses Mining e19 dents
2611
HWIy
WA
ll
3196
We
a.
feat. Impression nWdap ee%alom, ekwrer lobbks,generelos, ea mism, swW9s
Hourly
Hourly
WA
WA
WA
30]
Melanesian Spwl Fire Promotion Equipment
a.
Spiny Booth, Spaying area
SRB
72% Of BP� g
WA
$158
330
308
b.
Commercial Cooking Hood and Dud (ps system)
8192
72% Of Building
Fee
WA
$210
318
309
c.
Sloclal extinguishing system: dry ctaniol, CO2. foam liquid sysem.lman gas (Hahn. Inergen, alt)
5179
72pa°�Feeeng
WA
$191
312
310
d.
Pre-action In apmklar system. Includes slam rysiem
5245
72%ofBF„ng
Permit
WA
1481
3219
311
Plan Rasfew Spars Fire Preredeh Eppnena
a.
Spray Boot. SWaunga.a
5564
36% of undidng
Fee
WA
5717
3153
PROPOSED FIRE FEE SCHEDULE
LIFE SAFETY
PLANNING AND DEVELOPMENT
EXHIBIT "0"
REFERENCE
LA PNMNG ANI) OEVELOPMEM SERVICE NAME
DESCRIPTION
Prop osed Fee
Curnm Fn
01"wence
Cunene/
OCFA Fee
,Berm WA
NO
L2
0.
C °mmerwl COOknq NODE and N. (par syslem)
$120
M% of Buddng
Pamir Fea
WA
$491
Slit
313
c
Spaotel emergalls, tystem. dry cdemW, CO2, foam bean system, ern ga. Habit, bier,.., tin)
3287
W% of Burderg
Pear Faa
WA
33rd
33i
S11
d
Pre -aae°n Ore spnnMbr a,.l nrLdes alarm ayalem
"m
36% of BF�ra
WA
5142
-323
SlS
laspcaon Fared Fea Eaun9u1zem9 Syssims
a.
Corrarwrwllnfpnnkersyelem (NFRA13). 100 heads chaise persystem
nn
72% of mBurdng
Para Fea
WA
5388
191
316
b.
Commercial fee sprinkler system(NFFA 13):> IN heads parsptem
W9
72o�tmBF.rd. °g
WA
$aga
3135
31]
G
Coimrefwllw spnnkbrsysWn (NWA IS)eaNW algont"sy&emorper rnbuidmps 3ssi"s
$319
72% �an9
WA
3434
3135
S18
d.
hatiWamlydv-a8n9 residential fire toreador system OR): J to 18 unrs par Watling
1402
72% of BFegg
WA
$MS
-MJ
3191
a.
WW&miy dowl'vl9 residential lira spnnader Salem (NFPA I3R): a 16 units per d ibmq
3508
12% 1 Feeng
NIA
3838
4110
g
i.
Tanmflrrpiowmanl (TO NFPA 13 or 13R fn apmadrt syslem: 420 Matli
t205
72% Fanie Fee ng
WA
$217
312
321
9.
Ta "m brponmam RO NFPA 13 or 13R fve spnnWr system' 21 -100 "ads, no ukulauons
5297
72% of Building
Perms Fee
WA
3368
-S]3
h.
Tanant lrryronmanl R9 NFPA 13 or 13R fire spreader syslem'. >100 heads or m°umg nkeblronf
11349
72% of Fee
WA
$415
-198
323
L
Fee sWid.,m°nn°rd, system water lbw 6 simper swilches. a ll notification bawces
5188
72% of Budding
Permd Fee
NIA
$191
325
(.
Underorourtd fn pmlaced. - Hew
�a9
72% of Building
WA
"is
31M
R1
Permit Fee
It.
Underground fn proleni°n- Repair
nos
of
12Farms Feang
WA
5330
3125
325
L
Fee installation
3149
72% Of BFcn,
WA
"Of
352
JM
purrs,
327
m
Ssindps,as NFPA 14 Class I. II or III a" Imith es al slancippes "Ida a ¬e Wilding or boat dock
5/02
72%.1 Building
WA
M17
3215
Plan Be.. Foods Fm Enmgulshng Stralamf
a.
Connrwllre fpnnkbr system (NFPA IJ)'. 100haadsorlesapersystem
5312
M% of BUJenp
WA
3583
3241
]28
Permll Fee
3"
b.
Commerwl lire sprerkler ols. NFPA 13). o 100 heads parsysbm
3875
3BPerhat Feeerg
WA
(1391
318
3>D
c.tatiWamiy
dva9ng rasiden"Ifre sponger apbm(NFPA I3R). 3 w 16 units Par Wilding
S267
us, of nFeecig
WA
5393
31%
d.MUN-famiy
dea9rp esidential Tea sprnadar problem (NFPA IJA). alb was per Wrdln9
3126
X% of Bass"
WA
3466
Sat
331
Pa.. Fee
3U
a.
Tanantlmponmanl(To NFPA 13 or 13R fire fpmkler system: 4.20 heads
$134
Waist Binding
WA
$1]9
-f15
333
I.
Tenant Np °nmanl(TI) NFPA 13 or 13R fire spmrder system 21-100 heads, ho desolations
$176
36% of BuiMf, Parch Fee
WA
fSla
-9138
tie
g.
Tanant brproeamem(TO NFPA 13 or 13R fire Vishider affirm, >100 heads or re °ui "g delineations
$140
36 % °f Border,
Pend Fee
NIA
We
3197
]l5
h.
Fn stmkter mndering system wafer "w6pampa, sewlCAes. s ll hWiodaon de woes
51]4
38pe °F Building
WA
5224
390
3>e
L
UnMryrountl fn Droleceon -New
2312
>BPartia Feeerg
WA
5124
382
337
2
Underground fn .led.
slu
36% Of BFeeerg
WA
2253
3119
k
FN neuYtien
W2
36GenBFaeerg
WA
2762
3420
338
purls,
339
L
Suand2yas. NFPA 14 Class 1.11or l9 shad ewLEaa al awdepae wnhn• eloped Wrdbp or boat choose
5315
315% P..d Feeerg
WA
3581
3288
3e01nspae0°n
Fee Mo.13,04ma
a.
Fnalarm,ras.. a6p defiui
5102
72% of Building
NIA
8120
318
341
b.
Fn alarm system. ItEO davkaa
$205
72PamN Fee
NIA
$248
-L3
342
Plan Revww Fn Alan3 eteon
y
a.
Fsealansyflam: a Gdewns
U75
W% of Building
Parmh Fee
NIA
nn
353
343
b.
Fore.W. yslitrr 1110d...
5126
M% .1 1 Bellisario
WA
Saab
320
344
F1ial NOdlfiGbpn Nawandlor Chad, to E.alating pan
a.Inspeslbn
5114
5705
WA
ftba
320
345
b.
Plan R°v1MUptlate
2127
WA
WA
E
3318
PROPOSED FIRE FEE SCHEDULE
LIFE SAFETY
PLANNING AND DEVELOPMENT
EXHIBIT "D"
REFERENCE
NO
PlMHNO MID DEVELOPMENT SERVICE NAPE
DESCRIPTION
PsgpawSFN
4aasafaa
9lnwar a
Corms/
OCFpfp
IN1lrrmw06A
/presented
US
Fee Arreas GMe
a.
Impeect..
$140
Hes"i
WA
5191
S51
Say
e.
Plan Review
$195
Hourly
WA
5335
3180
US
Temniul Asessimce of Compbs Fee Protection Systems
Cosa Compliance Re... Plan Rew.anobr lnapetlwn Samcea
mount
120 %el uldor
WA
WA
We
349
In Semis BWdvlp Puolm Ride Coverage System Sarvice in
Pmata Svuctures
So. to pm any treated brdratUDntl amplification rysbmf W Ina Ormu County, SbM-Celpd.I
Co.,.00na D .0 on W haM of dH Ca Poky and Fos Dapmmanls. 100% pass Trough of CC Sheriff-
Pau Thrppn
Pass Through
WA
WA
WA
360
pre- aP9RHMl Rep.
Per Haw -1 Hour Mountain, includes CEOA. EIR and advanced ptennng requests
rody,
1555
WA
WA
WA
351
Me, life Safety Or SPewl HuarO Conswestern
Per Hour -1 Hour Ma miss.
Hoist//
5a04
WA
WA
WA
353
Cbswa Repen Raww
Par Hour - I Hour Minimum
Hourly
$155
WA
WA
WA
353
Fee Lana Plan Raw.(F. Minter Plan)
Par How -1 How Maur".
slowly
5401
WA
WA
WA
3641nucaen
Tank bsla5alwn Or RmpvM
AWm Q Saba, Ground. Par Tank
5593
ti�w M�
N/A
3515
N/A
355
Plan R. .TmkNwlation Or Removal
station Or Saba, GrouM. PiRlank
3425
Mel Mdse,
N/A
5535
MIA
PW.Gyct- RNWnYaI
Era OepHLMMAImGIN4� —pNww
Iburly
-- mannp.AewMnW Fm NMnK4dATalMy SyMan
.....Wpa
Pernubp NeMaeeeMFm Nainl4MfMaeFSystm*
fM4ew
Peree.aa
P W G aM W wl Ere.. W nLN�SNaNiy W wr
g5 WNmM
W anMGaaUalraa'nn� W w`<anMwMnl
3evaJip
4rdualAaFPW.Raww
��
seems
PanapaFaianulnaMGerra 4er�s
�us4Tn >NaPeaaans
Ng6
µMWNM 4wIy MrapanMrlBwaul
i33
Piuh w E.md+rRpwM
Paella, —aJtw JYmum
Sg43
bHwFwnEapeppgagrest
PM+Iww— Hew -Wmwm
3280
FrN MWdgMgn Plw- HYhmYier CnapeNE.NIpPten
perNW-- HNwAMlltwm
SN9
pm..Pfnp.M.M. wa.rewM4aalm.N.Pam9
now,
uwvM. +4a
p4x.CrHOk+MagaueMManMaApwp
P,
ifAaMwMMa
wd,:MGa4saeRrM4e4,MF4rt5
530
Alee4al<P�f.Paepe -Hrla
ass
bena9rvundirPrage.rar�k-
PM-TaN
Si)i
PROPOSED FIRE FEE SCHEDULE
LIFE SAFETY
INSPECTION SERVICES
EXH181T "E"
REFERENCE
NO
LIFE LIFE SAFETY INSPECTION SERVICE
NAME
DESCRIPTION
Pmpoaad Tne
Cu.Fee
DiNennce
C.mnll
OCFAF.e
DtHennce
0CFA1
Oporauonal And Spacial Evonl Permill
356
Operalenal Perm(, - N..
Laval I (noel - Crony and -ski ng Ws, ON ctunrp viands- I to 2 rapnnes. LquaRed p.ntlaun pent. W Tares
$140
Stu
-522
3113
.$276
357
L..121nex9 -al aNer caenlionsW.ni W CFC SMnn 1053
um
$162
5%
N13
-5130
J53
Operatenal Peral. - RUexel
LealllrAMeap- CUang and AalddW earls, Dry ckawg pants -1 tot macMes, LgwMd panobum gases. nn Tara
$114
$133
-$ts
Hourly
WA
359
L.vN 2(n1axe0- aa~opsr . pursuant le CFC Se.. 1053
3122
3130
$54
3333
3146
380
CandH Pa. Roper.
Fast Intel etW apactel eYMe
346
"I
-35
3330
-3292
331
SpePal Ever PamHs
Laves 162
$140
$125
355
WA
WA
362
Leva131LSS II Inspector) 2sWdea Cable Perm)
Hound
WA
WA
WA
383
PuMc U.peY- Faaxons - grrnd display en] a 9. nornemmnp 110 mnNaa
5236
SS]OIeN f.e
WA
$657
3373
364
Puotc USpay -F,s .- asset dnplay> 10 mn..
$773
55311 naN IN
WA
S3.427
-52 Beg
355
Weekend. Hassles, or Non Cont puous 1
MH H.. Ina ca. R a.1
3 Hew Maunsrm: nWM d conlpww W norW W ✓na.a W..
Hound
Hotel, • 2au
WA
WA
WA
369
NWSarea AMwmnl S..
WWS. RunMSn And Over H,,twce- Acluet costs. pass IMWh contract Bova pWS staff tend.
im!
A ;Wd! Wit
Act« %V.
WA
WA
WA
307
Tern crary Cnarge Of Use
UN OI RAW Oaupanry as a place of asserpN - Spwal U»
Hound
3471
WA
WA
WA
6uervM Fa.x E.peMla Repro✓
EvrlYwv.4ass31'a^- }WaMrnGOar+
iaW
44"
DIPHaeaMeteeten Reay.R
PwMa+— sMwuMe�nwr
ji90
Spaaral4earlFRKvr9JsapaFaeA
iawrpaa
PaNiou-- jNMSAnarwal
i]AO
Oca -load
nu
sredNfwsw- wp'swure
perearelN
N
330°...7..
NwwOaewarrer
PMXaW-- 1- HwJr9rlehwr
Si0.MFWme
Fw i136aP
RMPP(.wrpraalpr- -Rpre+
AWaIi�WDepwrsMesnexiLgOp
HeVIF
State Mandated Inspactldns
309
Slate Fee OWarare
Reewsl.IH7anWwruet orapanFwa. OWCa. O@ces. and Traalmenl Facs..
$75
303
-b
WA
WA
369
Cara FaoWas
Amual Fee 7.99 taints as wfned n 3e Cations. Bu4durp Cade
3 333
$173
Siti3
WA
WA
370
Care F.M.,
Amuel Fee > 99 pars as de5md n lne CaSfonii BpWng Code
We
$253
5175
WA
WA
371
Sm Cenla.
Anmet FU
3392
3175
$1.7
WA
WA
372
kW.NMI.
Amuet FAA 200 d Mery fled.
316,492
$7.103
.5664
WA
WA
313
HOlet ✓lamps
Anuet Fee W -MA.
3192
$116
So
WA
WA
374
Ho1Ns7M.Iels
Annuet Fee 300 Or More Reera
5333
3315
$:1
WA
WA
375
Cameruet Dry Can Fables
Annawl Fee
$192
$127
$35
3211
-519
376
14n Rne Buds,.
Amuet Fn
I 5934
31,160
-$IN
$1.120
4156
PROPOSED FIRE FEE SCHEDULE
LIFE SAFETY
INSPECTION SERVICES
EXHIBIT "E"
REFERENCE
NO
LIFE SAFETY INSPECTION SERVICE
NAME
DESCRIPTION
Proposed Fee
C. ,Fee
Difference
Culren t l
OCFA Fee
Caere...
OCFAI
377
Resmenuw Care F.6,1 PIILmcose
Ins d
Caldomm Heats wld Set* Cole Sedlon Inn
$245
$240
..
Hourly
WA
ReHeeMeHrgl�RrwBuWrme
/wwlFee- <mGinW too High Rise Bufinp
5964
Wi6
$149
$1,120
.$11
ft— 0. AwnWy
4xruuGw- Re6unUenL N Level ll Operalbml PwmMS
51F2
Hasardous Materials Inventory Diwimum Pmgmm
526
1.4 Cnemcals
> or • 55 Gabs. 200 Cu Fee, 500 Pw
5126
5563
-S455
WA
WA
379"cm.can
>or• 55 Gears, 200 Cvow Feet, 500 P9urMs
5149
5619
$530
WA
NIA
3s0
1.10 Chem is
> or • 55 Galena, 200 Cube F.M. 504 Pow16s
$162
use
-5531
WA
WA
361
11 -v Cmm .I'
> or e 55 Geller.. 200 Cu Fe4 500 Pa WS
3209
6197
5569
WA
WA
3821S20C".K
>w= SS Gesons. 200 Cube Fast SW PO
5280
5992
032
NIA
WA
383
2140 Ch..It
> e1. 0 Gelons. 2W CU Feel, SW PO s
012
5926
.5614
WA
WA
3M
Mwe Tnan 40 Oto c
>w• 55 Gabor, 2W Cub¢ Feet. 500 Pouros
3419
61,179
-5160
WA
WA
GeeoYwKervaeiWwPwirle
EID ...... F sISNwW- Fee - Redundant. U•eI Il Opw~W PwrMS
it To
EXHIBIT F. RESPONSE TO BIA NEWPORT BEACH FIRE ANALYSIS
Copies of Exhibit F will be made available on Monday, October 7, 2013.
Received After Agenda Printed
SS2
10 -8 -13
Exhibit F: Response to BIA Newport Beach Fire Analysis
We have appreciated the dialogue we've been able to have with stakeholders like the
Building Industry Association (BIA) via the development of our municipal fee schedule
over the years.
City staff conferred and reviewed the proposed Fire fees with a representative of the
Orange County BIA recently. We also met and reviewed the proposed fees with
representatives of The Irvine Company. We also obtained input from several other
stakeholders such as local architects, builders and designers.
The BIA provided a written response to the fee proposals as indicated on the
attachment, which in part disagrees with the methodology used to calculate cost and
fees. Staffs responses to the BIA comments are as follows:
BIA Comment: The current hourly rate fire fees are $160 per hour, which are the
second highest fees next to Orange County Fire Authority. A more accurate comparison
to municipal fire agencies reveals that the proposed fee increases would be 37% higher
than Huntington Beach and 53% higher than Anaheim on an hourly basis. They are
dramatically more when comparing the total cost to the customer.
City Staff Response to Comment 1:
The City utilized the Orange County Fire Authority ( "OCFA ") fee schedule as a model
for analyzing Life Safety Planning, Development, and Inspection Service fees. The
proposed fee structure for these fee categories is based upon OCFA's fee schedule,
which is relied upon by 23 of the 34 cities in Orange County. Because the proposed
service types and descriptions are similar to most other county jurisdictions, City staff
believes that the new fee structure will be easily understood and utilized by the regional
developerlbuilder community. Fee levels are reflective of the cost recovery policies set
forth within each jurisdiction. In the City of Newport Beach, Council Policy F -4
(Revenue Measures) and Item 11 of the City Council Fiscal Sustainability Plan requires
the City to establish a 100% cost - recovery target and adjust the fee structure to ensure
that fees continue to meet the mandated cost recovery targets. Exceptions to this policy
are established by the City Council and subsidized fees are codified in the municipal
code.
Comment 2: Proposed Fee Increase Exceeds Rate of Inflation
BIA Comment: Many public agencies evaluate Consumer Price Index (CPI) data as
a primary factor for fee adjustments. The proposed rate increase of 10.6% is almost
double the rate of inflation over the last three years. The Los Angeles -Santa Ana
Metropolitan region's CPl only grew by 5.6 %.
City Staff Response to Comment 2:
The proposed changes to the fire fee schedule are not based on the CPI escalation
factor. Changes to fee schedule are instead based on the results of the total cost of
service analysis, which is in furtherance of Chapter 3.36 of the Newport Beach
Municipal Code, Policy F -4 (Revenue Measures) and Item 11 of the City Council Fiscal
Sustainability Plan, which require the City to establish a 100% cost- recovery target and
adjust the fee structure to ensure that fees continue to meet the mandated cost
recovery targets. Fire fees have not been evaluated or updated on the total cost of
service basis for 5 years. The proposed fees will align revenues with the total cost of
services in a more accurate manner that CPI.
Comment 3: Over 54% of Service Does Not Direct Serve the Customer
BIA Comment: A breakdown of hourly rate demonstrates that a majority (545o) of
service does not directly impact the customer.
Salary & Benefits Internal Dept Admin Citywide Support Total:
Dollar $81.41 $46.06 550.19 177.66
Percent 46% 26% 28%
Direct vs. Indirect 460/6 64%
City Staff Response to Comment 3:
Indirect overhead costs are costs that are not directly accountable to the expenses
Incurred for a user fee service, but they still clearly contribute to the total cost of that
service delivery, i.e. - managerial administration, utilities, insurance, legal, information
technology, payroll, and finance. These are all valid components to the analysis of what
it costs the City to provide municipal services. The inclusion of Indirect overhead costs
to determine the total cost of service is a well - established cost accounting methodology
which we use and so do other communities.
Comment 4: 100% Cost of Recovery is Unorthodox Amonq Orange County Fire
Departments
BIA Comment: Among all municipal fire agencies in Orange County, the cost of
recovery is between 30% and 36 %. One hundred percent cost of recovery of fire
prevention fees would break with an established precedent. Life Safety costs are
currently met through a healthy balance between user fees and general funds. Given
the good stewardship of the City's finances, maintaining the fees at current levels will
continue to foster a stable public safety and business environment.
City Staff Response to Comment 4:
Setting Fire fees at 100% cost recovery does not break precedence here. Further, the
conclusions one can draw by comparing fee levels across cities are fairly limited due to
agencies' differences in defining and structuring their respective fees. For example,
certain services included in fees may be combined in some cities but separated in
others; fees in other cities may be based on historical or other subjective factors
unrelated to costs; and fees are also affected by differences in cost factors such as cost
2
allocations of indirect support costs, employee benefit costs, and service efficiencies
(the overall time necessary to complete a particular service or activity).
If a user fee primarily benefits the fee payer, the fee is typically set at, or close to 100%
cost recovery. Development related fees generally fall into this category. If a user fee
service benefits the community as a whole to some extent, it is appropriate to subsidize
a portion of the fee or charge no fee at all, such as with police patrolling or fire
suppression services. The following flow chart helps illustrate these economic and
policy considerations that are common among municipalities:
DECISION- MAKING FLOW CHART
Who
Type of
Tax vs. Fees
Example
Benefits
I!
Service
Policy
Services
CWMMN ly
Pubic
100% taxes
Pobco palrol servrcos
PMltly an Yl owstal
Mostly taxes
Code enforcement
wm Sam Corehisinity
bansib
Public t Private
6 soma tees
servtms
Mostly Ices
with song comm rt ity-
Private / Public
8 soma taxes
Youth sports
We berie is
—i
trdvidod boneit only
Private
100% fees
Developmanl services
Source: MGT of America, Inc.
A]
Comment 5: Fact: Fee Increases Will Result in Longer Time and Higher Cost to
the Customer
BIA Comment: Table A is an example of the extreme costs of a specific service. The
customer's total cost is compounded by higher rates and longer times. Newport Beach
Fire provided the following analysis of fees.
Table A: Comparison of Cost and Time for Plan 76 Head Sprinkler System
Service
New ort Beach
Anaheim Point Variance %Variance
Plan Check Rate
S342
Plan Check Tane
125 min
Inspection ate
5297
Inspection Tune
115 min
City Staff Response to Comment 5:
Service times are not increasing from the last time the fees were updated, but may or
may not be longer when compared to another fire agency. It is unclear on what basis
the BIA asserts that the City's Fire Department response times vary from other fire
departments. In fact, service times are irrelevant to this discussion given that fire
operations, population, traffic circulation, financial resources, and policy vary from city to
city. However, tracking service time is a critical task, and the proposed changes to
methodology will allow for more accurate and detailed tracking of service time by
breaking service types into their sub - groups. Again, fees are affected by differences
among cities in cost factors such as cost allocations of indirect support costs, employee
benefit costs, and service efficiencies (the overall time necessary to complete a
particular service or activity).
Comment 6: Questionable Costs Associated with hire Prevention
BIA Comment: There is potential redundancy of costs among fire administration,
training, insurance, and "all other materials and support" specified in the Citywide
Allocation Plan and Life Safety Planning & Development Indirect Cost Rate Proposal
(Exhibit B). For example, fire training is identified and billed twice among different cost
segments resulting in higher indirect costs for the department and fees to customers.
Various indirect administrative costs are broadly labeled, not well documented, and
potentially overlap. If the City were to adopt a 100% cost of recovery, we ask for due
diligence pursuant to State law that fees shall not exceed the estimated reasonable cost
of providing the service.
City Staff Response to Comment 6:
Working with the Fire and Finance Departments, the City's cost recovery consultant
from the firm "MGT of America, Inc." reviewed and cross checked results to ensure data
validity and found no instances of double counting. MGT is a well- respected consultant
with a well - established methodology. The particular consultant utilized by the City of
Newport Beach is one of the most experienced cost analysts in the western United
States, having completed hundreds of cost plans, user fee studies, and other studies for
local governments.
4
There are line items that coincidentally have the same dollar amount. With respect to
the referenced training item, the $6,500 in training expense is specific to the Life Safety
Services division and is directly budgeted to that division. The $18,351 that is allocated
to Life Safety Services division is the pro rata share from the Department's Training
Section and is independent from Life Safety Service division's directly budgeted training
expense. The cost allocation plan is derived from a fairly complex Excel model. We
welcome the opportunity to meet again with any BIA representative to demonstrate the
accuracy and validity of the cost allocation plan model. The MGT study establishes the
cost incurred by the City to provide services. The purpose of the recommended action
is to update the City's fees and set them at a level that does not exceed the cost to
provide the services.
BIA Comment: Our primary recommendation is to maintain fees at their current levels.
Alternatively, City Council may explore a cost of recovery that reaches a level of
compromise between the City staff and BIA/OC recommendations.
City Staff Response to Comment 7:
Chapter 3.36 of the Newport Beach Municipal Code ( "Municipal Code ") requires that
user fees for municipal services be recovered at 100 %, unless otherwise provided for in
Municipal Code Section 3.36.030 (Cost Recovery Percentages). Staff welcomes input
and recommendations on the proposed Fire fee schedule. Based on the direction of City
Council, staff will return at a later date with a proposed Fire fee schedule for formal
approval.
Conclusion
The purpose of the study was to develop fees that accurately reflect the costs for the
services performed. Because Life Safety Planning and Development fees are currently
based on a percentage of permit fees, and the proposed fees are based on actual staff
time, it is difficult to predict exactly which and how many fees will increase or decrease
as the result of the proposed changes. We see some component fees rising while
others are falling and believe that Life Safety Planning and Development fees will result
in less cost overall when all the fee subcomponents for a particular task are aggregated.
The following two examples demonstrate the likely cost impact on Life Safety Planning
and Development evaluations under the new calculation methodology. Such evaluations
typically include architectural, fire sprinkler, alarm system, and fire service underground
plan review, as well as field inspections.
Example 1: Plan review inspection of a five story 20,838 square foot retail /residential
mixed use development:
Plan Review
CURRENT
PROPOSED
VARIANCE
Architectural
$2,710
$934
-$1,776
Fire Sprinkler System
$191
$675
$464
Fire Underground Service Line
$60
$342
$282
Fire Alarm System
L56
$426
370
Total
$3,017
$2,377
4640
Example 2: Applicant seeking plan review and safety inspections for a 4 unit residential
$150,000 improvement project:
When considering the changes to all Fire service fee categories, we estimate that 23%
of the proposed changes will likely result in a fee increase and 29% of fees will likely
decrease. In addition, 26% of fire fees are proposed to be eliminated altogether and 4%
will remain unchanged. The remainder of fees (in the Life Safety Planning and
Development category) will either increase or decrease as the result of changing our fee
calculation methodology.
We have thoughtfully evaluated each of the BIA's concerns and we thank them again
for their input. However, after going through each of them, we believe that our fee
proposals are appropriate and that they most accurately represent the cost of the
specific services delivered.
Attachment 1: BIA Correspondence: "Concerns regarding agenda #SS.2 updates to the master fee schedule as it
relates to fire fees," dated 104-13
21
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
4101
When considering the changes to all Fire service fee categories, we estimate that 23%
of the proposed changes will likely result in a fee increase and 29% of fees will likely
decrease. In addition, 26% of fire fees are proposed to be eliminated altogether and 4%
will remain unchanged. The remainder of fees (in the Life Safety Planning and
Development category) will either increase or decrease as the result of changing our fee
calculation methodology.
We have thoughtfully evaluated each of the BIA's concerns and we thank them again
for their input. However, after going through each of them, we believe that our fee
proposals are appropriate and that they most accurately represent the cost of the
specific services delivered.
Attachment 1: BIA Correspondence: "Concerns regarding agenda #SS.2 updates to the master fee schedule as it
relates to fire fees," dated 104-13
21
October 4, 2013
The Honorable Keith Curry and City Council
City of Newport Beach
100 Civic Center
Newport Beach, CA 92660
Re: CONCERNS REGARDING AGENDA zSS.2 UPDATES TO THE MASTER
FEE SCHEDULE AS IT RELATES TO FIRE FEES
Dear Mayor Curry,
On behalf of our membership, we would like to thank Newport Beach Fire staff for an
opportunity to review the Life Safety Fee proposal. After careful review of fee proposal,
we express concern over the proposed increase of Newport Beach Fire fees. Our
primary recommendation is to maintain development - related fees at their current fee
level.
The Building Industry Association of Southern California, Orange County Chapter
(BIA/OC) is a non -profit trade association of nearly 1,000 companies employing over
100,000 people affiliated with the home building industry. The Orange County Chapter
represents the largest member base within BIA Southern California. Our mission is to
champion housing as the foundation of vibrant and sustainable communities.
BIA/OC remains committed to fees adjustments that are consistent with our Fair Share
Principles (Exhibit A). We agree in part with the need for new categories of fees to keep
up with new building trends. In contrast, we disagree with methodology used to
calculate cost and fees. Maintaining fire fees at a reasonable level is vital to promoting
a healthy housing and business environment. We recommend re- evaluating the
proposed fee increase based on the following seven points:
1. Newport Beach Fire Department currently has the 2 ^d highest fees in the
County — The current hourly rate fire fees are $160 per hour, which are the
second highest fees next to Orange County Fire Authority. A more accurate
comparison to municipal fire agencies reveals that the proposed fee increases
would be 37% higher than Huntington Beach and 53% higher than Anaheim on
an hourly basis. They are dramatically more when comparing the total cost to
the customer.
2. Proggsed Fee Increase Exceeds Rate of Inflation — Many public agencies
evaluate Consumer Price Index (CPI) data as a primary factor for fee
adjustments. The proposed rate increase of 10.6% is almost double the rate of
inflation over the last three years. The Los Angeles -Santa Ana Metropolitan
region's CPI only grew by 5.6 %.
131 R
Orange Count;,
Chapter
17744 SAA Pads Circle
Sidle 1711
Irvine. Cafililmia 0614
949.551.95(11)
IaA 949.769.8943
w .bu uyxom
PRESIDENT
DAVE BULLOCK
STANDARD PACIFIC HOMES
VICE PRESIDENT
DONNA KELLY
LENNAI
TREASURER
JOAN MARCUS{OLVIN
THE NEW NOME COMPANY
SECRETARY
BRIAN GETS
BROOKFIELDHOMES
IMMEDIATE PAST PRESIDENT
MICHAEL MCCANN
ALLIANCE RESIDENTIAL
TRADE CONTRACTOR COU14CIL V P
TOM RHODES
tWR ENTERPRISES
ASSOCIATE VICE PRESIDENT
MARK HMMELSTEIN
NE"EYER&DILLIOI4 LLP
MEMBER.AT.LARGE
MIKE'MNTER
SARESREGIS GROUP
MEMIERATiARGE
JIM YATES
RANCHO MISSION VIEJO
CHEF EXECUTIVE OFFICER
MICHAEL BALSAMO
3. Over54e /u of Service Does Not Direct Serve the Customer -
A breakdown of hourly rate demonstrates that a majority (54'9x) of service does not
directly impact the customer.
Salary d Benefits Internal Dept. Admin Citywide Support Total:
Dollar S8141 S4606 S50. 19 177.66
Percent 46% 26% 28%
Direct vs. Indirect 46% 54%
4. 100% Cost of Recovery is Unorthodox Among Orange County Fire Deoartments -
Among all municipal fire agencies in Orange County, the cost of recovery is between
301/6 and 36 %. One hundred percent cost of recovery of fire prevention fees would break
with an established precedent. Life Safety costs are currently met through a healthy
balance between user fees and general funds. Given the good stewardship of the City's
finances, maintaining the fees at current levels will continue to foster a stable public
safety and business environment.
5. Fact: Fee Increases Will Result in Longer Time and Higher Cost to the Customer -
Table A is an example of the extreme costs of a specific service. The customer's total cost
is compounded by higher rates and longer times. Newport Beach Fire provided the
following analysis of fees.
Table A: Comparison of Cost and Time for Plan 75 Head Sprinkler System
Service
Newport Beach
Anaheim I Point Variance % Variance
$225 259%
80 min 178%
Plan Check Rate
$342
125 min
5297
Plan Check rime
Inspo cVon Rate
Inspection Tim
115 min
55 min 92%
6. Ouestionable Costs Associated with Fire Prevention - There is potential redundancy
of costs among fire administration, training, insurance, and "all other materials and
support" specified in the Citywide Allocation Plan and Life safety Planning & Development
Indirect Cost Rote Proposal (Exhibit B). For example, fire training is identified and billed
twice among different cost segments resulting in higher indirect costs for the department
and fees to customers.
Various indirect administrative costs are broadly labeled, not well documented, and
potentially overlap. If the City were to adopt a 100'Y, cost of recovery, we ask for due
diligence pursuant to State law that fees shall not exceed the estimated reasonable cost of
providing the service.'
I Govemmenl Code § 66014 et seq.
-2-
7. BIA Remains Open to Alternative Cost of Recovery Structures — Our primary
recommendation is to maintain fees at their current levels. Alternatively, City Council
may explore a cost of recovery that reaches a level of compromise between the City staff
and BIA/OC recommendations.
Based on the merits of our concerns, we encourage you to maintain Newport Beach Fire Fees
at their current levels. We would welcome the opportunity to further study this matter with the
City. As always, we remain a resource to the City on important issues that are related to the
well -being of our local communities.
Thank you for time and thoughtful consideration
Respectfully,
Michael Balsamo
Chief Executive Officer
Cc: City Council
Mr. David Kiff, City Manager
Mr. Kevin Kitch, Assistant Fire Chief
Enclosures (2)
ism
Exhibit A
BUILDING INDUSTRY ASSOCIATION OF SOUTHERN CALIFORNIA/
ORANGE COUNTY CHAPTER
LAND DEVELOPMENT FEE SURVEY
THE FAIR SHARE PRINCIPLES
It is recommended that Jurisdictions:
Notice. Provided sixty (60) days notice if effective date of any fee
increases.
2. Public Hearing. Publish notice and hold hearing prior to consideration of
fee increase along with mailed notice to any petitioning party pursuant to
Section 54992 of the Government Code.
3. Resolutions. Do not amend enabling resolutions. Work for the inclusion
of all development fees in one new, comprehensive resolution.
4. Volume Adjustment. Adopt reduced rates for subsequent plan check
and inspection of identical buildings.
5. Source Documents. Insure that the actual fee authorization document
with official signature is available for distribution by development services
agency or city clerk upon request.
6. Other Agencies. Publish, and clearly display, contact list of any other
known agency that may claim regulatory jurisdiction.
7. Payment Timing. Honor deferred payment rules under Government code
Section 53077.5.
8. Nexus and Need. Provide evidence of fee nexus and Identified need
through generation of nexus study and a needs assessment in
accordance with State Law.
9. Establish Specific Benefit Areas. Assessment fees are within clearly
defined boundaries for benefited properties and not be utilized to
subsidize other tax - supported facilities or services. An adopted plan of
expenditures and implementation schedule should be in place prior to
adoption according to State Law.
10. Documents Kept Current. Cost -of- living increase is documented in
newly published schedules. No undisclosed, intermediate calculations are
required to determine one's probable liability.
11. School Fees. School fees only be implemented with a school facilities
master plan, adopted budget, and specific spending plans adopted after
public hearing.
Indirect Cost Rate Proposal
Agency: City of Newport Beach
Department: Life Safety Planning & Development
Fiscal Year 2012/2013
DESCRIPTION OF COST 40M.
Tofal Costs
Excluded
Allowable
Allowabfe
Indlrect
Direct _
A) Personnel Costs
1 Salary and Wages
$
1,028,074
$
280,770
$ 747,304
Da0bufion %:
100%
27%
735k
2 Temporary 8 Overtime
$
81.529
$
81.529
3 Benefits .00%
s
-
$ -
S
$
1,109.603
s
81.529
$
280,770
$ 747,304
B) 0111w Operating Eglerws
4 Training
6,500
6,500
5 Vehicle Maint
20.414
20,414
6 Jr Firefighter camp
00
6,500
-
7 Prof Svcs
46,114
-
8 Fuel Mod
<34. 00
190.000
-
9 Insurance
38
34.238
10 All other mall 8 supp
80,920
80,920
11
12
13
14
15
16
17
18
19
-
20 Capital Outlay
-
Subtotal:
S
384.686
$
242,614
S
142.072
S -
Total Dept Expenditures
S
1,494.289
S
324.143
S
422.842
S 747,304
C) Indirect Costs
21 citywide cap
460,785
4n0.7;5
22
?3
24
25
Subtotal
S
460,785
S
-
5
460,785
-
Total Costs of all Divisions:
$
1,955.074
$
324,143
$
883,627
S 747.304
D) Internal Admin/Indirect Rate:
Dept Indirect Costs:
$422,842
Direct Sal 8 Benes:
$747,304
Internal
Indirect Cost Rate:
56.6%
E) External AdmiNlndiract Rate:
Indirect Costs:
$460.785
Direct Sal 8 Benes:
8747,304
External Indirect Cost Rata:
61.7%
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