HomeMy WebLinkAbout06 - Fee Schedule AdjustmentsMeeting Date: February 12, 2002
Agenda Item No.
CITY OF NEWPORT BEACH
ADMINISTRATIVE SERVICES DEPARTMENT
Resource Management • Fiscal Services • M.I.S. • Revenue • Accounting
February 12, 2002
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Glen Everroad, Revenue Manager
SUBJECT: Fee Schedule Adiustments
SUGGESTED ACTION:
Adopt Resolution 2002- updating the City's Fee Schedule.
BACKGROUND
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 February of 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.
During the February 1997 Council meeting, the Council also 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 Schedule was intended to be a centralized location
for the myriad of fees previously located in individual ordinances, resolutions and council
policies.
Since 1997, Council has adopted resolutions updating the Fee Schedule to reflect new
services, changes in service responsibilities and increased service costs. The last Fee
Schedule update (Resolution 2001 -46) was approved by Council in June of last year.
Meeting Date: February 12, 2002
Agenda Item No.
DISCUSSION
Since the last update to the Fee Schedule, staff has identified existing fees not represented
in the Fee Schedule, changes in service costs for fees in the Fee Schedule, new services
for which fees should be established and a fee for service no longer provided.
Additionally, the Building Department is proposing changing the basis of calculation of
permit fees for harbor structures. A report from the Building Department Director
detailing these proposed changes is attached.
The proposed Fee Schedule (Exhibit A) lists eight hundred and forty eight fees for
services. Sorted by department, Attachment B isolates just the proposed changes to fees
with strikeouts and underlines depicting deletions and additions, respectively.
RECOMMENDATION
Consistent with the cost recovery standards contained in Chapter 3.36 of the Municipal
Code, staff recommends another interim fee adjustment at this time. Attached to the
Resolution as EXHIBIT "A" is the recommended Fee Schedule.
Glen Everroad
Revenue Manager
Attachments: Building Director Report
Proposed Resolution
EXHIBIT "A"
Attachment B
2
CITY OF NEWPORT BEACH
ADMINISTRATIVE SERVICES DEPARTMENT
Resource Management • Fiscal Services • M.I.S. • Revenue • Accounting
DATE: February 5, 2002
TO: Homer Bludau, City Manager
FROM: Glen Everroad, Revenue Managt
RE: Fee Schedule Changes
The attached spreadsheet lists just those fees staff proposes to be changed in the Fee Schedule. This
listing is similar to Attachment B provided in my Council report in that it lists just the fees changing
the Fee Schedule, but different in that I have added a column ( "Revisions ") describing the proposed
change to each fee listed.
There are no fee increases to existing fees proposed in this action.
There are five new fees being proposed as a result of new services and programs being offered:
"B" Size Color Maps; Passport Execution; Day Camp Fee - Extended Day; Day Camp Fee -
Standard Day
Four fees have been moved from the Public Works section to the All Departments section. The
rates for these fees have not been changed.
Eight existing Building Department Plan Review fees have been consolidated to a single fee named
"Harbor Construction" in the Building Plan Reviews section. Eight existing Building Department
Permit fees have been consolidated to a single fee entitled "Harbor Construction" in the Building
Permit Fees section, and the basis for calculating these eight fees has changed to be consistent with
other building permit fees. Jay's report indicates that there is no net increase in these fees.
Fourteen fees in the Aquatic Activities section of Community Services have been reinstated to the
Fee Schedule after inadvertently being deleted from the prior Fee Schedule. These rates have not
been changed.
The nine fees in the Harbor Resources section relating to Plan Review have had additional
descriptions added, depicted by underline, to distinguish these fees from the Building Department
fees with similar names. These rates have not been changed.
I will providing Council members enlarged versions of the Fee Schedule (Exhibit A) and the
spreadsheet depicting changes and additions (Attachment B) in lieu of purchasing seven magnifying
glasses.
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ReF'`w�RT CITY OF NEWPORT BEACH
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BUILDING DEPARTMENT
U 3300 NEWPORT BOULEVARD
C7l /MANP
NEWPORT BEACH, CA 92658
Hearing Date:
Agenda Item No.:
Staff Person:
February 12, 2002
Faisal Jurdi
(949) 644 -3277
REPORT TO HONORABLE MAYOR AND CITY COUNCIL
SUBJECT: Amendment of Building Plan Check and Permit Fees for Harbor
Construction
BACKGROUND
The Building Department assumed the responsibility of processing and issuing permits for Harbor
Construction from the Fire and Marine Department on July 1, 2000. The Building Department also
assumed the responsibility of providing structural plan review and inspections with the Marine
Department providing plan review for compliance with City Council Harbor policy H -1 and
Municipal Code Harbor regulations. The Building Department shares the Harbor Construction
Permit Revenue with the Harbor Resources Division.
Harbor Construction permit fees are set by category (new, alteration, maintenance) regardless of the
scope of work and cost of construction under any of these categories. This approach causes
applicant confusion, which resulted in classifying replacement of existing docks and major
renovations as "maintenance." The amount of time Building Department staff spends on plan
review and inspection of a project depends on the scope of work, which is proportionate to the cost
of construction. Similar to Building plan check and permit fee schedules, Building Department
staff created Harbor construction plan check and permit fee schedules with fees proportionate to the
cost of construction. Building Department staff consulted two local Harbor contractors to establish
a "per unit cost' to use for calculating Harbor construction valuation. This information was also
used to estimate the cost range of typical residential dock maintenance, alteration and new
construction projects. Staff structured the fee schedule so that the fixed fee charged is now
proportional to the fee of an $9,000 maintenance permit and a $15,000 alternation and a $40,000
new dock or sea wall. Staff determined the above amounts to be the high -end cost of construction
in these respective categories.
The proposed fee schedule is not expected to result in an increase of revenue. It will result in an
equitable fee structure commensurate with the scope of work.
Amendment of Building Plan Check and Permit Fees for Harbor Construction
Page 2 of 2
RECOMMENDED ACTION
Adopt a resolution to revise Harbor construction plan check and permit fees according to the
attached fee schedule.
Submitted by: Prepared by:
Jay Elbettar Faisal Jurdi
Building Director Deputy Building Director
TO-L-�, � rL
Attachment
RESOLUTION NO. 2002 -
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF
NEWPORT BEACH UPDATING THE
MASTER SCHEDULE OF
FEES TO BE CHARGED FOR SPECIFIC
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; and
WHEREAS, on February 10, 1997 the City Council of the City of Newport Beach
adopted Ordinance 97 -9 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
2001 -46 on June 26, 2001 establishing a Fee Schedule for municipal services based on
the 1996 study and Chapter 3.36 of the Municipal Code; and
WHEREAS, the City provides new services for which fees have not been
established and has transferred responsibility for harbor construction permitting from the
Fire and Marine Department to the Building Department; and
WHEREAS, it is the desire of the City Council to maintain the City's Fee
Schedule in order that it accurately reflect the current services provided by departments
and the fees established for user services should reflect the approximate costs of
providing the services.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The schedule of fees for service attached to this Resolution as
EXHIBIT "A" is hereby established.
Section 2: Resolution number 2001 -46 is hereby rescinded.
Section 3: This Resolution shall take effect February 13, 2002.
Passed and adopted by the City Council of the City of Newport Beach at the
regular meeting held on the 12th day of February, 2002.
Mayor
ATTEST:
CITY CLERK
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