HomeMy WebLinkAbout21 - Master Fee ScheduleCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 21
July 13, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Glen Everroad, Revenue Manager, 644 -3144
eve rroad @city.newport- beach.ca.us
SUBJECT: Master Fee Resolution
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 adopt the attached proposed Resolution 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 Schedule is intended to be a centralized location for the myriad of fees
previously located in individual ordinances, resolutions and council policies.
Since the 2003 fee adjustment, the City has experienced a net 6.70% increase in salaries and
benefits and a 2.74% increase in the Consumer Price Index (Los Angeles, Anaheim,
Riverside) through March of 2004. Using the methodology developed by KPMG to apply these
amounts to the labor and non -labor portions of City costs, staff prepared the proposed fee
adjustment. This adjustment will bring fees in compliance with cost recovery standards.
The Fee Schedule was distributed to the appropriate City departments for two reviews. During
the first review, staff was asked to identify existing fees not previously represented in the Fee
Schedule, any changes in service processes for existing fees, any new services for which fees
should be established and any fees that should be dropped from the Schedule. Staff
recommended changes include several library fees which have been reviewed and
recommended by the Library Board. The Fire Department has two new fees relating to the
review and inspection of fuel modification plans, and a new fire lane review fee. Building
Department fees that are tiered (multi layered) are periodically recalculated and adjusted; this
is done to keep the tiers in alignment. The proposed Fee Schedule with department
recommendations and the general adjustment to costs was then circulated for a second and
final review. Water and Sewer fees are not adjusted by this proposed schedule, and have not
been adjusted since 1996 and 1991, respectively. The Recreation and Senior Services fees
recently adopted in April 2004 by Resolution 2004 -28, are listed in the proposed schedule, and
are not being changed by this proposed schedule. The attached proposed 2004 Fee Schedule
reflects changes recommended by individual departments as well as the increased labor and
non -labor costs.
State law provides that fees for services charged by the City may not exceed the estimated
reasonable cost for providing the service 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:
Posted with agenda.
Prepared b Submitted by:
erroad, Revenue Manager De nis anner, Administrative Services
Director
Attachments: Proposed Resolution
Proposed 2004 Fee Schedule
RESOLUTION NO. 2004-
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 Fee Schedule for municipal services based on
the 1996 study and Chapter 3.36 of the Municipal Code; and
WHEREAS, it is the desire of the City Council to maintain the City's Fee
Schedule in order that it be complete and up to date; and
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 adopted.
Section 2: This Resolution shall take effect upon adoption.
Passed and adopted by the City Council of the City of Newport Beach at the
regular meeting held on the 13th day of July, 2004.
Mayor
ATTEST:
CLERK
APPENDIX
July 2004
Overhead
Department Factor
Administrative Services
1.82
City Attorney
1.73
City Clerk
1.73
Community Development:
Building
2.13
Planning
1.97
Harbor Resources
1.90
Recreation and Senior Services
2.11
Library Services
2.11
Fire and Marine:
Safety
2.16
Non -Safety
1.92
General Services
1.78
Police:
Safety
2.07
Non - Safety
1.83
Public Works
1.83
Utilities
1.83
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