HomeMy WebLinkAboutSS2 - Fee Schedule PresentationFee Schedule
Cost -of- Services
City Council Study Session
February 22, 2011
EMM
� 1996 - comprehensive cost -of- services study performed
by KPMG.
1997 — Council adopts Ordinance 97 -8, establishing
Chapter 3.36, which codifies percentage of cost to be
recovered from direct user fees studied.
2006 — Public Resources Management updates the cost
allocation plan and City -wide cost -of- services study.
2010 — MGT updates the cost allocation plan and studies
cost -of- services fees for Harbor and Police.
Direct Salaries and Benefits:
MGT met with Harbor Resources and Police staff to identify direct staff time
spent on all activities (fee - related and all "other ").
Indirect Costs:
Departmental overhead (supervision and administration [indirect salaries
and wages], supplies, materials and utilities)
City -Wide overhead (e.g. Administrative Services- payroll, budget, I.T.;
Personnel- Recruiting, Training, Employee Relations and others)
Only 'central service departments' were allocated — NO costs associated with
operating departments such as Fire, Lifeguard, Police or Refuse collection
were included.
Direct Materials or Contracts:
Example: Regional General Permit (RGP) $580,000 for 10 years - split
between Dredging and Plan Check Service fees.
1. Departmental salaries and benefits — determine if they are Direct
or Indirect.
2. Departmental Maintenance and Operating Expenses — the
majority (84 %) are excluded all together. Of the remaining 26 %,
determine if they are Direct (RGP only) or Indirect.
a. Calculate Overhead Rates - overhead rates are a ratio of Indirect
Costs / Direct Salaries & Benefits
4. Apply overhead rates to hourly salary and benefit amounts to
determine a full cost recovery rate.
Position
Harbor Resources Manager
Harbor Resources Supv
Harbor Resources Tech II
Marine Protect & Educ Supv
Tidepool Ranger- PIT
Hourly
Salary &
Internal
Dept
Citywide
Total
Benefits
Admin
Support
$
79.69
$
59.42
$ 81.32
$
220.43
$
56.14
$
41.87
$ 57.29
$
155.30
$
46.24
$
34.48
$ 47.19
$
127.91
$
43.24
$
32.24
$ 44.13
$
119.61
$
16.10
$
12.00
$ 16.43
$
44.52
5. Gather time estimates that reflect the average amount of time
required to provide a fee - related service.
6. Apply hourly rates to time estimates to determine base cost of
service. Many times this is the full cost, unless there are direct
materials /supplies /contracts.
�. Apply any direct materials /contract costs to eligible service.
s.
Staff's
full
cost
+
direct materials /contracts
costs = full cost
9.
Divide
full
cost
/
estimated annual
volume
= Fee
10. Determine recovery percentages approved per MC 3.36.030
-* Harbor Resources fees were approved by Council on
November 9, 2010.
MGT studied cost -of- services for Police services
7 new fees — for services Police has always performed,
but City did not charge for:
1. 2nd hand /pawn dealer tag check
2. Solicitor application — up to 10 persons
3. Solicitor application — additional 10 persons
4. Citation sign -off
5. Registration — sex offender
6. Registration — narcotic
7. ABC License
Subsidies removed for:
IP-
Massage License — State now licenses massage
technicians.
Vehicle Repossession — reflect 100% of Government
Code mandated fees
Arrest /Crime /Traffic reports — recover the full
operational cost of $10 /report
U
*In General most fees are updated each year by CPI or by State Law
(1.22% for FY 2011 fee schedule.)
However, the following departments also had updates for FY 2011:
Building Fees.
Water Quality Mgmt. Plan Review and Inspections. Previously
calculated as one fee, now split into 2 separate fees (Building and
Plan Check) for better analytical and comparative data.
Planning Fees:
Changes for new or revised permit review procedures included in
the Zoning Code Update (Site Development review, Minor Use
Permit)
Add fees
for services always
performed
but not
previously
included
in the
fee schedule
(Extension
of Time,
Transfer
of
Development Rights)
U
Fire Department:
Better calculation of staffing time needed to provide service
➢ change from flat rate to actual cost
➢ Compliance with Health and Safety Code
Emergency Ambulance Transportation
Removed resident subsidy — federal reimbursements for
Medicare claims have decreased, and costs for these services
have increased. Subsidy was benefitting the health insurance
companies not the residents. (Estimated $200,000 /fiscal year)
Residents have the option of enrolling in Fire Medics at
$48 /year
U
Recreation and Senior Services:
➢ Most fee changes were related to the re- opening of
OASIS.
Admin
Processing
fee
was
added
to
cover
the cost
of
credit
card
processing
and
software
maintenance.
Staff to come back to Council on March 8, 2011 for final
approval of all fees.
MGT contracted to next study Library,. Recreation and
Senior Services, Administrative Services and Utilities.
Work begins March /April 2011.
Questions?
PROOF OF
PUBLICATION
STATE OF CALIFORNIA)
) SS.
COUNTY OF ORANGE )
I am a citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not
a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH /COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11, 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
February 12, 2011
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on February 11, 2011
at Costa Mesa, California
Signatur
RECEIVED
2011 FEB 23 AN 10r 59
0iCE OF
THE M CLERK
CnY OF r, uyO 3i BEWY
knaoFVI1k
NEABIMOfANCE MON
{LOST -0FSEitYi(i5 REST
NOTICE 95 HEREBY GI
EN that the Clty of New-
port Beach public hear -
Ing to consider the
establishment of Cast -GV
services fees, which in-
ctude development re-
view fees on Tuesday,
February ZZ, 2011 has
been cancelled.
WWI Brown, City Clerh
CIL99 of Newport Beach
Publued Newport
Beach /Costa Mesa Daily
Pilot February 12, 2011
SaIZ5