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HomeMy WebLinkAbout2018-55 - Revising Certain Fees within the Schedule of Rents, Fines, and Fees and Adding an Annual Consumer Price Index Adjustment of Certain Fees and ChargesRESOLUTION NO. 2018-55 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, REVISING CERTAIN FEES WITHIN THE SCHEDULE OF RENTS, FINES, AND FEES AND ADDING AN ANNUAL CONSUMER PRICE INDEX ADJUSTMENT OF CERTAIN FEES AND CHARGES WHEREAS, Newport Beach Municipal Code ("NBMC") Section 3.36.010 provides that services and programs that primarily benefit a person requesting the service are traditionally funded in whole or in part from fees charged to the person who initiates the service; WHEREAS, NBMC Subsection 3.36.010(C) further provides that to ensure fees charged for services are an accurate reflection of costs, the City of Newport Beach ("City") should conduct a fee study at least once every five years; WHEREAS, contemporaneous with this resolution the City Council introduced Ordinance No. 2018-13, amending Exhibit A to NBMC Section 3.36.030 (Cost Recovery for User Services); WHEREAS, Exhibit A to NBMC Section 3.36.030 contains cost recovery percentages for specific services, and provides that the City Council may modify the fee resolution upon a determination that there has been an increase or decrease in one or more cost factors relevant to the calculation of the actual cost of providing the service; WHEREAS, in 2010, the City retained MGT of America, Inc. ("MGT") to prepare the cost allocation plan and cost -of -services studies for City services ("Agreement"); WHEREAS, pursuant to its Agreement, MGT has conducted cost -of -services studies on a rotating basis by department; WHEREAS, pursuant to its Agreement, MGT prepared the Fire cost -of -services study; - WHEREAS, pass through costs for actual services or tangible goods do not include staff time; WHEREAS, statutory fees are mandated or capped by another authority, such as the state; WHEREAS, historically non -studied department fees have been updated by the change in the Consumer Price Index ("CPI") at the time the studied fees were adopted by the City Council, which has at times spanned over multiple years; WHEREAS, to minimize the fiscal impact to the customer and to ensure proper cost - of -services recovery, the City desires an update to fees and charges by the changes in the CPI on an automatic annual basis; Resolution No. 2018-55 Page 2 of 3 WHEREAS, to ensure that there is no over -recovery of fees, fees shall be studied on a rotating basis, by department, every three (3) years. The annual fee changes based on the CPI shall commence the following July of each year, but shall be limited to three (3) consecutive years, after which the automatic increases shall pause until the department is studied, and WHEREAS, the City desires to update certain fees and charges to reflect the decreases and increases in the MGT studied costs, the changes in fees due to CPI, the cost recovery percentages established by NBMC Chapter 3.36, to add new fees for City services or delete outmoded fees, and to update fines, charges, and statutory fees. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby revises the Schedule of Rents, Fines, and Fees ("SRFF"), in part, as depicted in Exhibit 1, attached hereto and incorporated herein by reference. Except where prohibited by law, all fees provided shall be rounded down to the nearest dollar. Except as explicitly revised by Exhibit 1, all other provisions of the SRFF shall continue in full force and effect. Section 2: Direct pass through, or actual, fees may be updated, without further action by the City Council, by the Finance Director as necessary to ensure recovery of cost. Section 3: All proposed fees and charges shall take effect immediately, as shown in Exhibit 1, except for fees for development related services, which shall take effect sixty (60) calendar days following adoption of this resolution and those requiring ordinance changes, which shall take effect thirty (30) calendar days following the second reading. Section 4: Beginning July 1, 2019, and continuing each year thereafter, all fees and charges within the SRFF indicated by "Yes" under the CPI column shall be automatically adjusted to reflect the percentage change, from April of the prior year to April of the current year, as it may be prorated from the fee approval date, in the cost of doing business measured by the CPI, and rounded down to the nearest dollar. "CPI" shall mean the Los Angeles -Long Beach, Anaheim, CA Area, All Urban Consumers, All Items, Base Period (1982-84=100), or successor index, as published by the United States Department of Labor, Bureau of Labor Statistics. Automatic CPI adjustments, by department, shall occur annually for a period of three (3) consecutive years following adoption of the studied department fees. After the third (3rd) consecutive annual increase, automatic CPI adjustments shall cease until the departments' fees are updated and adopted, at which time the automatic CPI adjustments will reset, commencing the following July 1. This automatic CPI adjustments shall not apply to any fee that is subject to Proposition 218 (California Constitution Article XIIIC and Article XIIID, Government Code Section 53750.). Section 5: Any resolution pertaining to City fees and charges and/or prior SRFF or Master Fee Schedule, or part thereof, that is in conflict with this resolution and the attached Exhibit 1, is hereby repealed and of no further force or effect. Resolution No. 2018-55 Page 3 of 3 Section 6: Any reference to CPI increases in any other SRFF, Master Fee Resolution or prior Master Fee Schedule, or part thereof, that is in conflict with this resolution and the attached Exhibit 1, is hereby repealed and of no further force or effect. Section 7: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, clause or phrase hereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses or phrases be declared unconstitutional. Section 8: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 9: The City Council finds the adoption of this resolution and revisions to the SRFF are not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 10: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 241h day of July, 2018. ATTEST: 44F Leilani I. Brown City Clerk APPROVED TO FORM: CITY ATT OFFICE r Aaron C. 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CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2018-55 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 24th day of July, 2018; and the same was so passed and adopted by the following vote, to wit.- AYES: it: AYES: Council Member Herdman, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Brad Avery, Mayor Pro Tem Will O'Neill NAYS: Council Member Kevin Muldoon RECUSED: Mayor Duffy Duffield IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 251h day of July, 2018. 1 _,AaA� L M I f K6 Town City Clerk Newport Beach, California • ••