HomeMy WebLinkAboutFinance Committee - February 13, 2020CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA - Final
100 Civic Center Drive - Crystal Cove Conference Room, Bay 2D
Thursday, February 13, 2020 - 3:00 PM
Finance Committee Members:
Will O'Neill, Chair / Mayor
Joy Brenner, Council Member
Diane Dixon, Council Member
William Collopy, Committee Member
John Reed, Committee Member
Joe Stapleton, Committee Member
Larry Tucker, Committee Member
Staff Members:
Grace K. Leung, City Manager
Dan Matusiewicz, Finance Director / Treasurer
Steve Montano, Deputy Director, Finance
Marlene Burns, Administrative Specialist to the Finance Director
The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that
the Finance Committee agenda be posted at least seventy-two (72) hours in advance of each regular meeting and that
the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within
the subject matter jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount
of time, generally three (3) minutes per person.
The City of Newport Beach’s goal is to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an
attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, we will
attempt to accommodate you in every reasonable manner. Please contact Dan Matusiewicz, Finance Director, at least
forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is
feasible at (949) 644-3123 or dmatusiewicz@newportbeachca.gov.
NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT
Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Finance
Department 24 hours prior to the scheduled meeting.
I.CALL MEETING TO ORDER
II.ROLL CALL
III.PUBLIC COMMENTS
Public comments are invited on agenda and non-agenda items generally considered to be
within the subject matter jurisdiction of the Finance Committee. Speakers must limit comments
to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for
the record. The Finance Committee has the discretion to extend or shorten the speakers’ time
limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all
speakers. As a courtesy, please turn cell phones off or set them in the silent mode.
IV.CONSENT CALENDAR
February 13, 2020
Page 2
Finance Committee Meeting
MINUTES OF JANUARY 16, 2020A.
Recommended Action:
Approve and file.
DRAFT MINUTES 01162020
V.CURRENT BUSINESS
REVIEW OF PUBLIC WORKS DEPARTMENT BUDGETA.
Summary:
Public Works will present the contours of its FY19-20 budget to inform the
Committee's understanding of its operation in advance of the FY20-21 budget
preparation.
Recommended Action:
Receive and file.
FACILITIES FINANCIAL PLAN (FFP)B.
Summary:
Staff will present a draft of Facilities Financial Plans reviewing the timing, means of
financing, and fiscal impacts associated with funding Council prioritized capital
projects.
Recommended Action:
Review the Facilities Financial Plan and recommend the City Manager consider the
changes as needed for submittal to the City Council for final approval.
STAFF REPORT
ATTACHMENT A
ATTACHMENT B
February 13, 2020
Page 3
Finance Committee Meeting
FEE STUDY UPDATEC.
Summary:
Staff will present the Master Fee Schedule to the Finance Committee and
subsequently will present to the City Council.
Recommended Action:
Receive and file.
STAFF REPORT
ATTACHMENT A
ATTACHMENT B
ATTACHMENT C
ATTACHMENT D
LONG RANGE FISCAL FORECAST (LRFF)D.
Summary:
Staff will provide an update to the latest version of the LRFF.
Recommended Action:
Receive and file.
WORK PLAN REVIEWE.
Summary:
Staff and Finance Committee to review the proposed work plan and adjust as
necessary.
Recommended Action:
Receive and file.
ATTACHMENT A
VI.FINANCE COMMITTEE ANNOUNCEMENTS ON MATTERS WHICH MEMBERS
WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR
REPORT (NON-DISCUSSION ITEM)
VII.ADJOURNMENT
Finance Committee Meeting Minutes January 16, 2020
Page 1 of 8
CITY OF NEWPORT BEACH FINANCE COMMITTEE
JANUARY 16, 2020 MEETING MINUTES I. CALL MEETING TO ORDER
The meeting was called to order at 3:01 p.m. in the Crystal Cove Conference Room, Bay 2D, 100 Civic Center Drive, Newport Beach, California 92660.
II. ROLL CALL
PRESENT: Mayor /Chair Will O’Neill, Council Member Diane Dixon, Council Member
Joy Brenner, Committee Member William Collopy, Committee Member John Reed, Committee Member Joe Stapleton, and Committee Member
Larry Tucker
ABSENT: None
STAFF PRESENT: City Manager Grace K. Leung, Finance Director/Treasurer Dan Matusiewicz, Deputy Director/Finance Steve Montano, Revenue Auditor
Antonio Velasco, Budget Analyst Amy Mayfield, Administrative Manager Angela Crespi, Purchasing Agent Anthony Nguyen, and Administrative
Specialist to the Finance Director, Marlene Burns
OTHER ENTITIES: Luis Murillo (Nyhart) and James Burns (Nyhart)
MEMBER OF THE PUBLIC: Jim Mosher
III. PUBLIC COMMENTS
None
IV. CONSENT CALENDAR
MINUTES OF NOVEMBER 14, 2019
Recommended Action: Approve and file.
Chair O’Neill noted Mr. Mosher’s requested modifications. Committee Member Collopy noted
corrections of his title and Chair O’Neill’s title.
MOTION: Committee Member Stapleton moved to approve the minutes with the modifications and, Council Member Brenner seconded. The motion carried 7 ayes – 0 noes.
V. CURRENT BUSINESS
A. OPEB ACTUARIAL VALUATION
Summary: Review of OPEB Actuarial Valuation.
Recommended Action: Receive and file.
Finance Committee Meeting Minutes January 16, 2020
Page 2 of 8
Luis Murillo, representing Nyhart, noted the purpose of the presentation is to review the
updated valuation of the retiree health program that is offered to City employees. He advised a valuation needs to be performed every two (2) years and the last valuation performed was
June 30, 2019.
Mr. Murillo advised the two purposes for performing a valuation. He noted one is to identify the recommended contributions for the program to have enough money in assets in the trust to
meet the obligation. He noted the second purpose is the Governmental Accounting Standards Board (GASB) 75 requirement, which requires the City to state the liability for the benefit on its
financial statements. He noted there is no requirement to pre-fund this liability; however, the City has a policy to fund the Actuarially Determined Contribution (ADC), and those numbers
will be identified to make the contributions to the trust.
Chair O’Neill noted failure to pre-fund the liability leads to additional interest in the future. Mr. Murillo clarified the sooner the contributions are placed in the trust; the more earnings
accumulate to pay-off the future benefits, which is the goal of pre-funding.
Mr. Murillo noted some retirees were “grandfathered” into the plan and continue to receive a fixed dollar contribution from the City. He noted effective January 1, 2006, the City implemented
a Retiree Health Savings program (RHS) for all new full-time employees and the contribution is placed in the RHS. He advised while it is not an Other Post-Employment Benefits (OPEB)
liability, those employees are being included in the valuation due to the City’s participation in CalPERS for its retiree health plans. These require the City to have a minimum contribution for
each employee at retirement, a portion of which is an OPEB liability.
Mr. Murillo reported 607 full-time and 123 part-time employees are in the RHS plan and are included in the valuation due to the minimum required contribution to CalPERS for retiree health
plans. He also noted 60 active employees are eligible for the City’s fixed dollar contribution under the prior defined benefit plan; however, it is paid into their RHS account. He noted 553
retirees receive the $400 or $450 fixed dollar contribution and 52 retirees who only receive the $139 minimum required employer contribution benefit.
Finance Director/Treasurer Matusiewicz noted the City is slowly converting from a Defined
Benefit Plan (DB) to mostly a Defined Contribution Plan (DC). In response to Council Member Dixon’s inquiry, Mr. Murillo reported the City has 605 retired employees. He noted there are
an additional 125 who have waived coverage with CalPERS so there is no liability; however, they are eligible to return to the plan at any time. Finance Director/Treasurer Matusiewicz
clarified there are more retirees but they are not included in the valuation, as they have elected non-CalPERS medical coverage such as Medicare.
In response to Chair O’Neill’s inquiry, Mr. Murillo advised CalPERS offers Medicare so
employees who are receiving the defined benefit are likely to stay on this plan. Chair O’Neill noted the City is paying down its OPEB liability over the next 10 years, so this should not be
an issue for future City Councils.
Mr. Murillo explained CalPERS medical is a community-rated plan that means an implicit rate subsidy can exist when the non-Medicare rates for retirees are the same as for active
employees. The implied rate subsidy is the differential between what the retiree is costing and the premium that is being paid and is required by GASB. In response to Committee Member
Collopy’s inquiry, Mr. Murillo explained while the contribution is capped at $400/$450, there is a cost shift between the premium and the City’s contribution which GASB requires the City to
accrue the difference as a liability. Finance Director/Treasurer Matusiewicz clarified the City is required to accrue the difference as a liability; however, it is not required to fund it. He noted
GASB effectively does not trust cities would not bend to the pressure if employees were paying a higher premium than they otherwise would if they did not include the retirees. They could
start to negotiate for higher health benefits. City Manager Grace Leung advised it does not
Finance Committee Meeting Minutes January 16, 2020
Page 3 of 8
mean anything from a real-world perspective and it is simply a bookkeeping issue. Mr. Murillo
clarified the $200 differential in the example is applied to the City as a liability. In response to Committee Member Collopy’s inquiry, Finance Director/Treasurer Matusiewicz stated it should
be reclassified from an active employee expense to a retiree expense. He further clarified the City is funding the full ADC to the Trust but the Trust is not paying it out to anyone. Chair O’Neill
believes it is a savings issue that lowers the City’s OPEB liability.
Mr. Murillo advised census and premium rate information is collected during the valuation process from the City to help determine the expected annual benefit payment, which is also
called cash flows. He noted the number is derived by estimating the number of retirees and their expected costs to the City and noted they discount all of the future cash flows to today’s
dollars to derive the liability. He also stated they allocate the total liability to the past, present, and future. In response to Committee Member Collopy’s inquiry, Mr. Murillo clarified the past
information is required because employees have accrued the benefit based on past service.
Mr. Murillo explained that at the end of the FY19-20, $2.9 million is expected to be paid in benefit payments, which is the additional cost for allowing retirees to be on this plan. He noted
it is a cost-shifting from the active employees to the retirees. He advised the City is funding for the amount and the City can reimburse itself for the benefit as long as an actuary has calculated
the implied subsidy. If so, the City is allowed to take that amount from the Trust.
In response to Chair O’Neill’s inquiry, Finance Director/Treasurer Matusiewicz advised the City can reimburse itself but instead of sending the entire amount to the Trust, the City nets the
amount needed to make cash distributions.
Mr. Murillo noted they project out over several decades what the benefits would be each year, and when summed, it is $115.4 million over all years based on all the assumptions. In today’s
dollars, it is $39.4 million. He explained if the $39.4 million was placed in the Trust earning 6.5% interest there would be enough funds to not make a contribution in the future and all the
benefits would be paid from the Trust. He also noted if the implied subsidy is an additional $11.9 million; the total amount would be $51.3 million including future service.
In response to Chair O’Neill’s inquiry, Finance Director/Treasurer Matusiewicz clarified the City
reduced the interest rate from 7.5 % to 6.5% because it is a maturing plan and the City is de-risking its portfolio.
Mr. Murillo reported the total liability, including future service, is $51.3 million and the amount
accrued by employees through the valuation date is $56.6 million. He reported the total OPEB liability is $46.6 million, with $23.2 million funded and $23.5 million unfunded. He advised the
normal cost is what employees are expected to earn in the next year, which is $520,000. He reported $4.2 million would be covered by the City contributing to the normal costs annually.
Mr. Murillo clarified the manner by which the City is paying down the $23.5 million in unfunded
liability through an amortization payment over 10 years. He summarized the process by which the City becomes 100% funded by contributing amortization payments over the next 10 years
and simply the normal cost thereafter.
Mr. Murillo noted for the next nine (9) years, the City has a $3.5 million contribution to help pay down the $23.5 million unfunded liability. As long as the City is also paying the normal costs,
the City will pick up every year’s future accruals.
In response to Council Member Dixon’s inquiry, Mr. Murillo explained the valuation was based on retirees and existing and future employees; however, does not include any employees hired
after the valuation. In response to Committee Member Collopy’s inquiry, Mr. Murillo confirmed the valuation assumes all employees will work until retirement and how many will leave.
Finance Committee Meeting Minutes January 16, 2020
Page 4 of 8
Mr. Murillo presented a sensitivity analysis that showed the impact of a 1% decrease and
increase in the discount (interest) rate, which would change the recommended contribution from $4.1 million to $4.9 million. He noted the City is contributing through the California
Employers’ Retiree Benefit Trust (CERBT) under investment Strategy 1, with the expected return being 7.6%. He noted in the near-term, which is 10 years, CalPERS expects 5.9%, and
they are using a discount rate of 6.5%, but after the first 10 years, CalPERS expects 8%.
In response to Council Member Dixon’s inquiry, Finance Director/Treasurer Matusiewicz clarified that the Public Employees Retirement Fund (PERF) does not allow the City to choose
investment strategies.
In response to Committee Member Reed’s inquiry, Mr. Murillo noted the 1% increase in health care costs in the sensitivity analysis is based on CalPERS’ assumption. He also noted they
expect the City’s CalPERS minimum costs to increase by 4% so they demonstrated the sensitivity analysis at 5% for the valuation.
Mr. Murillo noted the long-term rate of return is 7.6% and they are being more conservative by
using a 6.5% rate of return. He noted CERBT leaves the number to the employer’s discretion for purposes of valuation. He presented a variety of investment strategies to the Committee.
In response to Committee Member Collopy’s inquiry, Mr. Murillo clarified the different
assumptions in determining how the fund has performed in the past. He advised when looking at the 4%, they expect the CalPERS minimum contribution to increase every year, which is
based historically on anticipated future trends and is currently hovering at the high 3% range. He advised if a high percentage is predicted when calculating health care costs, the costs
would be prohibitive and unsustainable. He noted the ultimate trend in increased health care costs is 4-5%, which includes inflation and medical costs.
Mr. Murillo further explained a second cost component has to do with income offset based on
investment returns. They look to the City and its investment advisors for the input regarding strategy. Lastly, he noted the medical inflation assumption is what the actuarial focuses on,
and the City has more input into the investment return assumption.
Mr. Murillo presented projections and recommended contributions by projecting assets for the next 20 years and the correlating OPEB liability. He noted that after 10 years the City would be
100% funded.
In response to Council Member Dixon’s inquiry, Mr. Murillo advised after the first 10 years there would be $41.8 million in assets and $41.2 million in liability so there would be money in the
Trust to continue making the benefit payments. He noted the City would continue to have a liability however the unfunded liability would be zero. Finance Director/Treasurer Matusiewicz
noted that eventually it would just be the Public Employees' Medical & Hospital Care Act (PEMHCA) minimum required funding.
Finance Director/Treasurer Matusiewicz presented the preliminary staff recommendations. He
is advising the ADC be funded at 5.5%, which is an extra $815,000 per year. He also recommends when making the ADC contribution to the Trust, the City net out any benefit
payments so it is only paying the amount it wants to accumulate due to a heavy outflow required for making benefit payments. He recommends reducing the discount rate to 5.5% during the
next 2-year valuation depending on the Capital Market Assumption (CMA) outlook. He recommends transitioning Strategy 1 assets to Strategy 3 gradually over the next nine (9)
years. Lastly, he recommends eventually reducing the discount rate to 4.5% or future expected return commensurate with the portfolio mix.
In response to Committee Member Stapleton’s inquiry, Finance Director/Treasurer
Matusiewicz clarified the fourth Strategy would be to keep the money in the City’s fixed-income
Finance Committee Meeting Minutes January 16, 2020
Page 5 of 8
portfolio. Committee Member Stapleton noted the approach was very conservative. Finance
Director/Treasurer Matusiewicz stated the question is whether the City is willing to take a volatility risk after it is fully funded.
In response to Committee Member Stapleton’s inquiry, Finance Director/Treasurer
Matusiewicz clarified in two (2) years he would like to reduce the discount rate, but would start putting money today into Strategy 3 to start changing the mix, which will reduce the assumed
rate of return. In response to Committee Member Stapleton’s inquiry, Chair O’Neill clarified Finance Director/Treasurer Matusiewicz is asking for more funding to backfill the liability so it
does not extend from 9 years to 12 years.
Finance Director/Treasurer Matusiewicz noted the recommendations are a road map and are subject to change. Chair O’Neill stated the recommendation does play into this year’s budget
to the tune of $800,000. In response to Council Member Dixon’s inquiry, Finance Director/Treasurer Matusiewicz clarified the $800,000 would come from the General Fund.
Chair O’Neill stated he would not ask the Committee to make the recommendation today and
suggests the $800,000 become a discussion between the City Manager and the Finance Director/Treasurer as part of the City Manager’s overall budget recommendation.
Chair O’Neil called for public comments and hearing none, closed the public comment period.
There was no further action taken on this item.
B. INTERNAL AUDIT PROGRAM UPDATE
Summary: Staff will provide an oral update of plans to implement a robust internal audit and performance
audit program. Recommended Action:
Receive and file.
Deputy Director/Finance Steve Montano advised the City has retained the accounting firm, Moss Adams, to serve as the City’s Internal Auditor and will execute an ongoing Internal
Auditing Program. In response to Committee Member Collopy’s inquiry, Deputy Director/Finance Montano clarified Moss Adams will be acting as the Internal Auditor on behalf
of the City.
Committee Member Collopy expressed concern about the terminology and noted an External Auditor should give guidance and help develop procedures; however, by definition, is not an
Internal Auditor. Finance Director/Treasurer Matusiewicz clarified the City is effectively outsourcing this role as the staff has limitations on resources. City Manager Leung clarified
that she and the Finance Director/Treasurer are responsible for the Internal Audit Program and need outside resources to complete the work.
Deputy Director/Finance Montano reported the first step would be to complete an Enterprise
Risk Assessment of internal controls that will focus on the City’s operating environment. He noted they would deploy a team that will conduct fact-finding and interviews of City staff. He
advised there would then be an internal controls review that will be more specific in nature. He reported the first phase will be to develop the work plan and the schedule, the second phase
will involve fact-finding of relevant documents and interviewing and surveying staff, the third phase will be to compare current practices to best industry practices, and the fourth phase will
be to prepare a draft report, which focuses on how to take identified opportunities for improvement. He also noted there would be an ongoing audit program focused on reducing
risk, strengthening controls, and enhancing performance.
Finance Committee Meeting Minutes January 16, 2020
Page 6 of 8
Deputy Director/Finance Montano advised the work would begin this month with the final audit
plan issued in June 2020. He advised the contract is $120,000; however, Moss Adams believes the work will be completed at $100,000.
In response to Chair O’Neill’s inquiry, Deputy Director/Finance Montano advised the end result
would be the City’s Internal Risk Assessment, which will identify areas of risk. He further clarified the risk will include identifying errors, ensuring there is no employee theft, and
assessment of the City’s operating performance. He also advised the work plan would be presented to the Finance Committee when it is received.
Committee Member Collopy expressed his passion for the subject and volunteered to assist
with the process. Chair O’Neill thanked him for volunteering.
Finance Director/Treasurer Matusiewicz noted he looks at this process, as a road map and noted future phases will be more narrowly focused. Deputy Director/Finance Montano feels
this will be beneficial to the organization and its various operations.
In response to Council Member Dixon’s inquiry, City Manager Leung believes the outcome will be a very robust system and stated this is a good method to start evaluating the performance
process in the long run. She also feels the outcome will lead to good control measures and performance tied to resource allocations. Council Member Dixon expressed her support for
the item.
Committee Member Tucker expressed his support for the item.
Chair O’Neill opened public comments.
Jim Mosher stated he reviewed the contract and noted it was a one (1) year contract. He inquired if the firm will have a new contract for future years. He referenced the 11 points of
work that Moss Adams might do for the City this year, but the actual work will be agreed to through their proposals. He recommends those letter proposals be made publicly available
along with the contract for transparency.
In response to Mr. Mosher’s inquiry, Deputy Director/Finance Montano advised the results of the first phase would go back to City Council for review and along with approval to execute the
subsequent year’s contract. He feels it is highly likely they will continue with Moss Adams and equated this to a Public Works’ project where the design phase is completed prior to moving
to the construction phase.
In response to Mr. Mosher’s suggestion, Purchasing Agent Anthony Nguyen advised RFPs have been posted publically since October 2019. He noted any engagement over $10,000 is
live on the system and available for public review.
There was no further action taken on this item.
C. TOT, CHARTER TAX AND OTHER AUDITS UPDATE Summary:
Staff will update the committee on the TOT, charter tax and other audit findings performed to date.
Recommended Action: Receive and file.
Chair O’Neill noted there was no need for a staff presentation as the staff report was very
thorough.
Finance Committee Meeting Minutes January 16, 2020
Page 7 of 8
In response to Council Member Dixon’s inquiry, City Manager Leung noted she is finalizing the
audit and there have been some discussions with various hotels.
In response to Committee Member Tucker’s inquiry, Finance Director/Treasurer Matusiewicz advised some hotels misinterpreted the code. Council Member Dixon advised at least one (1)
hotel inquired regarding the cleaning fee in the Code.
Revenue Auditor Antonio Velasco reported during his site visits he felt some hotels simply do not understand the Code requirements and require education from the City.
In response to Council Member Dixon’s inquiry, Revenue Auditor Velasco advised the Charter
Tax is still on the honor code in terms of passenger receipts. He advised they also do not understand the Code requirements and require education from the City.
In response to Council Member Dixon’s inquiry, Finance Director/Treasurer Matusiewicz
clarified the tax is either $1.00 per head or $1.75 per head depending on the price of the ticket.
Chair O’Neill advised in order to change the tax into a fee, there would need to be a substantial rate study and the City would get a lot less money.
Chair O’Neill called for public comments.
Mr. Mosher noted the Charter Tax is $0.50 if the ticket is between $25 and $30. He noted the
two auditors were engaged and inquired if any discrepancies were found.
Revenue Auditor Velasco explained there were actually three firms who conducted the audits and no major differences were found.
There was no further action taken on this item.
D. BUDGET AMENDMENTS FOR QUARTER ENDING DECEMBER 31, 2019
Summary: Staff will report on the budget amendments from the prior quarter
Recommended Action: Receive and file.
There was consensus that no further action was needed on this item.
E. WORK PLAN REVIEW
Summary: Staff and Finance Committee to review the proposed work plan and adjust as necessary.
Recommended Action: Receive and file.
City Manager Leung reported the Economic presentation is cancelled.
Chair O’Neill noted the Finance Committee would be reviewing the Public Works budget, the
Facilities Financial Plan (FFP), Harbor and Beaches Master Plan updates and the Fee Study update.
Chair O’Neill reported on January 25, 2020, there would be a special meeting of the City
Council that will be a planning session. He also noted on February 10, 2020, City Council would be discussing the Capital Improvement Program.
Finance Committee Meeting Minutes January 16, 2020
Page 8 of 8
VI. FINANCE COMMITTEE ANNOUNCEMENTS ON MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM)
None VII. ADJOURNMENT
The Finance Committee adjourned at 4:12 p.m. to the next regular meeting of the Finance
Committee.
Filed with these minutes are copies of all materials distributed at the meeting.
The agenda for the Regular Meeting was posted on January 10, 2020, at 11:10 a.m., in the binder and on the City Hall Electronic Board located in the entrance of the Council Chambers at 100 Civic
Center Drive.
Attest:
___________________________________ _____________________
Will O’Neill, Chair Date Finance Committee
February 13, 2020, Finance Committee Agenda Comments
These comments on an item on the Newport Beach Finance Committee agenda are submitted by:
Jim Mosher ( jimmosher@yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229)
Item IV.A. MINUTES OF JANUARY 16, 2020
The Committee may wish to consider the following changes to the draft minutes passages shown in italics
as suggested in strikeout underline format.
Page 4 (page 7 of agenda packet), paragraph 6, last sentence: “Lastly, he noted the medical
inflation assumption is what the actuarial actuary focuses on, and the City has more input into
the investment return assumption.” [? or “actuarial valuation”]
Page 6, paragraph 10: “In response to Mr. Mosher’s suggestion, Purchasing Agent Anthony
Nguyen advised RFPs letter proposals have been posted publically since October 2019. He
noted any engagement over $10,000 is live on the system and available for public review.”
[? “RFPs” could be correct. Without reviewing the audio recording I cannot be sure what was
said.
As can be deduced from paragraph 8, the response had to do with the City’s practice for
posting “letter proposals,” which are essentially agreements for additions to the scope of
work of an existing contract (usually an “on call” one) at an agreed-to price. The draft minutes
make it appear these are regarded as “Requests for Proposals” and posted to the “system”
where RFPs are advertised (PlanetBids). That would be odd since PlanetBids is a system for
soliciting proposals for potential new contracts from multiple bidders, while letter proposals
are sole source agreements with an existing contractor, and would not seem to involve
bidding. In addition, I am unable to find anything on PlanetBids related to letter proposals or
other non-bid or informally-bid contracts.
In any event, my suggestion was not about wanting to see the negotiation process, but rather
a request for the City to fulfill the City Charter Section 603 requirement for the City Clerk to
“(c) Maintain separate books, in which a record shall be made of all written contracts and
official bonds.” I don’t think PlanetBids could ever be considered part of those “books” since it
does not make executed contracts available for public inspection. On the contrary, the
Clerk’s “books” of written contracts are currently made available for public inspection as a
Laserfiche contract archive. My hope had been any letter proposal accepted by the City
would be added to that archive, since they are clearly “written contracts” with an outside
party – and since the scope of most on-call contracts appearing in the archive is unknown
without seeing them. But I have not been able to find them there, either.
In short, this paragraph of the draft minutes says there is something that has been new since
October 2019, but I’m not sure what that is.]
Page 7, last paragraph, last sentence: “He also noted on February March 10, 2020, City
Council would be discussing the Capital Improvement Program.”
Public Works Department
FY2019-20 Operating Budget Overview
Finance Committee
February 13, 2020
PUBLIC WORKS DEPARTMENT-WHO WE ARE -
The Heartbeat of the City is
the City’s Public Infrastructure
Public Works is Responsible for:
Planning
Engineering
Building
Operating
Maintaining
Overseeing
Civic Center -949-644-3311
Corporation Yard -949-644-3055
pwinfo@newportbeachca.gov
www.newportbeachca.gov/publicworks
Our Motto -To Protect and Provide Quality Public Improvements and Services
Department Organization and Key Contacts
David A. Webb
Public Works Director
644-3311
Engineering & Transportation Division
Administration & Finance Division
Municipal Operations Division (MOD)
Angela Crespi
Administrative & Finance
Manager
644-3335
Micah Martin
Deputy Director Municipal
Operations
644-3059
James Houlihan
Deputy Director/City Engineer
644-3319
100 Total FTE
•Develop and Maintain City Infrastructure Master Plans
•Identify Needs or be Assigned Tasks/Projects
•Undertake Design, Construction, Operations & Maintenance with In-
House or Consultant / Contractor Staff
•Develop, Oversee Required Budgets & Funding
•Select and Manage Consultants & Contractors
Infrastructure Planning, Design, Construction, Management,
Operation and Maintenance
PUBLIC WORKS ROLE
•Manage Construction & Inspection
•Control Costs and Pay the Bills
•Administer Contracts & Grants
•Manage Services & Maintenance of City Facilities, Streets, Parks,
Trees, Beaches , Fleet & Equipment
•Control, Permitting and Safeguard City’s Right-of-Way
•Coordinate/Manage Outside Agency and Utility Work
Infrastructure Planning, Design, Construction, Management,
Operation and Maintenance
PUBLIC WORKS ROLE
INFRASTRUCTURE STATISTICS
•City Buildings & Structures = 92
•Aquatic Center (NAC) = 1
•Fire Stations = 8
•City Parks = 67
•Public Marinas = 2
•Libraries = 4
•Public Trees = 35,200
•Vehicle and Equipment Units = 488
•Traffic Signals = 121 (City owned)
•Streets = 398 miles
•Alleys = 33 miles
•Painted Curbs = 200,000 lin. ft.
•Parking Lots = 33
•Storm Drain Lines = 95 miles
•Storm Drain Catch Basins = 2,496
•Tide Valves = 89
•Lower and Upper Harbor = 2.5 Sq. Miles
•Approximate number of Boats = 4,700
•Ocean Piers = 2
•Public Piers in Harbor = 13
•Public Seawalls & Bulkheads = 20,000 ft.
•Ocean Beaches = 9.3 Miles
•Harbor Beaches = 21.6 Miles
•Water Lines = 287 Miles
•Fire Hydrants = 2,621 (City Maintained)
•Sewer Lines = 203 miles
•Sewer Lift Stations = 21
•City Streetlights = 7,278
INFRASTRUCTURE STATISTICS
FY2019-20 BUDGET OVERVIEW
Public Works Manages 35% of the City’s Annual Budget
FY2019-20 CITY OPERATING BUDGET
City Council
0.2%
City Clerk
0.3%
City Attorney
0.7%
City Manager
0.8%
Human Res ources
0.8%
Finance
2.4%
Police
16.6%
Fire
13.4%
Harbor
0.3%
Community
Development
3.3%
Library
2.3%Recreation
3.5%
Public Works
9.7%
CIP
23.5%
Utilites
9.1%
Internal Service
12.8%
FY2019-20 Budget All Funds
$397,254,738
Salaries & Benefits
$15,707,925
41%
Contract Services
$10,459,340
27%
Utilities
$1,602,528
4%
Materials &
Supplies
$903,407
2%
Maintenance & Repair
$6,099,096
16%
Other Operating
$102,018
0.26%
Internal Service Funds
$1,680,873
4%
General Liability
$1,360,845
4%
Capital Outlay
$339,500
1%
Tidelands
$451,812
1%
Total $38,707,344
FY2019-20 PUBLIC WORKS OPERATING BUDGET
CONTRACTED SERVICES
•Refuse Collection
•Tree trimming/planting
•Median & Roadside Landscape
Maintenance
•Weed Abatement
•Facilities Maintenance
•Janitorial Services
•Steam Cleaning
•Civil Engineering
•Surveying Services
•Architecture Services
•Geotechnical Services
•Traffic & Transportation Engineering
•Traffic Control Engineering
Repres ents 27% of the Public Works Operating Budget and Includes :
•Asphalt Repair Services
•Street Striping and Sign Installation
•Traffic Signal Maintenance
•Temporary Labor Services
•Marine Engineering Services
•Harbor Maintenance
•Sidewalk Grinding
•Inspection Services
•Vehicle Outfitting
•Uniform Services
•Dock and Pier Maintenance
•Legislative Advocacy
•Grant Writing
PUBLIC WORKS DEPARTMENT
FY2019-20 REVENUE BUDGET
Revenue Source Amount
Engineering &Transportation Services Division
Permit and Inspection Fees $525,000
Curb Cut Fees $125,000
Plan Check Fees $100,000
Final Parcel/Tract Maps $64,000
Street Closure Permits $60,000
Tidelands Pier Transfers and Dredging Permits $50,000
Encroachment Agreements $35,000
Water Quality Inspections $20,000
Municipal Operations Division
Recycling Fees $970,000
Refuse Facility Rental Fees $455,000
County of Orange Contribution Fees $250,000
Refuse Demolition Permits $100,000
Damage to City Property $62,500
State Highway Maintenance Fees $32,500
BBSC Maintenance $25,000
City Staff Service Fee $25,000
Other Misc. Revenue Sources $65,500
Total $2,964,500
FY2019-20 CAPITAL IMPROVEMENT
PROGRAM (CIP) BUDGET BY CATEGORY
Facilites
$16.7M
18%
Streets &
Drainage $19.3M
21%
Trans portation
$3.8M
4%Parks, Harbors,
& Beaches $23.0M
25%
Water Quality &
Environmental
$2.9M
3%
Water
$11.4M
12%
Wastewater
$2.2M
2%
Miscellaneous
$14.0M
15%
Total CIP $93,249,523
KEY DEPARTMENT PROGRAMS
ADMINISTRATION & FINANCE
DIVISION
Budgeted Personnel = 8 FTE
Salaries &
Benefits
Maintenance &
Operations
Capital Outlay Total
PW Administration $1,450,744 $333,357 $6,000 $1,790,101
Total $1,450,744 $333,357 $6,000 $1,790,101
•Implement City Council/Management
Directives & Policies
•Budget Development & Administration
•Strategic & Financial Planning
•Capital Improvement Plan (CIP) Financial
Management
•Bidding, Contracts, Grants & Legal
Administration
•Customer Service & Communications
•Permit Issuance
•Records Management
•Public Information
Mission: To Provide Leadership, Strategic Planning, Financial,
& Administrative Support
Administers Roughly 35% of the City’s Total Annual Budget including
$38M Operating, $8.5M ISF and $93M CIP
Including an Average of:
•30 Formal Bid Openings;
•150 Active Contracts;
•400 Purchase Requisitions;
•8,000 Invoices;
•115 Public Records Act Requests ;
•100 City Council Items;
•750 Encroachment Permits;
•2,400 Street Closures.
ADMINISTRATION
& FINANCE DIVISION
Significant Tasks and Accomplishments
ENGINEERING & TRANSPORTATION
SERVICES DIVISION
Salaries &
Benefits
Maintenance &
Operations
Capital
Outlay
Total
Water Quality $699,681 $543,605 -$1,243,286
Transportation & Development $2,254,409 $1,172,064 $5,000 $3,431,473
Engineering $3,735,858 $858,442 $2,500 $4,596,800
Tidelands Management $9,562 $437,250 $5,000 $451,812
Total $6,699,510 $3,011,361 $12,500 $9,723,371
•Capital Improvement Program
•Maintain Infrastructure Master Plans
•Traffic Management & Operations
•Transportation Planning
•Tidelands Construction & Permitting
Management
•Water Quality & Environmental Programs
•Public Works Construction Management & Inspections
•Right-of-Way Plan Check and Development Permits
•Assessment District Management & Coordination
•Coordinate with External Agencies such as OCTA,
Caltrans, OCSD, & OCWD
Budgeted Personnel = 34 FTE
Mission: to Provide for the Planning, Design, Construction,
Operation, & Maintenance of Essential Infrastructure & Facilities
ENGINEERING AND TRANSPORTATION
SERVICES DIVISION
Manages 75+ Capital Improvement Projects Annually
•Completed a total of 24 CIP Projects $32M in FY19
•Managed an additional 52 projects in progress
•96% started within 2 months of planned base schedule
•88% Completed within initial award & contingency cost
•Completed 12 CIP Projects $17M to date in FY20
Operations :
•750 Encroachment Agreements and Permits issued and inspected
•Provide monitoring and compliance of Water Quality Enhancements, which have improved
the Ocean, Harbor and Back Bay ecosystems
•Managed the Maintenance and Operation of 121 traffic signals throughout the City
•Provided traffic signal and operational support for major City events throughout the year
Significant Tasks and Accomplishments
MUNICIPAL OPERATIONS DIVISION
Salaries &
Benefits
Maintenance &
Operations
Capital Outlay Total
MOD Management $673,859 $170,192 $2,000 $846,051
Field Maintenance $4,146,220 $2,533,378 $14,000 $6,693,598
Parks $1,355,936 $6,845,614 $310,000 $8,511,550
Street Trees $305,343 $1,921,315 -$2,226,658
Facilities Maintenance $861,506 $1,947,585 -$2,809,091
Refuse $214,807 $5,892,117 -$6,106,924
Equipment Maintenance (ISF)$1,230,556 $833,898 $40,500 $2,104,954
Total $8,788,227 $20,144,099 $366,500 $29,298,826
•Street Maintenance
•Beach and Bay Maintenance
•City Facilities Maintenance
•Citywide Refuse Collection Services
•Fleet/Equipment Maintenance & Management
•Parks , Trees & Landscape Maintenance
Mission: To Maintain Public Assets and Infrastructure, while
Providing Essential Public Services to the Community
Budgeted Personnel = 58 FTE
Maintained critical community assets, facilities, and equipment:
•1,820 Tons of Trash and Debris Removed from Ocean Beaches
•1,287 Vehicle and Equipment Service orders Completed
•1,792 Public Requests for Service Completed
•14,840 sq. ft. of Public Sidewalk Repaired
•272,400 lin. ft. Street Striping Repaired
•87,991 lin. ft. of Curb Painted
•15,545 Tons of Recyclables Collected
MUNICIPAL OPERATIONS DIVISION
•450 Miles of Public Sidewalk
•600 Acres of Public Landscaping
•30 Public Standalone Public Restrooms
•50,000 Avg. Tons of Refuse Collected Annually
•35,000+ City Trees
Awarded Contracts to Support/Maintain:
Significant Tasks and Accomplishments
FY2019-20 EQUIPMENT
INTERNAL SERVICE FUND (ISF)
Equipment Maintenance & Replacement ISF Overview
Adopted Budget
Equipment Maintenance
Salaries & Benefits $1,230,556
Contract Services $54,000
Supplies & Materials $354,250
Other Operating $188,201
ISF & Insurance Reserve $237,446
Capital Outlay $40,500
Total $2,104,953
Equipment Replacement
Vehicles $5,999,000
Contracted Set-Up $31,009
Equipment Renovation $300,000
Other Equipment/Supplies $77,000
Total $6,407,009
488 Vehicles/Equipment Maintained and 47 Units Replaced
Public Works Budget by Division/Section
Salaries & Benefits Maintenance &Operations CapitalOutlay Total
PW Administration $1,450,744 $333,357 $6,000 $1,790,101
Water Quality $699,681 $543,605 -$1,243,286
Transportation $2,254,409 $1,172,064 $5,000 $3.431,473
Engineering $3,735,858 $858,442 $2,500 $4,596,800
MOD Admin $673,859 $170,192 $2,000 $846,051
Field Maintenance $4,146,220 $2,533,378 $14,000 $6,693,598
Parks $1,355,936 $6,845,614 $310,000 $8,511,550
Street Trees $305,343 $1,921,315 -$2,226,658
Facilities Maintenance $861,506 $1,947,585 -$2,809,091
Refuse $214,807 $5,892,117 -$6,106,924
Tidelands Management $9,562 $437,250 $5,000 $451,812
Total $15,707,925 $22,654,919 $344,500 $38,707,344
FY2019-20 PUBLIC WORKS
OPERATING BUDGET
The Public Works Budget Starts on Page D242 of the Budget Detail Book
ADJUSTMENTS INCLUDED IN THE
FY2019-20 PUBLIC WORKS BUDGET
•Increased beach restroom service levels and portering services
•Increased sidewalk and public plaza pressure washing
•Increased 2yr trim cycle on 35,200 public trees (Urban Forest)
•Increased fuel modification clearing and vegetation weed abatement for hazard
reduction
•Significant re-allocation of Municipal Operations Division funds to appropriate
sections and accounts for improved expense tracking
•Upgrade to Fleet Focus Management Software
Administrative Adjustments
Increased Service Levels & Service Demand
LOOKING TO THE FUTURE
•AB5 and Changing Regulations (PERS)
Regarding Personnel Services
•Bidding and Prevailing Wage Requirements
•Contracting Complexities –Bonding and
Insurance Requirements
•Changing Trends in Contract Bid Award Participation
•Legislative Mandates on Organics, Green Waste, and Mixed Recycling
•AQMD Requirements with more CNG Fuel for City Fleet
•Dredging Financial/Legislation
Legislative, Legal, and Financial Considerations
LOOKING TO THE FUTURE
•Further Realignment of Personnel and Duties in Municipal Operations
•Part-time Staffing -Refuse Code Enforcement and Beach/Street Maintenance
•Manage & Improve Inventory and Asset Tracking
•Vehicle Monitoring GPS
•Fuel System (Upgrade/Replacement)
•Consolidating Contracts to Provide more Efficient and Effective Services
•Review Filing System and Document Storage for Efficiencies
•Standardize the Project Management P rocess Including P roject Close -Out
•Proactive Approach to Field Maintenance -Spic and Span
•Create Further Versatility/Flexibility Within our Existing Work Force
•Reinvest in Relationships with Agency P artners by Setting Regular Meetings (Caltrans,
OCSD, NMUSD, Cities of Irvine and Costa Mesa & others )
Optimizing our Resources
Opportunities
Comments/Questions
Your Public Works Department
Protecting and Providing Quality Public
Improvements and Services
•City General Fund
•Tidelands Funds
•State Gas Tax
•County Measure M ½¢sales tax override
•Roadway Maintenance and Repair Funds (SB1)
•Special Directed Funds (FMMP, MFFP, PCH)
•Matching Grants (Federal, State, Local)
•AQMD Clean Air Subvention Funds
•Federal CDBG
CIP BUDGET FUNDING SOURCES
•Developer Fees (Drainage Fees, Traffic Impact Fees, Park
Acquisition, Business Excise, etc.)
•Private Grants and Contributions
•Sewer Utility User Charge
•Water Utility User Charge
•Charges for Services
•Neighborhood Enhancement
•Parking Revenues
•Use of Property
•Other > > >
CIP BUDGET FUNDING SOURCES
PUBLIC WORKS DEPARTMENT-WHO ARE WE -
100 Total FTE
Agenda Item No. 5B February 13, 2020
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department Dan Matusiewicz, Finance Director (949) 644-3126, danm@newportbeachca.gov
SUBJECT: FACILITIES FINANCIAL PLAN (FFP)
SUMMARY:
Per Council Policy F-28, staff shall prepare an update of the Facilities Financial
Planning Tool and the Harbor and Beaches Capital Financial Plan for review,
modification, and approval by the City Council.
If requested by the City Council, the Finance Committee will review the fiscal impacts associated with, and recommend the most advantageous methods to fund the high-
priority projects in, the Facilities Financial Plan (FFP). The City Manager will consider
these recommendations in the preparation and presentation of the City Manager's
annual budget to the City Council.
To aid in the review process, a quick reference guide “What to Look for When Reviewing the Facilities Financial Plan (FFP)” is provided as Attachment A.
RECOMMENDED ACTION: Review the Facilities Financial Plan and recommend the City Manager consider the
changes as needed for submittal to the City Council for final approval.
DISCUSSION:
Background
In addition to the annual Capital Improvement Program ("CIP"), and in accordance with
Council Policy F-28, the City has established a long-term plan for major renovation or
replacement of aging facilities and installation of new infrastructure. The emphasis is
on structures and adjacent grounds, rather than transportation, environmental, or other
CITY OF NEWPORT BEACH
FINANCE COMMITTEE STAFF REPORT
Facilities Financial Plan (FFP) February 13, 2020
Page 1
projects funded either in whole or in part by the General Fund.
The attached FFP has several project revisions and additions as highlighted on page
two and page six. The proposed compliment of projects would require an additional
cash infusion from the General Fund of approximately $2.8 million in FY 2020-21 and an additional $1 million per year in subsequent years through FY 2025-26 as follows:
Even with these additional General Fund contributions, the FFP balances fall slightly shy of the target reserve balances in the out years.
Staff welcomes and looks forward to any recommendations from Finance Committee.
Prepared and Submitted by:
/s/ Dan Matusiewicz
Dan Matusiewicz
Finance Director
Attachments:
A. What to Look for When Reviewing the Facilities Financial Plan (FFP)
B. Facilities Financial Plan (FFP)
ATTACHMENT A
WHAT TO LOOK FOR WHEN REVIEWING THE FACILITIES FINANCIAL PLAN
(FFP)
What to Look for When Reviewing the Facilities Financial Plan (FFP)
Dashboard
1) Does the FFP Reserve Balance drop below $8.1 million (1 year’s annual debt service)?
2) Does the City’s annual debt service of bonded debt exceed 8% of General Fund Revenues?
3) Is the City setting aside at least 3% of General Fund revenues for the replacement of critical
facilities?
4) Do the “Near-Term” Projects appear consistent with Council Direction?
Project Planning Worksheet
5) Are all relevant facilities represented on the “Project Planning Worksheet”
6) Does the scope, cost and timing of “Active Projects” seem consistent with Council Direction?
7) Note: The “Potential Projects” listed on the “Project Planning Worksheet” are not funded.
3
1 2
1 1
4
ATTACHMENT B
FACILITIES FINANCIAL PLAN (FFP)
4 Last Updated 1/22/2020
MODIFIED (DRAFT)
Start Start
Est. Project Date Date
Near-Term Projects Cost (Design)(Construction)
51 Grant Howald Park Sport Field Rehabilitation (5/14/19 CC)6,849,999 2019 2020
13 Newport Jr. Guard Building (includes 300k for site prep) (1)2,325,000 2019 2021
16 Library Lecture Hall (2)4,000,000 2020 2021
36 Cliff Drive Community Room 551,578 2020 2021
25 Sunset View Park w/Ped Bridges (3)7,180,882 2019 2022
53 Balboa Yacht Basin Buildings 14,319,102 2022 2024
3 FS 1 - Peninsula 5,566,528 2022 2025
47 FS 6 - Mariners (living area rebuild)2,783,264 2024 2025
15 Library-Balboa (Construct w/ FS-1)2,261,402 2022 2025
(1) Offset with private contributions of $1,275,000
(2) Offset with private contributions of $4,000,000
1 2 (3) Offset with private contributions of $2,349,600 ******
Total 45,837,756
3 4
Key Metric Target Max
Debt Svc as % of Revenues NA < 8.0%
Minimum FFP Reserve Balance (000's)$8,139 NA
Key Statistics Min Max Avg
GF Contribution to FFP (000's)$8,500 $10,359 $8,999
Debt Service (000's)$7,477 $8,139 $7,624
GF Contributions to FFP as % Rev 3.00%3.7%3.2%
Debt Svc as % of Revenues 2.17%3.5%2.7%
5 6 FFP Balance (000's)$6,317 $65,870 $28,200
Key Statistics Min Max Avg
GF Contribution to FFP (000's)$8,500 $15,003 $10,846
Debt Service (000's)$0 $8,139 $5,539
GF Contributions to FFP as % Rev 3.00%3.7%3.1%
Debt Svc as % of Revenues 0.00%3.5%1.8%
FFP Reserve Balance (000's)$3,988 $107,882 $34,805
7 8
Remaining Debt Capacity (Dbt. Svc < or = 8% of GF Rev):158.4$ Million
CITY OF NEWPORT BEACH FACILITIES FINANCIAL PLANNING DASHBOARD
30 Year
Council Debt Mgmt Policy (F-6)
15 Year
0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%10.00%2020202220242026202820302032203420362038204020422044GF Contribution to FFP
as a Percent of GF Revenue
GF Contribution % Budget Debt Service - as % of Revenues
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2020202220242026202820302032203420362038204020422044GF Contribution to FFP Compared
to Debt Service
GF Contribution to FFP Debt Service
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
20202021202220232024202520262027202820292030203120322033203420352036203720382039204020412042204320442045FFP Reserve Balance
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
2020202220242026202820302032203420362038204020422044Project Funding
Cash Funded Construction Debt Funded Construction
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
2020202220242026202820302032203420362038204020422044Project Expenditures
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
2020202220242026202820302032203420362038204020422044Debt Service Capacity
Max Debt Service - 8% of Revenues Debt Service
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%2020202220242026202820302032203420362038204020422044Debt Service as % of GF Revenues
Debt Service - as % of Revenues
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2020 2021 2022 2023 2024 2025
Annual GF Contributions
Periodic GF or One-time Transfers
Private Contributions
Interest Earnings
Cash Contributions
Project Total Interest
Debt Service Description Year Proceeds COI Issue Rate Term Maturity
2010 Civic Center COPs 2011 123,000,000 1,289,442 124,289,442 4.4% 30 2041
Traunch 2 0 - - 5.0% 30 30
Traunch 3 0 - - - 5.0% 30 30
GF contributions equal to $8.5m/year (level dollar)
GF contributions equal to 3% of annual General Fund revenue
GF contributions equal to 5% of annual General Fund revenue
GF contributions equal to 3% GF Rev but not < than $8.5M
Page 1 of 6
2/6/2020 Changes from last version
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Active Projects Current Age From:
Ref Function Project Yr Built Repl Sq Ft Est $/Sq Ft 2019
Useful
Life
Years to
Start
Cost Est.
Date
Project
Estimate FY Design Year
FY Const Start
Year
FV Cost Est @
2.5% Growth
Private
Contribtions Net Proposed Cost
1 Gen Gov Civic Center 2013 100,000 750 6 60 54 Dec-20 75,000,000 2070 2073 284,544,368 284,544,368
4 Gen Gov Council Chambers 2013 29,000 750 6 60 54 Dec-20 21,750,000 2070 2073 82,517,867 82,517,867
41 Gen Gov Civic Center Parking Structure 2013 450 22,000 6 60 54 Dec-20 9,900,000 2070 2073 37,559,857 37,559,857
2 Police Police Station 1973 60,000 800 46 60 16 Dec-20 48,000,000 2032 2035 71,256,270 71,256,270
52 Police Land Purchase for New Station (4 acres)174,000 230 **12 Dec-20 2028 2031 - -
40 Municipal Operations Big Canyon Aux. Yard 2015 9,000 700 4 60 56 Dec-20 - 2072 2075 -
53 Harbor Balboa Yacht Basin Buildings 1950 18,080 700 69 60 5 Dec-20 12,656,000 2022 2024 14,319,102 14,319,102
3 Fire FS 1 - Peninsula 1962 6,000 800 57 50 6 Dec-20 4,800,000 2022 2025 5,566,528 5,566,528
5 Fire FS 2 - Lido 1952 11,500 820 67 55 1 Dec-20 9,430,000 2019 2020 9,665,750 9,665,750
6 Fire FS 3 - Santa Barbara 1971 10,000 800 48 60 16 Dec-20 8,000,000 2032 2035 11,876,045 11,876,045
7 Fire FS 4 - Balboa Island 1994 4,400 800 25 50 25 Dec-20 3,520,000 2041 2044 6,525,883 6,525,883
8 Fire and Library FS 5 and CDM Library 2019 10,313 760 0 60 51 Dec-20 7,837,880 2069 2070 27,613,137 27,613,137
9 Fire FS 6 - Mariners (apparatus bay only)2018 1,436 866 1 50 51 Jan-19 1,243,576 2069 2070 4,381,164 4,381,164
47 Fire FS 6 - Mariners (living area rebuild)1957 3,000 800 62 6 Dec-20 2,400,000 2024 2025 2,783,264 2,783,264
10 Fire FS 7 - SAH 2007 6,500 800 12 50 38 Dec-20 5,200,000 2054 2057 13,289,549 13,289,549
11 Fire FS 8 - Npt. Coast 1995 11,027 800 24 50 26 Dec-20 8,821,600 2042 2045 16,763,622 16,763,622
12 Fire Lifeguard HQ Replacement (major rehab)1988 3,000 800 31 25 21 Dec-20 2,400,000 2038 2040 4,030,996 4,030,996
13 Fire Newport Jr. Guard Building (includes 300k for site prep)TBD 4,000 900 1 Dec-20 3,512,195 2019 2021 3,600,000 1,275,000 2,325,000
15 Library Library-Balboa (Construct w/ FS-1)1962 3,000 750 57 50 6 Dec-20 1,950,000 2022 2025 2,261,402 2,261,402
17 Library Library-Mariners 2006 15,305 750 13 60 47 Dec-20 11,478,750 2063 2066 36,636,693 36,636,693
18 Library Library-Central 1997 65,000 750 22 60 33 Dec-20 48,750,000 2049 2052 110,118,979 110,118,979
16 Library Library Lecture Hall TBD 7,000 1,114 60 2 Dec-20 7,804,878 2020 2021 8,000,000 4,000,000 4,000,000
20 Rec Facility Marina Park 2015 22,000 750 4 50 46 Dec-20 16,500,000 2062 2065 51,378,539 51,378,539
21 Rec Facility Newport Coast Ctr 2007 16,865 750 12 50 38 Dec-20 12,648,750 2054 2057 32,326,188 32,326,188
22 Rec Facility Newport Theatre Arts Center 1973 12,000 750 46 50 11 Dec-20 9,000,000 2027 2030 11,808,780 5,904,390 5,904,390
23 Rec Facility OASIS Sr. Ctr 2010 43,232 750 9 60 41 Dec-20 32,424,000 2057 2060 89,237,023 89,237,023
25 Rec Facility Sunset View Park w/Ped Bridges TBD NA ∞3 Dec-20 8,850,000 2019 2022 9,530,482 2,349,600 7,180,882
29 Rec Facility Bonita Creek - Artificial Turf 2015 NA 4 10 6 Jan-19 900,000 2025 2025 1,043,724 1,043,724
33 Rec Facility Community Youth Center (CYC) - Grant Howald 1988 5,146 700 31 50 20 Dec-20 3,602,200 2037 2039 5,902,624 5,902,624
34 Rec Facility Caroll Beek Center 1980 1,555 700 39 50 14 Dec-20 1,088,500 2030 2033 1,538,022 1,538,022
35 Rec Facility Bonita Creek Community Ctr.1988 2,876 700 31 50 19 Dec-20 2,013,200 2035 2038 3,218,403 3,218,403
36 Rec Facility Cliff Drive Community Room 1960 750 700 59 60 2 Dec-20 525,000 2020 2021 551,578 551,578
37 Rec Facility Girls & Boys Club (East Bluff Park) - Major Rehab 2019 11,800 700 0 50 50 Dec-20 1,500,000 2059 2069 5,155,663 5,155,663 -
51 Rec Facility Grant Howald Park Sport Field Rehabilitation (5/14/19 CC)NA **50 1 May-19 6,682,926 2019 2020 6,849,999 6,849,999
38 Rec Facility Lawn Bowling Facility (San Joaquin Hills Park)1974 2,750 575 45 50 20 Mar-14 1,581,250 2036 2039 2,591,062 2,591,062
391,770,705 974,442,564 18,684,653 1,004,457,843
Potential Projects
Rec Facility Pool Complex (aquatic center)($5.5M) with Park($2.5M)-2019 Dec-20 8,000,000 8,000,000
Rec Facility Arroyo Park Synthetic Turf Field -2019 Dec-20 1,300,000 1,300,000
Police Animal Shelter (building/complex)
Municpal Operations Corporation Yard TBD
Municpal Operations Utilities Yard TBD
Project Planning Worksheet
Page 2 of 6
1 2 3 4 5 6 7 8 9 10 11
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
AFFORDABILITY ASSUMPTIONs
General Fund Revenues 230,514,506 237,429,941 244,552,839 251,889,425 259,446,107 267,229,491 275,246,375 283,503,767 292,008,880 300,769,146 309,792,220
GF Revenue Growth Assumption 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
FFP Contributions @ 3% of GF Revenues 6,915,435 7,122,898 7,336,585 7,556,683 7,783,383 8,016,885 8,257,391 8,505,113 8,760,266 9,023,074 9,293,767
GF Annual Contribution % of Revenue (assuming $8.5 M/yr)3.69%3.58%3.48%3.37%3.28%3.18%3.09%3.00%3.00%3.00%3.00%
Debt Service as % of GF Revenues 3.53%3.24%3.14%3.04%2.95%2.85%2.76%2.68%2.60%2.52%2.44%
SUMARY FFP FUND SOURCES AND USES
8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,505,113 8,760,266 9,023,074 9,293,767
Beginning FFP Balance 14,297,411 16,670,105 16,643,089 19,177,069 21,012,688 22,510,518 17,332,132 8,814,175 6,317,116 8,089,313 10,207,608
Sources
Annual GF Contributions 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,505,113 8,760,266 9,023,074 9,293,767
Periodic GF or One-time Transfers In 1,520,333 2,779,870 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Private Contributions 252,000 7,911,402 3,265,835 347,652 354,605 361,697 368,931 376,309 383,836 391,512 21,069,343
Park In Lieu 52,072 287,375 - - - - - - - - 14,540,245
Interest Earnings 357,435 500,103 540,900 671,197 735,444 787,868 606,625 308,496 221,099 283,126 357,266
Debt Funding - - - - - - - - - - -
Total Sources:10,681,840 19,978,751 13,306,735 10,518,849 10,590,049 10,649,565 10,475,555 9,189,919 9,365,201 9,697,713 45,260,620
Uses
Debt Service (8,138,841) (7,688,278) (7,676,638) (7,665,428) (7,649,308) (7,610,933) (7,603,024) (7,596,755) (7,582,004) (7,568,417) (7,555,522)
Other Fiscal Charges (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000)
Project Uses (159,306) (12,306,488) (3,085,118) (1,006,802) (1,431,910) (8,206,019) (11,379,488) (4,079,222) - - (590,439)
Total Uses:(8,309,147) (20,005,766) (10,772,756) (8,683,230) (9,092,219) (15,827,951) (18,993,513) (11,686,977) (7,593,004) (7,579,417) (8,156,961)
Projected FFP Balance 16,670,105 16,643,089 19,177,069 21,012,688 22,510,518 17,332,132 8,814,175 6,317,116 8,089,313 10,207,608 47,311,267
Projected FFP Balance reserved for park in lieu 4,282,582 - - - - - - - - - 14,540,245
Sources and Uses Proforma
ACTIVESCENARIO FORMULA, DO NOT EDIT
FORMULAIC ENTRY OF ANNUAL GF CONRIBUTIONS, EDIT
ONLY IF CONTRIBUTION STANDARD OF $8.5M CHANGES
Page 3 of 6
SUMMARY PROJECT FUNDS SOURCES AND USES Future Cost
Const Start
Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Fire FS 2 - Land Purchase **2018 - - - - - - - - - - -
Fire FS 2 - Lido 9,665,750 2020 (9,528,026) (73,464) - - - - - - - - -
Rec Facility Grant Howald Park Sport Field Rehabilitation (5/14/19 CC)6,849,999 2020 (5,732,301) (1,009,999) - - - - - - - - -
Fire Newport Jr. Guard Building (includes 300k for site prep)2,325,000 2021 - (232,500) (1,278,750) (813,750) - - - - - - -
Library Library Lecture Hall 4,000,000 2021 (660,000) (1,837,000) (1,503,000) - - - - - - - -
Rec Facility Cliff Drive Community Room 551,578 2021 - (55,158) (303,368) (193,052) - - - - - - -
Rec Facility Sunset View Park w/Ped Bridges 7,180,882 2022 (3,131,532) (4,030,482) - - - - - - - - -
Harbor Balboa Yacht Basin Buildings 14,319,102 2024 - - - - (1,431,910) (7,875,506) (5,011,686) - - - -
Fire FS 1 - Peninsula 5,566,528 2025 - - - - - (556,653) (3,061,591) (1,948,285) - - -
Fire FS 6 - Mariners (living area rebuild)2,783,264 2025 - - - - - (278,326) (1,530,795) (974,142) - - -
Library Library-Balboa (Construct w/ FS-1)2,261,402 2025 - - - - - (226,140) (1,243,771) (791,491) - - -
Rec Facility Bonita Creek - Artificial Turf 1,043,724 2025 - - - - - (104,372) (574,048) (365,303) - - -
Rec Facility Newport Theatre Arts Center 5,904,390 2030 - - - - - -- - - - (590,439)
Police Land Purchase for New Station (4 acres)- 2031 - - - - - -- - - - -
Rec Facility Caroll Beek Center 1,538,022 2033 - - - - - -- - - - -
Fire FS 3 - Santa Barbara 11,876,045 2035 - - - - - -- - - - -
Police Police Station 71,256,270 2035 - - - - - -- - - - -
Rec Facility Bonita Creek Community Ctr.3,218,403 2038 - - - - - -- - - - -
Rec Facility Community Youth Center (CYC) - Grant Howald 5,902,624 2039 - - - - - -- - - - -
Rec Facility Lawn Bowling Facility (San Joaquin Hills Park)2,591,062 2039 - - - - - -- - - - -
Fire Lifeguard HQ Replacement (major rehab)4,030,996 2040 - - - - - -- - - - -
Fire FS 4 - Balboa Island 6,525,883 2044 - - - - - -- - - - -
Fire FS 8 - Npt. Coast 16,763,622 2045 - - - - - -- - - - -
Library Library-Central 110,118,979 2052 - - - - - -- - - - -
Fire FS 7 - SAH 13,289,549 2057 - - - - - -- - - - -
Rec Facility Newport Coast Ctr 32,326,188 2057 - - - - - -- - - - -
Rec Facility OASIS Sr. Ctr 89,237,023 2060 - - - - - -- - - - -
Library Library-Mariners 36,636,693 2066 - - - - - -- - - - -
Rec Facility Girls & Boys Club (East Bluff Park) - Major Rehab - 2069 - - - - - -- - - - -
Fire FS 6 - Mariners (apparatus bay only)4,381,164 2070 - - - - - -- - - - -
Fire and Library FS 5 and CDM Library 27,613,137 2070 (1,440,632) - - - - - - - - - -
Gen Gov Civic Center 284,544,368 2073 (56,707) - - - - - - - - - -
Gen Gov Council Chambers 82,517,867 2073 - - - - - - - - - - -
Gen Gov Civic Center Parking Structure 37,559,857 2073 - - - - - - - - - - -
Municipal Operations Big Canyon Aux. Yard - 2075 - - - - - - - - - - -
Rec Facility Sunset Ridge Park (102,499) - - - - - - - - - -
Municipal Operations Facilities Strategic Planning (15F01)(50,000) - - - - - - - - - -
Rec Facility Marina Park Office Modifications (19F14)(42,340) - - - - - - - - - -
TOTAL PROJECT USES (20,744,037) (7,238,603) (3,085,118) (1,006,802) (1,431,910) (9,040,998) (11,421,891) (4,079,222) - - (590,439)
Page 4 of 6
DEVELOPMENT AGREEMENTS AND PRIVATE CONTRIBUTIONS General TOTAL Non FFP 4 5 6 7 8 9 10 11 12 13 14
Public Park Public Arts FFP Traffic 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Agreement REF Description Trigger Benefit Benefit & Culture BENEFIT Circulation Other Total
Hoag OASIS Pledge May 12, 2009 Pledge Letter Payment Schedule 500,000 - - 500,000 - - 500,000
Hoag OASIS Pledge May 12, 2009 Pledge Letter Payment Schedule 500,000 - - 500,000 - - 500,000
Hoag OASIS Pledge May 12, 2009 Pledge Letter Payment Schedule 1,500,000 - - 1,500,000 - - 1,500,000
2,500,000 - - 2,500,000 - - 2,500,000
Friends of Oasis Pledge Oasis Construction Restricted for Oasis Only 2,000,000 - - 2,000,000 - - 2,000,000
North Newport Center 4.1 In Lieu Park Fees Paid within 5 Days of Award of OASIS Contract - 5,600,000 5,600,000 5,600,000
North Newport Center 4.1 In Lieu Park Fees 430 $$26,046.51 Milestone Pmts - 5,600,000 5,600,000 5,600,000
North Newport Center T2 4.1 94 Units x $26,046.51 Milestone Pmts 2,448,372 2,448,372 2,448,372
North Newport Center 4.2 1 Issuance of First Building Permit 13,545,000 - 13,545,000 13,545,000
North Newport Center 4.2 Public Benefit Fee - 430 Units @ $31,500 Issuance of remaining 430 Residential Building Permits 13,545,000 - (270,900) 13,274,100 13,274,100
North Newport Center T2 Amended Agrmt Public Benefit Fee - 94 Units @ $63,000 Issuance of 431 st permit - 524 th permit 5,922,000 (118,440) 5,803,560 5,803,560
North Newport Center 4.4 Street Widening and Traffic Signals Within 30 Days of Reimbursement Request - - 2,500,000 2,500,000
North Newport Center Amended Agrmt Bayside Drive Walkway Connection Within 90 Days of written notice after award of contract 200,000 200,000 200,000 -
33,212,000 13,648,372 (389,340) 46,471,032 2,500,000 - 48,971,032
The Dart Development (24 units)(PA2012-146) - 600,875 600,875 600,875
Newport Bay Marina (27 units) (PA2001-210)- 186,147 186,147 186,147
Via Lido Mixed Use(2 units) (PA2010-081)- 104,500 104,500 104,500
2218 Channel Rd.Abell John & Helou Carol - 26,125 26,125 26,125
Plaza CDM (6 Units) (PA2010-061) - 156,750 156,750 156,750
Park Fees (One off)52,072
Friend of the Oasis 35,000 35,000 35,000
35,000 2,067,099 - 2,102,099 - - 2,102,099
Hoag DA # 5 8.2 Semeniuk Slough Study $200K Fee Eliminated with with DA amendment in 2008 - - - - - - -
Hoag DA # 5 8.2 Reimb City related to Superior Ave Medians Completion of Project Expenditures - - - - 1,500,000 - 1,500,000
Hoag DA # 5 8.2 Public Benefit (Park or Pub Safety)Paid June 2009 Xfred to Facilities Reserve 1,500,000 - - 1,500,000 - - 1,500,000
Hoag DA # 5 8.4 Sunset View Park, Shrub & Groundcover Pending Improvements - 150,000 - 150,000 - - 150,000
Extension pending
1,500,000 150,000 - 1,650,000 1,500,000 - 3,150,000
Santa Barbara Condos - - - - -
Santa Barbara Condos Section 3.3 of MOA Unrestricted Public Benefit Concurrent with Certificate of Occupancy 1,645,566 - (32,911) 1,612,655 - - 1,612,655
Santa Barbara Condos Section 3.3 of MOA Unrestricted Public Benefit Concurrent with Certificate of Occupancy 3,354,434 - (67,089) 3,287,345 - - 3,287,345
Santa Barbara Condos (NP2005-014)Section 3.2 of MOA 79 Units x $26,046.51 Fee due at building permit issue 2,061,834 - 2,061,834 - - 2,061,834
5,000,000 2,061,834 (100,000) 6,961,834 - 6,961,834
Banning Ranch Section 3.1 1375 x 30,909 x 80% (Haircut Assumption)Each Building Permit - - - - - - -
Uptown Newport $32,500/Unit - 1278 Units - - - - - -
Phase I - 620 Units a) 462 b)30 Units c) 150 Units PRIOR TO EACH BUILDING PERMIT 20,150,000 (403,000) 19,747,000 966,665 - 20,713,665 2,925,000 2,925,000
Phase II - 636 Units PRIOR TO EACH BUILDING PERMIT 20,670,000 20,670,000 631,456 - 21,301,456 20,670,000
PA2011-134 In Lieu Park Fees - Phase I PRIOR TO EACH BUILDING PERMIT-Less Park Credits - 2,895,687 2,895,687 2,895,687 -
In Lieu Park Fees - Phase I.b PRIOR TO EACH BUILDING PERMIT-Less Park Credits - 651,990 651,990 651,990 -
In Lieu Park Fees - Phase I.c PRIOR TO EACH BUILDING PERMIT-Less Park Credits - 3,259,950 3,259,950 3,259,950 -
In Lieu Park Fees - Phase II PRIOR TO EACH BUILDING PERMIT-Less Park Credits - 14,540,245 14,540,245 14,540,245 14,540,245
40,820,000 21,347,872 (403,000) 61,764,872 1,598,121 - 63,362,993
NB Country Club 3.1 54,819 x 10.00 Golf Club Clubhouse Issuance of First Building Permits 562,196 - (11,244) 550,952 - - 550,952
Dunes Settlement Section C(e)Restaurant on Parcel B2 Issuance of Building Permit 50,000 - - 50,000 - - 50,000 -
Dunes Settlement Section C(f)Family Inn Issuance of Building Permit 100,000 - - 100,000 - - 100,000 -
Dunes Settlement Section C(g)Family Inn Prior to Occupancy 410,402 - - 410,402 - - 410,402 -
560,402 - - 560,402 - - 560,402
Harbor Point Senior Living Covers ambulance unit, remainder unallocated 1,000,000 - - 1,000,000 - - 1,000,000 1,000,000
Vivante
Residential units 3,150,000 - flat fee within 60 days of permit issuance 3,150,000 - 3,150,000 3,150,000 3,150,000
Santa Ana Cottages net 6 units at $26,125 per unit 156,750 - 156,750 156,750 156,750
O'Hill
Residential units 5 units @ 93,000 per unit 465,000 465,000 465,000 465,000
Clubhouse 3,725 sf @ $10 per SF 37,250 37,250 37,250 37,250
In Lieu Park Fees- Residential units- 5 units @ 26,125 - 130,625 - 130,625 130,625 130,625
502,250 130,625 - 632,875 - - 632,875
Land Re Use Decisions
Monrovia Property Sale Actual 5,639,096 5,639,096
Police Facility Concord Estimated Annual Financial Benefit Not Used 1,706,000 1,706,000 - - 1,706,000
West Newport Gym - Lease Lease Ground Lease 289,055 289,055 - - 289,055 252,000 334,152 340,835 347,652 354,605 361,697 368,931 376,309 383,836 391,512 399,343
1,995,055 - - 7,634,151 - - 7,634,151
TOTAL 92,836,903 39,405,802 (903,584) 136,978,217 5,598,121 - 142,576,338 304,072 8,198,777 3,265,835 347,652 354,605 361,697 368,931 376,309 383,836 391,512 35,609,588
Page 5 of 6
Facilities Financial Plan - Ten-Year Comparison (2020-2030) of Prior and Currently Proposed Project Construction Schedule
All Costs are Net of Private Contributions
Sum of Net Proposed Cost Column Labels
Row Labels 2020 2021 2022 2024 2025 2030 Grand Total
Fire 2,325,000 8,349,793 10,674,792
FS 1 - Peninsula 5,566,528 5,566,528
FS 6 - Mariners (living area rebuild)2,783,264 2,783,264
Newport Jr. Guard Building (includes 300k for site prep)2,325,000 2,325,000
Harbor 14,319,102 14,319,102
Balboa Yacht Basin Buildings 14,319,102 14,319,102
Library 4,000,000 2,261,402 6,261,402
Library Lecture Hall 4,000,000 4,000,000
Library-Balboa (Construct w/ FS-1)2,261,402 2,261,402
Rec Facility 6,849,999 551,578 7,180,882 1,043,724 5,904,390 21,530,573
Bonita Creek - Artificial Turf 1,043,724 1,043,724
Cliff Drive Community Room 551,578 551,578
Grant Howald Park Sport Field Rehabilitation (5/14/19 CC)6,849,999 6,849,999
Newport Theatre Arts Center 5,904,390 5,904,390
Sunset View Park w/Ped Bridges 7,180,882 7,180,882
Grand Total 6,849,999 6,876,578 7,180,882 14,319,102 11,654,919 5,904,390 52,785,870
Sum of Net Proposed Cost Column Labels
Row Labels 2020 2021 2022 2024 2025 2030 Grand Total
Fire - 5,298,302 12,362,332 17,660,634
FS 1 - Peninsula (& Library)5,298,302 5,298,302
FS 3 - Santa Barbara 9,509,486 9,509,486
FS 6 - Mariners (Living Area Rebuild)2,852,846 2,852,846
Newport Jr. Guard Building - -
Rec Facility 14,670,525 1,069,817 4,841,600 20,581,942
Bonita Creek - Artificial Turf 1,069,817 1,069,817
Girls & Boys Club (East Bluff Park) - Major Rehab - -
Grant Howald Park Sport Field Rehabilitation 6,041,094 6,041,094
Newport Theatre Arts Center 4,841,600 4,841,600
Sunset View Park w/Ped Bridges & Dog Park 8,629,431 8,629,431
Grand Total 14,670,525 - 5,298,302 - 13,432,149 4,841,600 38,242,576
VARIANCE TABLE A - TABLE B:(7,820,526) 6,876,578 1,882,580 14,319,102 (1,777,230) 1,062,790 14,543,295
Table A: Net Proposed Cost by Construction Year 2020 through 2030 as Currently Proposed (December 2019)
Table B: Net Proposed Cost by Construction Year 2020 through 2030 as reviewed by Finance Committee (February 2019)
Page 6 of 6
Agenda Item No. 5C February 13, 2020
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department Steve Montano, Deputy Finance Director (949) 644-3240, smontano@newportbeachca.gov
SUBJECT: FEE STUDY UPDATE
SUMMARY:
Fees are regularly studied and updated in order to ensure the proper recovery for cost
of services, in accordance with the cost recovery rates, as established by City Council.
Staff recommends fee updates for the following departments/operations:
• Community Development Department o Building
o Planning
• Fire Department
o Emergency Medical Services
o Fire Prevention (formerly known as Life Safety Services) o Junior Lifeguards o Lifeguard Operations (formerly known as Marine Operations) • Police Department
The results of the fee study updates are as follows:
Department Fees
Increasing
Fees
Decreasing
No Change New Fees Deleted Totals
CDD 112 11 7 2 0 132
Fire 59 44 13 0 0 116
Police 19 15 18
0 6 58
TOTAL 190 70 38 2 6
306
PCT of TOTAL 62% 23% 12% 1% 2% 100%
There are certain other department mid-study updates for review, including:
• Finance (Revenue)
o Parking Citation Violation Penalty Schedule
• Public Works
CITY OF NEWPORT BEACH
FINANCE COMMITTEE STAFF REPORT
Fee Study Update February 13, 2020
Page 1
o Washington Street Trash Bins • Recreation and Senior Services
o Day Camp Fee
o Marina Park Boating Program
RECOMMENDED ACTION:
Receive and file.
DISCUSSION:
Background
Newport Beach Municipal Code (NBMC) Section 3.36, Council Policy F-4 (Revenue
Measures) and Item 12 of the Fiscal Sustainability Plan (FSP) provide staff and the City
Council with policy guidance related to setting cost recovery targets and updating user
fees. User fees, or cost-of-service fees, are charged to a private citizen or group for services performed or provided by a government agency on their behalf. If the service benefits primarily an individual or group of people, then the burden of that cost should
be borne by the person receiving the benefit.
NBMC Section 3.36.030 sets the cost recovery for user fees at one hundred percent
(100%) with the exception of the subsidized fees listed in Exhibit “A” of that same section, as well as those limited by California or Federal statutes. A recommendation
for less than a hundred percent (100%) cost recovery rate occurs, for example, when
a service is beneficial to the community at large along with specific individuals or
groups, and/or when there is an economic incentive, or disincentive, to do so. In these
cases the General Fund is essentially subsidizing the service. Any newly proposed fee or fee increase that is not approved will be absorbed through General Fund subsidy.
The Schedule of Rents, Fines, and Fees (SRFF) is a customer service document
maintained by the Finance Department Revenue Division which contains fees and
charges such as, but not limited to, cost-of-services fees, fines and penalties, rents, and
other charges imposed by the City or mandated by the State of California. SRFF is available online under the Revenue webpage for public viewing.
This latest fee study was conducted by the City’s consultant, MGT of America (MGT).
In order to establish fees on the basis of full cost recovery, it is necessary to determine
the cost of services. MGT conducts a comprehensive review and update of the City-wide
cost allocation plan and direct user fee calculations for each department on a rotating basis every three to five years. MGT uses well-established cost accounting
methodologies to calculate our municipal fees on a full cost recovery basis and
contracts with significant number of municipalities in California.
This year, MGT studied the following departments:
• Community Development Department (CDD) o Building
o Planning
• Fire Department
Fee Study Update February 13, 2020
Page 2
o Emergency Medical Services (EMS) o Fire Prevention
o Junior Lifeguards
o Lifeguard Operations
• Police Department
The complete list of studied fees can be found in Attachment A.
MGT meets with each of the studied departments and discusses the services provided,
the annual volume for those services, and the staff and time estimates for working on
said services. MGT calculates the department staff’s fully burdened hourly rate, which
includes both internal administrative as well as citywide overhead costs. The fully burdened hourly rates are applied to the time estimates provided by staff and the fee is
calculated. MGT reviews and cross checks the results to ensure the data is valid and
asks each department to review the calculations for accuracy and reasonableness.
Once the calculations are confirmed, department staff then recommends that the fee
should either be fully recovered or subsidized. An example of this process is provided in Attachment B. All NBMC 3.36.030 Exhibit “A” subsidy changes can be found in
Attachment C.
Below is a summary of how studied department fees are changing:
Department Fees
Increasing
Fees
Decreasing
No Change New Fees Deleted Totals
CDD 112 11 7 2 0 132
Fire 59 44 13 0 0 116
Police 19 15 18
0 6 58
TOTAL 190 70 38 2 6
306
PCT of TOTAL 62% 23% 12% 1% 2% 100%
CDD
The Community Development Department administers the City’s General Plan, as well
as the City’s zoning, building, subdivision, fire prevention, and environmental
regulations, to ensure orderly physical growth of the community. Program activities
include advance and current Planning, Building and Fire Safety plan check, permit issuance, and inspection; among other things not related to cost of service fees. The
last comprehensive study of CDD fees was in 2015; however, in the fall of 2016, CDD
converted valuation-based residential construction permits and selected deposit-based
planning permits to flat fees. In 2017, as a post-Local Coastal Program (LCP)
certification requirement, Planning added the Coastal Development Permit fee to the SRFF as a deposit account; in 2018, the fee was updated to a flat fee.
Building
The Building Division provides building permit, plan checking, and inspection services for new construction, additions, and remodels. Their core function is to ensure that
Fee Study Update February 13, 2020
Page 3
plans and construction activity adhere to code requirements to promote the quality of
life and safety of those who live, work, and visit the City of Newport Beach. Building
related fees reflect the cost of services to provide plan reviews; building, electrical,
mechanical, plumbing, and grading permits and inspections; harbor construction plan reviews; and fees for various other development related services.
Although 71 Building fees are increasing, 62 of those fees, or 87%, are only increasing
between 1%-5%. Over half of the nine fees that are decreasing are being reduced from 28% to 61%.
Building fee highlights:
1. Convert the Miscellaneous Fences/Retaining Walls plan review fee as well as the
Miscellaneous Fences/Retaining Walls permit and inspection fee from a flat fee
structure to match the fees found within the Building Permit (Non-Residential and
Residential Alterations) Fee Table within the SRFF. This will ensure that smaller
projects will not be overcharged and larger projects will be charged appropriately.
2. Appeals Board Hearing – Applicant Unsuccessful fee - change recovery from a
percentage to a flat fee of $1,715. The recommendation for charging $1,715 is to
ensure the fee charged for both Building Appeals and Planning Appeals will be the same amount even though they are calculated separately using different staff.
The recovery percentage remains the same, 50%.
3. Permit Issuance fees - used to be separated by the type of permit: electrical, mechanical, and plumbing. Because the work performed is the same, one fee has
been created to replace the three. The Permit Issuance fee, studied separately,
is $37.
4. Building Fees on SRFF with a Full Cost less than $5 will be rounded down to the nearest quarter rather than the nearest dollar. CPI increases for lower dollar fees
have minimal impact on the fee and often result in no change. For more accurate
cost recovery, staff recommends rounding down to the nearest quarter.
5. Life Safety Services – will be renamed “Fire Prevention” and relocated under the
Fire Department.
Planning
The Planning Division is charged with preparing, maintaining, and implementing a General Plan, which provides overall policy guidance for the future of the City, as well
as Zoning Code, Local Coastal Program, and other related policy documents. Planning
ensures that uses of properties are appropriate and that site plan configurations are
consistent with the size, scale, and character standards that define the communities within Newport Beach.
Planning is introducing two new fees through this study:
1. Public Noticing fee - to use when a project requires staff to publish one or more
public notices in the Daily Pilot. It includes the cost of staff time processing the public
notice, postage, supplies, and publishing costs from the Daily Pilot. The
Fee Study Update February 13, 2020
Page 4
recommended fee is $497.
2. Preliminary Application for Residential Development fee - on October 10, 2019, Governor Gavin Newsom signed Senate Bill 330 into law – also known as the
Housing Crisis Act of 2019 – aimed to stimulate homebuilding amid the housing
shortage in California. The law imposes several new regulations on local agencies,
including a requirement to create a preliminary application process for housing
development projects (Government Code Section 65941.1). The intent is to make the development review process faster and provide certainty to an applicant by
locking in the development requirements, standards, and fees at the time a
complete application is submitted. By doing so, the City is prohibited from applying
new ordinances, policies, standards, and fee increases to a development with a
complete preliminary application. The application fee is needed to recover costs associated with the review and processing of the preliminary applications. The
recommended fee is $760.
Staff recommends phasing in any Planning fees that are increasing 10% or more over the next two years. The following table below demonstrates how the phase 1 increases will be calculated on a few different fees: Calculate the variance (D) between the current
fee (A) and the full cost (B), divide the variance in half (E), and add that amount to the
current fee (F). Column L in Attachment A details the recommended Planning fees.
A B C D E F
Service Name
Current
Fee Full Cost
%
Change
Variance
(A-B)
Variance
Divided
by 2
(D/2)
Current Fee
+ Variance
Divided by 2
(A+E)
Amendments - General Plan $219 $260.34 19% $41 $20.50 $239
Approval in Concept $782 $896.83 15% $114 $57.00 $839
Banner Permit $45 $56.80 24% $11 $5.50 $50
The following NBMC 3.36.030 Exhibit “A” changes are recommended related to Planning fees:
1. Appeals to City Council and Appeals to Planning Commission - change recovery
from 50% to a flat fee of $1,715. The recommendation for charging $1,715 is to ensure the fee charged for both Building Appeals and Planning Appeals will be the
same amount. This will allow for fee consistency even though they are calculated
separately.
2. Coastal Development Permit Application Appeals from Zoning Administrator to Planning Commission – staff recommends adding a recovery percentage of 0%,
which would have the effect of requiring prospective appellants to first file an appeal
to the Planning Commission before filing an appeal directly with the Coastal
Commission. The change is considered beneficial in that it would allow the Planning Commission the ability to potentially resolve the appeal locally without Coastal
Commission involvement. Ultimately, the appeal process could end with Coastal
Fee Study Update February 13, 2020
Page 5
Commission determination as prescribed by the Coastal Act.
Fire
The Fire Department provides 24-hour protection and response to the City’s residents and visitors. Guided by its standard operating principles “Safety, Service,
Professionalism”, the department is engaged in the community, recognized for its
exemplary services, and always available to help. The Fire Department is comprised of
the following divisions; Emergency Medical Services, Fire Operations, Junior
Lifeguards, Fire Prevention, and Lifeguard Operations, some of which are partially funded by cost-of-service fees. The majority of the department’s cost-of-service fees
were last studied in 2018. However, pursuant to the new agreement with MGT, entered
into May 2019, departments that provide crossover support to each other were
scheduled to be studied simultaneously. CDD was due for a full study and since CDD
and Fire continue to work closely together on the Fire Prevention fees, the Fire Department was studied as well.
Emergency Medical Services (EMS)
The EMS division delivers high-quality emergency medical care to the community. First
responders provide timely response, evaluation, treatment, and transportation to a local
hospital when necessary.
Primary fees within EMS are the fees charged for the Fire Engine and Paramedic Unit responding to 911 calls and evaluating and treating a patient. The fees primarily fall into
two categories: Advanced Life Support (ALS) or Basic Life Support (BLS). Overall, the
ALS with Transport is increasing by $215 and BLS by $238.The increased cost is due
to higher staff cost, vehicle and equipment cost, and adding in the cost of the ambulance billing service and disposable medical supplies.
Service Name Current
Fee
Proposed
Fee
Net Change
from
Current Fee ALS with Transport $1,585 $1,800 $215
BLS with Transport $1,556 $1,794 $238
In 2015, Council approved the addition of ALS and BLS Non-transport fees. Even
patients not transported to a local hospital still received care from Fire Department
personnel and should be assessed a fee for these services. These fees are heavily
subsidized. In 2018, the BLS Non-transport fee was increased to match the ALS Non-
transport fee of $400; and a First Responder Fee of $400 was introduced. This adjustment allowed for proper billing of medical services provided by the Paramedic
Assessment Units (PAU’s) when a Paramedic Unit is not present. Staff recommends
no changes to these Non-transport fees.
Fee Study Update February 13, 2020
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Newport Beach residents and businesses have the option to participate in the
Paramedic Subscription Program, known as Fire Medics, to protect themselves and
their family, or employees and patrons against potential costs related to an unexpected
medical emergency. There are no recommended changes to the Paramedic Subscription Program at this time.
Fire Prevention
Toward the end of FY 2015-16, Fire Prevention transitioned from being solely within
the Fire Department to being managed by CDD and working in conjunction with Fire.
CDD restructured and Council adopted updated Fire Prevention fees in September
2018 under this new organizational structure. The Fire Marshal position was approved
within the FY 2018-19 budget to serve as the Division Chief of Fire Prevention within the Fire Department, reporting directly to the Fire Chief and receiving technical direction
from the Community Development Director while working closely with the Chief Building
Official.
Since the fees were so recently restructured/studied the only update to the fees was to
use the most current (FY 2019-20) budget and reflect the Fire Marshall’s time instead of the Deputy CDD Director. This resulted in the majority of the fees going down due to
cost savings between the two positions. The fees that did go up were due to increases
in the fully loaded hourly rate of the Engine Company (combination of Captain,
Engineer, and Firefighter) or CDD permit tech.
Junior Lifeguards
The Newport Beach Junior Lifeguard Program was established in 1984 and has grown rapidly throughout the years. It is a very popular program with residents and non-
residents alike focused on educating children about ocean safety. The fee is currently
subsidized in order to minimize cost increases and to encourage participation in the
program, the full cost of the program is $856; however, the fee is set at $727. Staff recommends no changes to the Junior Lifeguard Participation Fee. The Cancellation Fee is going down from $112 to $109.
Lifeguard Operations
Lifeguard Operations role is to protect the many beach visitors that enjoy our 6.2 miles
of ocean and 2.5 miles of bay beaches. Staff ensures safety and provides customer
service. In most cases, the City does not charge the public for these services. The study
updates lifeguard staff hourly rates as well as the two-person rescue boat. These fees
are only charged when lifeguards are requested to provide safety or service for activities that do not qualify for the special event hourly rates, for instance when lifeguard personnel are needed at film permit filming on the beach.
Fee Study Update February 13, 2020
Page 7
The following NBMC 3.36.030 Exhibit “A” change is recommended related to Fire fees:
1. Life Safety Services – will be renamed “Fire Prevention” and relocated from CDD to Fire.
2. Marine – actually refers to the Junior Lifeguard Participation Fee both the header
and the fee will be updated to reflect Junior Lifeguards.
Police
The Police Department provides high quality police services to our Community to
maintain the quality of life valued by those who live, work, and recreate in Newport
Beach. Patrol/Traffic Division is the front line defense against criminal activity and quality of life concerns, including parking enforcement, animal control, and detention services. Detective Division investigates thousands of reports taken by the Police
Department each year. Support Services Division offers administrative, technical, and
fleet support to the Department. Police fees were last adopted September 2015.
Over half of the remaining Police Department fees as studied are decreasing slightly.
These decreases are largely due to services taking less time to perform, the hourly
rates of the staff that perform the service, and new technology. In late 2015, the City
began providing animal shelter services previously contracted with the Orange County
Humane Society. The original fees were contractually set and when the City took over staff continued charging the same rates as before. During this fee study, MGT
calculated the cost of City staff providing animal shelter services.
The following NBMC 3.36.030 Exhibit “A” changes are recommended related to Police fees:
1. Impound Fee – because there is no longer a contract, staff recommends replacing
“maximum permitted by contract” with the proposed subsidized fee.
2. Animal Shelter – staff recommends adding the following subsidies related to
adoption, boarding, and owner turn-in fees. Some fees are recommended to be
subsidized to encourage adoptions and strays to be reclaimed by their owners. The recommended fees are in line with our surrounding shelters such as Irvine, San Clemente and Mission Viejo.
Service Name Full Cost Proposed Fee
Adoption Fee - Dogs $259 $150
Adoption Fee - Puppies $269 $225
Adoption Fee - Cats $197 $90
Adoption Fee - Kittens $228 $110
Adoption Fee - Small Animal $78 $45
Boarding Fee (per day) - Animal $43 $25
Boarding Fee (per day) - Small Animals $26 $10
Owner Turn-In Fee $241 $100
Impound Fee - Dog, Cats, Small Animals $135 $55
Fee Study Update February 13, 2020
Page 8
Other Departments
Even when a department is not scheduled for a comprehensive fee study, occasionally, operations will change enough that the non-studied department will request one or two
fee study changes for adoption. The following mid-study adjustments will be brought
before Council with the latest fee study:
1. Finance (Revenue) – last studied in 2016
Parking Citation Violation Penalty Schedule (Attachment D) – although not a fee,
because some of the violations within the schedule had been changed or deleted
from the Code altogether, staff is recommending an update to the Parking Citation Violation Penalty Schedule.
2. Public Works – last studied in 2015
Washington Street Bins – the solid waste service fee established for the use of the
Washington Street Waste Bin dates back to August 1997 (Resolution 97-70). While
the fee was originally intended to reimburse the City for the cost of operating the
bin, the resolution was written with a fee cap and a listing of business by name. The
language of the resolution currently limits the ability to update fees to reflect increasing service costs or to charge a new business when it comes into an existing
building. In late 2019, the City rebid and entered into a new contract for these
services. Staff will use the same methodology as the last fee adoption to propose a
revised resolution to reflect the current service costs and to change the business
listing to addresses in lieu of business name.
3. Recreation and Senior Services (RSS) – last studied in 2016
Day Camp Fee – The cost for outings during the summer day camp weekly programs continue to increase. The outings are different each week, some of which
include Disneyland, Knott’s Berry Farm, Long Beach Aquarium, and attending an
Angels game. Recreation fees are often subsidized due to the community benefits
the programs provide. The $15 proposed increase for the Day Camp Fee, from $145 to $160, is within the cost recovery limits for Camps under NBMC 3.36.030 Exhibit “A” (Attachment C).
Marina Park Boating Program - The cooperative agreement with University of
California, Irvine (UCI) is being dissolved and as a result, City staff will oversee the day-to-day management of the sailing center and will work with contract instructors
to deliver boating classes. Programs other than classes will be managed by the city
and include sailing pass membership and testing, rentals of boats, stand up paddle
boards and kayaks. Staff recommends charging the same fees until the next time
RSS is studied.
Description Charge
Sail Pass Test $65
Sailing Pass Annual Membership - Adult $600
Sailing Pass Annual Membership - Student $300
Fee Study Update February 13, 2020
Page 9
Sailing Pass Quarterly Membership - Student $100
Boat Rental - J/22 $20/hr
Boat Rental - RS Quest, Lido & Sabot $15/hr
SUP/Kayak Rentals $20/hr
SUP/Kayak - 5 Punch Pass $75
SUP/Kayak - 10 Punch Pass $100
CONCLUSION:
Staff estimates that these fees, if approved by Council as recommended, will amount
to approximately $580,000 in additional revenues, adjusted for the phased Planning
fees (without the phase-in, the additional revenues would be approximately $630,000). However, this projection does not account for any fees where volume statistics are unavailable.
Finance staff anticipate bringing the proposed recommendations to the City Council
for formal action next month. Any newly proposed fee or fee increase that is not approved will be absorbed through General Fund subsidy.
Prepared and Submitted by:
/s/ Theresa Schweitzer
Theresa Schweitzer
Senior Accountant
Attachments:
A. FY20 Studied Department Changes
B. Application of Indirect Costs to the Calculation of Fees for Services
C. Municipal Code 3.36.030 Exhibit A Changes
D. Parking Citation Violation Penalty Schedule Changes
ATTACHMENT A
FY20 STUDIED DEPARTMENT CHANGES
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)Community Development DepartmentBuilding 209,110$ 1Accessibility Hardship ‐ Board Ratification Flat Fee‐ 1,195$ 1,207.96$ 100% 1,207$ 12$ 1%‐$ 2Appeals Board Hearing Flat Fee1 1,692$ 3,427.50$ 50% 1,715$ 23$ 1% 23$ 3Authorization to Duplicate Record Drawings Flat Fee197 99$ 39.22$ 100% 39$ (60)$ ‐61% (11,820)$ 4Flood Zone Determination Flat Fee162 109$ 112.48$ 100% 112$ 3$ 3% 486$ 5Mod to CBC/Alt Mat's & Methods Flat Fee266 304$ 284.99$ 100% 284$ (20)$ ‐7% (5,320)$ 6Real Prop ‐ Doc Prep/Transf/Assign/Ext Flat Fee‐ 275$ 286.48$ 100% 286$ 11$ 4%‐$ 7Rec Mgt ‐ per sheet of drawing Flat Fee58,650 2$ 2.10$ 100% 2$ ‐$ 0%‐$ 8Special Inspector License Renewal Flat Fee133 74$ 53.83$ 100% 53$ (21)$ ‐28% (2,793)$ 9Special Inspector License Exam Flat Fee14 111$ 110.995$ 100% 110$ (1)$ ‐1% (14)$ 10Temp Certificate of Occupancy Renewal Flat Fee61 115$ 120.14$ 100% 120$ 5$ 4% 305$ 11Residential Building Report Flat Fee1,098 191$ 194.67$ 100% 194$ 3$ 2% 3,294$ 12Residential Bldg Rept: Re‐Inspection Flat Fee72 129$ 129.08$ 100% 129$ ‐$ 0%‐$ 13Temporary Certificate of Occupancy Flat Fee37 216$ 227.26$ 100% 227$ 11$ 5% 407$ 14Off‐Hours Inspection Request Hourly12 231$ 241.02$ 100% 241$ 10$ 4% 120$ 15Re‐Inspection Hourly25 194$ 205.04$ 100% 205$ 11$ 6% 275$ 16Other Inspections Hourly2 194$ 205.04$ 100% 205$ 11$ 6% 22$ 17Permit Issuance Fee Flat Fee35 35$ 37.76$ 100% 37$ 2$ 6% 70$ 18Supplemental Permit Issuance Fee Flat Fee9 11$ 12.00$ 100% 12$ 1$ 9% 9$ 19Water Heater Permit Flat Fee156 17$ 31.31$ 100% 31$ 14$ 82% 2,184$ 20Building Permits & Inspections (Non‐Residential & Residential Alterations))Total Annual1 1,383,191$ 1,417,884$ 100% 1,417,884$ 34,693$ 3% 34,693$ 21Electrical Permits & Inspections (all)Total Annual1 168,737$ 174,533$ 100% 174,533$ 5,796$ 3% 5,796$ 22Mechanical Permits & Inspections (all)Total Annual1 144,612$ 151,605$ 100% 151,604$ 6,992$ 5% 6,992$ 23Plumbing Permits & Inspections (all)Total Annual1 121,190$ 127,027$ 100% 127,026$ 5,836$ 5% 5,836$ 24Grading Permits & Inspections (all)Total Annual1 110,329$ 116,185$ 100% 116,185$ 5,856$ 5% 5,856$ 25Additions of Residential Garages/Carports (438) ‐ Permit & Insp Flat Fee6 642$ 646.97$ 100% 646$ 4$ 1% 24$ RecommendationsCurrentPer Unit Per Unit1
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit26Demolitions:Multi‐Family Structures ‐ (646/647) ‐ Permit & Insp Flat Fee26 107$ 110.89$ 100% 110$ 3$ 3% 78$ 27Demolitions:One Family Structure (645) ‐ Permit & Insp Flat Fee130 126$ 132.63$ 100% 132$ 6$ 5% 780$ 28Demolitions:Other Than Structure (648/649) ‐Permit & Insp Flat Fee45 114$ 120.20$ 100% 120$ 6$ 5% 270$ 29Drainage Permits for Alteration to Drainage Flat Fee209 322$ 232.41$ 100% 232$ (90)$ ‐28% (18,810)$ 30Residential Fire Sprinkler ‐ Permit & Insp Flat Fee679 248$ 263.31$ 100% 263$ 15$ 6% 10,185$ 31Grading Bond Fee Flat Fee4 444$ 445.84$ 100% 445$ 1$ 0% 4$ 32Harbor ‐ Permit & Insp Flat Fee84 297$ 616.02$ 50% 308$ 11$ 4% 924$ 33Miscellaneous: Fences/Retaining Walls ‐ Permit & Insp Flat Fee800 426$ 437.55$ 100% 437$ 11$ 3% 8,800$ 34Miscellaneous: Re‐roofs ‐ Permit & Insp Flat Fee384 335$ 343.84$ 100% 343$ 8$ 2% 3,072$ 35One/Two‐Family Addition (0‐250) ‐ Permit & Insp Flat Fee120 811$ 836.09$ 100% 836$ 25$ 3% 3,000$ 36One/Two‐Family Addition (251‐500) ‐ Permit & Insp Flat Fee46 1,297$ 1,328.58$ 100% 1,328$ 31$ 2% 1,426$ 37One/Two‐Family Addition (501‐1000) ‐ Permit & Insp Flat Fee22 1,946$ 2,045.81$ 100% 2,045$ 99$ 5% 2,178$ 38One/Two‐Family Addition (1,001‐2,000) ‐ Permit & Insp Flat Fee29 2,919$ 3,037.83$ 100% 3,037$ 118$ 4% 3,422$ 39One/Two‐Family Addition (2,001‐3,000) ‐ Permit & Insp Flat Fee2 4,217$ 4,333.17$ 100% 4,333$ 116$ 3% 232$ 40One/Two‐Family Addition (3,001‐ >) ‐ Permit & Insp Flat Fee‐ 5,353$ 5,540.62$ 100% 5,540$ 187$ 3%‐$ 41One/Two‐Family Shoring ‐ Permit & Insp Flat Fee25 573$ 596.68$ 100% 596$ 23$ 4% 575$ 42One/Two‐Family Structure (0 ‐ 2,500) ‐ Permit & Insp Flat Fee15 3,568$ 3,648.98$ 100% 3,648$ 80$ 2% 1,200$ 43One/Two‐Family Structure (2,501‐3,500) ‐ Permit & Insp Flat Fee55 5,028$ 5,194.21$ 100% 5,194$ 166$ 3% 9,130$ 44One/Two‐Family Structure (3,501‐4,500) ‐ Permit & Insp Flat Fee35 5,677$ 5,770.10$ 100% 5,770$ 93$ 2% 3,255$ 45One/Two‐Family Structure (4,501‐5,500) ‐ Permit & Insp Flat Fee29 6,488$ 6,710.90$ 100% 6,710$ 222$ 3% 6,438$ 2
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit46One/Two‐Family Structure (5,501‐>) ‐ Permit & Insp Flat Fee28 8,921$ 9,159.51$ 100% 9,159$ 238$ 3% 6,664$ 47Patios/Decks/Trellis (329) ‐ Permit & Insp Flat Fee48 371$ 381.55$ 100% 381$ 10$ 3% 480$ 48Pools / Spas ‐ Permit & Insp Flat Fee209 418$ 430.98$ 100% 430$ 12$ 3% 2,508$ 49Solar ‐ (434) ‐ Permit & Insp Flat Fee148 466$ 474.64$ 100% 474$ 8$ 2% 1,184$ 50Strong Motion Instrumentation State Fee‐ ‐$ ‐$ 100%‐$ ‐$ *‐$ 51Plan Review (all except Residential)Total Annual1 1,268,136$ 1,309,980$ 100% 1,309,980$ 41,844$ 3% 41,844$ 52Additions of Residential Garages/Carports ‐ Plan View(438) Flat Fee3 678$ 406.71$ 100% 406$ (272)$ ‐40% (816)$ 53Demolitions: Multi‐Family Structures‐ (646/647) ‐ Plan Review Flat Fee25 307$ 316.46$ 100% 316$ 9$ 3% 225$ 54Demolitions: One Family Structure (645) ‐ Plan Review Flat Fee126 307$ 316.46$ 100% 316$ 9$ 3% 1,134$ 55Demolitions: Other Than Structure (648/649) ‐ Plan Review Flat Fee14 312$ 320.86$ 100% 320$ 8$ 3% 112$ 56Determination of Unreasonable Hardship Flat Fee25 335$ 349.54$ 100% 349$ 14$ 4% 350$ 57Drainage Plan Rev for Alteration to Drainage Flat Fee220 322$ 195.46$ 100% 195$ (127)$ ‐39% (27,940)$ 58Residential Fire Sprinkler ‐ Plan Review Flat Fee640 209$ 217.43$ 100% 217$ 8$ 4% 5,120$ 59Grading Plan Review by Consultant% of Cons Fee348 184$ 193.98$ 100% 193$ 9$ 5% 3,304$ 60Harbor ‐ Plan View Flat Fee71 312$ 644.98$ 50% 322$ 10$ 3% 710$ 61Miscellaneous: Fences/Retaining Walls ‐ Plan Review Flat Fee800 419$ 428.69$ 100% 428$ 9$ 2% 7,200$ 62Miscellaneous: Re‐roofs ‐ Plan Review Flat Fee8 160$ 167.42$ 100% 167$ 7$ 4% 56$ 63Plan Check Hourly Rate Hourly1 256$ 255.62$ 100% 255$ (1)$ 0% (1)$ 64Add'l Plan Rev & Rechks In Excess Of 2Hourly275 256$ 255.62$ 100% 255$ (1)$ 0% (275)$ 65Plan Check Extension Flat Fee228 63$ 66.63$ 100% 66$ 3$ 5% 684$ 66One/Two ‐ Family Addition (0‐250) ‐ Plan Review Flat Fee99 793$ 832.32$ 100% 832$ 39$ 5% 3,861$ 67One/Two ‐ Family Addition (251‐500) ‐ Plan Review Flat Fee47 1,106$ 1,163.36$ 100% 1,163$ 57$ 5% 2,679$ 68One/Two ‐ Family Addition (501‐1000) ‐ Plan Review Flat Fee24 1,524$ 1,602.75$ 100% 1,602$ 78$ 5% 1,872$ 3
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit69One/Two ‐ Family Addition (1,001‐2,000) ‐ Plan Review Flat Fee14 2,256$ 2,371.09$ 100% 2,371$ 115$ 5% 1,610$ 70One/Two ‐ Family Addition (2,001‐ 3,000) ‐ Plan Review Flat Fee1 3,406$ 3,550.95$ 100% 3,550$ 144$ 4% 144$ 71One/Two ‐ Family Addition (3,001 ‐ >) ‐ Plan Review Flat Fee‐ 4,242$ 4,421.53$ 100% 4,421$ 179$ 4%‐$ 72One/Two ‐ Family Shoring ‐ Plan Check Flat Fee16 948$ 994.50$ 100% 994$ 46$ 5% 736$ 73One/Two ‐ Family Structure (0 ‐ 2,500) ‐ Plan Review Flat Fee15 3,149$ 3,285.70$ 100% 3,285$ 136$ 4% 2,040$ 74One/Two ‐ Family Structure (2,501‐3,500) ‐ Plan Review Flat Fee57 3,567$ 3,735.57$ 100% 3,735$ 168$ 5% 9,576$ 75One/Two ‐ Family Structure (3,501‐4,500) ‐ Plan Review Flat Fee37 4,613$ 4,830.56$ 100% 4,830$ 217$ 5% 8,029$ 76One/Two ‐ Family Structure (4,501‐5,500) ‐ Plan Review Flat Fee26 5,658$ 5,919.21$ 100% 5,919$ 261$ 5% 6,786$ 77One/Two ‐ Family Structure (5,501 ‐ >) ‐ Plan Review Flat Fee28 6,703$ 7,049.20$ 100% 7,049$ 346$ 5% 9,688$ 78Patios/Decks/Trellis (329) ‐ Plan View Flat Fee48 311$ 313.13$ 100% 313$ 2$ 1% 96$ 79Pools / Spas ‐ Plan Review Flat Fee220 373$ 387.73$ 100% 387$ 14$ 4% 3,080$ 80Solar ‐ (434) ‐ Plan View Flat Fee174 378$ 400.40$ 100% 400$ 22$ 6% 3,828$ 81Waste Management Admin Fee Flat Fee158 26$ 26.67$ 100% 26$ ‐$ 0%‐$ 82WQMP Plan Review (Commercial) Pass Thru4 ‐$ 269.84$ 100% 269$ 269$ * 1,076$ 83WQMP Inspections (Commercial) Flat Fee4 327$ 343.02$ 100% 343$ 16$ 5% 64$ 84WQMP Plan Review (Residential) Pass Thru154 ‐$ 187.41$ 100% 187$ 187$ * 28,798$ 85WQMP Inspections (Residential) Flat Fee154 278$ 278.16$ 100% 278$ ‐$ 0%‐$ Planning382,259$ 1Public Noticing (New) Flat Fee520 ‐$ 497.53$ 100% 497$ 497$ * 258,440$ Full Cost2Amendments ‐ General Plan Hourly26 219$ 260.34$ 100% 260$ 41$ 19% 1,050$ 239$ 3Amendments ‐ Local Coastal Program Hourly20 219$ 260.34$ 100% 260$ 41$ 19% 820$ 239$ 4Amendments ‐ Planned Community Hourly13 219$ 260.34$ 100% 260$ 41$ 19% 525$ 239$ 5Amendments ‐ Zoning Code/Specific Plan Hourly26 219$ 260.34$ 100% 260$ 41$ 19% 1,050$ 239$ 6Appeals (City Council and Planning Commission) Flat Fee8 1,692$ 4,121.28$ 42% 1,715$ 23$ 1% 184$ Full Cost7Approval in Concept Flat Fee16 782$ 896.83$ 100% 896$ 114$ 15% 1,824$ 839$ 8Banner Permit Flat Fee56 45$ 56.80$ 100% 56$ 11$ 24% 616$ 50$ 4
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit9Certificate of Compliance ‐ Subdivision Code Flat Fee23 329$ 358.33$ 100% 358$ 29$ 9% 667$ Full Cost10Coastal Development Permit Hourly4 219$ 260.34$ 100% 260$ 41$ 19% 164$ 239$ 11Coastal Development Permit ‐ Stand Alone Flat Fee35 2,200$ 2,309.83$ 100% 2,309$ 109$ 5% 3,815$ Full Cost12Coastal Development Permit Waiver Flat Fee4 1,002$ 1,169.82$ 100% 1,169$ 167$ 17% 668$ 1,085$ 13Compliance Letters / Minor Records Research Flat Fee30 384$ 382.56$ 100% 382$ (2)$ ‐1% (60)$ Full Cost14Comprehensive Sign / Heritage / Innovative Permit Flat Fee12 1,754$ 1,929.77$ 100% 1,929$ 175$ 10% 2,100$ 1,841$ 15Condominium Conversion Permit Flat Fee3 1,320$ 1,325.90$ 100% 1,325$ 5$ 0% 15$ Full Cost16Development Agreement Adoption Hourly1 219$ 260.34$ 100% 260$ 41$ 19% 41$ 239$ 17Development Agreement Annual Review Flat Fee6 1,297$ 1,367.21$ 100% 1,367$ 70$ 5% 420$ Full Cost18Development Plan ‐ Planned Community Hourly1 219$ 260.34$ 100% 260$ 41$ 19% 41$ 239$ 19Director / Staff Approval Flat Fee10 1,002$ 961.67$ 100% 961$ (41)$ ‐4% (410)$ Full Cost20Environmental DocumentsConsultant + 10%6 10,819$ 13,224.52$ 100% 13,224$ 2,405$ 22% 14,429$ Consultant +10% 21Extension of Time ‐ Subdivision Code Flat Fee‐ 154$ 168.62$ 100% 168$ 14$ 9%‐$ Full Cost22Extension of Time ‐ ZC (except Abatement Period) Flat Fee‐ 154$ 168.62$ 100% 168$ 14$ 9%‐$ Full Cost23In‐Lieu Parking Per Space‐ 150$ ‐$ 100% 150$ ‐$ 0%‐$ Full Cost24Limited Term Permit ‐ less than 90 days Flat Fee3 548$ 636.32$ 100% 636$ 88$ 16% 264$ 592$ 25Limited Term Permit ‐ more than 90 days Flat Fee3 1,801$ 2,187.22$ 100% 2,187$ 386$ 21% 1,158$ 1,994$ 26Limited Term Permit ‐ seasonal sales Flat Fee3 247$ 302.80$ 100% 302$ 55$ 22% 165$ 274$ 27Lot Line Adjustment Flat Fee3 1,865$ 2,266.82$ 100% 2,266$ 401$ 22% 1,203$ 2,065$ 28Lot Merger Flat Fee4 1,865$ 2,266.82$ 100% 2,266$ 401$ 22% 1,604$ 2,065$ 29Modification Permit Flat Fee16 2,718$ 3,150.70$ 100% 3,150$ 432$ 16% 6,912$ 2,934$ 30Non‐Conforming Abatement Period Extension Flat Fee1 540$ 683.61$ 100% 683$ 143$ 26% 143$ 611$ 31Operators License Appeal Flat Fee‐ 782$ 925.94$ 100% 925$ 143$ 18%‐$ 853$ 32Operators License Application Flat Fee3 842$ 953.48$ 100% 953$ 111$ 13% 333$ 897$ 33Planned Development Permit Flat Fee2 4,787$ 6,249.25$ 100% 6,249$ 1,462$ 31% 2,924$ 5,518$ 34Reasonable Accommodation No Fee3 ‐$ 3,259.67$ 0%‐$ ‐$ 0%‐$ Full Cost35Site Development Review ‐ Planning Commission Flat Fee3 4,787$ 5,652.77$ 100% 5,652$ 865$ 18% 2,595$ 5,219$ 5
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit36Site Development Review ‐ Zoning Administrator Flat Fee‐ 2,718$ 3,222.68$ 100% 3,222$ 504$ 19%‐$ 2,970$ 37Subdivisions ‐ Parcel Map Flat Fee4 1,887$ 2,252.20$ 100% 2,252$ 365$ 19% 1,460$ 2,069$ 38Subdivisions ‐ Tentative Tract Map Flat Fee2 4,716$ 5,563.30$ 100% 5,563$ 847$ 18% 1,694$ 5,139$ 39Subdivisions ‐ Vesting Tentative Map Flat Fee1 4,716$ 5,563.30$ 100% 5,563$ 847$ 18% 847$ 5,139$ 40Transfer of Development Rights Flat Fee2 3,321$ 4,394.49$ 100% 4,394$ 1,073$ 32% 2,146$ 3,857$ 41Use Permit (Conditional) ‐ Planning Commission Flat Fee10 4,830$ 5,712.88$ 100% 5,712$ 882$ 18% 8,820$ 5,271$ 42Use Permit (Minor) ‐ Zoning Administrator Flat Fee23 2,719$ 3,222.34$ 100% 3,222$ 503$ 18% 11,569$ 2,970$ 43Variance Flat Fee3 4,009$ 5,265.05$ 100% 5,265$ 1,256$ 31% 3,768$ 4,637$ 44Zoning Plan Check ‐ Non‐Resi & Resi Alterations Hourly927 166$ 204.11$ 100% 204$ 38$ 23% 35,223$ 185$ 45Coastal Development Permit/Parcel Map Bundle Flat Fee11 2,587$ 3,308.01$ 100% 3,308$ 721$ 28% 7,931$ 2,947$ 46Bundled Planning Application Exceeding $7,500 Hourly5 ‐$ 260.34$ 100% 260$ 260$ * 1,302$ 239$ 47Preliminary Application for Residential Development (New) Flat Fee5 ‐$ 760.04$ 100% 760$ 760$ * 3,800$ Full CostFire DepartmentEmergency Medical Services‐$ 1Battalion Chief Unit (one person) Hourly‐ 419$ 484.10$ 100% 484$ 65$ 16%‐$ 2Paramedic Unit (two person) Hourly‐ 582$ 681.82$ 100% 681$ 99$ 17%‐$ 3Engine Company (three person) Hourly‐ 830$ 960.29$ 100% 960$ 130$ 16%‐$ 4Fire Truck (four person) Hourly‐ 1,053$ 1,224.83$ 100% 1,224$ 171$ 16%‐$ 5Firefighter (per person) Hourly‐ 153$ 264.53$ 100% 264$ 111$ 73%‐$ 6PAU Engine (three person) Hourly‐ 898$ 1,036.67$ 100% 1,036$ 138$ 15%‐$ 7Advanced Life SupportPer Response‐ 1,174$ 1,308.75$ 100% 1,308$ 134$ 11%‐$ 8Basic Life SupportPer Response‐ 1,145$ 1,302.99$ 100% 1,302$ 157$ 14%‐$ 9Advanced Life Support Non‐TransportPer Response‐ 400$ 1,286.02$ 31% 400$ ‐$ 0%‐$ 10Basic Life Support Non‐TransportPer Response‐ 400$ 1,274.49$ 31% 400$ ‐$ 0%‐$ 6
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit11ALS First Responder FeePer Response‐ 400$ 884.44$ 45% 400$ ‐$ 0%‐$ 12BLS First Responder FeePer Response‐ 400$ 842.67$ 47% 400$ ‐$ 0%‐$ 13Emergency Ambulance TransportationPer Response‐ 411$ 491.53$ 100% 491$ 80$ 19%‐$ 14Emergency Ambulance Transp Mileage Charge Per Mile‐ 10$ 9.49$ 100% 9$ (1)$ ‐13%‐$ Fire Prevention72,406$ 1Closure Report Review Hourly‐ 231$ 190.46$ 100% 190$ (41)$ ‐18%‐$ 2Commercial Battery ‐ INSPECTION SERVICES Fixed Fee10 224$ 228.21$ 100% 228$ 4$ 2% 40$ 3Commercial Battery ‐ PLAN REVIEW Fixed Fee10 243$ 203.79$ 100% 203$ (40)$ ‐16% (400)$ 4Fire Lane Plan Review (Fire Master Plan) Hourly‐ 231$ 190.46$ 100% 190$ (41)$ ‐18%‐$ 5Fire, Life Safety or Special Hazard Consultation Hourly‐ 231$ 190.46$ 100% 190$ (41)$ ‐18%‐$ 6In Service Building Public Radio Coverage System Service in Private Structures Fixed Fee‐ 421$ 387.53$ 100% 387$ (34)$ ‐8%‐$ 7Fire Access Gates ‐ INSPECTION SERVICES Fixed Fee2 153$ 161.14$ 100% 161$ 8$ 5% 16$ 8Above or Below Ground Tanks, Installation or Removal ‐ INSPECTION SERVICES Fixed Fee‐ 414$ 425.28$ 100% 425$ 11$ 3%‐$ 9Fire Access Gates ‐ PLAN REVIEW Fixed Fee2 190$ 160.63$ 100% 160$ (30)$ ‐16% (60)$ 10Above or Below Ground Tanks, Installation or Removal ‐ PLAN REVIEW Fixed Fee‐ 347$ 290.12$ 100% 290$ (57)$ ‐16%‐$ 11Pre‐submittal Review Hourly‐ 231$ 190.46$ 100% 190$ (41)$ ‐18%‐$ 12Reinspection or Special Inspection ‐ INSPECTION SERVICES Fixed Fee‐ 224$ 228.21$ 100% 228$ 4$ 2%‐$ 13Technical Assistance of Complex Fire Protection Systems Hourly‐ 231$ 190.46$ 100% 190$ (41)$ ‐18%‐$ 14Fuel Modification New and/or Change to Existing Plan ‐ INSPECTION SERVICES Fixed Fee‐ 129$ 129.67$ 100% 129$ ‐$ 0%‐$ 15Fuel Modification New and/or Change to Existing Plan ‐ PLAN REVIEW Fixed Fee‐ 138$ 117.47$ 100% 117$ (21)$ ‐15%‐$ 7
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit16All Assembly (A, F, B, M, S): < or equal to 3000 square feet 2016 CBC ‐ INSPECTION SERVICES Fixed Fee25 319$ 326.74$ 100% 326$ 7$ 2% 175$ 17All Assembly (A, F, B, M, S): > 3000 and less than or equal to 10,000 square feet aggregate ‐ INSPECTION SERVICES Fixed Fee4 414$ 425.28$ 100% 425$ 11$ 3% 44$ 18All Assembly (A, F, B, M, S): >10,000 s.f. aggregate ‐ INSPECTION SERVICES Fixed Fee‐ 604$ 622.35$ 100% 622$ 18$ 3%‐$ 19Daycare E or I‐4 ‐ INSPECTION SERVICES Fixed Fee1 437$ 443.08$ 100% 443$ 6$ 1% 6$ 20Educational other than daycare ‐ INSPECTION SERVICES Fixed Fee‐ 437$ 443.08$ 100% 443$ 6$ 1%‐$ 21H1, H2, H3, H4, H5, or L (Chemical Classification Technical Report Review Review fee also required) ‐ INSPECTION SERVICES Fixed Fee1 509$ 523.81$ 100% 523$ 14$ 3% 14$ 22Hi‐Rise: 75' or higher measured from lowest point of FD access INSPECTION SERVICES Fixed Fee‐ 1,574$ 1,598.17$ 100% 1,598$ 24$ 2%‐$ 23Misc Inspection including elevators, elevator lobbies, generators, canopies, awnings Hourly‐ 212$ 214.87$ 100% 214$ 2$ 1%‐$ 24R1 or R2: Hotels, motels, apartments, condominiums (base fee) ‐ INSPECTION SERVICES Base Fee3 338$ 317.22$ 100% 317$ (21)$ ‐6% (63)$ 25R1 or R2: Hotels, motels, apartments, condominiums (per unit, per building) ‐ INSPECTION SERVICES Per Unit463 9$ 9.85$ 100% 9$ ‐$ 0%‐$ 26R4: licensed residential care/assisted living facilities and similar uses serving 7‐19 clients INSPECTION SERVICES Fixed Fee1 509$ 523.81$ 100% 523$ 14$ 3% 14$ 27R4: licensed residential care/assisted living facilities and similar uses serving ≥ 20 clients INSPECTION SERVICES Fixed Fee1 745$ 756.48$ 100% 756$ 11$ 1% 11$ 28Fire Alarm System: base fee ‐ INSPECTION SERVICES Base Fee81 224$ 228.21$ 100% 228$ 4$ 2% 324$ 8
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit29Fire Alarm System: Per Device ‐ INSPECTION SERVICES Per Device1,682 3$ 3.28$ 100% 3$ ‐$ 0%‐$ 30Commercial fire sprinkler system (NFPA 13): Base per head With 1 Riser ‐ INSPECTION SERVICES Base Fee2 224$ 228.21$ 100% 228$ 4$ 2% 8$ 31Commercial fire sprinkler system (NFPA 13): each add'l head ‐ INSPECTION SERVICES Per Head1,755 3$ 3.28$ 100% 3$ ‐$ 0%‐$ 32Each Additional Commercial Riser Per Riser5 117$ 116.34$ 100% 116$ (1)$ ‐1% (5)$ 33Fire pump installation ‐ INSPECTION SERVICES Fixed Fee‐ 414$ 425.28$ 100% 425$ 11$ 3%‐$ 34Fire sprinkler monitoring system, water flow and tamper switches ‐ INSPECTION SERVICES Fixed Fee‐ 271$ 277.47$ 100% 277$ 6$ 2%‐$ 35Multi‐family dwelling residential fire sprinkler system (NFPA 13R) (base fee) ‐ INSPECTION SERVICES Base Fee2 224$ 228.21$ 100% 228$ 4$ 2% 8$ 36Multi‐family dwelling residential fire sprinkler system (NFPA 13R) (per unit) ‐ INSPECTION SERVICES Per Unit9,000 3$ 3.28$ 100% 3$ ‐$ 0%‐$ 37Standpipes : NFPA 14 Class I, II or III and includes all standpipes within a single building or boat dock ‐ INSPECTION SERVICES Fixed Fee‐ 509$ 523.81$ 100% 523$ 14$ 3%‐$ 38TI NFPA 13 or 13R fire sprinkler system: base fee ‐ INSPECTION SERVICES Base Fee133 176$ 178.94$ 100% 178$ 2$ 1% 266$ 39TI NFPA 13 or 13R fire sprinkler system: per head ‐ INSPECTION SERVICES Per Head3,487 3$ 3.28$ 100% 3$ ‐$ 0%‐$ 40Underground fire protection: New ‐ INSPECTION SERVICES Fixed Fee‐ 414$ 425.28$ 100% 425$ 11$ 3%‐$ 41Underground fire protection: Repair ‐ INSPECTION SERVICES Fixed Fee‐ 319$ 326.74$ 100% 326$ 7$ 2%‐$ 42Commercial cooking hood and duct system (per system) ‐ INSPECTION SERVICES Fixed Fee20 224$ 228.21$ 100% 228$ 4$ 2% 80$ 9
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit43Pre‐action fire sprinkler system, includes alarm system INSPECTION SERVICES Fixed Fee10 271$ 277.47$ 100% 277$ 6$ 2% 60$ 44Special extinguishing system: dry chemical, CO2, foam liquid system, inert gas (Halon, Inergen, etc.) ‐ INSPECTION SERVICES Fixed Fee10 224$ 228.21$ 100% 228$ 4$ 2% 40$ 45Spray Booth, spraying area ‐ INSPECTION SERVICES Fixed Fee‐ 414$ 425.28$ 100% 425$ 11$ 3%‐$ 46Candle Permit Program Fixed Fee20 51$ 71.14$ 76% 54$ 3$ 6% 60$ 47Nuisance Abatement Service Hourly‐ 212$ 214.87$ 100% 214$ 2$ 1%‐$ 48Operational Permit: Level 1* ‐ New or Renewal Fixed Fee176 161$ 454.48$ 40% 181$ 20$ 12% 3,520$ 49Operational Permit: Level 2** ‐ New or Renewal Fixed Fee1,132 298$ 888.49$ 38% 338$ 40$ 13% 45,280$ 50Special Event ‐ single event permit Fixed Fee243 161$ 184.69$ 88% 162$ 1$ 1% 243$ 51Special Event Permit: Level III as defined by the Recreation Department Hourly‐ 212$ 214.87$ 100% 214$ 2$ 1%‐$ 52Public Display ‐ Fireworks ‐ ground display only Fixed Fee‐ 357$ 365.34$ 100% 365$ 8$ 2%‐$ 53Public Display ‐ Fireworks ‐ aerial display >10 min Fixed Fee3 935$ 957.93$ 100% 957$ 22$ 2% 66$ 54Temporary Change of Use Hourly‐ 231$ 190.46$ 100% 190$ (41)$ ‐18%‐$ 55Weekend, Holiday, or Non Contiguous & After Hours Inspection Request Hourly‐ 212$ 214.87$ 100% 214$ 2$ 1%‐$ 56All Assembly (A, F, B, M, S): < or equal to 3000 square feet 2016 CBC ‐ PLAN REVIEW Fixed Fee25 556$ 462.78$ 100% 462$ (94)$ ‐17% (2,350)$ 57All Assembly (A, F, B, M, S): > 3000 and less than or equal to 10,000 square feet aggregate ‐ PLAN REVIEW Fixed Fee4 730$ 606.66$ 100% 606$ (124)$ ‐17% (496)$ 58All Assembly (A, F, B, M, S): >10,000 s.f. aggregate ‐ PLAN REVIEW Fixed Fee‐ 915$ 757.37$ 100% 757$ (158)$ ‐17%‐$ 59Daycare E or I‐4 PLAN REVIEW Fixed Fee1 452$ 376.45$ 100% 376$ (76)$ ‐17% (76)$ 60Educational other than daycare ‐ PLAN REVIEW Fixed Fee‐ 556$ 462.78$ 100% 462$ (94)$ ‐17%‐$ 10
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit61H1, H2, H3, H4, or L (Chemical Classification Technical Report Review Review fee also required) ‐ PLAN REVIEW Fixed Fee1 1,539$ 1,262.91$ 100% 1,262$ (277)$ ‐18% (277)$ 62Hi‐Rise: Structures that are 75 ft. or higher measured from lowest point of fire department access ‐ PLAN REVIEW Fixed Fee‐ 3,628$ 2,989.49$ 100% 2,989$ (639)$ ‐18%‐$ 63Misc Plan Review including elevators, elevator lobbies, generators, canopies, awnings ‐ PLAN REVIEW Hourly‐ 231$ 190.46$ 100% 190$ (41)$ ‐18%‐$ 64R1 or R2: Hotels, motels, apartments, condominiums (base fee) ‐ PLAN REVIEW Base Fee3 236$ 196.23$ 100% 196$ (40)$ ‐17% (120)$ 65R1 or R2: Hotels, motels, apartments, condominiums (per unit, per building) ‐ PLAN REVIEW Per Unit463 8$ 7.19$ 100% 7$ (1)$ ‐13% (463)$ 66R4: licensed residential care/assisted living facilities and similar uses serving 7‐19 clients ‐PLAN REVIEW Fixed Fee1 914$ 753.23$ 100% 753$ (161)$ ‐18% (161)$ 67R4: licensed residential care/assisted living facilities and similar uses serving ≥20 clients ‐ PLAN REVIEW Fixed Fee1 1,539$ 1,262.91$ 100% 1,262$ (277)$ ‐18% (277)$ 68Fire Alarm System: base fee ‐ PLAN REVIEW Base Fee81 190$ 160.63$ 100% 160$ (30)$ ‐16% (2,430)$ 69Fire Alarm System: Per Device ‐ PLAN REVIEW Per Device1,682 2$ 2.30$ 100% 2$ ‐$ 0%‐$ 70Commercial fire sprinkler system (NFPA 13) (base fee) ‐ PLAN REVIEW Base Fee10 190$ 160.63$ 100% 160$ (30)$ ‐16% (300)$ 71Commercial fire sprinkler system (NFPA 13) (per head) ‐ PLAN REVIEW Per Head1,755 3$ 2.88$ 100% 2$ (1)$ ‐33% (1,755)$ 72Fire pump installation ‐ PLAN REVIEW Fixed Fee‐ 452$ 376.45$ 100% 376$ (76)$ ‐17%‐$ 73Fire sprinkler monitoring system, water flow & tamper switches ‐ PLAN REVIEW Fixed Fee‐ 168$ 142.83$ 100% 142$ (26)$ ‐15%‐$ 74Multi‐family dwelling residential fire sprinkler system (NFPA 13R): base fee ‐ PLAN REVIEW Base Fee‐ 190$ 160.63$ 100% 160$ (30)$ ‐16%‐$ 11
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit75Multi‐family dwelling residential fire sprinkler system (NFPA 13R): per unit ‐ PLAN REVIEW Per Unit‐ 3$ 2.88$ 100% 2$ (1)$ ‐33%‐$ 76Standpipes : NFPA 14 Class I, II or III and includes all standpipes within a single building or boat dock ‐ PLAN REVIEW Fixed Fee‐ 452$ 376.45$ 100% 376$ (76)$ ‐17%‐$ 77TI NFPA 13 or 13R fire sprinkler system: base fee ‐ PLAN REVIEW Base Fee133 138$ 117.47$ 100% 117$ (21)$ ‐15% (2,793)$ 78TI NFPA 13 or 13R fire sprinkler system: per head ‐ PLAN REVIEW Per Head3,487 2$ 2.16$ 100% 2$ ‐$ 0%‐$ 79Underground fire protection, fire line: New ‐ PLAN REVIEW Fixed Fee‐ 382$ 318.90$ 100% 318$ (64)$ ‐17%‐$ 80Underground fire protection, fire line: Repair ‐ PLAN REVIEW Fixed Fee‐ 190$ 160.63$ 100% 160$ (30)$ ‐16%‐$ 81Commercial cooking hood and duct system (per system) ‐ PLAN REVIEW Fixed Fee20 138$ 117.47$ 100% 117$ (21)$ ‐15% (420)$ 82Pre‐action fire sprinkler system, includes alarm system ‐ PLAN REVIEW Fixed Fee10 556$ 462.78$ 100% 462$ (94)$ ‐17% (940)$ 83Special extinguishing system: dry chemical, CO2, foam liquid system, inert gas (Halon, Inergen, etc.) ‐ PLAN REVIEW Fixed Fee10 295$ 246.96$ 100% 246$ (49)$ ‐17% (490)$ 84Spray Booth, spraying area ‐ PLAN REVIEW Fixed Fee‐ 556$ 462.78$ 100% 462$ (94)$ ‐17%‐$ 85Care Facility: 7‐99 clients as defined in CBC Annual Fee125 388$ 1,226.05$ 36% 441$ 53$ 14% 6,625$ 86Care Facility: >99 clients as defined in CBC Annual Fee160 496$ 1,399.39$ 41% 570$ 74$ 15% 11,840$ 87Commercial Day Care Facility ( Tutor Time, annual inspections) Annual Fee70 221$ 695.60$ 36% 250$ 29$ 13% 2,030$ 88High Rise Buildings Annual Fee‐ 1,269$ 1,323.32$ 100% 1,323$ 54$ 4%‐$ 89Hospital (Hoag) Annual Fee50 7,918$ 8,186.57$ 100% 8,186$ 268$ 3% 13,400$ 90Hotel/Motel 50‐299 Rooms Annual Fee70 221$ 695.60$ 36% 250$ 29$ 13% 2,030$ 91Hotel/Motel 300 or More Rooms Annual Fee‐ 389$ 431.03$ 92% 398$ 9$ 2%‐$ 92Residential Care Facility Pre‐License Inspection Fixed Fee‐ 284$ 308.94$ 96% 296$ 12$ 4%‐$ 93State Fire Clearance Fixed Fee28 85$ 102.58$ 82% 84$ (1)$ ‐1% (28)$ 94Surgery Centers Annual Fee10 452$ 463.88$ 100% 463$ 11$ 2% 110$ 12
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per UnitJunior Lifeguards Program(99)$ 1Junior Lifeguards ProgramPer Participant1,350 727$ 856.87$ 85% 727$ ‐$ 0%‐$ 2Cancellation FeePer Participant33 112$ 109.33$ 100% 109$ (3)$ ‐3% (99)$ Lifeguard Operations48$ 1Lifeguard Officer Hourly1 79$ 133.59$ 100% 133$ 54$ 68% 54$ 2Lifeguard Captain Hourly1 188$ 196.58$ 100% 196$ 8$ 4% 8$ 3Lifeguard Battalion Chief Hourly1 255$ 225.66$ 100% 225$ (30)$ ‐12% (30)$ 4Lifeguard IHourly1 62$ 63.17$ 100% 63$ 1$ 2% 1$ 5Lifeguard II/III Hourly1 68$ 73.13$ 100% 73$ 5$ 7% 5$ 6Rescue Boat (2 persons) Hourly1 245$ 255.88$ 100% 255$ 10$ 4% 10$ Police Department(31,307)$ 1Civil Subpoena ‐ Sworn Officers or Firefighters State‐ 275$ ‐$ 275$ ‐$ 0%2Civil Subpoena ‐ All Other Staff State‐ 275$ ‐$ 275$ ‐$ 0%3Concealed Weapons Permit ‐ Initial State5 100$ 348.69$ 100% 348$ 248$ 248% 1,240$ 4Concealed Weapon Permit ‐ Renewal State5 25$ 329.83$ 8% 25$ ‐$ 0%‐$ 5Disturbance Advisory Card / Response Flat Fee100 64$ 126.96$ 100% 126$ 62$ 97% 6,200$ 6Adoption Fee ‐ Any Animal Delete‐ ‐$ ‐$ 7Adoption Fee ‐ dogs Flat Fee98 130$ 258.97$ 58% 150$ 20$ 15% 1,960$ 8Adoption Fee ‐ puppies Flat Fee23 150$ 268.97$ 84% 225$ 75$ 50% 1,725$ 9Adoption Fee ‐ cats Flat Fee28 90$ 196.82$ 46% 90$ ‐$ 0%‐$ 10Adoption Fee ‐ kittens Flat Fee80 110$ 227.90$ 48% 110$ ‐$ 0%‐$ 11Adoption Fee ‐ small animal Flat Fee6 45$ 77.68$ 58% 45$ ‐$ 0%‐$ 12Boarding Fee ‐ Animal Per Day‐ 10$ 42.61$ 59% 25$ 15$ 150%‐$ 13Boarding Fee ‐ Small Animals Per Day‐ 10$ 26.36$ 38% 10$ ‐$ 0%‐$ 14Owner Turn‐In Fee Flat Fee13 85$ 240.97$ 41% 100$ 15$ 18% 195$ 15Impound Fee ‐ dog, cats, small animals Flat Fee132 41$ 135.36$ 41% 55$ 14$ 34% 1,848$ 16Impound Release Non‐Alter Fee: 1st impound State‐ 35$ ‐$ 35$ ‐$ 0%‐$ 17Impound Release Non‐Alter Fee: 2nd impound State‐ 50$ ‐$ 50$ ‐$ 0%‐$ 18Impound Release Non‐Alter Fee: 3rd impound State‐ 100$ ‐$ 100$ ‐$ 0%‐$ 13
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit19Kennel License: 4‐9 animals Delete‐ 107$ ‐$ 20Kennel License: 10‐29 animals Flat Fee4 178$ 203.04$ 100% 203$ 25$ 14% 100$ 21Kennel License: 30‐59 animals Flat Fee9 214$ 243.65$ 100% 243$ 29$ 14% 261$ 22Kennel License: 60+ animals Delete‐ 249$ ‐$ 23Annual Insp ‐ Pet Shop Delete‐ 142$ ‐$ 24Annual Insp ‐ Pot Bellied Pig Flat Fee‐ 119$ 135.36$ 100% 135$ 16$ 13%‐$ 25Annual Insp ‐ Wild Animal Permit Flat Fee‐ 119$ 135.36$ 100% 135$ 16$ 13%‐$ 26Rabies Inoculation Delete‐ ‐$ ‐$ 27Spay & Neuter Fees Delete‐ ‐$ ‐$ 28Massage Permit ‐ Operator Flat Fee5 553$ 375.66$ 100% 375$ (178)$ ‐32% (890)$ 29Second Hand Dealer ‐ Initial Permit Flat Fee15 100$ 313.64$ 100% 313$ 213$ 213% 3,195$ 30Second Hand Dealer ‐ Renewal & DOJ Fingerprint Flat Fee15 66$ 294.78$ 100% 294$ 228$ 345% 3,420$ 312nd Hand / Pawn Dealer ‐ tag check No Fee20 ‐$ 10.05$ 0%‐$ ‐$ ‐$ 32Emergency Response Billing see notes‐ ‐$ ‐$ 33Alarm Application Flat Fee450 65$ 55.82$ 100% 55$ (10)$ ‐15% (4,500)$ 34Alarm‐Monitor Fee Annual Fee140 278$ 200.17$ 100% 200$ (78)$ ‐28% (10,920)$ 35Annual Alarm Renewal Fee ‐ commercial Annual Fee1,145 53$ 33.84$ 100% 33$ (20)$ ‐38% (22,900)$ 36Triennial Alarm Renewal Fee ‐ residential Triennial1,736 53$ 33.69$ 100% 33$ (20)$ ‐38% (34,720)$ 37Audio Recording ‐ Dispatch Flat Fee125 93$ 92.38$ 100% 92$ (1)$ ‐1% (125)$ 38Audio Recording ‐ Property Evidence Flat Fee36 50$ 79.52$ 100% 79$ 29$ 58% 1,044$ 39Bike Licenses Flat Fee20 2$ 6.29$ 17% 1$ (1)$ ‐50% (20)$ 40Citation Sign Off Flat Fee15 17$ 6.29$ 100% 6$ (11)$ ‐65% (165)$ 41City Jail Booking Fee Flat Fee1,504 399$ 362.83$ 100% 362$ (37)$ ‐9% (55,648)$ 42Clearance Letters Flat Fee50 39$ 6.29$ 100% 6$ (33)$ ‐85% (1,650)$ 43Reports ‐ Arrest, Crime, MP's, Traffic Flat Fee1,105 11$ 3.14$ 100% 3$ (8)$ ‐73% (8,840)$ 44Domestic Violence Reports No Fee‐ ‐$ 5.74$ 0%‐$ ‐$ ‐$ 45False Alarm ‐ billable Penalty1,000 ‐$ 66.02$ 46Video (MVS, Jail, Property) Flat Fee1,129 100$ 158.73$ 100% 158$ 58$ 58% 65,482$ 47Finger Printing Flat Fee114 34$ 18.86$ 100% 18$ (16)$ ‐47% (1,824)$ 48Vehicle Repossession Flat Fee116 15$ 12.57$ 119% 15$ ‐$ 0%49Vehicle Release Flat Fee1,352 42$ 18.86$ 100% 18$ (24)$ ‐57% (32,448)$ 50Franchise Tow Fee (per vehicle) Flat Fee1,223 104$ 146.25$ 100% 146$ 42$ 40% 51,366$ 52Monitoring Decal (pkg of 10) Flat Fee1 25$ 6.29$ 100% 6$ (19)$ ‐76% (19)$ 53Monitoring Sign ‐ telephonic alarm system Flat Fee2 34$ 10.06$ 100% 10$ (24)$ ‐71% (48)$ ‐‐ Penalty set by NBMC 5.49.070 ‐‐‐‐ Billing uses fully burdened hourly rates ‐‐14
Attachment A: FY20 Studied Department ChangesEF GH IJKLABC DPer UnitOrdService NameFee DescriptionAnnual Volume Current FeeFull CostRecovery LevelFee @ Policy LevelVariance% ChangeChange in RevenuePhase 1 (Planning Only)RecommendationsCurrentPer Unit Per Unit54Photographs ‐ Digital (on CD only) Flat Fee1,000 32$ 37.41$ 100% 37$ 5$ 16% 5,000$ 55Registrant ‐ Narcotics No Fee13 ‐$ 246.95$ 0%‐$ ‐$ ‐$ 56Registrant ‐ Sex Offender No Fee60 ‐$ 230.92$ 0%‐$ ‐$ ‐$ 57Solicitor Application ‐ up to 10 per namesFlat Fee10 42$ 22.63$ 100% 22$ 2$ 5% 20$ 58Solicitor Application ‐ 10 or more per namesFlat Fee3 102$ 22.63$ 100% 22$ 118$ 122% 354$ 59Subpoena Duces Tecum see notes291 ‐$ 47.78$ ‐‐Fee set by statute, charged at $24/hour ‐‐15
ATTACHMENT B
APPLICATION OF INDIRECT COSTS TO THE CALCULATION OF FEES FOR SERVICES
1
Attachment B: Application of Indirect Costs to the Calculation of Fees for Services
The purpose of this exhibit is to provide a detailed explanation of the methodology used by the City
of Newport Beach to incorporate indirect overhead costs in the development of the municipal fee
schedule. The nature of indirect overhead costs will also be described. A Fire Department, Fire
Prevention Special Event Permits - Public Display - Fireworks Aerial Display Fee (Fee) facilitates the
explanation.
The 4th of July and Boat Parade are wonderful
opportunities for people to enjoy spectacular
fireworks shows right here in our own community.
An incredible amount of time and energy goes into
planning, preparing, inspecting, and ensuring that
these events go smoothly. Safety is paramount. The
permit application submitted to Fire Prevention must
include proof of liability insurance, State Fire
Marshal licenses, and a list of persons working the
shoot. The Fire Life Safety Specialist reviews the
packet and provides a list of “Conditions” to the
applicant to follow upon approval. The day of the
shoot, the Fire Life Safety Specialist does an onsite
inspection in the morning, afternoon, and evening to ensure all safety requirements are met and
verifies the pyrotechnician has their license and double checks its validity. The Fire Life Safety
Specialist is present during the show and after checking for possible fires, extinguishing fires should
they occur, stopping the show at any time if necessary, and ensuring that all debris is cleaned up.
The following steps demonstrate how the Fee is derived.
Step 1: Calculate Hourly Staffing Rates and Burdened Factors
The first step is to determine the hourly rates of staff providing the services associated with the fee.
Table 1 below provides the hourly salary and benefit rates plus the hourly burden factors for the staff
that are responsible for performing this task within Fire and Community Development Department
(CDD). Indirect overhead costs or “burdened factors” 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.
Table 1- Hourly Rates for Salary, Benefit and Overhead Factors
Salary and Benefits Burdened Factors Total Burdened
Rate Hourly Rate Hourly Rate
Fire Life Safety Specialist II $100.54 + $96.53 = $197.07
CDD Permit Tech $75.97 + $84.04 = $160.01
Fire Marshal $108.99 + $104.64 = $213.63
The City’s cost allocation plan consultant uses the Federal Office of Management and Budget (OMB)
Super Circular 2 CFR Part 200 as a guideline to determine the allowable burdened, or indirect, cost
elements. The Super Circular is a document that state and local governments use to identify
2
allowable indirect costs when applying for reimbursement of cost from state or federal
programs. Although the calculation of user fee services is not specific to applying for reimbursement
from any state or federal program, the underlying methodology of identifying costs is much the
same. The relevant sections of the Super Circular that specify how direct and indirect costs shall be
applied to the calculation of the Fee follows below.
Composition of Cost
Direct Costs
1. General. Direct costs are those that can be identified specifically with a particular final cost
objective.
2. Application. Typical direct costs include:
a) Compensation of employees for the time devoted and identified specifically to the
performance of the operation.
b) Cost of materials acquired, consumed, or expended specifically for the purpose of fulfilling
the mission of the operation.
c) Equipment and other approved capital expenditures.1
d) Travel expenses incurred specifically to carry out the operation.
Using the personnel identified in Table 1, the direct costs for the public display of aerial fireworks
greater than ten minutes are found on line 1.1 (total salary and benefits on an hourly basis) in Table
1a below.
Table 1a
1 Includes maintenance and/or depreciation expense only, not equipment purchases, which are capitalized over a
number of years.
Fire Life
Safety
Specialist II
CDD
Permit
Tech
Fire
Marshal
209,121$ 158,016$ 226,691$
1. Calculate hourly salary & benefits
1.1 Divide annual cost by 2,080 hrs $100.54 $75.97 $108.99
Total Salary and Benefits CDD $100.54 $75.97 $108.99
2. Indirect Overhead Building
2.1 Compensated Absences 13.4% 13.4% $13.47 $10.18 $14.61
(vacation, sick leave)
2.2 General Administration 27.025% 37.146% $27.17 $28.22 $29.45
(supervision, support services)
2.3 Operating Expense 24.765% 21.959% $24.90 $16.68 $26.99
(training, supplies, maint & repair)
2.4 Citywide Overhead 30.818% 38.123% $30.99 $28.96 $33.59
(Finance, City Manager, Human Resources)
Total Indirect Overhead 96.0% 110.6% $96.53 $84.04 $104.64
Total Burdened Rate: $197.07 $160.01 $213.63
Fire
Prevention
Fully Burdened Hourly Rates
Annual Salary & Benefits:
3
Indirect Costs
1. General. Indirect costs are those: (a) incurred for a common or joint purpose benefiting more
than one cost objective, and (b) not readily assignable to the cost objectives specifically
benefitted. The term “indirect costs,” as used herein, applies to costs of this type originating from
staff within Fire Prevention and CDD Building, their operating expenditures and administration
support, as well as those incurred by administrative departments in supplying goods, services,
and facilities.
The cost of service analysis includes four types of indirect overhead categories or “cost pools”
consisting of compensated absences, general administration, operating expenses, and citywide
overhead.
a) Compensated Absences – The compensated absences cost pool is used to account for
employees' time off with pay for vacations and sick days. The City is obligated to pay for
these days off and is required by the matching principle to record the expense when the
employees are working, since the benefits are a part of the employees' compensation. It is
estimated that 280 out of 2,080 total available hours per year per full-time equivalent (FTE)
are taken as compensated absences. This translates into a 13.4% burden factor applied to
the hourly salary and benefit rate as indicated on line 2.1 in Table 1a above.
b) General Administration – The general administration cost pool includes the cost of staff time
spent on such activities as budget planning and staffing allocations; public counter and
telephone time, meetings, and training and education. The wages of management staff and
the workers engaged in administration and support activities are considered an indirect labor
cost. It is calculated that 27% of Fire Prevention and 37.1% of CDD Building’s overall
workload is spent on this general administrative function as indicated on line 2.2 in Table 1a
above.
c) Operating Expenditures – The operating expenditure cost pool consists largely of Internal
Service Fund (ISF) charges to the divisions on a cost reimbursement basis. The City’s
internal service funds are used to allocate the cost of providing general liability insurance and
workers’ compensation; maintaining and replacing the City’s rolling stock fleet; and the cost
of maintaining and replacing the City’s computers, printers, copiers, and telecommunication
services. This cost pool also includes other general operating expenses such as publications,
supplies, and training. The operating expenditure burden factor of 24.8% for Fire Prevention
and 22% for CDD Building as indicated on line 2.3 in Table 1a above is calculated by
comparing the total cost of (allowable indirect) operating expenditures to the total (allowable
direct) labor pool.
d) Citywide Overhead - The Cost Allocation Plan (CAP) distributes the costs of City departments
that serve a central service function supporting MOD and Revenue operations. These
“Central Service Departments/Divisions” include: City Council, City Clerk, City Manager,
Finance & Treasury Financial Planning, and Financial Reporting, as well as Human
Resources Risk Management. The citywide overhead burden factor of 30.8% for Fire
Prevention and 38.1% of CDD Building is calculated by comparing the total cost of Fire
Prevention and CDD Building’s share of citywide overhead to the total (allowable direct) labor
pool (see line 2.4 in Table 1a above).
4
Step 2: Calculate Time Spent on the Service
The second step is to calculate the time spent on the service. The task and time in minutes estimated
to complete the task is captured in Table 2 below.
Table 2: Task Description & Time Estimates in minutes
Review application, conduct
inspections morning, afternoon,
and evening day of event
Schedule and Verify
Code Compliance
Process and
File Permit
Fire Life Safety Specialist II 280 minutes
CDD Permit Tech 1 minute
Fire Marshal 10 minutes
Step 3: Calculate the Cost to Provide the Service
The third and final step is to calculate the cost to provide the service by converting the total minutes
to hours per unit (or staff person). The product of the hourly rate calculation times the time spent
yields the cost of providing the service (see Table 3 below).
Table 3 – Fee is Product of Times and Rates
Summary
The purpose of a CAP is to accurately, fairly, and reasonably distribute the City’s central
administrative costs to the operating departments in the City. The development of a CAP follows a
series of general guidelines and principles, which originate from federal guidelines established in
OMB Super Circular. These principles ensure that allocated costs are necessary and reasonable to
the operation of the government. A cost analysis study is almost entirely reliant upon the data
provided by the City. Since all study components are interrelated, bad data at any step in the process
will cause the ultimate results to be flawed. To avoid accuracy problems and other quality flaws, the
study included a series of quality control measures including reasonableness tests and validation;
balance and cross checks; and internal City review. Finally it should be noted that private businesses
typically add a layer of profit margin to their cost analysis, public agencies are not allowed to do so.
ATTACHMENT C
MUNICIPAL CODE 3.36.030 EXHIBIT A CHANGES
Attachment C: Municipal Code 3.36.030 Changes
Chapter 3.36
COST RECOVERY FOR USER SERVICES
Sections:
3.36.010 Findings.
3.36.020 Definitions.
3.36.030 Cost Recovery Percentages.
3.36.040 Late Fees and Charges.
3.36.050 Severability.
3.36.010 Findings.
The City Council of the City of Newport Beach finds as follows:
A. The City funds certain municipal services such as fire, police and residential trash collection using
primarily property, sales and other tax revenues. These municipal services are typically performed
without request by the user, benefit the public generally, and are traditionally funded by tax revenue.
B. The City performs other services and offers certain programs which are funded in whole or in part
by the person or entity requesting the service or participating in the program. These services and
programs are typically initiated by an application submitted by the person requesting the service or
program participation, primarily benefit the person requesting the service or participation, and are
traditionally funded in whole or in part from fees charged to the person who initiates the services.
C. The City Council has retained consultants to conduct cost allocation plan and cost of services
studies. Cost allocation studies determine the general City and departmental overhead rates to be
used in calculating the cost of City services. Cost of services studies determine the costs of providing
certain City services by, among other things, identifying the City employees performing the service
and the amount of time spent in performing the service. The City Council has thoroughly reviewed and
considered the studies prior to adopting the ordinance codified in this chapter. In order to ensure that
fees charged for services are an accurate reflection of actual costs, the City Council finds that cost
studies should be conducted at least every five years.
D. The Finance Committee of the City Council has conducted public meetings to discuss the cost
allocation plan and cost of services studies, the factors relevant to the appropriate cost recovery
percentage for the services studied, and to receive public input on the issues. The Finance Committee1
has submitted recommendations to the City Council regarding the appropriate cost recovery
percentage and those recommendations have been reviewed and considered by the City Council prior to
adopting the ordinance codified in this chapter.
E. The City Council has fully complied with provisions of State and local law in establishing the cost
recovery percentages specified in this chapter, including, Section 66000 et seq. of the Government
Code, and Articles XIIIC and XIIIB of the State Constitution. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008:
Ord. 97-8 § 1 (part), 1997)
3.36.020 Definitions.
For purposes of this chapter, the following definitions shall apply:
“Actual cost” means the estimated cost to the City of providing a user service to a user as initially
determined by analysis of the cost factors in the studies and as modified from time to time in
accordance with changes in cost factors.
“Cost factors” means the various factors identified in the studies relevant to the calculation of the
actual cost to the City of providing user services to a user.
“Cost recovery percentage” means the percentage of the actual cost to the City of providing a user
service that the City Council determines should be recovered from the user.
“Cost studies” means the Cost of Services and Cost Allocation Studies conducted by the City’s
consultant(s).
“Fee resolution” means the resolution adopted by the City Council pursuant to this chapter which
establishes the fees and charges for user services.
“User” means the person or entity who requests, by filing an application or otherwise, City
performance of, or user’s participation in, a user service.
“User services” means the services or programs identified in the cost studies and which are funded, in
whole or in part, by fees or charges imposed on the user of the service. (Ord. 2008-14 § 1 (Exh. 1)
(part), 2008: Ord. 97-8 § 1 (part), 1997)
3.36.030 Cost Recovery Percentages.
A. The municipal functions the City Council has determined to be user services and for which the
City Council has initially determined the actual costs and the appropriate cost recovery percentage are
described in the fee resolution. The cost recovery percentage appropriate for each user service shall
be one hundred (100) percent with the exception of the user services listed in Exhibit “A” and those2
services for which the fee is limited by statute. The City Council may include in the fee resolution a
schedule to phase in specific fee increases over a period not to exceed four years.
B. The City Council shall establish, pursuant to the fee resolution, the actual fee or charge for each
user service described in the fee resolution. The fee or charge shall be based upon the actual cost of
providing the user service, multiplied by the relevant cost recovery percentage.
C. The City Council may, without amending this chapter, modify (increase or decrease) the fee
resolution to amend the amount of any fee or charge for, and the actual cost of providing, any user
service upon a determination that there has been an increase or decrease in one or more of the cost
factors relevant to the calculation of the actual cost of providing that service.
D. The City Council may modify the municipal functions determined to be user services in the fee
resolution and the cost recovery percentage for any service only by amending this chapter.
E. Fees for service established in the fee resolution may be waived by the City Council. The City
Manager may waive fees imposed on nonprofit organizations for nonprofit sponsored events in an
amount not to exceed one thousand dollars ($1,000.00) per year.
Exhibit A
The City’s cost of providing the following services shall be recovered through direct fees charged for
services. Exhibit “A” limits cost recovery fees to the percentages or dollar amounts indicated below.
Service
Percentage of
Cost or Amount
to Be
Recovered from
Direct Fees
Community Development
Building
Appeals Board Hearing—
Applicant Successful
0%
Appeals Board Hearing—
Applicant Unsuccessful
50%$1,715
Harbor Construction 50%
Permit Issuance (Counter
Only) Electrical, Plumbing
$35
3
Service
Percentage of
Cost or Amount
to Be
Recovered from
Direct Fees
Preliminary Plan Review First Two Hours
Free, Full Cost
Thereafter
Life Safety Services
Candle Permit Program 76%
Care Facilities
7—99 Clients
36%
Care Facilities >99
Clients
40.8%
Commercial Day Care
Facilities
36%
Hotels/Motels
50—299 Rooms
36%
Hotels/Motels
300 or More Rooms
92.4%
Operational Permits—
Level 1
40%
Operational Permits—
Level 2
38.1%
Residential Care Facility
Prelicense Inspection
96%
Special Event Permits—
Single Event
88%
State Fire Clearance 82%
Planning
Appeals to City Council 50%$1,715
Appeals to Planning
Commission
50%$1,715
Coastal Development Permit
Application Appeals from
Zoning Administrator to
Planning Commission
0%
Reasonable
Accommodation
0%
Recreation and Senior
Services
Adult Sports 50%—95%
4
Service
Percentage of Cost or Amount to Be Recovered from
Direct Fees
Passport Photo $10
Use Fees—Materials $1
Inter-Library Loan $5
Fire and Marine
Emergency Medical
Services
Advanced Life Support
(ALS)—Nontransport
$400
Basic Life Support (BLS)—
Nontransport
$400
ALS First Responder Fee $400
BLS First Responder Fee $400
Fire Prevention
Candle Permit Program 76%
Care Facilities
7—99 Clients
36%
Care Facilities >99
Clients
40.8%
Commercial Day Care
Facilities
36%
Hotels/Motels
50—299 Rooms
36%
Hotels/Motels
300 or More Rooms
92.4%
Operational Permits—
Level 1
40%
Operational Permits—
Level 2
38.1%
Residential Care Facility
Prelicense Inspection
96%
Special Event Permits—
Single Event
88%
State Fire Clearance 82%
MarineJunior Lifeguards
Junior LifeGguards—
Participation Fee
$727
Police
Bike Licenses 17%
Secondhand/Pawn Dealer
Tag Check
0%
Registrant—Narcotics 0% 5
Impound Fee Maximum
Permitted by
Contract
Animal Shelter
Adoption Fee - Dogs $150
Adoption Fee - Puppies $225
Adoption Fee - Cats $90
Adoption Fee - Kittens $110
Adoption Fee – Small Animals $45
Boarding Fee (per day) -
Animals
$25
Boarding Fee (per day) –
Small Animals
$10
Owner Turn-In Fee $100
Impound Fee – Dogs, Cats,
Small Animals
$55
Public Works
Engineering
Encroachment Permit
without Other
Department/Division Review
88%
Encroachment Permit with
Other Department/Division
Review
57%
Harbor Resources
Appeal of Lease/Permit
under Section 17.60.080
$100
Finance
Payment Plans (Except
Parking)
$25
Parking Hearings 0%
Admin. Cite Hearings 0%
Municipal Operations
Construction Water Meter
Establishment
50%
Fats, Oils, and Grease
(FOG) Annual Permit
0%
City Council, Board,
Commission, Committee
or Any Individual Member
Thereof When Acting
within the Scope of Their
Official Duties
Review from a Lower
Body or Official
$0
6
(Ord. 2018-15 § 1, 2018; Ord. 2018-13 § 1, 2018; Ord. 2016-14 § 1, 2016; Ord. 2015-29 § 1, 2015; Ord. 2015-9 § 1, 2015; Ord. 2013-18
§§ 1, 2, 2013; Ord. 2013-1 § 1, 2013; Ord. 2011-28 § 1, 2011; Ord. 2011-10 § 1, 2011; Ord. 2009-32 § 1 (Exh. A), 2010; Ord. 2009-21 § 1
(Att. 1), 2009; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 2004-4 § 3, 2004; Ord. 2002-26 Exh. A, 2002; Ord. 2000-24 § 1, 2000; Ord.
98-18 § 1, 1998; Ord. 97-8 §§ 1 (part), 2, 1997)
3.36.040 Late Fees and Charges.
Notwithstanding any other provision of this Code, the City Council shall establish, in the fee resolution,
late fees and interest to be paid by any user of user services who fails to make payments when
required by this Code or any resolution, policy, or program adopted by the City Council. To the
maximum extent practical, the late fees and interest shall be uniform for all user fees. (Ord. 2008-14 §
1 (Exh. 1) (part), 2008: Ord. 97-8 § 1 (part), 1997)
3.36.050 Severability.
If any section, subsection, sentence, clause or phrase of this chapter 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 chapter. The City Council declares that it would have passed the ordinance
codified in this chapter and each section, subsection, clause or phrase hereof, irrespective of the fact
that any one or more sections, subsections, sentences, clauses and phrases be declared
unconstitutional. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 2, 1997)
The Newport Beach Municipal Code is current through Ordinance 2019-19, passed November 19, 2019.
Disclaimer: The City Clerk’s office has the official version of the Newport Beach Municipal Code. Users should
contact the City Clerk’s office for ordinances passed subsequent to the ordinance cited above.
City Website: https://www.newportbeachca.gov/
City Telephone: (949) 644-3005
Code Publishing Company
7
ATTACHMENT D
PARKING CITATION VIOLATION PENALTY SCHEDULE CHANGES
Attachment D: Parking Citation Violation Penalty Schedule Changes No Change
New
Newport Beach Parking Citation Violation Fine Schedule Change/Correction
Code Description FY20 Fine Delete
11.04.070(F) MC PARKED IN PARK $46.00
11.08.030(D) MC PROHIBITED PARKING $46.00
11.08.090(A) MC PARKING ON PUBLIC PIER $46.00
12.08.010 MC EMERGING FROM ALLEY/PRIVATE DR $46.00
12.08.100 MC PROHIB PARK/STOP: PIER $46.00
12.08.120 MC PARKING ON BEACH $46.00
12.12.010(D) MC COMPLIANCE WITH SIGNS $46.00
12.12.030 MC TRAFFIC CONTROL DEVICES $46.00
12.12.050 MC FEE NOT PAID IN LOT $46.00
12.12.060 MC PACIFIC COAST HIGHWAY LOT $46.00
12.12.080 MC MOTORCYCLES IN WOF LOT $46.00
12.20.030 MC OBED TO CONTROL DEVICES REQ $46.00
12.32.050(D) MC BALBOA ISLAND: BLOCKING EGRESS $46.00
12.40.020 MC PARKWAYS $46.00
12.40.030 MC PARKING ON PRIVATE PROPERTY $46.00
12.40.030 MC PRIVATE PROPERTY PARKING $46.00
12.40.035 MC PKG ON PRIVATE STREETS/DRIVES $46.00
12.40.040 MC PARKING IN EXCESS 72 HOURS $79.00
12.40.050(A) MC TRLR UNHITCH ON BALBOA ISLAND $46.00
12.40.050(B) MC TRAILER ON BALBOA ISLAND $46.00
12.40.055(A) MC TRAILER/RV/OVERSIZED VEHICLE $46.00
12.40.055(B) MC OVERSIZE 95IN WIDE RES AREA $46.00
12.40.055(C) MC HEAVY DUTY COMM VEH>84 IN WIDE $46.00
12.40.055(D) MC DETACHED TRAILER, RES AREA $46.00
12.40.060(A) MC PKG PROHIB: VEH FOR SALE $84.00
12.40.060(B) MC PKG PRHIB: VEH 4 SALE-OWN PROP $84.00
12.40.060(C) MC PKG PROHIB: NON-EMRGNCY REPAIR $84.00
12.40.060(D) MC PKG PROHIB: CAR WASHING $84.00
12.40.070 MC PKG ON GRADE, WHEELS NOT TURND $46.00
12.40.080 MC 18INCHES FROM LEFT CURB $46.00
12.40.090 MC ANGLE PARKING, OUTSIDE LINES $46.00
12.40.110 MC ACROSS/OUTSIDE SPACE MARKERS $46.00
12.40.120 MC OBSTRUCTING PARKING SPACE $46.00
12.40.130 MC PERMIT REQD-ANGLE LOAD/UNLOAD $46.00
12.40.140 MC PARKING ADJACENT TO SCHOOLS $46.00
12.40.150 MC PROHIB PKG: NARROW STREETS $46.00
12.40.160 MC POSTED NO PARKING/STOPPING $84.00
12.40.160(A) MC PROHIB PKG: MID-BLK SAFETY ZNE $46.00
12.40.160(B) MC PROHIB PKG: 25FT OF INTERSECTN $46.00
12.40.160(C) MC PROHIB PKG: 25FT OF TRAFF SGNL $46.00
12.40.160(D) MC NO PARKING AREA $84.00
12.40.160(E) MC TRAFFIC HAZARD $84.00
12.40.170(A) MC RESTRICT PKG: VENDORS/PRODUCTS $64.00
12.40.170(B) MC RESTRICTED PKG: VEH FOR HIRE $64.00
12.40.170(C) MC RESTRICTED PKG: PERMIT REQ.$64.00
12.40.180 MC EMERGENCY PKG RESTRICTIONS $46.00
12.40.190 MC CAUSE FOR REMOVAL/STORAGE $46.00
12.44.010(A) MC OVERTIME 1 HOUR ZONE $52.00
12.44.010(B) MC OVERTIME 2 HOUR ZONE $52.00
1
Attachment D: Parking Citation Violation Penalty Schedule Changes No Change
New
Newport Beach Parking Citation Violation Fine Schedule Change/Correction
Code Description FY20 Fine Delete
12.44.010(C) MC OVERTIME 3 6 HOUR ZONE $52.00
12.44.070(A) MC OUTSIDE PAID SPACE MARKING $46.00
12.44.070(B) MC BACKING INTO METER SPACE $46.00
12.44.070(C) MC ACROSS MARKING, METER AREA $46.00
12.44.084 MC PARKING AT AN INOPERABLE METER $61.00
12.44.100 MC ACTIVATION OF METER $46.00
12.44.110 MC PAYMENT TIME EXPIRED $64.00
12.44.150(C) MC STREET SWEEPING $60.00
12.44.150(D) MC PARKING PROHIBITED $60.00
12.44.160(C) MC PROHIBITED NIGHT PARKING $46.00
12.46.040 MC NON-DISPLAY OF PLACARD/LIC PLT $52.00
12.48.040(A) MC PARKING IN RED ZONE $84.00
12.48.040(B) MC PKG IN LOADING ZONE (YLW) $84.00
12.48.040(C) MC WHITE ZONE (3 MINUTE LOADING) $84.00
12.48.040(D) MC OVERTIME GREEN ZONE PAID AREA $84.00
12.48.050(A) MC OVERTIME GREEN ZONE $66.00
12.48.050(B) MC 5 MINUTE ZONE (GREEN) $66.00
12.48.070(A) MC RESTRICTED USE: LOADING ZONE $66.00
12.48.070(B) MC RESTRICT USE: LDG ZONE-PSNGRS $66.00
12.48.080 MC EXCESS 3 MIN PASS LOADING ZONE $66.00
12.48.090 MC PARKING IN ALLEY $84.00
12.48.100(G) MC PARKED IN BUS ZONE $46.00
12.52.020 MC WRONG WAY ONE WAY STREET $46.00
12.64.030(A) MC RESTRICTED USE: PUBLIC PROP $46.00
12.64.030(B) MC RESTRICTED USE: VACANT LOT $46.00
12.68.050 MC PARKING PERMIT REQUIRED $46.00
12.68.050(A) MC NEWPORT ISLAND - NO PERMIT $46.00
12.68.050(A) MC RESIDENT PREFERENTIAL PKG ZONE $46.00
17.16.020 MC BOAT LAUNCHING/HAULING $46.00
17.16.021 MC NO BOAT/TRLR STORAGE ON BEACH $46.00
17.25.030 MC BOAT ON BEACH $46.00
17.28.010 MC PIERS: 20 MINUTE TIME LIMIT $46.00
17.28.040 MC BLOCKING PUBLIC PIER $46.00
17.32.030 MC BOAT ON BEACH $61.00
21113 (A) CVC PARKING ON PUBLIC GROUNDS $61.00
21211 (B) CVC PARKING IN BIKE LANE $61.00
22400 (A) CVC PROHIB PARK/STOP: PUBLIC HIWAY $81.00
22401 24401 CVC PARKED WITH HIGH BEAMS $57.00
22500 (A) CVC PARKING WITHIN INTERSECTION $61.00
22500 (B) CVC PARKED IN CROSSWALK $61.00
22500 (C) CVC PROHIB PARK/STOP: SAFETY ZONE $61.00
22500 (D) CVC PKD W/IN 15FT OF FIRE STATION $61.00
22500 (E) CVC BLOCKING DRIVEWAY $61.00
22500 (F) CVC PARKING ON SIDEWALK $61.00
22500 (G) CVC PROHIB PRK/STOP: OBSTRUCT TRAF $61.00
22500 (H) CVC DOUBLE PARKED $61.00
22500 (I) CVC PARKED IN BUS ZONE $480.00
22500 (K) CVC PARKED ON BRIDGE $61.00
22500 (L) CVC ON/IN FRONT OF HC ACCESS RAMP $480.00
2
Attachment D: Parking Citation Violation Penalty Schedule Changes No Change
New
Newport Beach Parking Citation Violation Fine Schedule Change/Correction
Code Description FY20 Fine Delete
22500.1 CVC PARKING FIRE LANE $61.00
22502 (A) CVC WRONG WY 2WY/18IN FROM RT CURB $61.00
22502 (E) CVC WRONG WY 1WY/18IN FROM LT CURB $61.00
22505 (B) CVC PKG ON STATE HIGHWAY-PROHIB $61.00
22507.8 (A) CVC DISABLED PARKING $526.00
22507.8 (B) CVC BLOCKING DISABLED SPACE $526.00
22507.8 (C) CVC DISABLED CROSSHATCH VIOLATION $526.00
22511.1 (A) CVC EV PARKING – NOT CHARGING $61.00
22511.1 (B) CVC BLOCKING EV PARKING $61.00
22511.5 CVC HANDICAPPED ACCESS $526.00
22514 CVC PARKING WITHIN 15FT OF HYDRANT $61.00
22515 CVC UNATTENDED VEHICLE $61.00
22516 CVC LOCKED VEHICLE $81.00
22520 CVC NO STOPPING ON FREEWAY $61.00
22522 CVC 3FT FROM HC ACCESS RAMP (RED) $526.00
22523 (A) CVC ABANDONED VEHICLE $201.00
22651.5A CVC EXCESSIVE ALARM $74.00
24003 CVC UNLAWFUL LAMPS $61.00
26101(b) CVC MODIFIED LIGHTING $61.00
26708 (A) CVC MATERIAL ON WINDSHIELD/WNDWS $61.00
26709 (A) CVC REAR VIEW MIRROR $61.00
26710 CVC WINDSHIELD-DEFECTIVE $61.00
27155 CVC FUEL TANK CAP REQUIRED $61.00
27465 (B) CVC TIRE TREAD DEPTH $61.00
27600 CVC FENDERS/MUDGUARDS $61.00
4000 (A)(1) CVC EXPIRED REGISTRATION $108.00
4152.5 CVC FOREIGN VEHICLE REGISTRATION $61.00
4457 CVC STOLEN/LOST/DAMAGED CARDS/PLTS $61.00
4461 (C) CVC MISUSING A DISABLED PLAC/PLATE PLACARD $320.00
4461 (D) CVC MISUSING A DISABLED PLAC/PLATE PLATE $320.00
4462 (A) CVC PRESENT VALID REG ON DEMAND $61.00
4462 (B) CVC FAUDULENT USE/DISPLAY OF TABS $61.00
4464 CVC ALTERED LICENSE PLATES $61.00
5200 CVC TWO LICENSE PLATES REQUIRED $61.00
5201 CVC POSITIONING OF PLATES $61.00
5202 CVC LICENSE PLATE NOT ATTACHED $61.00
5203 CVC LICENSE PLATES SURRENDERED $61.00
5204 (A) CVC REG TABS EXPIRED/ABSENT $61.00
3
2/13/2020
1
FEE STUDY UPDATE
Finance Committee Presentation
February 13, 2020
Police
CDD
Fire
AUTHORITY FOR COST OF
SERVICE FEES
Fiscal Sustainability Plan
Establish appropriate cost-recovery targets and adjust fee structure to
ensure that the fees continue to meet cost recovery targets.
Revenue Measures F-4
The City will establish appropriate cost-recovery targets for its fee structure and
will annually adjust its fee structure to ensure that the fees continue to meet
cost recovery targets.
NBMC § 3.36.030 mandates 100% cost recovery
(except for subsidies identified in the code)
2/13/2020
2
FEE FOR SERVICE METHODOLOGY
Scope of Work:
1. Calculate the fully burdened (labor and
overhead)cost of providing user fee services;
2. Applied fully burdened labor rates to time
requirement estimates and annual workload
figures;
3. Calculate the cost of providing the service;
and
4. Review and cross check results to ensure
data validity.
MGT of America performs cost of service analysis for developing user fees
REASONS FOR CHANGE
Changes In:
Costs
Staffing
Time
Increases
Combine FeesDecreases
2/13/2020
3
RECOMMENDED CHANGES
Department
Fees
Increasing
Fees
Decreasing
No
Change
New
Fees Deleted Totals
CDD 112 11 7 2 0 136
Fire 59 44 13 0 0 116
Police 19 15 18 0 6 58
TOTAL 190 70 38 2 6 306
% of TOTAL 62% 23% 12% 1% 2% 100%
Impact: $580,000 in additional revenues, adjusted for phased-in Planning fees
(does not account for fees where volume statistics were unavailable)
COMMUNITY DEVELOPMENT DEPARTMENT
Division Increasing Decreasing No Change New Fees Deleted Totals
Building 71 9 5 0 0 85
PCT of TOTAL 84% 10% 6% 0% 0% 100%
Areas Under Review:
•Building
•Planning
Fees Last Updated:
2015 – Last Comprehensive Study
2016 – Some Permits to Flat Fees
2018 –Added Coastal Development Permit
Sample Services:
Plan reviews, permits and inspections, and
various development related services
Division Increasing Decreasing No Change New Fees Deleted Totals
Planning 41 2 2 2 0 47
PCT of TOTAL 87.25% 4.25% 4.25% 4.25% 0% 100%
2/13/2020
4
FIRE DEPARTMENT
Department Increasing Decreasing No Change New Fees Deleted Totals
Fire 59 44 13 0 0 116
PCT of TOTAL 51% 38% 11% 0% 0% 100%
Areas Under Review:
•EMS
•Fire Prevention
•Junior Guards
•Lifeguard Operations
Fees Last Updated:
2018
Sample Services:
Advanced Life Support Transport and Non-
Transport, Basic Life Support Transport and
Non-Transport, Junior Lifeguards Participation
Fee, Lifeguard and Emergency Medical Services
personnel hourly rates
POLICE DEPARTMENT
Department Increasing Decreasing No Change New Fees Deleted Totals
Police191518 0 6 58
PCT of TOTAL 33% 26% 31% 0% 10% 100%
Areas Under Review:
•Administration
•Animal Control
•Patrol
•Detective
Fees Last Updated:
2015
Sample Services:
Adoption, boarding, and impound fees, alarm
application and renewal fees, police reports,
video, and vehicle tow related fees
2/13/2020
5
Fee Study Update
Finance Committee
February 11, 2020
QUESTIONS?
I:\Users\FIN\Shared\Admin\Finance Committee\WORK PLAN\2020\2020 FC Workplan.xlsx 1
2/6/20
Scheduled Date Agenda Title Agenda Description
Tuesday, January 14, 2020 Council Study Session - Economic Update by Beacon Economics CANCELLED Dr. Chris Thornberg to provide Council a brief regional economic update.
Thursday, January 16, 2020 OPEB Actuarial Valuation Review OPEB Actuarial Valuation
Internal Audit Program Update Staff will provide an oral update of plans to implement a robust internal audit
and performance audit program.
TOT, Charter Tax and Other Audits Update Staff will update the committee on the TOT, charter tax and other audit findings
performed to date.
Budget Amendments for Quarter Ending December 31, 2019 Staff will report on the budget amendments from the prior quarter.
Work Plan Review Staff and Finance Committee to review the proposed work plan and adjust as necessary.
Saturday, January 25, 2020 Special Council Meeting - Council Planning Session (Tentative)Staff will present status and funding of major programs planned for the
calendar year.
Finance Committee Attendance Optional
Thursday, February 13, 2020 Review of Public Works Department Budget Public Works will present the contours of its FY19-20 budget to inform the
Committee's understanding of its operation in advance of the FY20-21 budget
preparation.
Facilities Financial Plan (FFP)Staff will present a draft of Facilities Financial Plans reviewing the timing,
means of financing, and fiscal impacts associated with funding Council
prioritized capital projects.
Fee Study Update Staff will present the Master Fee Schedule to the Finance Committee and
subsequently will present to the City Council.
Long Range Fiscal Forecast (LRFF)Staff will provide an update to the latest version of the LRFF.
Tuesday, March 10, 2020 Council Study Session - Capital Improvement Plan Early Look
Finance Committee Attendance Optional
Thursday, March 12, 2020 Financial Statement Audit Results & Related Communication
Harbor & Beaches Master Plan Staff will present a draft of Harbors/Beaches Financial Plans reviewing the
timing, means of financing, and fiscal impacts associated with funding Council prioritized capital projects.
Review of Police Department Budget The Police Department will present the contours of its FY19-20 budget to
inform the Committee's understanding of its operation in advance of the FY20-
21 budget preparation.
Development Agreement Fees Review development agreement fees and how they are used to fund City programs.
Review of Policy F-9, City Vehicle/Equipment Replacement Guidelines Committee will review and comment and current policy provisions.
Discuss Revenue Assumptions Staff will provide of an overview of revenue assumptions for the FY 2020-21
Proposed Budget.
Thursday, April 16, 2020 Proposed FY 2020-21 Budget Overview Staff will provide an overview of the Proposed FY 2020-21 Operating Budget.
Budget Amendments for Quarter Ending March 31, 2020 Staff will report on the budget amendments for the prior quarter.
January
February
March
April
City of Newport Beach Finance Committee Work Plan 2020
I:\Users\FIN\Shared\Admin\Finance Committee\WORK PLAN\2020\2020 FC Workplan.xlsx 2
2/6/20
Scheduled Date Agenda Title Agenda Description
City of Newport Beach Finance Committee Work Plan 2020
Thursday, April 30, 2020 Proposed FY 2020-21 Budget Overview (Tentative - If Needed)Tentative meeting (if needed) to answer follow-up questions concerning the FY
2020-21 budget.
Tuesday, May 12, 2020 Joint Council/Finance Committee Study Session - 1st Council Review of Proposed
Budget
Review Proposed Budget.
Thursday, May 14, 2020 Internal Audit Program Update
Finance Committee to develop written comment on City Manager's Proposed
Budget.
Pursuant to Budget Policy F-3.
Tuesday, May 26, 2020 Council Study Session - 2nd Council Review of Proposed Budget if necessary Review Proposed Budget
Finance Committee Attendance Optional
Thursday, May 28, 2020 Reserved if Necessary
Tuesday, June 09, 2020 City Council Budget Adoption
Finance Committee Attendance Optional
Thursday, June 11, 2020 Internal Audit Program Update Auditors to provide an overview of enterprise risk assessments and discuss
next steps
Thursday, June 25, 2020 Reserved if Necessary
May
June