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Home My WebLink About13 - Approval of the Fee Study Update - PowerPointMarch 9, 2021 Item No. 13 �t SEW Fp�� O G Z e.. Cq�/FOF�N�P City Council Meeting March g, 2021 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 4 3.36.030 mandates i00% cost recovery (except for subsidies identified in the code) City of Newport Beach — Finance Department 2 Fiscal Impact from Subsidies Fee Category Annual Subsidy CDD — Building $ 48,805.26 CDD — Planning 29,029.25 Finance 15758.67 Fire — EMS 2001000.00 Fire Prevention 97o,881.52 Harbor Department $21861.07 Library 57,094.6o Police 40,266.69 Public Works 90978.48 RSS 61290,930.90 Utilities 66540.73 �Total $ 7,83-13-47-3.7 3 Fee for Service Methodology MGT of America performs cost of service analysis for developing user fees 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. City of Newport Beach — Finance Department Fee Schedule Summary Fee Study Results Department Increasing Decreasing Eliminated No Change New Fees Totals Finance 18 5 1 7 6 37 Harbor 18 2 0 0 5 25 Public Works 18 12 3 5 2 40 Utilities 7 4 2 5 4 22 Tota 1 61 23 6 17 17 124 PCT of Total 49% 19% 5% 13% 13% 100% Impact: $216,000 in additional revenues for the Water and Sewer Funds and a decrease in revenues of approximately x65,000 in the General Fund City of Newport Beach — Finance Department Finance Department Department Increasing Decreasing Eliminated No Change New Fees Totals Finance 18 5 1 7 6 36 PCT of Total 50% 13% 3% 17% 16% 100% Fees Last Updated: Fee Changes: 2o16 • Delinquent Transient OccupancyTax (TOT) —Delete Sample Services: • TOT Reprint— Rename "Zero Bill Reprints" and loo%subsidy in NBMC Section 3.36.030 Dog licensing and New Fees: permit review and • Short Term Lodging Permit (STLP) Reinstatement $93. issuance for vehicles for . STLP Suspension/Revocation Hearing $509 and 50% subsidy in NBMC Section 3.36.030 hire, live entertainment, • Film Permit— Review (5 or fewer cast & crew) $12 and short term lodging • Film Permit— Review (6 or more cast & crew) $53. • Film Permit Staff Time Outside of Permit Application — staff hourly rate • Film Permit Cancellation (for permits requiring additional City services) — staff hourly rate City of Newport Beach — Finance Department Harbor Department Department Increasing Decreasing Eliminated No Change New Fees Totals Harbor 18 2 0 0 5 36 PCT of Total 72% 8% o% o% 20% 100% Fees Last Updated: 2019 Sample Services: Permit application review (marine activities, live aboard, mooring extension), wait lists, impounds, appeals Fee Changes: • Appeals — staff hourly rate to flat fee • Raft Up Permit— rename to "Harbor Special Events —Simple" • Marine Activities permit application (initial) —split into multiple fees New Fees: • Environmental Response $73 per hour plus materials • Harbor Special Events — Complex $491 • Large Boat Permit (>_ 8o Linear Feet) Requiring Interagency Coordination $736 • Large Boat Escort (per escort and per vessel) $102 • Multiple Vessel Mooring System Application $503 City of Newport Beach — Finance Department Public Works Department Public Works Department Increasing Decreasing Eliminated No Change New Fees Totals Engineering & Transportation 12 12 3 5 2 34 Refuse 2 0 0 0 0 2 Water Quality 4 0 0 0 0 4 Total 1 18 1 12 1 3 5 1 2 1 40 PCT of Tota 11 45% 1 30% 1 8% 13% 1 5% 1Z00% Fees Last Updated: IF Fee Changes: 2015 • Encroachment With Dept/Div Review — remove NBMC Section 3.36.030 subsidy • Encroachment Without Dept/Div Review — remove NBMC Section 3.36.030 subsidy Plan check, permits, Sample Services: Engineering Field Inspection — combine into one fee • Plan Check with Pre -Permit Review — Delete inspections, and . Chapter 17.65 Appeals — staff hourly rate to flat fee compliance reviews . Water Quality Construction Site Inspections— split into tiered fee structure • Electric Vehicle (EV) Charger— include staff time City of Newport Beach — Finance Department �{ Public Works Department (cont.) Public Works Department Increasing Decreasing Eliminated No Change New Fees Totals Engineering & Transportation 12 12 3 5 2 34 Refuse 2 0 0 0 0 2 Water Quality 4 0 0 0 0 4 Total 1 18 1 12 1 3 5 1 2 1 40 PCT of Tota 11 45% 1 30% 1 8% 13% 1 5% 1 Z00% Fees Last Updated: 2015 Sample Services: Plan check, permits, inspections, and compliance reviews New Fees: • Encroachment & Engineering Agreement Prep —Planning Commission $3,139 • Plan Check (new construction) add-on for Harbor Commission Public Hearings $2,130 • Tree Planting/Removal —pass through actual contract expense • Supplemental Tree Trimming —pass through actual contract expense City of Newport Beach — Finance Department Q Utilities Department Department Increasing Decreasing Eliminated No Chane New Fees Totals Utilities 7 4 2 5 4 22 PCT of Total 32% 18% g% 23% 18% Z00% F2 Fees Last Updated: X016 Sample Services: Water service installation and establishment, delinquent water restoration, hydrant flow test, construction water meter establishment Fee Changes: • Lifting Eye forTrench Plates — delete • Trench Plate Delivery —delete • Construction Water Meter— Per Month — same as 2" water meter in the water rate study • Utilities water meter and water and sewer meter box and lids (actual costs) New Fees: • Sewer Only Establishment Fee $49 • FOG (Fats, Oils, and Grease) Non -Compliance (additional inspections) $70 • Water and Sewer Service Establishment— Non -Business Hours (turn -ons) $321 • Re -inspection Fee x165 per hour City of Newport Beach — Finance Department 10 Other Updates • Lobbyist Registration — pass through contractor costs (currently so) • Regular Photocopies ($5 per 5 minutes) — delete • Flash Drive s6 • Chapter 17.65 Appeals of Community Development Director decisions - $1,25o appeals to Harbor Commission; $94o appeals to City Council • Library per page copies $0.35 black and white, $0.45 color • Update automatic CPI language related to Harbor rents (approved by Resolution 2019-3) and facility rents (approved by Resolution 2018-55) City of Newport Beach —Finance Department 11 Other Updates (cont.) • Dog License —Tag Replacement — updated calculation resulted in fee decreasing from $2.0 to $7 • Electric Vehicle Charger Overstay Charge - s0.10 per minute after Zo minute grace period • Junior Lifeguard —remove NBMC Section 3.36.030 subsidy— effective for the Summer 2022 program • RGP Dredging Permit — add NBMC Section 3.36.030 subsidy (42% recovery) City of Newport Beach —Finance Department 12 Questions? City of Newport Beach — Finance Department 13 City of Newport Beach — Finance Department 14 Additional Slides If Needed... City of Newport Beach — Finance Department 15 Fiscal Impact from Subsidies -CDD City of Newport Beach — Finance Department :L6 Percent of Cost or Amount to be Annual FY Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Chapter 17.65 Appeal to City Council — o% $2,072.68 $2,072.68 0 $0.00 FY CDD Applicant Successful 2019/20 Chapter 17.65 Appeal to City Council — $940 $2,072.68 $1,132.68 0 $0.00 FY CDD Applicant Unsuccessful 2019/20 Chapter 17.65 Appeal to Harbor o% $3,029-73 $3,029-73 0 $0.00 FY CDD Commission —Applicant Successful 2019/20 Chapter 17.65 Appeal to Harbor $1,250 $3,029.73 $1,779.73 0 $0.00 FY CDD Commission —Applicant Unsuccessful 2019/20 CDD - Appeals Board Hearing—Applicant FY BuildingSuccessful 0% $3,427.50 $3,427.50 0 $0.00 2019/20 CDD - Appeals Board Hearing—Applicant FY BuildingUnsuccessful $1,75$3,427-50 1 $1,712-50 5 o $0.00 2019/20 CDD - Harbor Construction (Permit & FY BuildingInspection) 50% $616.02 $308.02 84 $25,873.68 2019/20 Building Harbor Construction (Plan Review) 50% $644-98 $322.98 71 $22,931.58 FY 2019/20 First Two Hours CDD - Free, Full Cost $255.62 $255.62 N/A FY 2019/20 Building Preliminary Plan Review (per hour) Thereafter Total CDD - $48,805.26 Building City of Newport Beach — Finance Department :L6 Fiscal Impact from Subsidies—CDD (cont.) City of Newport Beach — Finance Department 17 Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Planning Appeals to City Council $1'715 $4'121.28 $2, LF°6.28 4 $9'625.12 FY 2019/20 Planning Appeals to Planning Commission $1715 $LF,121.28 $2,LFo6.28 4 $9,625.12 FY 2019/20 Coastal Development Permit Application 0% $4,121.28 $4,121.28 N/A FY CDD - Appeals from Zoning Administratorto 2019/20 Planning Planning Commission CDD - PlanningReasonable Accommodation o% $3,259.67 $3,259.67 3 $9,779.01 FY 2019/20 Total CDD - $29,029.25 Planning City of Newport Beach — Finance Department 17 Fiscal Impact from Subsidies -Finance City of Newport Beach — Finance Department A Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On FY Finance Payment Plans (Except Parkin) $25 $29.21 $4.21 0 $0.00 2020/21 Finance Parkin Hearings 0% $42.08 $42.08 248 $10,436.08 FY 2020/21 Finance Admin. Cite Hearings o% $89-30 $89-30 9 32020/21 5 0 $4,464-96 FY Short Term Lodging Permit Suspension or Revocation Hearing -Applicant o% s1,o18.91 $1,018.91 0 $0.00 FY Finance Successful 2020/21 Short Term Lodging Permit Suspension or Revocation Hearing -Applicant 50% $11018.91 $509.91 0 $0.00 FY 2020/21 Finance Unsuccessful Finance Zero Bill Reprint 0% $14.29 $14.29 6o s857.63 FY 2020/21 Total Finance $15758.67 City of Newport Beach — Finance Department A Fiscal Impact from Subsidies— Fire (EMS) City of Newport Beach — Finance Department 1g Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Advanced Life Support (ALS)— FY Fire - EMS Nontransport $400 ,.. $128602 $88602 146 2019/20 Fire - EMS Basic Life Support (BLS)—Nontransport $400 $1,274.49 $874.49 546 FY 2019/20 $200,000.00 FY Fire - EMS ALS First Responder Fee $400 $884 44 $484 44 482 2019/20 Fire - EMS BLS First Responder Fee $400 $842.67 $442.67 FY 2019/20 Total Fire - EMS $2001000.00 City of Newport Beach — Finance Department 1g Fiscal Impact from Subsidies— Fire (Fire Prevention) 1,4317 City of Newport Beach — Finance Department 20 Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Fire -Fire FY Prevention Candle Permit Program 76% $71.14 $17.14 Zo $342.80 2019/20 Fire - Fire 36% $1,226-05 5 8 0 7 5 5 1z 5 s98,131.25 FY Prevention Care Facilities 7-99 Clients 2019/20 Fire - Fire Prevention Care Facilities >99 Clients 40.8% $1 399 39 $82 9 392019/20 16o $132,702-40 FY Fire - Fire Prevention Commercial Day Care Facilities 3 6% $6 6o 95 $ 60 445 0 72019/20 $31,192.00 FY Fire - Fire FY Prevention Hotels/Motels 50-299 Rooms 3 6% $6 6o 95 $ 60 445 0 72019/20 $31,192.00 Fire - Fire FY Prevention Hotels/Motels 300 or More Rooms 92.4% $431.03 $33.03 0 $0.00 2019/20 Fire - Fire 4 o% $ 8 454 4 $2 8 73 4 1 6 7 $ 9 4,132-482019/20 FY Prevention Operational Permits—Level 1 Fire - Fire Prevention Operational Permits—Level 2 3 8.1% $888. 49 $ o. 55 49 11 2 32019/20 s623,154.68 FY Fire - Fire Residential Care Facility Prelicense FY Prevention Inspection ° 96/0 $308.94 $12.94 0 $o.o0 2019/20 Fire - Fire FY Prevention Special Event Permits—Single Event 88% s184.69 4 9 $22.6 9 2 43 $5,513.67 2019/20 Fire - Fire 82% $102.58 $18.58 28 $520.24 FY Prevention State Fire Clearance 2019/20 Total Fire Prevention $97o,883-52 City of Newport Beach — Finance Department 20 Fiscal Impact from Subsidies— Harbor City of Newport Beach — Finance Department 21 Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Chapter 17.65 Appeal to City Council — 0% $1,55o.8g $1,550.89 0 $0.00 FY Harbor Applicant Successful 2020/21 Chapter 17.65 Appeal to City Council — $940 $1,550.89 $610.89 2 $1,221.79 FY Harbor Applicant Unsuccessful 2020/21 Chapter 17.65 Appeal to Harbor o% $1,796.43 $1796.43 0 $0.00 FY Harbor Commission —Applicant Successful 2020/21 Chapter 17.65 Appeal to Harbor $1,250 $1,796.43 $546.43 3 $1639•�9 FY Harbor Commission —Applicant Unsuccessful 2020/21 Total Harbor $2,861.07 Department City of Newport Beach — Finance Department 21 Fiscal Impact from Subsidies — Library City of Newport Beach — Finance Department 22 Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Library Passport Photo $10 $28.96 $18.96 485 $9,195.6o FY 2015/16 LibraryUse Fees—Materials $1 $5.46 $4.46 5,000 $22,300.00 FY 2015/16 LibraryInter-Library Loan $ 5 $60.6 5 $ 6 55 5 4 60 $2 0o 5599 FY 2015/16 Total Library $57094.60 City of Newport Beach — Finance Department 22 Fiscal Impact from Subsidies —Police Department Service Percent of Cost or Amount to be Recovered Full Cost Subsidy Volume Annual Subsidy FY Budget Based On Police Bike Licenses 17% $6.29 $5.29 20 $105.8o FY 2019/20 Police Secondhand/Pawn DealerTag Check o% $10.05 $10.05 20 $201.00 FY 2019/20 Police Registrant—Narcotics 0% $246.95 $246.95 13 $3,210.35 FY 2019/20 Police Adoption Fee - Dogs $150 $258.97 sso8.97 98 sso,679.06 FY 2019/20 Police Adoption Fee - Puppies $225 $268.97 $43.97 23 $1,011.31 FY 2019/20 Police Adoption Fee - Cats $90 s196.82 sso6.82 28 $2,990.96 FY 2019/20 Police Adoption Fee - Kittens $110 $227.90 $117.90 80 $9,432.0o FY 2019/20 Police Adoption Fee - Small Animals $45 $77.68 $32.68 6 $196.o8 FY 2019/20 Police Boarding Fee (per day) - Animals $25 $42.61 $17.61 N/A FY 2019/20 Police Boarding Fee (per day) - Small Animals $10 $26.36 s16.36 N/A FY 2019/20 Police OwnerTurn-In Fee $100 $240.97 $140.97 13 $1,832.61 FY 2019/20 Police Impound Fee - Dogs, Cats, Small Animals $55 $135.36 s80.36 132 $so,607.52 FY 2019/20 Total Police $40,266.69 City of Newport Beach — Finance Department 23 Fiscal Impact from Subsidies — Public Works City of Newport Beach — Finance Department 24 Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Chapter 17.65 Appeal to City Council — 0% $1,461.48 $1,461.48 0 $0.00 FY Public Works Applicant Successful 2020/21 Chapter 17.65 Appeal to City Council — $940 $1,461.48 $521.48 0 $0.00 FY Public Works Applicant Unsuccessful 2020/21 Chapter 17.65 Appeal to Harbor o% $2,130.66 $2,130.66 0 $0.00 FY Public Works Commission —Applicant Successful 2020/21 Chapter 17.65 Appeal to Harbor $1,250 $2,130.66 s880.66 1 s880.66 FY Public Works Commission —Applicant Unsuccessful 2020/21 Public Works RGP Dredging Permit 4 2% $ 66.8 7�7 9 $4,504.89 20 $90,097.82 FY 2020/21 Total Public $90,978.48 Works City of Newport Beach — Finance Department 24 Fiscal Impact from Subsidies— RSS City of Newport Beach — Finance Department 25 Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On RSS Adult Sports 50%-95% $ 8128 00 4 52015/16 $174,784-00 1 $174,784-00 FY RSS Administrative ProcessingFee $5 $10.54 $5.54 26,870 $148,859.8o FY 2015/16 FY RSS Badge Replacement $5 $31.44 $26.44 4 $105-76 2015/16 FY RSS Camps 20%-50% 5 $347,787.00 $1920900 7' 1 $1920900 7' 2015/16 FY RSS After-School/Teen Program 20%-50% 5 s8 2 00 4 ,333 s6 16 00 35, 72015/16 1 $635,167-00 FY RSS Pre -School Program 20%-50% s185,425.00 $111,256.00 1 $111256.0o 2015/16 RSS Aquatics 20%-50% 5454,734 $586,193-00 s o0 1 $ 0o 454,734 FY 2015/16 FY RSS Contract Classes 50%-95% $4,405,428.00 $1,396,013.00 1 $1,396,013.00 2015/16 FY RSS Class Refunds $74 or less $10 $82.74 $72.74 193 $14,038.82 2015/16 FY RSS Class Refunds $75 or more $20 $79.97 $59.97 373 $22,368.81 2015/16 RSS Youth Sports 20%-50% 5 $ 026.00 345, $2 8 0.00 5 ,77 1 $2 8 0.00 5 ,77 FY 2015/16 City of Newport Beach — Finance Department 25 Fiscal Impact from Subsidies —RSS (cont.) cq77 Department Service Percent of Cost or Amount to be Recovered Full Cost Subsidy Volume Annual Subsidy FY Budget Based On RSS Special Events—Resident, Level 1 and Late Fees for Level 1 0%-20% $2,944.92 $2,492.92 120 $299,150.4o FY 2o15/16 RSS Special Events—Resident, Level 2 and Late Fees for Level 2 20%-50% $4,276.73 $3,33773 21 $70,092.33 FY 2015/16 RSS Special Events—Resident, Level 3 and Late Fees for Level 3 20%-50% $9,501.23 $6,835.23 12 s82,022.76 FY 2015/16 RSS Special Events—Nonresident, Level land Late Fees for Level 1 20%-50% $3,025.28 $2,134.28 4 x8,537.12 FY 2015/16 RSS Special Events—Nonresident, Level 2 20%-50% $4,27673 $2,26473 3 s6,794.1gFY 2o15/16 RSS Special Events—Nonresident, Level 3 and Late Fees for Levels 2-3 50%-95% $9,501.23 $4,4o6.23 3 $13,218.69 FY 2015/16 RSS Special Events—Appeal to City Council 50%-95% $3,214.22 $1,588.22 1 $1,588.22 FY 2015/16 RSS Natural Resources Programs 0%-20% $229,561.00 s189,319.00 1 s18q,319.00FY 2o15/16 RSS Oasis Transportation $1—$3 each way $1,119,331.00 s1,o89,331.00 1 s1,o89,331.00 FY 2015/16 RSS Contract Classes 20%-50% $1749,310.00 $1,009,936.00 1 $1,009,936.00 FY 2o15/16 RSS Fitness Center 50%-95% $331,639.00 $107,635.00 1 $107,635.00FY 2015/16 Total RSS $6,290,930.90 City of Newport Beach — Finance Department 26 Fiscal ImpactfromSubsidies—Utilities City of Newport Beach — Finance Department 27 Percent of Cost FY or Amount to be Annual Budget Department Service Recovered Full Cost Subsidy Volume Subsidy Based On Construction Water Meter FY Utilities Establishment 50% $zoo.48 X100.48 29 X2,913.84 2020/21 Fats, Oils, and Grease (FOG) Annual FY Utilities Permit o °% $179 74 $179 74 354 $63,626.89 2020/21 Total Utilities X66 0. X54 73 City of Newport Beach — Finance Department 27 Presentation Overview • Background • Fee for Service Methodology • Proposed Fee Updates City of Newport Beach — Finance Department Tax • A monetary imposition by government on persons or property for the purpose of raising revenue to support the purposes of the government. • A tax need not be levied in proportion to a specific benefit to a person or property. vs. Fee • Charge imposed for a specific benefit conferred, benefit, or product to the payer that is not provided to those not charged (should not exceed reasonable cost of service). • Charge imposed for reasonable regulatory costs to a local government for issuing licenses and permits, investigations, etc. • Charge imposed for entrance, use, or lease of government property. • Fine, penalty, or charge imposed as a result of violation of law. City of Newport Beach — Finance Department 29 Fee Calculation Example (Harbor Special Events—Simple (Raft up, Boat Race) Step z: Calculate Hourly Staffing Rates and Burdened Factors Salary and Benefits Burdened Factors Total Burdened Hourly Rate Hourly Rate Rate Harbor Services Worker $29.85 + $34.14 = $63.99 Harbormaster $114.53 + $131.00 = $245.53 Department Assistant $35.99 + $41.17 = $77.16 City of Newport Beach — Finance Department 30 Fee Calculation Example (Harbor Special Events—Simple (Raft up, Boat Race Step 2: Estimate Time Spent on the Service City of Newport Beach — Finance Department 31 Time Estimate Harbor Services Worker 20 minutes Harbormaster 15 minutes Department Assistant 10 minutes City of Newport Beach — Finance Department 31 Fee Calculation Example (Harbor Special Events—Simple (Raft up, Boat Race) Step 3: Calculate the Cost to Provide the Service Step 4: Review forAccuracy and Reasonableness City of Newport Beach — Finance Department 32 Total Fully Total Cost Total Hours per Burdened to Provide Minutes Unit Hourly Rates the Service Harbor Services Worker 20.00 0.33 $63.99 $21.33 Harbormaster 15.00 ♦ 0.25 X $245.53 - $61.38 Department Assistant 10.00 0.17 $77.16 $12.86 $95.57 Proposed Fee $95.00 Step 4: Review forAccuracy and Reasonableness City of Newport Beach — Finance Department 32 Reasons for Change Increas es Changes In: Costs ./ Staffing �' Time Combi Decreases ne Fees City of Newport Beach — Finance Department 33 Appeal Fees Service Full Cost 50% Subsidy Recommended Flat Rate Appeal of CDD Director Decision to Harbor Commission 3,030 1,515 11250 Appeal of Harbor Commission Decision to City Council (CDD) 21073 3.,o36 940 Appeal of Harbormaster Decision to Harbor Commission 1,796 898 11250 Appeal of Harbor Commission Decision to City Council (Harbor Dept) 1,551 775 940 Appeal of PW Director Decision to Harbor Commission 21699 1,350 11250 Appeal of Harbor Commission Decision to City Council (PW) 21030 11015 940 Average Appea to Harbor Commission 2,509 1,254 11250 Average Appeal to City Council 11885 942 940 City of Newport Beach — Finance Department 34 Fees and Taxes —Who Pays, Who Benefits Who Type of Tax vs. Fees Example Benefits Service Policy Services V munity Public 1 DO% taxes Police patrol services Primarily the individual Mostly taxes Code enforcement with some community Public t Private &same fees services efits 7 Prima* the individual with some community- Private 1 Public Mostly fees &some taxes Youth sports wide benefits F_ Individual benefit on Private 100% fees Development services City of Newport Beach — Finance Department 35 Background Summary of Proposed Fee Update • In furtherance of Council policy, the fee study aligns revenues with the actual (direct and indirect) costs of providing services. • Each department gets "studied"' every 3-5 years whereby fees are updated to the costs of providing services. • Proposed fees are better defined to reflect the nature of work performed. • All fees not studied are updated by the Consumer Price Index (CPI). City of Newport Beach — Finance Department 36 Finance Committee Charge City Council Resolution201-5-40 Purpose and Responsibilities: "Recommend for Council approval, and manage an on-going process for measuring and setting goals designed to maximize the City's revenues consistent with existing taxation structures and inter -governmental funding opportunities, fee generation consistent with market rate charges for City provided services and market rate fees for utilization of City owned assets. Recommend to Council major initiatives to accomplish identified goals." City of Newport Beach — Finance Department 37 Public vs. Private Sector Finance Operating Factors Public Sector Private Sector Motives Operating Environment Decision Making Influenced By Uses taxing power to raise revenues to provide infrastructure & public services. Unlike taxes, fees based on cost of service. Heightened focus on accountability, compliance, and regulatory disclosure Revenues may only partially recover cost — may be subsidized for public good Political constituencies and navigating competing interest groups City of Newport Beach — Finance Department Generate sufficient revenues and profit by selling goods and services. Focus on sustained profitability Revenues must completely cover cost — or else "out of business" Top-down internal decision making without public sanction or approval Cost Recovery less than z00% o\o h\° ostl !Individual Benefits Fulfill demands for specialized programming o\° Individual Benefits �p\° • Provides safe and enriching experiences for youth and seniors • Promotes health and wellness • Extend higher benefits to residents • Provides admin support for • Benefits large groups of community members • Proactively manage assets for entire community • Provides active and passive drop in locations • Promotes learn, play & be active philosophy • Creates sense of community and prevents isolation • Provides admin support for largest programs • Supports economic vitality • Protects natural resources and promotes 39 Cost Recovery less than z00% High Recovery • Adult Sports p\° • Rec Contract Classes h • Oasis Fitness Center • Special Events Permits Appeals °�° • ��6F1'i�its�@,6K�,V�B�KI�s `� • Aquatics J� • Youth Sports �G� �o\° • Preschool Programs O� �o\� • After-school / Teen Programs and Camps • Senior Services Contract Classes • Special Events Permits Level 2-3, Resident • Special Events Permits Level 1-2, Nonresident -11_11 J_[_.- _ Zerooow �tecovery �O\° • Special Events for Community o\� • Special Events Permits Level i, Resident • Park Patrol • Park, Playground and Rec Facility Management • Senior Services /Oasis Transportation • Oasis Social Services • Class refunds for $74 or less; Badge Replacement • Natural Resources Programming; Land Management 40 Junior Lifeguard Program Fee Current fee is $727, proposed to increase to 6856 by removing subsidy $727 fee generates 6981,450 per year (1350 participants) 6856 fee will generate an additional $174,150 per year New MOU with the Junior Lifeguard Foundation for new facility will be before the City Council on March 9th • Significant capital investment will be required of the City Removing the fee subsidy will help defray costs associated with the enhanced program A scholarship program for attendees maybe considered concurrently with future application to Coastal Commission City of Newport Beach — Finance Department 41 •X City of Newport Beach — Finance Department 42