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Home My WebLink About03 - Amending Newport Beach Municipal Code Section 3.36.030 Related to Cost RecoveryQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report June 27, 2023 Agenda Item No. 3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Jason AI -Imam, Finance Director/Treasurer — 949-644-3123, jalimam@newportbeachca.gov PREPARED BY: Michael Gomez, Deputy Finance Director, mgomez@newportbeachca.gov PHONE: 949-644-3123 TITLE: Ordinance No. 2023-7: Amending Newport Beach Municipal Code Section 3.36.030 Related to Cost Recovery /_1 16"t I:7_T91 6 For the City Council's consideration is the adoption of Ordinance No. 2023-7, amending Section 3.36.030 (Cost Recovery Percentages), of the Newport Beach Municipal Code (NBMC) to facilitate the changes to authorized levels of cost recovery required by the fee changes that were approved by the City Council on June 13, 2023. The attached ordinance was introduced and considered at the June 13, 2023 City Council meeting. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Conduct a second reading and adopt Ordinance No. 2023-7, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Section 3.36.030 Related to Cost Recovery Percentages. DISCUSSION: On June 13, 2023, after a noticed public hearing, the City Council adopted Resolution No. 2023-30, approving the Fiscal Year 2022-23 Fee Study Update and introduced and passed to second reading Ordinance No. 2023-7, which amends Section 3.36.030 of the NBMC (Cost Recovery Percentages) to update the cost -recovery targets for certain user fees. FISCAL IMPACT: The City Council's policy of ensuring regular review of the City's cost -of -service fees and adequate cost recovery will continue to ensure adequate cost recovery from users of the City's fee -related services. 3-1 Ordinance No. 2023-7: Amending Newport Beach Municipal Code Section 3.36.030 Related to Cost Recovery June 27, 2023 Page 2 This then facilitates the redirection of general tax revenue currently subsidizing fee - supported services to maintaining and enhancing non -fee supported services and programs. Staff estimates that the fee updates in Resolution 2023-30, adopted at the June 13, 2023 City Council meeting, and associated Ordinance 2023-7 changes introduced at the same meeting, will amount to approximately $620,000 in additional revenue to the General Fund. However, this projection does not account for any fees where volume statistics are unavailable. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Z[9111I:N1►Les The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Ordinance No. 2023-7 Attachment B — Redline Amended Newport Beach Municipal Code 3-2 ATTACHMENT A ORDINANCE NO. 2023-7 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING NEWPORT BEACH MUNICIPAL CODE SECTION 3.36.030 RELATED TO COST RECOVERY PERCENTAGES WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, the City funds certain municipal services, which are typically performed without request by the user, that benefit the public generally and are traditionally funded by tax revenue; WHEREAS, the City performs other services which are funded, in whole or in part, by a person requesting the service; WHEREAS, Subsection (A) of Section 3.36.030 (Cost Recovery Percentages) of the Newport Beach Municipal Code ("NBMC") provides the cost recovery for user service fees specifically requested by a person shall be at one hundred percent (100%), unless the amount is modified by Exhibit A to Section 3.36.030 (Cost Recovery Percentages) of the NBMC ("Exhibit A"); WHEREAS, the Finance Department conducts regular fee studies and makes recommendations to the City Council regarding adjustments that may be made to the cost recovery amounts provided in Exhibit A, to ensure compliance with the law, consistency with current practices, and the maintenance of a high level of customer service for our residents; WHEREAS, on April 13, 2023, the proposed revisions to Exhibit A were presented to the City's Finance Committee; and WHEREAS, City staff recommends the City Council adopt the proposed revisions to Exhibit A. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: 3-3 Ordinance No. 2023-7 Page 2 of 8 Section 1: Exhibit A to Section 3.36.030 (Cost Recovery Percentages) of the NBMC, is hereby amended to read as follows: 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. Percentage of Cost or Amount to Be Recovered from Service Direct Fees ALL DEPARTMENTS Appeals — For Any User Services 0% Appeal Not Otherwise Specified — Appellant Successful Appeals — For Any User Services 50% Appeal Not Otherwise Specified —Appellant Unsuccessful COMMUNITY DEVELOPMENT DEPARTMENT Chapter 17.65 Appeal— 0% Appellant Successful Chapter 17.65 Appeal to City $940 Council— Appellant Unsuccessful Chapter 17.65 Appeal to Harbor $1,250 Commission — Appellant Unsuccessful Building Appeals Board Hearing— 0% Appellant Successful Appeals Board Hearing— 50% Appellant Unsuccessful Harbor Construction 50% Preliminary Plan Review First Two Hours Free, Full Cost Thereafter 3-4 Ordinance No. 2023-7 Page 3of8 Percentage of Cost or Amount to Be Recovered from Service Direct Fees Planning Appeals to City Council or 0% Planning Commission — Appellant Successful Appeals to City Council or 50% Planning Commission — Appellant Unsuccessful Coastal Development Permit 0% Application Appeals from Zoning Administrator to Planning Commission General Plan Maintenance Fee 12% Reasonable Accommodation 0% FINANCE DEPARTMENT Admin. Cite Hearings 0% Parking Hearings 0% Payment Plans (Except Parking) $25 Short Term Lodging Permit 0% Suspension or Revocation Hearing— Appellant Successful Short Term Lodging Permit 50% Suspension or Revocation Hearing— Appellant Unsuccessful Zero Bill Reprint 0% FIRE DEPARTMENT Emergency Medical Services Advanced Life Support (ALS)— $400 Nontransport Basic Life Support (BLS)— $400 Nontransport ALS First Responder Fee $400 BLS First Responder Fee $400 3-5 Ordinance No. 2023-7 Page 4 of 8 Service Percentage of Cost or Amount to Be Recovered from Direct Fees HARBOR DEPARTMENT Chapter 17.65 Appeal— Appellant Successful $0 Chapter 17.65 Appeal to City Council— Appellant Unsuccessful $940 Chapter 17.65 Appeal to Harbor Commission— Appellant Unsuccessful $1,250 LIBRARY SERVICES DEPARTMENT Black and White Copies from Self -Service Copiers or Printers $0.15 Color Copies from Self -Service Copier or Printer $0.45 Use Fees —Materials $1 Inter -Library Loan $5 POLICE DEPARTMENT Bike Licenses 0% Citation Sign -off $10 Fingerprinting — City Portion $25 Secondhand/Pawn Dealer Tag Check 0% Registrant —Narcotics 0% Registrant — Sex 0% Animal Shelter Adoption Fee —Puppies $225 Adoption Fee — Senior Dog — Animal Over Eight (8) Years Old $70 Adoption Fee —Dog —All Other $150 Adoption Fee —Kittens $110 3-6 Ordinance No. 2023-7 Page 5 of 8 Percentage of Cost or Amount to Be Recovered from Service Direct Fees Adoption Fee — Senior Cat — $70 Animal Over Eight (8) Years Old Adoption Fee — Cat — All Other $90 Adoption Fee —Small Animals $45 Boarding Fee (per day)— $25 Animals Boarding Fee (per day) —Small $10 Animals Owner Turn -In Fee —Altered $100 Animal Owner Turn -In Fee —Unaltered $200 Animal Impound Fee —Dogs, Cats, $62 Small Animals PUBLIC WORKS DEPARTMENT Chapter 17.65 Appeal— 0% Appellant Successful Chapter 17.65 Appeal to City $940 Council— Appellant Unsuccessful Chapter 17.65 Appeal to Harbor $1,250 Commission— Appellant Unsuccessful RGP Dredging Permit 42% RECREATION AND SENIOR SERVICES DEPARTMENT Adult Sports 50%-95% Administrative Processing Fee $5 Badge Replacement $5 After School/Camp Programs Camps 20%-50% After-School/Teen Program 20%-50% Preschool Program 20%-50% 3-7 Ordinance No. 2023-7 Page 6 of 8 Service Percentage of Cost or Amount to Be Recovered from Direct Fees Aquatics 20%-50% Contract Classes 50%-95% Class Refunds $74 or less $10 $75 or more $20 Youth Sports 20%-50% Special Events —Levels 1, 2, and 3 Resident, Level 1 and Late Fees for Level 1 0%-20% Resident, Levels 2-3 and Late Fees for Levels 2-3 20%-50% Nonresident, Levels 1-2 and Late Fees for Level 1 20%-50% Nonresident, Level 3 and Late Fees for Levels 2-3 50%-95% Appeal to City Council — Appellant Successful 0% Appeal to City Council — Appellant Unsuccessful 50%-95% Natural Resources Programs 0%-20% Senior Services OASIS Transportation $1—$3 each way Contract Classes 20%-50% Fitness Center 50%-95% UTILITIES DEPARTMENT Construction Water Meter Establishment 50% Fats, Oils, and Grease (FOG) Annual Permit 0% Ordinance No. 2023-7 Page 7 of 8 Percentage of Cost or Amount to Be Recovered from Service Direct Fees 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 $0 Official Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: If any section, subsection, sentence, clause or phrase of this ordinance 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 ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. 3-9 Ordinance No. 2023-7 Page 8 of 8 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 13th day of June, 2023 and adopted on the 27th day of June, 2023, by the following vote, to -wit: AYES: NAYS: ABSENT: NOAH BLOM, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY ATTORNEY 3-10 ATTACHMENT B Redline of NBMC Section 3.36.030, Exhibit A Deletions: red, strikeout font Additions: blue, underline font 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. Percentage of Cost or Amount to Be Recovered from Service Direct Fees ALL DEPARTMENTS Appeals — For Any User Services 0% Appeal Not Otherwise Specified — p Appellant Successful Appeals — For Any User Services 50% Appeal Not Otherwise Specified — ApplicaqtAppellant Unsuccessful COMMUNITY DEVELOPMENT DEPARTMENT Chapter 17.65 Appeal— 0% p Appellant Successful Chapter 17.65 Appeal to City $940 Council— p Appellant Unsuccessful Chapter 17.65 Appeal to Harbor $1,250 Commission — Applicant Appellant Unsuccessful Building Appeals Board Hearing— 0% ApplicantAppellant Successful Appeals Board Hearing— c'�� 50% Applicaflt Appellant Unsuccessful Harbor Construction 50% 3-11 Page 2 of 6 Service Percentage of Cost or Amount to Be Recovered from Direct Fees Preliminary Plan Review First Two Hours Free, Full Cost Thereafter Planning Appeals t City Council s Appeals to Planning Derr s Appeals to City Council or 0% Planning Commission — Appellant Successful Appeals to City Council or 50% Planning Commission — Appellant Unsuccessful Coastal Development Permit Application Appeals from Zoning Administrator to Planning Commission 0% General Plan Maintenance Fee 12% Reasonable Accommodation 0% FINANCE DEPARTMENT Admin. Cite Hearings 0% Parking Hearings 0% Payment Plans (Except Parking) $25 Short Term Lodging Permit Suspension or Revocation Hearing— Applicant Appellant Successful 0% Short Term Lodging Permit Suspension or Revocation Hearing— Applicant Appellant Unsuccessful 50% Zero Bill Reprint 0% FIRE DEPARTMENT Emergency Medical Services 3-12 Page 3 of 6 Service Percentage of Cost or Amount to Be Recovered from Direct Fees Advanced Life Support (ALS)— Nontransport $400 Basic Life Support (BLS)— Nontransport $400 ALS First Responder Fee $400 BLS First Responder Fee $400 HARBOR DEPARTMENT Chapter 17.6s Appeal— Applicaat Appellant Successful $0 Chapter 17.6s Appeal to City Council— p Appellant Unsuccessful $940 Chapter 17.6s Appeal to Harbor Commission— Applicant Appellant Unsuccessful $1,2s0 LIBRARY SERVICES DEPARTMENT Black and White Copies from Self -Service Copiers or Printers $0.1s Color Copies from Self -Service Copier or Printer $0.4s Use Fees —Materials $1 Inter -Library Loan $s POLICE DEPARTMENT Bike Licenses 77-Yo 0% Citation Sign -off 10 Fingerprinting — City Portion 25 Secondhand/Pawn Dealer Tag Check 0% Registrant —Narcotics 0% Registrant — Sex 0% Animal Shelter 3-13 Page 4 of 6 Service Percentage of Cost or Amount to Be Recovered from Direct Fees Aaept i o n Fee —Doss $4159 Adoption Fee —Puppies $225 Adoption Fee — Senior Dog — 70 Animal Over Eight (8) Years Old Adoption Fee — Dog — All Other 150 Adeptfe,n Fees $w Adoption Fee —Kittens $110 Adoption Fee — Senior Cat — 70 Animal Over Eight (8) Years Old Adoption Fee — Cat — All Other 90 Adoption Fee —Small Animals $45 Boarding Fee (per day)— Animals $25 Boarding Fee (per day) —Small Animals $10 Owner Turn -In Fee —Altered Animal $100 Owner Turn -In Fee —Unaltered 200 Animal Impound Fee —Dogs, Cats, Small Animals 62 PUBLIC WORKS DEPARTMENT Chapter 17.65 Appeal— Applicafft Appellant Successful 0% Chapter 17.65 Appeal to City Council— Appliea44Appellant Unsuccessful $940 Chapter 17.65 Appeal to Harbor Commission— Appleeant Appellant Unsuccessful $1,250 RGP Dredging Permit 42% RECREATION AND SENIOR SERVICES DEPARTMENT 3-14 Page 5 of 6 Service Percentage of Cost or Amount to Be Recovered from Direct Fees Adult Sports 50%-95% Administrative Processing Fee $5 Badge Replacement $5 After School/Camp Programs Camps 20%-50% After-School/Teen Program 20%-50% Preschool Program 20%-50% Aquatics 20%-50% Contract Classes 50%-95% Class Refunds $74 or less $10 $75 or more $20 Youth Sports 20%-50% Special Events —Levels 1, 2, and 3 Resident, Level 1 and Late Fees for Level 1 0%-20% Resident, Levels 2-3 and Late Fees for Levels 2-3 20%-50% Nonresident, Levels 1-2 and Late Fees for Level 1 20%-50% Nonresident, Level 3 and Late Fees for Levels 2-3 50%-95% Appeal to City Council — ApplicantAppellant Successful 0% Appeal to City Council — ApplicantAppellant Unsuccessful 50%-95% Natural Resources Programs 0%-20% Senior Services OASIS Transportation $1—$3 each way Contract Classes 20%-50% 3-15 Page 6 of 6 Percentage of Cost or Amount to Be Recovered from Service Direct Fees Fitness Center 50%-95% UTILITIES DEPARTMENT Construction Water Meter 50% Establishment Fats, Oils, and Grease (FOG) 0% Annual Permit 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 $0 Official 3-16