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HomeMy WebLinkAbout04 - Master Fee ScheduleCITY OF z NEWPORT BEACH C9�FO0.HP City Council Staff Report Agenda Item No. 4 December 13, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Tracy McCraner, Finance Director /Treasurer 949 - 644 -3123, tmccraner @newportbeachca.gov PREPARED BY: Evelyn Tseng, Revenue Manager APPROVED: )� A TITLE: Approval of Master Fee Schedule and Change in Subsidies ABSTRACT: This is an annual activity to update, revise, delete and add fees to the existing master fee schedule. It provides Council with the opportunity to adjust fees based on increased /(decreased) cost of service, CPI or other factors that the Council deems important. "Charges for Services" revenues are budgeted at almost $14 million for fiscal year 2011 -12. This is approximately 10% of the General Fund budget and represents a critical resource for the successful operations for all functions and services provided to our community. The City Council held a public hearing and unanimously approved the master fee schedule and change in subsidies on November 22, 2011. RECOMMENDATION: 1. Conduct second reading and adopt Ordinance No. 2011 -28, amending NBMC Section 3.36.030. 2. Conduct second reading and adopt Ordinance No. 2011 -29, amending NBMC Section 5.04.200 and deleting NBMC Sections 5.08.040, 5.08.050, 5.08.060, 5.08.070 and 5.08.080. 3. Conduct second reading and adopt Ordinance No. 2011 -30, amending NBMC Sections 14.12.010, 14.12.090, 14.12.125, 14.20.010, 14.20.020, 14.20.050, 14.20.060, and 14.20.070 and deleting Section 14.20.030. NOTICING: 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). Approval of Master Fee Schedule and Change in Subsidies December 13, 2011 Page 2 Submitted by: Tracy Mc raner Finance Di ctor/Treasurer Attachments: A. Ordinance 2011 -28 redline with minor corrections. ORDINANCE NO. 2011 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 3.36.030 OF THE NEWPORT BEACH MUNICIPAL CODE WHEREAS, the City of Newport Beach ( "City ") funds certain municipal services, which are typically performed without request by the user, benefit the public generally and are traditionally funded by tax revenue; and WHEREAS, the City performs other services which are funded in whole or in part by the person requesting the service; and WHEREAS, Section 3.36.030(E), Exhibit "A ", provides that the City's cost of providing Revenue Services shall be recovered as follows: Revenue Parking Reviews 0% Parking Hearings 0% Admin. Cite Hearings 0% Dog License — Sterilized 50% WHEREAS, Section 3.36.030(E), Exhibit "A ", provides that the City's cost of providing Library Services shall be recovered as follows: Library Services Meeting Room Rentals 0.2% Rentals— Book /Video 5% WHEREAS, Section 3.36.030(E), Exhibit "A ", provides that the City's cost of providing Recreation and Senior Services shall be recovered as follows: Recreation and Senior Services Adult Sports Volleyball 60% Soccer 70% Basketball 85% Park Rentals 80% Facility Rentals 95% Park Patrol 85% After School /Camp Programs Vacation Camps 30% Summer Recess Camp 30% KidScene After - School Program 20% Teen Program 15% Aquatics CdM Pool 35% Water Polo 35% Lap Swim 50% Rentals 8% Lessons 40% Fee Classes 75% Youth Sports Basketball — Winter 50% Youth Flag Football 50% Tiny League Football 50% Basketball Tiny League 50% Basketball — Summer 50% Track and Field 50% Special Events — Levels 1, 2, and 3 80% Senior Services Oasis Transportation 3% Classes 11% Oasis Rentals 95% WHEREAS, Section 3.36.030(D) provides that City Council may modify the cost recovery percentage for any service by amending this chapter; and WHEREAS, the Dog Licensing Program was outsourced, so the reference to the subsidy is no longer required; and WHEREAS, the Library cost recovery percentage for Meeting Room Rentals should be rounded up to 1 %; and WHEREAS, Library BookNideo Rentals are now processed more efficiently, and therefore, the cost -of- services percentage recovery should be increased, and the name changed to Material Rentals; and WHEREAS, the cost of services study for Recreation and Senior Services now includes the cost of facilities, the costs of services has increased. Council desires to maintain fees at current levels to encourage residents to participate in a valued community benefit, and therefore, the cost recovery percentages must be modified accordingly to maintain the current fees; and WHEREAS, to streamline the fee schedule and Section 3.36, some categories in Recreations have been combined to create new categories, which include Adult Sports, Adult Drop -In Sports, Rentals, Camps, After - School /Teen Program, Aquatics, and Youth Sports; and WHEREAS, Council desires to add cost recovery percentages for Badge Replacement, Class Refunds and Fitness Center; and WHEREAS, the fee and the cost recovery percentage for Marine Preserve Tours is now moved from Harbor Resources to Recreation and Senior Services; and WHEREAS, Council desires to bifurcate the cost recovery percentages for Special Events fees between Resident and Non - Resident, and add a cost recovery percentage of 25% to appeal to City Council; and WHEREAS, Council desires to add a cost recovery percentage of 30% for the new fee of Construction Water HydfaR Meter Establishment in order to encourage participation in obtaining a construction water hydrant and discourage water theft; and NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: SECTION 1: Section 3.36.030, Exhibit "A ", of the Newport Beach Municipal Code is hereby amended to read as follows: Service Percentage of Cost to Be Recovered from Direct Fees Building Preliminary Plan Review 75% Planning Appeals to City Council 50% Appeals to Planning Commission 50% Recreation and Senior Services Adult Sports Adult Sports 62% Adult Drop -In Sports 15% Rentals 50% Badge Replacement 45% After School /Camp Programs Camps 40% After - School /Teen Program 20% Pre - School Program 40% Aquatics 20% Contract Classes 60% Class Refunds $74 or less 29% $75 or more 59% Youth Sports 25% Special Events — Levels 1, 2, and 3 Resident Up to 45% Non - Resident Up to 85% Appeal to City Council 25% Senior Services Oasis Transportation 5% Contract Classes 50% Oasis Rentals 45% Fitness Center 50% Marine Environment Services – Marine Preserve Tours 15% Library Services Meeting Room Rentals 1% Rentals VideesMaterials 20% Inter - library Loan 10% Fire and Marine Emergency Operations Services Advanced Life Support— Escorted Up to 80% Advanced Life Support—Not Escorted Up to 80% Basic Life Support— Escorted Up to 80% Basic Life Support—Not Escorted Up to 80% Construction and Inspection Services— State - Mandated Inspections Day Care Facilities 25% Police Initial Concealed Weapons Maximum Permit Permitted by Law Concealed Weapon Permit Renewal Maximum Permitted by Law Bike Licenses 17% Subpoena Duces Tecum Maximum Permitted by Law Vehicle Release 91% Domestic Violence Reports 0 % Missing Persons Report 0% Second Hand /Pawn Dealer Tag Check 0% Registrant —Sex 0% Registrant— Narcotics 0% Public Works Engineering Encroachment Permit without Traffic Engineer Review 88% Encroachment Permit with Traffic Engineer Review 57% Finance Parking Reviews 0% Parking Hearings 0 % Admin. Cite Hearings 0 % MOD Construction Water Meter Establishment 30% SECTION 2: 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 3: The City Council finds that 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, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 4: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the day of , 2011, and adopted on the day of , 2011, by the following vote, to wit: AYES, COUNCILMEMBERS ILIIQ *19K01110[ylILYAIWYi1:] A:61 /_ \:LyA►191K0191►[01►VAIA►GI:3Ady I►LF- AytelV APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY AARON HARP, CITY ATTORNEY ATTEST: LEILANI BROWN, CITY CLERK Q SEW PpRr CITY OF T NEWPORT BEACH City Council Staff Report Agenda Item No. 23 November 22, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Tracy McCraner, Finance Director /Treasurer 949 - 644 -3123, tmccraner @newportbeachca.gov PREPARED BY: Evelyn Tseng, Revenue Manager APPROVED: � A TITLE: Approval of Master Fee Schedule and Change in Subsidies ABSTRACT: Attached for your review and approval are recommendations to update, revise, delete and add fees to the existing master fee schedule. This is an annual activity and it provides Council with the opportunity to adjust fees based on increased /(decreased) cost of service, CPI or other factors that the Council deems important. "Charges for Services" revenues are budgeted at almost $14 million for fiscal year 2011 -12. This is approximately 10% of the General Fund budget and represents a critical resource for the successful operations for all functions and services provided to our community. Department # of Fees Going Up # of Fees Going Down or Eliminated # of Fees Staying the Same # of New Fees Finance 15 18 9 3 Recreation 9 17 148 0 MOD 9 5 - 1 Library i - 13 i - Total 1 33 1 40 1 170 1 4 RECOMMENDATION: Staff recommends that City Council: 1. Conduct a public hearing. 2. Adopt Resolution No. 2011 -108 approving the Master Fee Schedule (Exhibit "A "), as recommended by staff. Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 2 3. Introduce Ordinance No. 2011 -28 (Exhibit "B "), amending NBMC Section 3.36.030. 4. Introduce Ordinance No. 2011 -29 (Exhibit "D "), amending NBMC Section 5.04.200 and deleting NBMC Sections 5.08.040, 5.08.050, 5.08.060, 5.08.070 and 5.08.080. 5. Introduce Ordinance NO. 2011 -30 (Exhibit "F "), amending NBMC Sections 14.12.010, 14.12.090, 14.12.125, 14.20.010, 14.20.020, 14.20.050, 14.20.060, and 14.20.070 and deleting Section 14.20.030. FUNDING REQUIREMENTS: There is no expenditure of funds required with this action DISCUSSION: Master Fee Schedule The Newport Beach Municipal Code Section 3.36.030 establishes the percentage of costs to be recovered from direct user fees. A fee may not be greater than the cost of providing the service. The actual fee for each service is set annually by the City Council's Master Fee Schedule resolution. To properly establish the cost of service, the City entered into an agreement in 2010 with MGT Consultants (Exhibit "H ") for a phased six year comprehensive review and update of departmental (General Fund) user fee calculations and the city -wide cost allocation plan. This schedule allows most fees to be reviewed every three years. Fees not being reviewed are updated as allowed in the Newport Beach Municipal Code and that is tied to increases in the CPI. The 1st phase approved by City Council on March 8, 2011, updated the citywide cost allocation plan, the Police user fee study and conducted the initial comprehensive Harbor Tidelands user fee study. In 2011, MGT studied fees within the following departments: • Finance • Library • Municipal Operations Department ( "MOD ") • Recreation and Senior Services ( "RSS ") For the purpose of the remainder of this report, only fees that were found to require substantive changes and those fees in which staff is aware of Council or public interest will be discussed. It should be further noted that all proposed fee adjustments have been rounded down to the nearest dollar. Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 3 However, if members of the public or Council wish to discuss any fee not specifically called out in the discussion part of this report, more information is in the attachments. Staff will be available to answer questions for all departments studied in this year. Summary of Noteworthy Changes: 1 - Finance Department Coin/Vending Machines Bulk vending machines, juke boxes, penny arcade machines, skill machines and merry- go- rounds are regulated because they were viewed as having the potential to be a public nuisance or danger. Our study revealed that none of these machines are a public nuisance, nor have they represented a danger to the public as once suggested. Staff recommends deleting these eleven (11) fees from the fee schedule, and amending NBMC by deleting Sections 5.08.040, 5.08.041, 5.08.060, 5.08.070 and 5.08.080. Short Term Lodging Permits ( "STLP') In 1992, the City Council approved NBMC Section 5.95 as a response to the increased demand for short term lodging units. These rentals impact the demand for City services and can, if not well- managed, create adverse impacts in residential zones. This code section requires all owners of lodging units who rent their units for a period of thirty (30) days or less to obtain a Short Term Lodging Permit ( "STLP "). The SLTP allows the City to recoup the cost of administering the provisions of this code relating to short term lodgings, as well as providing a base for Residential Transient Occupancy Tax payments. In 2011, there were 796 active STLPs in the community. Part 1 — New Permits The current fee for a new STLP is set at $92.00. MGT has determined that $146.00 is the amount that covers all City costs associated with administering the STLP process. MGT notes that previous calculations have not incorporated: • IT database maintenance, ad -hoc report generation and support • Dual -data entry requirements for each account (STLP and TOT) • Document storage costs Other costs incurred for the issuance of new STLP permits were again updated. These include: • Zoning confirmation (STLP are not allowed in "R -1" zone or designated as single - family residential) • Verification of valid business license • Printing /Mailing permit Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 4 • Compile annual report and conduct field inspections to verify STLP accounts, including review for delinquent accounts, valid business licenses and closed STLP accounts that are still renting • Customer interface /queries /assistance • Work with real property agents - determine what properties they represent, inform them of delinquent and non - registered accounts, conduct bi- annual open house to disseminate STLP information to agents and owner - operators. • Billing /Payment Processing Staff recommends that the new STLP fee be set at 100% cost - recovery. A significant component of our cost relates to outdated information systems that drive a manual process. Until the City can update its information systems and infrastructure, this is a cost of doing business. If Council approves the updated fee at 100% cost recovery, it would impact only new permit requests (not renewals), approximately seventy (70) per fiscal year, and increase revenue approximately $3,780 /year. Part 2 — Discontinuing Renewal Process Finance staff had traditionally performed a cumbersome and lengthy bi- annual STLP renewal process in order to properly maintain the STLP, TOT and customer databases, as well as to ensure compliance with NBMC Section 5.95. After significant restructuring and customer outreach, Finance has decided to discontinue the STLP renewal process. Instead, staff will work with the STLP customers and agents to identify a streamlined, less laborious and more collaborative process that benefits all parties involved. Neither the old process nor the new process results in fees being charged to the customer. Special Package Deals — Hotels NBMC Section 3.16 requires hotel operators to collect a tax for the privilege of occupancy in any hotel (TOT tax). The tax constitutes a debt owed by the transient to the City, which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. In some cases hotels offer special packages to customers to encourage business, not all of the items in the package require the TOT tax. To be exempt from collecting TOT on all package items, NBMC Section 3.16.050(C) requires hotel operators to file a statement of special package, accompanied by a processing fee, which details the benefits of the special package and an itemization of the portion of the special package that is rent and tax. Staff audits the Special Package Deal to identify the appropriate transient occupancy tax due, thereby exempting certain payments to the hotel for TOT. MGT's analysis of the fee for this special package audit has increased the full -cost recovery amount from $75 to $139 due to the staff time involved in the detailed audit of the special packages and all receipts and documentation. This should not be a significant burden to the hotels as we had only 1 special package request last fiscal year. Staff recommends 100% cost recovery for this fee. Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 5 Transient Occupancy Tax ( "TOT') Delinquent Fee Transients (defined in NBMC Section 3.16.020) are required to pay TOT to the hotel. The operator of the hotel is required to collect the tax, and file a return to the Finance Department, accompanied by the tax amount. The returns and tax payments are due on the last day of the month, following the close of each calendar quarter, or on a day specified by the Finance Director (NBMC Section 3.16.070). When a hotel operator does not file its return in a timely manner, staff must identify and issue late notices to that hotel, also several contacts are required in these cases increasing staff time. MGT recommends a $37.00 fee to hotels and STLP operators to recover these costs and staff agrees with this recommendation to hopefully mitigate late payments and the costs incurred as a result of those late payments. There were approximately 140 late payments last year. If this fee is approved it would generate $5,180. Staff recommends 100% cost recovery for this fee. Vehicles for Hire Vehicles for Hire include pedicabs and sightseeing vehicles. MGT recommends that the total cost recovery amount for six (6) fees associated with Vehicles for Hire increase because of Police time required to process comprehensive background checks; including fingerprinting, DUI checks, arrest records and DMV history. This should not represent a burden to our business community since we receive fewer than one Vehicles for Hire permits in a year. Staff recommends 100% cost recovery for these fees. 2 — Library Inter- library Loan ("ILL") Books and certain materials not immediately available from the Newport Beach library can be obtained from other library systems. Nearly 700 such ILL requests were made last year. Although the fee of $5.00 has always been charged, it had not been previously included in the cost of services fee schedule. MGT calculated the full cost of services for the ILL program at $47 per loan. However, staff considers this to be a valuable service to our customers and does not want to charge more than we have in the past because it may discourage customers from using this service. This requires the addition of a Council- approved recovery rate in NBMC Section 3.36, staff recommends a recovery rate of 10% to maintain this service at the same low cost which would have no adverse impact to our customers. Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 6 3 - Municipal Operations Department (MOD - includes water utilities) Solid Waste Permit Application This fee applies when a new commercial waste hauler seeks a permit to remove construction waste and multi - family residential waste from anywhere in the city. This fee has been moved from Finance to MOD. MGT has found that full -cost recovery for this fee is $714 (up from $398). This increase is attributable to increased staff time as follows: • Collection of data from hauler • Verification of insurance requirements • Preparation of staff reports and attendance at mandatory City Council Meeting • Coordination of the preparation of the franchise agreement with the Office of the City Attorney The City has not received a solid waste permit application in almost 18 months, but expects this to not exceed four in any fiscal year. This would equate to approximately $1,264 of increased revenue in a high volume year. Staff recommends 100% cost recovery for this fee. Construction Water Jumper Service (Monthly and Establishment Fees) Staff recommends that both these fees be deleted. A construction jumper is a temporary device that is placed in the space typically occupied by a meter. Due to water conservation efforts and the need for water accountability, this practice is no longer used. Staff will now put in a meter rather than a jumper which alleviates the need for either the establishment or monthly fees in the fee schedule. Construction Water Meter— Establishment of a New Fee In the past, when a project was about to be constructed, the City allowed construction contractors to pick up a construction water meter free of charge, with relatively little paperwork. This practice resulted in damaged or stolen meters or meters that were simply not returned if the contractors went out of business. Staff recently changed the procedure for acquiring a construction water meter. After the applicant pays the appropriate fees, staff now delivers the meter to the construction site and locks the meter to a fire hydrant. This new process requires increased staff time; however, it will be more cost effective than replacing lost, damaged and /or stolen meters. MGT calculated this fee to be $365 for full cost recovery. However, to encourage participation and to discourage stealing water, staff recommends establishing a new recovery percentage within NBMC Section 3.36. This recommended recovery percentage is 30% which would lower the cost of this service to $100. Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 7 Delinquent Account Water Service Discontinuance and Turn on Charge When a water account goes delinquent, we discontinue service entirely. When the bill is paid up (and a fee assessed), we can turn on the water again. Previously, a delinquent account Water Turn -On Charge was $220 (during business hours) and $250 (during non - business hours). This fee combined the cost of services for shutting off the water, turning the water back on, and a penalty. MGT calculated the true cost of services for shutting off the water separate from turning the water back on. This is due in part to the fact that not all customers have the water turned back on because they have moved. The cost of services for shutting water off is $143, and the cost for turning the water service back on, upon payment, is $159 ($59 for staff time and $100 penalty) during regular working hours and $355 ($256 for staff time and $100 penalty) for non - regular working hours. Staff recommends separating the discontinuance (turn -off) fees from the turn -on charges to accurately recover the true cost of service, and recommends setting the fees at 100% cost recovery per MGT's analysis. In addition, Staff recommends amending NBMC Section 14.12.125 to clarify the hours and higher fee for service restoration during business and non - business hours as a result of delinquent account status. Hydrant Flow Test — Regular Hours A Hydrant Flow Test is performed to find out how much water flow and pressure is available in the water system. These tests are required by the Fire Department before a sprinkler system can be installed in a business or residence. MGT's analysis shows that it costs $405 (up from $210) to provide this service. The primary reason for the increase is due to the length of time in between fee studies. Staff recommends 100% cost recovery, but phasing in the increased fee over three fee schedule periods which would equate to $65 increases over each of the three periods. Hydrant Flow Test — Witness Staff recommends deleting this fee as a witness is not required. The hydrant Flow Test Witness fee was created many years ago to provide additional staff that could witness the flow test and sign the documentation. The witness service is not a requirement of the test; however, was offered to customers at their discretion. Records indicate this service is rarely requested by the customers and should be removed as a possible fee in the master fee schedule. Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 8 Water Service Installation Fee A water service installation fee is required when a customer installs a new or enlarged water service from the water main in the street to the property line. Several visits to the construction site are required to meet with the contractor regarding location, installation approval, meter installation and water quality tests. This activity occurs approximately 100 times in a fiscal year. MGT's analysis shows that the cost of providing this service is $524 (up from $160). Staff recommends 100% cost recovery, but phasing in the increased fee over three fee schedule periods which would equate to $121 increases over each of the three periods. 4 — Recreation and Senior Services (RSS) This year, MGT's study examined and added in facilities maintenance costs to all RSS fees (such as maintenance and repair of eleven buildings, ball field systems, playgrounds and sport courts) to fully realize the actual cost of providing the service. If applied at the current recovery rates (which range from 3% to 95 %) the inclusion of facilities maintenance costs in the fee would result in higher costs of services than earlier studies that did not include the facilities maintenance costs. Staff recommends accepting MGT's analysis for these fees, but adjusting the NBMC Section 3.36 (recovery rates) downward to maintain the fees at current levels. Staff believes that RSS classes, camps and other programs provide a valued community benefit and as such, Newport Beach residents and visitors may be discouraged, or unable, to participate due to an increased cost. RSS management has been diligent in the past several years to judge fees at the fair market value compared to our neighboring cities as well as implementing fee increases and decreases as a result of the last cost of services study in 2007. Staff is confident the fee levels are at a maximum to maintain class participation and affordability that will encourage continued strong use of these programs and recreation facilities. In order to streamline cost recovery rates as identified in NB Code Section 3.36, staff recommends bundling programs and providing a range of recovery percentages. This allows for flexibility in participation numbers and trends which ultimately affect program revenues within individual activities. Special Events - Appeals to City Council Previously, fees for Special Event appeals to City Council varied according to the level of Special Event (level 1, 2 or 3), ranging from $140 to $415. However, NBMC Section 11.03.060(H) (Special Events — Appeals of City Manager Decision) and 11.03.100 (Appeals from Action of the City Manager) only allow for level 3 permits to be appealed to the City Council with the payment of a fee. This fee had not been previously imposed. MGT calculated staff time to prepare an appeal for City Council at full cost to be $6,233. This includes all time from RSS, MOD, Police and Finance staff. Staff recommends Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 9 establishing a cost recovery percentage of 25% to lower the fee to $1,558. About two Special Event permits have been appealed to the City Council in the last five years. Conclusion Department # of Fees Going Up # of Fees Going Down or Eliminated # of Fees Staying the Same # of New Fees Finance 15 18 9 3 Recreation 9 17 148 0 MOD 9 5 Flat 1 Library - - 13 Delinquent TOT Pa ment Total 33 40 170 4 The City's General Fund estimates approximately $14 million per fiscal year in "Charges for Services" revenue. This includes, but is not limited to, cost of services for building and plan check fees, junior lifeguards, paramedic services, recreation and senior services programs and more. This is a substantial component of our General Fund revenue base, and is net of significant subsidies, authorized by Council approval of NBMC Section 3.36. It has been this Council's desire to offer extraordinary Recreation & Senior Services and Library services at a significantly reduced cost to our community to ensure that everyone has the opportunity to enjoy our premier city programs. We have discussed the more substantive changes in the previous pages for those departments studied this year. Below is a chart of those fees, both before the study and the recommended changes for discussion. As mentioned earlier, staff is also available to discuss any and all fees in the schedule for Finance, MOD, Library and RSS. Listed below are the more substantive changes recommended by the consultant and staff for the Finance department: FINANCE DEPARTMENT Current Recommendations Per Unit Per Unit Annual Service Name Fee Description Annual Volume Current Fee Fee @ Policy Level Annual Revenue Increased Revenue Short Term Lodging Permits - Initial Flat 70 $92 $146 $10,220 $3,780 Review of Special Package Deals Hotels Flat 1 $75 $139 $139 $64 Delinquent TOT Pa ment New Fee 140 $0 $37 $5,180 $5,180 Vehicles For Hire Certificate Flat - 1 $542 $1,009 $0 $0 Vehicle for Hire -Each Vehicle Flat - $88 $466 $0 $o Annual Vehicles For Hire- First Vehicle Flat - $53 $449 $0 $o Annual Vehicles For Hire- Addl. Vehicle Flat - $53 $449 $0 $0 Vehicles For Hire - Driver's Permit Flat $175 $881 $0 $0 Vehicles For Hire - Driver's Permit Renewal Flat $105 $449 $0 $0 Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 10 If Council approves all recommended changes on the attached master fee schedule for Finance department it would generate approximately $12,000 in additional revenue, per fiscal year. The chart above represents 75% of that projected increase. Listed below are the more significant changes recommended by the consultant and staff for the MOD: MOD Current Recommendations Per Unit Per Unit Annual Service Name Fee Description Annual Volume Current Fee Fee @ Policy Level Annual Revenue Increased Revenue Solid Waste Franchise Application Flat 4 $398 $714 $2,856 $1,264 Construction Water Meter - Est. New 75 $0 $100 $7,500 $7,500 Delinquent Water Service Restoration - Business Hours Flat 120 $220 $159 $19,080 - $7,320 Delinquent Water Service Restoration - Non- Business hours Flat 24 $250 $355 $8,520 $2,520 Delinquent Water Service Discontinuance Flat 150 $48 $143 $21,450 $14,250 Hydrant Flow Test - Regular Hours - Phasein Flat 50 $210 $275 $13,750 $3,250 Water Service Installation - Phase in I Flat 1 100 1 $1601 1 li28,1001 $12,100 If Council approves all recommended changes on the attached master fee schedule for MOD it would generate approximately $39,000 in additional revenue, per fiscal year. The chart above represents 86% of that projected increase. RSS and Library departments offer extraordinary programs to our community. The programs offered in Newport Beach surpass those of our neighbors and is one of many reasons Newport Beach is that "Shining City by the Bay." In order to maintain these high quality programs, without increasing fees to the community, Council has approved subsidies in NBMC Section 3.36 to ensure all community members can benefit from these premier services. The fees for both departments are relatively unchanged from last year, but some subsidies did need to increase in order to maintain those current levels. All recommended changes to the recovery rates are identified in the attached NBMC Section 3.36. Listed below are the substantive fee changes recommended by the consultant and staff for both RSS and Library departments: Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 11 Library &RSS Current Recommendations Per Unit Per Unit Annual Service Name Fee Description Annual Volume Current Fee Fee @ Policy Level Annual Revenue Increased Revenue Recommended Subsidy Inter Library Loan - Library Flat 683 $5 $5 $3,415 $0 $28,686 Special Events Appeal - to City $140 - Council Flat 1 $415 $1,558 $1,558 $1,558 $4,676 If Council approves the attached fee schedule and recommended subsidies, the overall impact to the customer is minimal. There is the potential for a customer, if they choose to appeal a special event permit denial, to have a fee of $1,558 which represents only 25% recovery of total estimated cost of this service. The significant impact related to Library and RSS is that the amount the City subsidizes will increase. This is due to the facility costs (such as maintenance and repair of eleven buildings, ball field systems, playgrounds and sport courts) which staff does not recommend passing on to our customers and is changing the Council approved recovery percentages in order to maintain costs are current levels. 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, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: 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). Submitted by: & " 4 - racy M raner Finance i ector /Treasurer Approval of Master Fee Schedule and Change in Subsidies November 22, 2011 Page 12 Attachments: — Exhibit "B" — Resolution with Ordinance amending NBMC Section 3.36.030 Exhibit "C" — NBMC Section 3.36.030 Legislative Draft Exhibit "D" — Resolution with Ordinance amending NBMC Section 5.04.200 and deleting Sections 5.08.040, 5.08.050, 5.08.060, 5.08.070 and 5.08.080 Exhibit "E" — NBMC Sections 5.04.200, 5.08.040, 5.08.050, 5.08.060, 5.08.070 and 5.08.080 Legislative Draft Exhibit "F" — Resolution with Ordinance amending NBMC Sections 14.12.010, 14.12.090, 14.12.125, 14.20.010, 14.20.020, 14.20.050, 14.20.060, 14.20.070 and deleting Section 14.20.030 Exhibit "G" — NBMC Sections 14.12.010, 14.12.090, 14.12.125, 14.20.010, 14.20.020, 14.20.030. 14.20.050, 14.20.060, 14.20.070 Legislative Draft ORDINANCE NO. 2011 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 3.36.030 OF THE NEWPORT BEACH MUNICIPAL CODE WHEREAS, the City of Newport Beach ( "City ") funds certain municipal services, which are typically performed without request by the user, benefit the public generally and are traditionally funded by tax revenue; and WHEREAS, the City performs other services which are funded in whole or in part by the person requesting the service; and WHEREAS, Section 3.36.030(E), Exhibit "A ", provides that the City's cost of providing Revenue Services shall be recovered as follows: Revenue Parking Reviews 0% Parking Hearings 0% Admin. Cite Hearings 0% Dog License — Sterilized 50% WHEREAS, Section 3.36.030(E), Exhibit "A ", provides that the City's cost of providing Library Services shall be recovered as follows: Library Services Meeting Room Rentals 0.2% Rentals— Book /Video 5% WHEREAS, Section 3.36.030(E), Exhibit "A ", provides that the City's cost of providing Recreation and Senior Services shall be recovered as follows: Recreation and Senior Services Adult Sports Volleyball 60% Soccer 70% Basketball 85% Park Rentals 80% Facility Rentals 95% Park Patrol 85% After School /Camp Programs Vacation Camps 30% Summer Recess Camp 30% KidScene After - School Program 20% Teen Program 15% Aquatics CdM Pool 35% Water Polo 35% Lap Swim 50% Rentals 8% Lessons 40% Fee Classes 75% Youth Sports Basketball — Winter 50% Youth Flag Football 50% Tiny League Football 50% Basketball Tiny League 50% Basketball — Summer 50% Track and Field 50% Special Events — Levels 1, 2, and 3 80% Senior Services Oasis Transportation 3% Classes 11% Oasis Rentals 95% WHEREAS, Section 3.36.030(D) provides that City Council may modify the cost recovery percentage for any service by amending this chapter; and WHEREAS, the Dog Licensing Program was outsourced, so the reference to the subsidy is no longer required; and WHEREAS, the Library cost recovery percentage for Meeting Room Rentals should be rounded up to 1 %; and WHEREAS, Library BookNideo Rentals are now processed more efficiently, and therefore, the cost -of- services percentage recovery should be increased, and the name changed to Material Rentals; and WHEREAS, the cost of services study for Recreation and Senior Services now includes the cost of facilities, the costs of services has increased. Council desires to maintain fees at current levels to encourage residents to participate in a valued community benefit, and therefore, the cost recovery percentages must be modified accordingly to maintain the current fees; and WHEREAS, to streamline the fee schedule and Section 3.36, some categories in Recreations have been combined to create new categories, which include Adult Sports, Adult Drop -In Sports, Rentals, Camps, After - School /Teen Program, Aquatics, and Youth Sports; and WHEREAS, Council desires to add cost recovery percentages for Badge Replacement, Class Refunds and Fitness Center; and WHEREAS, the fee and the cost recovery percentage for Marine Preserve Tours is now moved from Harbor Resources to Recreation and Senior Services; and WHEREAS, Council desires to bifurcate the cost recovery percentages for Special Events fees between Resident and Non - Resident, and add a cost recovery percentage of 25% to appeal to City Council; and WHEREAS, Council desires to add a cost recovery percentage of 30% for the new fee of Construction Water Hydrant Establishment in order to encourage participation in obtaining a construction water hydrant and discourage water; and $75 or more 59% Youth Sports 25% Special Events — Levels 1, 2, and 3 Resident Up to 45% Non - Resident Up to 85% Appeal to City Council 25% Senior Services Oasis Transportation 5% Contract Classes 50% Oasis Rentals 45% Fitness Center 50% Marine Environment Services – Marine Preserve Tours 15% Library Services Meeting Room Rentals 1% Rentals —Video 20% Inter - library Loan 10% Fire and Marine Emergency Operations Services Advanced Life Support— Escorted Up to 80% Advanced Life Support—Not Escorted Up to 80% Basic Life Support— Escorted Up to 80% Basic Life Support—Not Escorted Up to 80% Construction and Inspection Services— State - Mandated Inspections Day Care Facilities 25% Police Initial Concealed Weapons Maximum Permit Permitted by Law Concealed Weapon Permit Renewal Maximum Permitted by Law Bike Licenses 17% Subpoena Duces Tecum Maximum Permitted by Law Vehicle Release 91% Domestic Violence Reports 0% Missing Persons Report 0% Second Hand /Pawn Dealer Tag Check 0% Registrant —Sex 0% Registrant— Narcotics 0% Public Works Engineering Encroachment Permit without Traffic Engineer Review 88% Encroachment Permit with Traffic Engineer Review 57% Finance Parking Reviews 0% Parking Hearings 0% Admin. Cite Hearings 0% MOD Construction Water Meter Establishment 30% SECTION 2: 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the day of ®, 2011, and adopted on the _ day of 2011, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS APPROVED AS TO FORM: OFFICE COTHE -CITY ATTORNEY AARON RARP, CITY ATTORNEY ATTEST: LEILANI BROWN, CITY CLERK 5 a_ 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 those 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 Marine Environment Services – 15% Marine Preserve Tours Library Services Meeting Room Rentals 1 %G.lq°m Rentals— Beek{Videe Materials 20 %&°k InteLlibrary Loan 10% Fire and Marine Emergency Operations Services Advanced Life Support— Escorted Up to 80% Advanced Life Support—Not Escorted Up to 80% Basic Life Support— Escorted Up to 80% Basic Life Support—Not Escorted Up to 80% Mar Re PreseFve 4"0 Construction and Inspection Services—State-Mandated Inspections Day Care Facilities 25% Police Initial Concealed Weapons Permit Maximum Permitted by Law Concealed Weapon Permit Renewal Maximum Permitted by Law Bike Licenses 17% Subpoena Duces Tecum Maximum Permitted by Law Vehicle Release 91% Domestic Violence Reports 0% Missing Persons Report 0% Second Hand /Pawn Dealer Tag Check 0% ORDINANCE NO. 2011 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING NEWPORT BEACH MUNICIPAL CODE ( "NBMC ") SECTION 5.04.200 PERTAINING TO DUPLICATE LICENSE FEES AND DELETING NBMC SECTIONS 5.08.040, 5.08.050, 5.08.060, 5.08.070, 5.08.080 WHEREAS, duplicate license fees are cost -of- services fees identified in the Master Fee Schedule, which updates are approved by the City Council; and WHEREAS, MGT of America, Inc. studied the cost of services associated with providing a duplicate business license, and found the cost of services to be $10.00; and WHEREAS, NBMC Section 5.04.200 identifies a specific fee amount and cannot be updated concurrently with the Master Fee Schedules; and WHEREAS, City Council now desire to revise NBMC Section 5.04.200 to reflect the cost of those services, as updated by the Master Fee Schedule; and WHEREAS, in the past, bulk vending machines, juke boxes, penny arcade machines, skill machines and merry go- rounds were regulated because of their potential to be public nuisances, however, none of these machines have been found to be nuisances; and WHEREAS, City Council now desires to delete NBMC Sections 5.08.040, 5.08.050, 5.08.060, 5.08.070, 5.08.080 which regulates Coin Machines, Games of Skill or Amusement, Penny Arcade in the "Fun Zone ", Amusement Business in the "Fun Zone "; and "Merry -go -round or Similar Devices ". NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: SECTION 1: Section 5.04.200, Duplicate License, is hereby amended to read as follows: A. The Finance Director shall charge a fee as set forth by resolution of the City Council for each duplicate license issued to replace any license issued under the provisions of this title, which has been lost or destroyed, upon reasonable proof thereof. SECTION 2: Sections 5.08.040 (Coin Machines), 5.08.050 (Games of Skill or Amusement), 5.08.060 (Penny Arcade in the "Fun Zone "), 5.08.070 (Amusement Business in the "Fun Zone ") and 5.08.080 (Merry-go -round or Similar Devices) are hereby deleted in their entirety. 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 4: The City Council finds that 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, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 5: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the day of , 2011, and adopted on the day of , 2011, by the following vote, to wit: AYES, COUNCILMEMBERS C. Service may not be discontinued for nonpayment on any Saturday, Sunday, legal holiday or at any time during which the business offices of the City are not open to the public or in any of the following situations: 1. During the pendency of an investigation by the City of a customer dispute or complaint. 2. When a customer has been granted an extension of the period for payment of a bill. 3. When such discontinuance would be especially dangerous to the health of the customer or a full -time resident of the customer's household. Certification from a licensed physician, public health nurse or social worker may be required by the City. 4. When the customer or full -time resident of the customer's household is temporarily unable to pay for such service and is willing to arrange installment payments satisfactory to the City, including arrangements for prompt payment of subsequent bills. D. The fee for discontinuance shall be the city's costs including all labor and materials and is identified by Council resolution. (Ord. 96 -22 § 1 (part), 1996: Ord. 92 -56 § 1 (part), 1993) SECTION 3: Section 14.12.125, Delinquent Water Service Restoration (Delinquent Account Water Turn -On Charge) is hereby amended to read as follows: A. Service that has been discontinued may not be restored until payment of all delinquent water service charges, including the restoration charge and $100.00 fine has been received by the Finance Department. 1. Upon payment, service shall be restored during regular or non - regular working hours. 2. The restoration charge for meter turn on during regular and non - regular work hours is identified by Council resolution. 3. Regular work hours are Monday through Thursday 7:00 a.m. to 4:30 p.m. and Friday 7:00 a.m. to 3:30 p.m. B. Any service wrongfully discontinued shall be restored without charge for the restoration of service, and a notation thereof shall be mailed to the customer at the customer's billing address. A credit shall be applied to the customer's next municipal services bill. The credit shall be set by Council ordinance. (Ord. 2011 -11 § 2, 2011; Ord. 96 -22 § 1 (part), 1996: Ord. 92 -56 § 1 (part), 1993) SECTION 4: Section 14.20.010, Property of City — Damaged or Lost Meters is hereby amended to read as follows: SECTION 12: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the day of , 2011, and adopted on the _ day of 2011, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR APPROVED AS TO FORM: Owr/�- Y ATTORNEY , AARON HARP, C ITY ATTORNEY ATTEST: LEILANI BROWN, CITY CLERK 3. When such discontinuance would be especially dangerous to the health of the customer or a full -time resident of the customer's household. Certification from a licensed physician, public health nurse or social worker may be required by the City. 4. When the customer or full -time resident of the customer's household is temporarily unable to pay for such service and is willing to arrange installment payments satisfactory to the City, including arrangements for prompt payment of subsequent bills. D. The fee for discontinuance shall be the city's costs including all labor and materials and is identified by Council resolution. (Ord. 96 -22 § 1 (part), 1996: Ord. 92 -56 § 1 (part), 1993) 14.12.125 Delinquent Water Service Restoration (Delinquent Account Water Turn -on Charge). A. Service that has been discontinued may not be restored until payment of all delinquent water service charges, including the restoration charge and $100.00 fine, has been received by the Adrn n' trAtive Services Finance Department. 1. Upon payment, service shall be restored during regular or non - reqular working hours. 2. The restoration charge for meter turn on during regular and non-regular work hours is identified by Council resolution. 3. Regular work hours are Monday through Thursday 7:00 a.m. to 4:30 p.m. and Friday 7:00 a.m. to 3:30 p.m. B. Any service wrongfully discontinued shall be restored without charge for the restoration of service, and a notation thereof shall be mailed to the customer at the customer's billing address. A credit shall be applied to the customer's next municipal services bill. The credit shall be set by Council ordinance. (Ord. 2011 -11 § 2, 2011; Ord. 96 -22 § 1 (part), 1996: Ord. 92 -56 § 1 (part), 1993) 14.20.010 Property of City— Damaged or Lost Meters. A. All meters, unless otherwise authorized by the Utilities Manager, shall be and remain the property of the City and will not be removed unless the use of water on the premises is to be entirely stopped, or the service connection discontinued or abandoned. B. In all cases where meters or meter boxes are lost, injured or broken by carelessness, or by the negligence of the owners or occupants of premises, they shall be replaced or repaired by the Utilities Division and the cost charged against the owner or occupant; and in the case of nonpayment, the water shall be shut off as provided in Section 14.12.090.