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Home My WebLink About15 - Master Fee Schedule and Change in Subsidies - PowerPoint Municipal Fee Schedule Update ' • • L' September 22, 2015 e-� Item No. 15 COMM. : w. September 22, 2015 City Council Presentation Presentation Overview Background (authority, Council policy, fee administration) Fee for Service Methodology Summary of Proposed Changes Proposed Fees by Department Background Summary of Proposed Fee Schedule In furtherance of Council policy, the fee schedule aligns revenues with the actual (direct and indirect) costs of providing services. Each department gets "studied" every 3-7 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). Authority v ❑ Authority — NBMC 3.36.030 mandates 100% cost recovery (with the exceptions identified in the code) ❑ Council Policy Directive — Fiscal Sustainability Plan: Establish appropriate cost-recovery targets and adjust fee structure to ensure that the fees continue to meet cost recovery targets. ❑ Council Policy Directive — F-4 Revenue Measures: 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. Tax vs. Fee A monetary imposition Charge imposed for a specific benefit by a government on conferred, benefit, or product to the persons or property payer that is not provided to those not for the purpose of charged (should not exceed reasonable cost of service). raising revenue to Charge imposed for reasonable support the purposes regulatory costs to a local government of the government. for issuing licenses and permits, A tax need not be investigations, etc. levied in proportion to Charge imposed for entrance, use, or a specific benefit to a lease of government property. person or property. Fine, penalty, or charge imposed as a result of violation of law. Fee for Service Methodology MGT of America performs cost of service analysis for developing user fees. Indirect Overhead MGT Scope of Work: Lab s Calculate the fully burdened (labor and service A overhead )cost of providing user fee Checkfor Accuracy + services; Reasonable 13 Applied fully burdened labor rates to time requirement estimates and annual workload figures. Fee Schedule 0 Calculate the cost of providing the service. o Review and cross check results to ensure data validity. Fee Calculation Example ( Police Department - Jail Booking Fee Example ) Step 1 : Calculate Hourly Staffing Rates and Burdened Factors Salary and Benefits Burdened Factors Total Burdened Hourly Rate Hourly Rate Rate Custody Officer $52.61 + $64.17 = $116.78 Police CSO (incl Part Time (P/T) & Senior (Sr) CSO) $41.18 + $50.23 = $91.41 Police Officer $78.04 + $95.20 = $173.24 Fee Calculation Example ( Police Department - Jail Booking Fee Example ) Step 2: Calculate Time Spent on the Service Task Description &Time Estimates (in minutes): Upon entry, arrestee searched by transporting Multiple system check on Transportation to Orange officer arrestee'sbackground County Jail Custody Officer 60.00 Police CSO (incl P/T &Sr CSO) 20.00 Police Officer i 72.00 Fee Calculation Example ( Police Department - Jail Booking Fee Example ) Step 3: Calculate the Cost to Provide the Service Total Fully Total Cost Total Hours per Burdened to Provide Minutes Unit Hourly Rates the Service Custody Officer 60.00 1.00 $116.78 $116.78 Police CSO (incl P/T&Sr CSO) 20.00 y 0.33 X $91.41 = $30.47 Police Officer 72.00 1.20 $173.24 $207.89 $355.14 Proposed Fee $355.00 Step 4: Review for Accuracy and Reasonableness Fee Change Summary — All Departments Studied Increasing Decreasing . . Police 10 1 17 0 0 36 Public 18 18 3 7 2 1 49 Works Fire (EMS) 2 1 0 0 4 2 9 Community 66 67 3 52 2 3 193 Developme nt TOTAL 96 94 7 76 8 6 287 PCT OF 33% 33% 2% 26% 3% 2% 100% TOTAL Reasons for Change Increasing — due to the increase of any service delivery cost component e.g. hourly staffing rates, benefits, supplies, materials, indirect costs) Decreasing or Eliminated — due to lower cost of service resulting from gained efficiencies, technological improvements, combined with other existing fees, or service outsourcing Combined with Existing Fees — due to opportunities for simplifying and standardizing the fee schedule Stakeholder Review Finance Committee reviewed and recommended for Council consideration on June 1 11 2015 . Building and Fire Board of Appeals reviewed on June 17, 2015 . Building Industry Association of Southern California reviewed on July 27, 2015. • w � A who, ti Police Department Fees � #� Police Department Fees Areas of Increasing Decreasing Eliminated Combined Stud'Y L w Existing MM Police 10 1 1 0 36 General PCT OF 28% 22% 3% 47% 0% 0% 100% TOTAL Fee Areas Under Study: Fees Last Updated: • Administration 2010 • Support Services • Animal Control Services Description: • Patrol These fees cover costs to provide requested • Detective services such as, animal control, voluntary bike licenses, finger printing, copies of reports, animal control, and alarm monitoring Y E W P 6 ICIOA A 41 T q w1pr Public Works qP Department Public Works Fees EliminatedAreas of Study Increasing Decreasing Combined . . I— w Existing Eng. and Transp. 161 13 2 3 2 1 37' Harbor Resources 1 5 1 4 0 0 11 Water Quality 1 0 0 0 0 0 1 TOTAL 18 18 3 7 2 1 49 PCT OF TOTAL 37% 37% 6% 14% 4% 2% 100% Fee Areas Under Study: Fees Last Updated: • Engineering and 2010 Transportation Development • Harbor Resources Services Description: • Water Quality Plan check services, encroachment permits, field inspections, pier, marina, and mooring permit issuance, and water quality construction site inspection w I Romp ,,Fire Department ( EMS) Fees 1 Fire Department EMS Fees EliminatedAreas of Increasing Decreasing Com . . � . . Emergency 2 1 "0 4 Medical Services PCT OF 22% 11 % 0% 0% 44% 22% 100% TOTAL Fee Area Under Study: Fees Last Updated: Emergency Medical Services 2008 for EMS , 2003 for Paramedic Subscription Service Services Description: Emergency medical service transportation for both advanced and basic life support, including staff time, equipment, and materials Service Name Average Proposed Fee Net Change % Change Charges from Current EMS Fee Changes Current Fee Fee ALS with Transport • • $1 ,654 $410 32.96% BLS with Transport09i • 30.96% EMS Fees ( Other Changes) Recommend new Non-Transport Fees ALS Response - $400 BLS Response - $ 300 Recommend City Manager or designee authority to waive all or part of the EMS fees (Ordinance — Attachment G) Recommend increasing Paramedic Subscription Service fee ( Resolution — Attachment F) i Community Development Department Fees Community Development Fees L _ _ J111111111111L. � EliminatedAreas of Increasing Decreasing . . . . I - -.0, -.00M Building 30 62 2 51 2 3 150 Planning 36 5 1 1 0 0 43 TOTAL 66 67 3 52 2 3 193 PCT OF 34% 34% 2% 27% 1 % 2% 100% TOTAL Fee Areas Under Study: Fees Last Updated: • Building 2008 • Planning Services Description: Plan reviews, permits and inspections, and various development related services Community Development Fees Recommend 50% percent cost recovery for the Appeals Board Hearing fee Recommend 50% cost recovery for permits related to Harbor Construction Recommend Preliminary Plan Review fee change from 75% recovery to first two hours free, full cost thereafter ❑ Recommend phased implementation of select building and planning fees Marina Park Facility Use Fees ( New) Recreation and Senior Services Department t lacifily Use lees: i � r Large Event IKCenter A all Large Room Medium • • Small R• • Irl► rim . i�. gL Mk Municipal _ Schedule Update SeptemberCity Council 2015 Back up slides, if needed . . . Fees and Taxes — Who Pays, Who Benefits? Who Type of Tax vs. Fees Example Benefits Service Policy Services Community Public 100% taxes Police petrel scr: ces Primarily the indwwg� Mostly taxes Code enforcement with some community 4 Public f Private benefits some fees Services Primarily the individual IM with some community- LO 7Priyate Public Mostly fees Youth sports wide benefits some taxes Individual benefit only Private 10101/6 fees Development services Comparison of ALS/ BLS Fees Across Pay Types Medicare Private Insurance (80/20) No Insurance/ Private Pay ($94.65 co-pay) Medi-Cal Current (avg) Proposed Current (avg) Proposed Current (avg) Proposed Current (avg) Proposed ALS with Transport Cost of Sevices Fee $1,244 $1,654 $1,244 $1,654 $1,244 $1,654 $1,244 $1,654 Out-of-Pocket Payment from User $248.80 $330.80 $1,244 $1,654 $94.65 $94.65 $0.00 $0.00 Additional Payment from User due to Proposed Fee $82.00 $410 $0.00 $0.00 % of City of Newport Beach Transports 23% 14% 56% 7% EMS Fee Comparison Jurisdictional Comparison Orange County Ambulance Description Newport Beach Huntington Beach Orange Anaheim Providers' 2015-16 Proposed Average ALS Transport $1,654 $1,463 to $2,164 $1,449 $1,778 $1,476 (OCFA Jurisdictions) Average BLS Transport $1,434 $1.182 to $1,882 $1.263 $995 1 $994.00 ALS $1,414 $450 $508 $350.00 $396.65 BLS $1,194 $350 $405 -- — Transportation $240 $717.07 $739.46 $748.96 $748.96 ALS Non-Transport No Charge $450 $508 -- BLS Non-Transport No Charge $350 $405 -- Response — -- $350 Non-Resident Transportation $450.00 -- Mileage _ $16.54 $17.06/mi $17.28/mi $17.28/mi Expendable Supplies _ $32.02 $33.02 $33.44 $33.44 Oxygen _ $81.12 $83.65 $84.71 $84.71 Supplies Per Item Schedule -- -- -- (other than expendable) — Defibrillation $55.00 -- Advanced Airway $70.00 -- Additional Personnel $126.00 - 12-Lead EKG Acquisition 1 $100.00 1 - Standb (per 15 minutes -- i -- I -- $41.81 $41.81 `Transport provided by private ambulance Paramedic Subscription Fee Comparison Paramedic Subscription Comparison city Covered Services Resident Businsess Businesses Additional Fountain Valley Assessment Only $60.00 N/A N/A Huntington Beach Assessment and $60.00 Transport N/A N/A Newport Beach (Proposed) Assessment and $25.00 each additional 10 Transport * $60.00 $60.00 up to 10 employees* employees(Max $410) Assessment and Santa Ana Transport $50.96* N/A N/A Corona Assessment Only $48 per 5 employee unit $48.00 $48 per 5 employee (unit) (Max$720) 11-25 employees$125; 26- Murietta Assessment Only 75 employees$200; 76+ $48.00 $75 up to 10 employees employees$300 Assessment and Orange Transport $48.00 $48.00 N/A Buena Park Assessment Only $45.00 51-100 employees$90; $45.00 up to 50 employees 100+employees$135 Westminster Assessment and $42.00 Transport $100 per 10 employees** $100 per 10 employees Anaheim lAssessment Only $36.00 $36 N/A *Only covers residents of the household,does not include visitors at the address **Fee specifies coverage of business patrons as well as employees Paramedic Non -Transport Fee Comparison Jurisdiction ALS Non-Transport BLS Non-Transport/First Subscription Program Responder Fee Anaheim $350 $350 Yes Buena Park $300 $300 Yes City of Costa Mesa $300 (Resident fees not covered by $275 (Non-residents only. Residents No insurance are waived) exempt) Fountain Valle $350 Non-resident, $300 Resident $350 Non-resident, $300 Resident Yes Fullerton $500 $250 Yes Garden Grove $350 Non-resident only. $350 Non-resident only. No Huntington Beach $450 $350 Yes La Habra $170 Yes Orange $508 $405 Yes Santa Ana (OCFA) $419 $262 Yes Westminster $150 Yes Average $392 $292 City of Newport Beach — $1,414 $1,194 No Subsidy City of Newport Beach— $400 (72%) $300 (75%) Yes Recommended Fee (Subsidy) EMS Service Costs Other Operating Costs U ncol lectable EMS Billing Charges EMS Personnel Contract (Fully Burdened Labor Rate) EMS Equipment and Supplies dministrative verhead Fire Facilites Vehicles Public vs. Private Sector Finance Operating Factors Public Sector Private Sector Motives Uses taxing power to raise Generate sufficient revenues revenues to provide and profit by selling goods infrastructure & public and services. Focus on services. Unlike taxes, fees sustained profitability based on cost of service. Heightened focus on accountability, compliance, and regulatory disclosure Operating Environment Revenues may only partially Revenues must completely recover cost — may be cover cost — or else "out of subsidized for public good business" Decision Making Influenced Political constituencies and Top-down internal decision By navigating competing interest making without public groups sanction or approval 36