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Home My WebLink About17 - Annual Update to Fees and Charges - PowerPoint0 RSS City Council July 26, 2016 F= i Library 04 + MOD�� 0 2 FIRE -EMS CDD schedule of Rents, Fines, and Fees (SRFF) Charges for Services (COS, Pass Thru) Use of Money and Property (Rentals) Fines and Penalties Attachment D - Cityof Ne-vport Be=ach Schedule of Rents, Fin -_s, and Fuc -s iSRFF)with Recommended Chan es Resolution Ad option 1st Reading): July 26, Zil16 Ordina n ree Adoption {2nd Reading 1: Avgu st 9, 2-0 16 H F a 201.6 a dj SERVICE NAME Ful Cua .. IntaP �r Base I•�rerf5�r51:31 - ALL DEPA Tdr+IENTS l� I C jirf appikable) 2 grgulai Photo Cjulpi SLatute 3 35' .k 11' Blick and Whig Cr3fiy Maw Lke x•.16 4 85' x 11" COL01 C[ PASS Thru - ll'. nned cum Pass Thtu S -Y 10 Pass Thru S 0 2 Presentation Overview Summary of Proposed Changes Background (authority, Council policy, fee administration) Fee for Service Methodology Proposed Fees and Charges by Department Summary of Changes RSS Library Finance MOD Miscl. (Other Departments) Police Fire - EMS TOTAL PCT of TOTAL 7 1 23 262 0 293 2 1 3 10 0 16 14 9 1 39 0 63 21 14 3 48 2 88 1 3 3 14 1 22 2 0 0 0 0 2 1 3 0 2 0 6 48 31 33 375 3 490 10% 6% 7% 76% 1% 100% Authority for Cost of service Fees Authority — NBMC § 3.36.030 mandates 100% cost recovery (except for subsidies 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. 5 Fie for Service Methodology MGT of America performs cost of service analysis for developing user fees. MGT Scope of Work: Calculate the fully burdened (labor and overhead) cost of providing user fee services; 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. R k+ Fee Schedule Fee Calculation Example (MOD —Water Service Installation Fee Example) Step 1: Calculate Hourly Staffing Rates and Burdened Factors Salary and Benefits Burdened Factors Total Hourly Rate Hourly Rate Burdened Pate Utilities Crew Chief $61.93 + $55.55 = $120.45 Senior Fiscal Clerk $52.52 + $55.25 - $110.77 Fee Calculation Example (MOD —Water Service Installation Fee Example) Step 2: Calculate Time Spent on the Service I 4;-;w :4t, �- Customer interaction, scheduling, Customer interaction, process issue resolution, drive time, field application, create tapping orders, work, update database setup account Utilities Crew Chief 240 minutes Senior Fiscal Clerk 25 minutes I 4;-;w :4t, �- Fee Calculation Example (MOD —Water Service Installation 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 Utilities Crew Chief 240.00 � 4.00 V $120.48 __ !� $481.92 Senior Fiscal Clerk 25.00 0.42 $110.77 $46.15 $528.07 Proposed Fee $528.00 Step 4: Review for Accuracy and Reasonableness Stakeholder Review Board of Library Trustees - May 16, 2016 Building Industry Association - June 14, 2016 Finance Committee - June 16, 2016 MON. I T-.. Recreation and Senior Services (RSS) r loop RSS 7 1 23 262 0 293 PCT of TOTAL 2% 0% 8% 90% 0% 100% Areas Under Review: • Administration • Natural Resources • Adult Sports • Aquatics • Youth Sports • After School/Camp Programs • Contract Classes • Special Events • Senior Services rFees Last Updated: 2011 F_ Sample Services: Special event permits, tidepool exploration, swim lessons, adult and youth sports programs, Oasis transportation van service and fitness center use �, Li F77'i w��11 fir: mw lffgdq� -IMF .111 7 Library WOO, P Library Library 2 1 3 10 0 16 PCT of TOTAL 13% 6% 19% 62% 0% 100% Areas Under Review: Fees Last Updated: • Library Services 2011 • Cancellation Charge • Setup and Cleanup Fees Sample Services: • Passport Services Materials use, inter library loans, setup and cleanup fees for meeting room rentals, passport processing and photos • jo Fs- TA-'" L71 mw .� Finance Finance 14 moved to Police 2 TOTAL 16 PCT of TOTAL 25% Areas Under Review: • Revenue • Parking Penalties 9 0 9 14% Fees Last Updated: 2011 39 0 39 60% 0 0 0 0% Sample Services: Dog licensing; permit review and issuance for vehicles for hire, live entertainment, short term lodging, preferential parking 63 2 65 100% I 3wm - . MOD 21 14 3 48 2 PCT of TOTAL 24% 16% 3% 55% 2% Areas Under Review: Fees Last Updated: • Water Related Fees 2011 • Sewer Related Fees • Miscellaneous Sample Services: • Administration Water service installation and establishment, delinquent water restoration, construction water meter establishment, hydrant flow test 100% I Fire"Department P--, r r.%,. Emergen Fire Department - EMS Fire - EMS 1 3 0 2 0 6 PCT of TOTAL 17% 50% 0% 33% 0% 100% Area Under Review: Fees Last Updated: EMS 2015 Sample Services: Emergency medical service transportation for both advanced and basic life support, including staff time, equipment, and materials, separating out mileage PERMIT CENTER Building/Fire Permits Zoning & Property Information RigM of Way Permits IM, Use Permits mmunity Development ,Department (CDD) 1 _1 Areas Under Review: • Building • Planning Fees Last Updated: 2015 Sample Services: Plan reviews, permits and inspections, and various development related services ® Objective: Create flat fees where possible CSD -PLANNING SEES Hourly Rate Deposit Accounts Converting to Flat Fees Sign Programs - $1,592 Non -Conforming Abatement Ext. - $490 Planned Development Permit - $4,344 Site Development Review - $4,344 Subdivisions -Tentative Tract Map - $4,280 Transfer of Development Rights - $3,014 Conditional Use Permit - $4,384 Variance - $3,638 CSD -PLANNING SEES Fees Remaining as a Deposit Account General Plan Amendment Planned Community Amendment Code Amendment Local Coastal Program Planned Community Development Plan Development Agreement Adoption Environmental Documents CDD - BUILDING FEES Fees Converted to Flat Fee One & Two Family — New and Additions Shoring - $1,380 Demolition - $397 ReRoof - $450 Patios/Decks/Trellis - $619 Fire Sprinklers - $415 Pools &Spas - $718 CDD - BUILDING FEES Fee Remaining as Valuation Based Commercial Related Fees Residential Alterations CDD - BUILDING FEES New - One & Two Family Dwellings 0 -2,500 21501 - 3,500 37500 - 41500 41500 - 5,500 5,501 - + w $6,172 $83196 $95711 $11,318 $14,577 $6,096 $7,800 $10,287 $11 ,971 $135788 CDD - BUILDING FEES Additions - One & Two Family Dwellings 0 - 250 $1,460 $1,455 251 - 500 $27168 $21181 501 - 1 ,000 $3,320 $3,149 11001 - 21000 $ 5,262 $4,697 2,001 - 3,000 $8,395 $69918 3,001 - + $97425 $8,708 CDD iPERMIT CITIZEN ACE S SELF SERVICE www.newportbeachca.govlonlinepermitting Expanding the Use of iPermit • ReRoof Permits • Window Change Out Permits 0 Electric Vehicle Chargers 011I"ll 10 M1011Oro d Questions rn Use Permit Comparison Example 33 stand alone Use Permits studied over 3 years Billable Charges Flat Fee Difference Above Average $71017 $4)384 ($2,633) $6)970 $4)384 ($2,586) Average $4,207 $41384 $177 Below Average $21805 $4,384 $1,579 $21000 $4)384 $2)384 Planning - Deposit to Flat Fie CURRENT DEPOSIT AMOUNT 183/195 HOUR PROPOSED FLAT FEE GENERAL PLAN AMENDMENT $7,500 NO CHANGE PROPOSED PLANNED COMMUNITY AMENDMENT $7,500 NO CHANGE PROPOSED CODE AMENDMENT $7,500 NO CHANGE PROPOSED LOCAL COASTAL PROGRAM $3,300 NO CHANGE PROPOSED COMPREHENSIVE SIGN $1,500 $1,592 HERITAGE SIGN $1,500 INNOVATIVE SIGN $1,500 PLANNED COMMUNITY DEVELOPMENT PLAN $10,000 NO CHANGE PROPOSED DEVELOPMENT AGREEMENT ADOPTION $10,000 NO CHANGE PROPOSED DEVELOPMENT AGREEMENT ANNUAL REVIEW $0 $1,177 ENVIRONMENTAL DOCUMENTS 110% CONSULTANT COST NO CHANGE PROPOSED NON -CONFORMING ABATEMENT PERIOD EXT. $2,200 $490 PLANNED DEVELOPMENT PERMIT $5,000 $4,344 SITE DEVELOPMENT REVIEW $5,000 $4,344 SUBDIVSIONS - TENTATIVE TRACT MAP $7,500 $4,280 TRAFFIC STUDY $2,200 110% CONSULTANT COSTS COVERED BY PUBLIC WORKS TRANSFER OF DEVELOPMENT RIGHTS $2,200 $3,014 CONDITIONAL USE PERMIT $5,000 $4,384 VARIANCE $5,000 $3,638 background Summary of Proposed Fee Schedule In furtherance of Council policy, aligns revenues with the actual costs of providing services. the fee schedule (direct and indirect) 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). RsLeasons 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 Public vs. Private Sector Finance Motives, Operating Environment 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 Generate sufficient revenues and profit by selling goods and services. Focus on sustained profitability Revenues must completely cover cost — or else "out of business" Decision Making Political constituencies Top-down internal decision Influenced By and navigating competing making without public interest groups sanction or approval 39 VSM A monetary imposition by a 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. 4 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. Fees and Taxes — Who Pays, Who Benefits? Who Type of Tax res. F Example Benefits Service Policy S rvioe Community Public 100% taxes Police patrol services Prirnahly the individual Mostly taxes -Cotte enforcement. with some conifnuni Public / Rivate & some fees services refits Drily t individual � with some ccm u Private i Public Mostly firms Youth sports vyride benefit some taxes Individual benefit Private 100° fees Development services