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Home My WebLink About2015-06-09 - AGENDA REPORTS - ADJUSTMENT FEE SCHEDULE (2)Agenda Item: 13 CITY OF SANTA CLARITA Q) AGENDA REPORT PUBLIC HEARING CITY MANAGER APPROVAL: DATE: June 9, 2015 SUBJECT: ANNUAL ADJUSTMENT OF FEES AND AMENDMENTS TO THE FEESCHEDULE DEPARTMENT: Administrative Services PRESENTER: Carmen Magana RECOMMENDED ACTION City Council: I. Conduct the public hearing on the proposed fee adjustments. 2. Extend the deferment of the collection of Quimby, Bridge and Thoroughfare (B&T), and Transit Impact development fees by one additional year to June 30, 2016. 3. Adopt a resolution establishing a schedule of fees and charges for City services. BACKGROUND In 1990, the City Council directed staff to prepare a study identifying the full cost of providing services. The result of this effort was the adoption of City Council policy establishing cost - recovery standards, adoption of the City's first full -cost based fee schedule, and an ongoing mechanism to assess the cost of City services and to adjust fees accordingly. Propositions 4 and 13 establish the "costs reasonably borne" philosophy. The philosophy necessitates the determination of the full business cost of each City -provided service, the identification of the beneficiary of each service, and the evaluation of services to determine an appropriate level of cost recovery for each. "Costs reasonably borne" implies a direct relationship between payment of fees and charges and receipts of services. The direct fee/service and tax equity relationship does not exist when tax monies are used to subsidize services received by only a small portion of the taxpaying public, or by non-residents. Every five years, the City examines the costs associated with providing services to the public. During Fiscal Year (FY) 2013-14, staff worked in conjunction with an independent third party to conduct a time -motion study and create a cost -allocation plan to determine the most accurate cost p 2eso - 15- Y1 Ad1,01L :��,�� P Packet Pg. 101 of providing services to the public. All City departments participated in the study to determine the amount of time employees are involved in each City service. Beginning with FY 2014-15, all of the proposed fees are based on the costs determined by this study. Proposed Fees and Charges for Fiscal Year 2015-16 For FY 2015-16, staff recommends Citywide fees and charges, including fees for Development, Parks. Recreation, and Community Services, Facility Rentals, and Administrative Services be increased by the December year-end Consumer Price Index (CPI) for the urban consumers of the Los Angeles, Riverside, and Orange County areas. The percentage increase, as reported by the United States Department of Labor, is 0.7 percent. Certain development fees are adjusted according to the FY 2013-14 fee study, and those adjustments will be phased in over a period of five years in order to reach an appropriate level of cost recovery. For FY 2015-16, no fee, however, is increased by more than 9 percent. Some development fees, such as the Golden Valley Road Bridge Area District Connection Fee for Water Lines and Sewer, and Bridge and Thoroughfare fees, are adjusted according to adopted City resolutions. Proposed transit fares are adjusted to account for an increase in operating costs and to be in line with other regional operator fares. The proposed FY 2015-16 transit fares offer a savings to customers who ride on a regular basis and remain among the lowest in the region. Most recreation and community services fees remain unchanged, including Athletic Field fees. Certain recreation and community services fees are market-driven and have been adjusted accordingly. Development -related fees will become effective September 9, 2015; Recreation fees will become effective October 1, 2015; Aquatic fees and Special Event fees will become effective January 1, 2016; and all other fees will become effective July I, 2015. Parking Violations Beginning with FY 2004-05, fees related to parking citations were reviewed and revised in an effort to provide consistency and mirror the Los Angeles County bail fee schedule. For FY 2015-16, staff recommends no change in the fees. Development Fees The Building Industry Association (BIA) was directly contacted regarding the proposed development -related fees and industrial waste fees. The California Government Code section 66017(a) requires a development -related fee to be effective no sooner than 60 days following adoption of the fee, charge, or increase. The City historically has allowed for a 90 -day waiting period between fee adoption and implementation; therefore, development -related fees will have an effective date of September 9, 2015. Page 2 Packet Pg. 102 Development Fee Deferment During the City Council meeting of June 10, 2014, City Council extended the development fee deferment program to June 30, 2015. The program deferred the collection of Bridge and Thoroughfare (B&T), Quimby, and Transit Impact fees from map recordation to building permit issuance. As the development community continues to recover from the recession, staff recommends extending the fee deferment program one additional year to June 30, 2016. ALTERNATIVE ACTION Other action as determined by Council FISCAL IMPACT It is estimated that the proposed schedule of fees and charges for services, if adopted and implemented, will result in additional annual revenue to the General Fund of approximately $83,000. Revenues will be reviewed at midyear, and any appropriate adjustments will be recommended at that time. ATTACHMENTS Public Hearing Notice Resolution Page 3 Packet Pg. 103 13.a CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING A Public Hearing will be held by the City Council of the City of Santa Clarita to consider annual adjustment to fees and amendments to the fee schedule in the City Hall Council Chamber, 23920 Valencia Boulevard, Is' Floor, on the 91h day of June, 2015, at or after 6:00 p.m. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting Brittany Houston, Financial Analyst, (661) 255-4996, Santa Clarita City Hall, 23920 Valencia Boulevard, Santa Clarita, California. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else rose at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: May 13, 2015 Kevin Tonoian Administrative Services Manager/City Clerk Publish Date: May 22, 2015 Publish Date: May 29, 2015 S:\FIN\Fees Schedule & Cost Allocation\ree Study\Fees 2015-16\Public Hearing Noticc\Notice of Public Bearing June 9 2015.doc Packet Pg. 104