HomeMy WebLinkAbout1994-10-25 - AGENDA REPORTS - A FEE EXEMPTION POLICY (2)AGENDA REPORT
City Manager Appi
Item to be present(
Steve Stark
NEW BUSINESS
DATE: October 25, 1994
SUBJECT: RESOLUTION 94-124 ESTABLISHING A
FEE EXEMPTION POLICY
DEPARTMENT: Finance
BACKGROUND
At their September 13, 1994 meeting, the City Council directed staff to develop a policy
regarding exemption of fees. That direction was given as a result of a request made to
Council by a non-profit charitable organization for a fee exemption. Since that time, the
Finance Department has been gathering data regarding a City fee exemption policy. Staff
surveyed twenty-one cities to determine if cities have an existing fee exemption policy. The
result of the study shows that, in general, cities exempt fees only to non-profit organizations
in limited circumstances. The Cities surveyed indicated that the non-profit organization must
show that the fee would cause a financial hardship or the activity will be of extraordinary
benefit to the community. Nine cities handle fee exemption through the City Manager's office
on a case-by-case basis, while twelve cities handle fee exemption by approval of City Council
on a case-by-case basis.
Based on the analysis performed on this issue, staff recommends City Council establish a fee
exemption policy applicable only to non-profit organizations incorporated in California as a
tax exempt, non-profit organization under IRS code 501(c)(3). To justify the exemption, a non-
profit organization must submit an application meeting the following criteria: (a) the rate fee
charged by the City would create a financial hardship jeopardizing the activity or event
planned for such use, (b) and the activity or event will be of extraordinary benefit to the
residents of the City of Santa Clarita, (c) and the amount is not substantial in nature to the
extent that it would impose a burden on the City. Insurance requirements as determined by
the City's Risk Manager are required on all events. Staff also recommends City Council
authorize the City Manager to grant a fee exemption to any governmental or public agency,
such as Police, Fire, County, Public Utilities etc..., in instances where the City receives a
reciprocal service benefit. Finally, for any City sponsored event, in which the fee would
result in the City imposing a fee to itself, an automatic exemption would apply.
Fees that qualify under this policy apply only to fees adopted by resolution.. Fees adopted by
ordinance cannot be exempted except by amending the ordinance. The exemption of the fee
does not cover any extraordinary costs incurred by the City. Cost for clean-up, damage,
traffic and crowd control, police services and others, must still be paid by the applicant. Only
requests received after the adoption of this policy will be considered. Staff believes that there
will be minimal impact on current budgeted revenues by implementing this policy.
Adopted: iv-ai-9 Agenda Item:
Resolution 94-124
October 25, 1994 - Page 2
City Council adopt Resolution 94-124 establishing a fee exemption policy.
Resolution 94-124
COUNCIL2ag94124.1ah
RESOLUTION NO. 94-124
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA
ESTABLISHING A FEE EXEMPTION POLICY
WHEREAS, the City of Santa Clarita desires to establish a policy for exemption of fees for
non-profit organizations on fees previously adopted by Resolution:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. City Council is authorized to grant a fee exemption on a case by case basis by
a majority vote to non-profit organizations under IRS code section 501(c)(3) either of its own, or that
of a sponsor 501(c)(3) or non-profit associations and corporations organized primarily for patriotic, civic
betterment or charitable purpose, upon a finding that imposing the fee would create a financial
hardship jeopardizing the activity or event planned for such use, and that the activity or event will
be of extraordinary benefit to the residents of the City of Santa Clarita.
Section 2. City Council does not exempt any fees adopted by Resolution which are based
on the recovery of services provided to the extent that they are substantial in nature or impose a
burden to the residents of the City.
Section 3. The fee exemption shall not apply to any costs associated with repairs,
replacement or clean-up and additional costs such as traffic and crowd control services, police activity
and others. Similarly, the fee exemption shall not operate to waive the appropriate insurance
requirements as determined by the City's Risk Manager.
Section 4. City Council authorizes the City Manager to exempt fees on a case by case basis
to any governmental or public agency, such as Police, Fire, County, Public Utilities, etc..., whereby the
City receives a reciprocal service benefit.
Section 5. Any fee imposed relating to a City sponsored event which would result in the
City imposing a fee to itself is automatically waived.
Section 6. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED AND ADOPTED this day of —11994.
Mayor
RESOLUTION NO. 94-124
October 25, 1994 - Page 2
ATTEST:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES J §
CITY OF SANTA CLARITA )
I, Donna M. Grindey, City Clerk, DO HEREBY CERTIFY that the above and foregoing Resolution was
duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the
day of 1994 by the following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk
COUNCIL: res94124.1ah