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HomeMy WebLinkAbout2001-06-12 - AGENDA REPORTS - COST RECOVERY ANALYSIS NEW FEE (2)CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARING DATE: June 12, 2001 City Manager Item to be presented ky: Steve Stark SUBJECT: COST RECOVERY ANALYSIS AND PROPOSED NEW FEE SCHEDULE DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council open public hearing and continue to the meeting of July 10, 2001. 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, the 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. Since 1990, there has been only one adjustment to fees which was adopted in 1996. In early 2001, the City Manager directed staff to reassess the City's full cost of providing services. The 1990 business cost assessment methodology was again utilized in performing the current cost analysis update. The 2001 analysis shows that the City's fees have not been increased to keep up with costs. As a result, the City is not recovering costs at the levels established by the City Council in 1996. Propositions 4 and 13 established the "costs reasonably borne" philosophy. This 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 receipt of services. This 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. The new fee schedule for animal control services has also been included in this item. Changes to these fees were last adopted in 1996, and the new fees will bring the City in line with the charges for animal control services charged by Los Angeles County. Continued To:. 22jdz ib, z ,o i Agenda Item :--f COST RECOVERY ANALYSIS AND PROPOSED NEW FEE SCHEDULE June 12, 2001- Page 2 In May, staff conducted public meetings to receive input on the proposed cost recovery plan. At these meetings, issues were raised regarding the date the fees were to be effective and the proposed increase in the deposits required for several of the fees. The public at these meetings also requested more input into the development of the fees. Staff would like additional time to address the concerns raised during the public participation meeting before presenting this item to the Council. Per Ordinance 96-24, adopted on July 9, 1996, staff will be reviewing the City's fees annually and bringing forward any proposed adjustments with the budget. ALTERNATIVE ACTION Other action as directed by Council. FISCAL IMPACT It is estimated that adoption of the revised fees will result in additional revenues of approximately $1.2 million dollars, based on projected FY 01/02 activity levels. ATTACHMENTS None. SS:DS:hds . 61\.. if« CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN: A public hearing will be held by the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Blvd., 1st Floor, on the 12th day of June, 2001, at or after 6:00 p.m. to consider fee increases for services provided by the city including recreation fees, engineering fees, building and safety fees, public safety fees and administrative fees to be effective August 1, 2001. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting Dan Smith, Senior Accountant at (661) 255-4377, Santa Clarita Finance Division, 23920 Valencia Blvd, Santa Clarita, CA. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised 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 23, 2001 Sharon L. Dawson, CMC City Clerk Publish Date: Friday, May 25, 2001 NOTICE OF CONTINUED PUBLIC HEARING CITY OF SANTA CLARITA CITY COUNCIL NOTICE IS HEREBY GIVEN that the City Council of the City of Santa Clarita, at its regular meeting held June 12, 2001, continued a public hearing on 14. COST RECOVERY ANALYSIS AND PROPOSED NEW FEE SCHEDULE - In 1990, City Council directed staff to prepare a study identifying the full cost of services provided by the City. Since that time there has been only one adjustment to fees, which was adopted in 1996. As a result, the City's fees have not kept up with the cost of providing these services. This fee adjustment will bring recovery rates back in line with those approved in 1996. to July 10, 2001. The continued public hearing will be held at or after 6:00 p.m. in the Council Chamber at 23920 Valencia Blvd., Santa Clarita, California. Dated this 13`h day of June, 2001. SHARON L. DAWSON, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. AFFIDAVIT OF POSTING CITY OF SANTA CLARITA SHARON L. DAWSON, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that on June 13, 2001, she caused the above notice to be posted at the door of the Council Chamber located at 23920 Valencia Blvd., Santa Clarita, California. SHARON L. DAWSON ,CITY CLERK Santa Clarita, California PublicHearings/CONTPH. doc