The URL can be used to link to this page

Home My WebLink About2007-06-26 - AGENDA REPORTS - FEE SCHEDULE (2)Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT % PUBLIC HEARING City Manager Approval: Item to be presented by: Darren Hernandez DATE: June 26, 2007 SUBJECT: ANNUAL ADJUSTMENT TO FEES AND AMENDMENTS TO THE FEE SCHEDULE DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council conduct the public hearing, adopt a resolution establishing a schedule of fees and charges for City services, and adopt a resolution, establishing fees and charges for the storm drainage utility services for fiscal year 2007-2008. BACKGROUND hi 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. Propositions 4 and 13 established the "costs reasonably bome" 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 feelservice 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 2003-04, the City conducted a time -motion study and created a cost -allocation plan to determine the most accurate cost of providing services to the public. Each City department participated in the study to determine the amount of time each employee is involved eesa. 07-5'Z Advted: 5,3 in each City service. Beginning with fiscal year 2004-05, all of the proposed fees are based on the costs that were determined by this study. Proposed Fees and Charges for Fiscal Year 2007-2008 For fiscal year 2007-08, staff recommends Citywide fees and charges, including fees for Development, Public Safety, Parks, Recreation, & Community Services, and Facility Rentals be increased by the annual Consumer Price Index - All Urban Consumers for the Los Angeles - Riverside - Orange County area. That percent increase, as reported by the U.S. Department of Labor, is 4.3%. Banner Program Currently, the City offers local nonprofits and hosts for tourism events' free installation and removal of advertisement banners on the City's paseo bridges. In the past, this program was manageable; however, in current years, the program has grown to become cost -prohibitive and time-consuming for staff, particularly for street maintenance workers. Currently, the City receives approximately 20 or more requests per month to install banners on paseo bridges, and it takes two to three maintenance workers to install and remove each banner. This process costs the City $300-$500 per banner and a minimum total annual cost of $72,000. This cost does not take into account the significant staff time necessary to handle coordinating and scheduling the installation and removal of banners. The proposed fee adjustment establishes a fee for the banner program that would allow the City to recover costs associated with managing the program and banner installation and removal. The proposed fee will be of nominal monetary effect to area nonprofits and hosts for tourism events. The fee consists of a set flat fee of $130 per event and $80 for installation of each paseo bridge banner. The banner program also provides a $45 installation fee for each street pole banner. Currently, local nonprofits and hosts for tourism events already pay a fee to private contractors to install street pole banners, thus this would not be a new fee for nonprofits and hosts for tourism events. Upon adoption of the fee, staff will begin a process to contract this service with a company experienced with banner installations. Contracting for this service allows the City to provide local nonprofits and hosts for tourism events with a competitive rate for program management and banner installation. This contract will be presented to the City Council during the July 10 City Council meeting. Parking Violations Beginning with Fiscal Year 2004-05, fees related to parking citations were reviewed and revised in an effort to provide consistency and mirror the Los Angeles County fee schedule. For fiscal year 2007-08, staff is recommending these fees remain unchanged. Stormwater Utility Services For fiscal year 2007-08, staff is recommending this fee remain unchanged at $24 per Drainage Residential Unit (DRU). This fee is based on the cost of providing the services required under the National Pollution Discharge Elimination System (NPDES) permit, which is estimated at $2,630,000 per year. The Federal Clean Water Act sets forth specific requirements with which the City must comply on an annual basis. These requirements are provided in the NPDES permit issued by the California Regional Water Quality Control Board. In order to fund the services needed to be in compliance with this federally mandated program, the City adopted Ordinance No. 94-7, enacting Chapter 15.50 of the Santa Clarita Municipal Code (SCMC), Storm Drainage Utility Enterprise Fund, including the Storm Drainage Pollution Abatement Charge. This charge was originally enacted in 1994. However, in compliance with the Government Code, it is reaffirmed each year. The Building Industry Association (BIA) was also directly contacted on the proposed fee schedule. Staff is recommending all fees for projects submitted prior to September 26, 2007, that are denied and asked to resubmit or required to pay a fee for something they were not originally aware of, be charged using the old fee structure. All existing development -related fees will go into effect September 26, 2007, and all other fees will go into effect July 1, 2007. ALTERNATIVE ACTIONS Other action as determined by Council. FISCAL IMPACT It is estimated that the revised fee for services schedule will result in additional revenues of approximately $520,000, based on projected FY 2007-08 activity levels. These revenues have not been factored into the FY 2007-08 budget. Revenues will be reviewed at midyear, and any appropriate adjustments will be recommended at that time. ATTACHMENTS Resolution Establishing a Schedule of Fees and Charges for City Services Resolution Establishing Fees and Charges for Storm Drainage Utility Services Exhibit A - Fee Schedule available in the City Clerk's Reading File Exhibit B - Facility Rental Fees available in the City Clerk's Reading File Exhibit C - Bail Schedule available in the City Clerk's Reading File 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, I' Floor, on the 26`h day of June, 2007, 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 Gina Schuchard, Finance Manager, 661-255-4928, Santa Clarita City Hall, 23920 Valencia Boulevard, Suite #245, 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 18, 2007 Sharon L. Dawson, CMC City Clerk Publish Date: June 15, 2007 CADocuments and SatingslscaputoU"al Settings\Temporary Intemet Fi1es\0LKC\07 fee update.doc