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Home My WebLink AboutStudy Session #2 - PowerPoint communication entitled "City oCity of Huntington Beach MASTER FEE AND CHARGES SCHEDULE AND OTHER REVENUE ADJUSTMENTS December 17, 2018 Presented by the Finance Department Budget Balancing Review 2018 Strategic Objective is "to conduct a City Council Study Session on budget balancing options, including looking at current revenue sources, potential new revenue options, and sale of surplus property" 1v Budget Balancing Options Study Session on May 7, 2018 Finance Commission meetings May -July 2018 Finance Comm t SeTAL on August 6, 2018 COMMUNICATION McOng Date: Agenda-ften°tft -- Summary of Proposed Fee Changes The following revenue adjustments are recommended: t Citywide Master Fee and Charges Schedule $ 269,500 1 Parking Meter Fee Annualized Rate ust Fines for Parking Citations 243,000 rAL PROJECTED REVENUE INCREASE - GENERAL FUND $ 1,112,500 3 Proposed Fee Changes Comparison Certain fees were adjusted with the resulting change in the projected General Fund impact shown below: Adjust Citywide Master Fee and Charges Schedule $ 319,000 $ 269,500 $ (49,500) Parking Meter Fee Annualized Rate 200,000 600,000 400,000 Adjust Fines for Parking Citations 243,000 243,000 TOTAL PROJECTED REVENUE INCREASE - GENERAL FUND $ 762,000 $ 1,112,500 $ 350,500 4 Community Services History of Parking Meter Rates • Establishes Pier Plaza parking lot rate at $1.50/hour • Sets hourly rate to $1.50/hour in Residential and Recreational Zones • Sets rate to $1.50/hour in Business Zone • Establishes seasonal parking rates for all meter zones at $1.75/hour Proposed Fee Changes Comparison by Department MW Community Services Parki ng Meters $1.50to $1.75 Parking Meters $1.50to $2.00 $ 200,000 $ 600,000 $ 400,000 per hour year round vs summer per hour year round, and only remove hourly rates for Parking Lots from HBMC Chapter 10to the Master Fee and Charges Schedule Finance Increase Massage & Implement a phased plan to $ 62,000 $ 12,500 $ (49,500) entertainment permit fees to bring Massage & 100%cost recovery entertainment permit fees to 100°1 cost recovery over a five year period Community Development Not included in November 5, Change Environmental Review Revenue neutral 2018 RCA Fees from a flat fee to a deposit -based structure with actual costs based on a time and materials basis Proposed MFS Changes by Department Community Services Finance Fire Library Public Works General Fund — Estimated Revenue Increase Information Services All Funds — Estimated Revenue Increase $ 87,000 65,500 103,000 10,000 4,000 $ 269,500 65,000 5 334.500 Proposed Master Fee Changes Community Services Summary Annual Beach Parking Pass $ 5,000 Room Rentals 13,000 Specific Events Charges 57,000 Special Events Charges 10,000 Specific Events Application Fee 2,000 Total Estimated General Fund Revenue Increase S 87. Community Services Special Events Fees ... am Application Fee Application Fee All Types $ 110 All Types $ 110 Day Use Charges Day Use Charges Nonprofit $ 375 HB Nonprofit $ 375 Resident 400 Non HB Nonprofit 425 Commercial/Standard 500 Nonresident 500 (rate also includes individuals) Commercial 550 Modified Day Use Charges Modified Day Use Charges Min. Participants (less than 20) No charge Min. Participants (less than 20) No charge Min. Hours/Use (less than 3 hours) $ 325 Min. Hours/Use (less than 3 hours) $ 325 Daily Set-up/Take Down Charges Daily Set-up/Take Down Charges* All Types (flat rate) $ 75 HB Nonprofit $ 187 Resident 200 Non HB Nonprofit 212 Nonresident 250 Commercial 275 *Proposed Set-up and Take Down rates are 50% of proposed Day Use rates Community Services Specific Events Fees Application Fee Application Fee Under 2,000 estimated attendance $ 200 Under 2,000 estimated attendance $ 225 Over 2,000 estimated attendance 400 Over 2,000 estimated attendance 450 Daily Use Charges Daily Use Charges Nonprofit $ 600 HB Nonprofit $ 650 Non HB Nonprofit 1,000 Commercial/Standard $ 1,200 Commercial $ 1,350 Daily Set-up/Take Down Charges Daily Set-up/Take Down Charges* All Types No charge HB Nonprofit $ 325 Non HB Nonprofit 500 Commercial 675 *Proposed Set-up and Take Down rates are 50% of proposed Daily Use rates i Community Services Parking Meter Rates Current rate is $1.75 per hour during peak season (May 1 through Labor Day), and $1.50 per hour during off- peak season Average hourly rate of $2 per hour during the peak season and $1.75 during the off peak season Ordinance 4148 would remove seasonal changes to parking rate and maintain a $2.00 per hour year-round rate The proposed increase is estimated to generate $600,000 in General Fund revenue annually The rate change would take effect upon adoption of Resolution 2018-55 for off-street lots and 30 days after adoption of Ordinance 4148 for on -street meters. 11 Proposed MFS Changes Finance Department Summary Parking Citation Processing and Credit Card Convenience Fee $ 40,000 Utility Customer Setup and Late Fee 13,000 Special Regulatory Business Permits (Entertainment, Fortune Teller, and Massage) 12,500 Total Estimated General Fund Revenue Increase S 65.500 Finance Department Entertainment Permits Required pursuant to HBMC Chapter 5.44, "Entertainment Permits" Fee includes Finance and Police staff time to complete the following certification process: Business Confirms with applicable zoning requirements Background investigations Issuing printed permits and other official documents Special Business Permits Staff Costs by Department Finance Police (Sworn) Police (Nonsworn) Full Cost Current Fee Proposed Fee Percent Increase $ Hours $ Hours $ Hours Recovery Entertainment Permit - new l'] $ 197 1.50 $ 417 2.00 $ 258 2.50 $ 878 5 285 $ 402 41.1% Entertainment Permit - renewal l'] $ 197 1.50 $ 417 2.00 $ 258 2.50 $ 878 5 285 $ 402 41.1% Entertainment Permit- change of location/namel'I $ 131 1.00 $ 104 0.50 $ 52 0.50 $ 289 $ 149 $ 177 18.8% Entertainment Permit- conceptual l'I $ 197 1.50 $ 624 3.00 1 $ 362 3.50 $ 1,191 1 $ 485 $ 625 1 28.9% 1 Full cost recovery for these fees will be phased in over a five-year period. Finance Department Massage Fees Required pursuant to HBMC Chapter 5.24, "Massage Establishments" Fee includes Finance and Police staff time to complete the following certification process: Ensure business is not within 1,000 feet of another massage establishment Background investigations Issuing printed permits and other official documents Staff Costs by Department Police Police Finance (Sworn) (Nonsworn) Full Cost Current Proposed Percent $ Hours $ Hours $ Hours Recovery Special Business Permits Fee Fee Increase Massage Establishment Registration Certificate - initial / add partner $ 329 2.50 $ 208 1.00 $ 310 3.00 $ 854 $ 495 $ 565 14.1% Massage Establishment Registration Certificate - renewal Irl $ 329 2.50 $ 208 1.00 $ 310 3.00 $ 854 $ 495 $ 565 14.1% Massage Establishment Registration Certificate - change of location/name/remonel of partner l'I $ 197 1.50 $ 104 0.50 $ 52 0.50 $ 356 $ 149 $ 190 27.5% Massage Independent Registration Certificate- renewal $ 263 2.00 $ 208 1.00 $ 310 3.00 $ 787 $ 115 $ 200 73.9% Massage Independent Registration Certificate change of location/name $ 131 1.00 $ 104 0.50 $ 52 0.50 $ 289 $ $ 60 N/A ' Full cost recovery for these fees will be phased in over a five-year period. Finance Department Entertainment & Massage Fee Survey Entertainment & Massage Permit Fee Survey November 2018 Recommended Fee for Fee Description Huntington Anaheim Costa Mesa Fountain Valley Long Beach Newport Beach Santa Ana Beach Entertainment Permit (New) 5402.00 5313.00 $675.00 $3,025.00-$3,465.00 $648.00-$1,359.00 $918.0D $728.58 $0, Lifetime but Entertainment Permit (Renewal) $402.00 N/A $675.00 N/A $322.OD-$1,120.00 non -transferable $728.58 N/A; Change of address Entertainment Permit- Change of or owner requires Location/Name 5177.00 5313.00 N/A N/A newapp&fees N/A N/A Entertainment Permit -Conceptual $625.00 N/A N/A N/A N/A N/A N/A $492.OQ Initial Massage Establishment Registration $313.0Q Initial $374.00Addt'I Owner Certificate (Initial/Add Partner) %65.OD $300.00; Add Partner $315.00 1 $980,00 $502.00 W8.24 Massage Establishment Registration $492.00; Initial Certificate -Renewal $565.00 $30D.OD $200.00 $374.00 Addtl Owner $980.00 N/A N/A Massage Establishment Registration 5315.W, Massage Certificate- Change of Establishment $39.00 for>SOYowneror location/name/removal of partner $1%..00 $313.011 $3D0.00 Permit N/A full rate of $98000 N/A 530L 44 Massage Independent Registration Certificate —renewal Ell $200.00' Regulated by California Massage Therapy Council; Fee:$200.00asof 1/1/20192years)•' Massage Independent Registration Certificate — Change of location/name Ell $FA.CD' Regulated bCalifornia Massa e Therapy Council; Fee:$60.00as of 2019 We do— currently assess these fees. They are in plate If anything happens to he Ca l ifomia Massage Therapy cool (c—Q and 'he city In, bark is re gulahng the industry —frc1urrentlycharges $150.00 Per Mo nicode seco on 5. 24.010,"Message Thera Fist- is deft ne d a s s omeone who ma bi ns a a rent CMfTC—fist Should—ftC ever cease is ope111i011 due to AB 21%not be, g renewed, a ties thatc—ndy onl y a Ilow CAhetC certified a ppllants a n revert bark to chargi ng the r own, dep,nd,ht fees. Proposed MFS Changes Fire Department Summary Valuation Based Fire Inspection and Plan Review Fees $ 10,000 Fire Life Safety Inspections State Mandated Inspections 67,000 4,500 Special/Specific Events Plan Review and Inspections 5,500 Sand Crab (Resident and Nonresident) . M Marine Safety Truck (1 Person — Marine Safety Officer) 10,000 Total Estimated General Fund Revenue Increase S 103,000 Fire Department Inspection and Plan Review Fees Proposed fee changes provide a greater percentage of cost recovery for: Fire inspections focused on compliance with the California Fire Code and HBMC Chapter 17.56, "Huntington Beach Fire Code," for proper exiting, hazardous materials, fire sprinklers, etc. Life, safety, and valuation based fire code plan checks and inspections for the community including State mandated high rise buildings and large family day care centers. Fire code plan checks and inspections for Special and Specific Events ensuring life safety for residents and visitors by checking compliance with occupant loads, proper exiting, tents and canopies, etc. The proposed fee increases would bring the average cost recovery for these fees from 60 percent to 82 percent. Fire Department Marine Safety Fees User Fees for Marine Safety recovers the costs for personnel assigned to Special and Specific Events such as the Air Show, U.S. Open, and Surf City Marathon, among others. Covers the cost of Marine Safety Officer and Lifeguard III personnel Paid by the event promoter Marine Safety personnel provide area closures, beach safety and oversight of event area Proposed fee would increase cost recovery for this fee from 54 percent to 60 percent. Junior Lifeguard Sand Crab Program Covers cost of Junior Lifeguard Program Instructors, equipment, supplies and overhead Program introduces children between 6-8 years of age to the ocean environment and prepares them for participation in Junior Lifeguard Program Police Department Parking Citations ■ Staff conducted a review of parking citation rates for 13 nearby cities, including Newport Beach and Fountain Valley ■ Proposed increases will bring citations in line with average Description Current Proposed Street Sweeping $ 44 $ 46 Expired Registraton $ 66 $ 82 72 Hour Violation $ 42 $ 90 Estimated General Fund Revenue Increase $ 243,000 y � r is 72 Hour Violation 66 $ 42 82 $ 90 193 $ 116 76 $ 246 73 $ 33 J/A $ 125 68 $ 108 138 $ 50 43 $ 43 89 $ 68 100 $ 79 75 $ 47 49 $ 114 33 N/A 51 S 51 82 $ 90 19 20 Community Development Environmental Review Community Development Fees Recommend a deposit with actual costs based on a time and material basis instead of a flat fee Actual cost — no net impact to City revenues 41111 40 .* Community Development Environmental Review No. Description Notes Current Fee ed �FeLe %Cost Recovery Community Development Department PLd2 jEnvironmental Assessment jDeposit) (II $ 15,751.00 See note 100% PL-43 Historic Structures LQgposijt (1 $ 6,500.00 See note 100% PL-44 Enuronmental Rev;ew Focused EA (Deposit $ 6,440.00 See note 100% PL-48 Enuronmental Impact Report (Deposit) [7] See note 100% Current footnote [71 Reconrnend $X Deposit plus consultant deposd (TBD by consultant) Recommended footnote [D Deposit with actual costs based on a time and material (T&M) basis 22 Recommended Actions • Adopt Resolution No. 2018-55, A Resolution of the City Council of the City of Huntington Beach Amending the Fees and Charges for Entrance to or Use of City Property, Fee and Charges Collected by the Community Services, Finance, Fire, Information Services, and Public Works Departments, and the Fees for Environmental Review, All as Established Pursuant to Resolution Nos. 2016-59, 2017-46, 2018-01, 2018-29 and 2018-48 which Established A Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 7) • Adopt Resolution No. 2018-83, A Resolution of the City Council of the City of Huntington Beach Adopting An Amended Uniform Bail Schedule for Parking Violations • Approve for Introduction Ordinance No. 4148, An Ordinance of the City of Huntington Beach Amending Huntington Beach Municipal Code Chapters 10.04, 10.52, 10.56, 10.60 and 10.68 and Adding Chapter 10.50 to the Code, Both Relating to On -Street Parking Meter Zones and Off -Street City Parking Lots