HomeMy WebLinkAboutAdopt Resolution No. 2017-46 amending Resolution Nos 2016-59 Dept. ID FN17-015 Page 1 of 3
Meeting Date:9/5/2017
CITY OF HUNTINGTON BEACH
Fe REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 9/5/2017
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell Harrison, Chief Financial Officer
SUBJECT: Adopt Resolution No. 2017-46 amending Resolution No.'s 2016-59, 2017-28 and
2017-44 establishing the Consolidated Comprehensive Citywide Master Fee and
Charges Schedule (Supplemental Fee Resolution No. 3)
Statement of Issue:
A best practice in government finance is for cities to update their user fees and charges on a
regular basis. The last comprehensive User Fee Study was completed by the City in 2016.
Adjustments to the Citywide Master Fee and Charges Schedule are recommended for approval
based on a review performed by City staff and the Finance Commission.
Financial Impact:
Citywide user fees and charges currently generate approximately $18.8 million in annual All Funds
revenue with $18.2 million in the General Fund. In the Adopted General Fund Budget of $220.4
million for FY 2016/17, this represents approximately eight percent of total General Fund revenue.
The monies generated by City-wide user fees and charges are used to support many of the
services funded through the budget, including public safety which represents 55 cents of every
dollar spent in the General Fund. The FY 2017/18 Proposed Budget assumes a net neutral impact
from Citywide Fees. However, if adopted as proposed by staff, the updated Schedule may
generate up to $133,000 in additional General Fund revenue next fiscal year. Staff recommends
this potential revenue increase remain unallocated for the time being to protect against potential
revenue shortfalls and/or unanticipated expenditure increases.
Recommended Action:
A) Conduct a public hearing regarding the Master Fee and Charges Adjustments; and,
B) Adopt Resolution No. 2017-46, "A Resolution of the City Council of the City of Huntington Beach
Amending Resolution Nos. 2016-59, 2017-28 and 2017-44 Establishing the Consolidated
Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 3)."
Alternative Action(s):
Amend the Master Fee and Charges Schedule and adopt as revised, within legal constraints.
Item 13. - 1 HB -3 1 6-
Dept. ID FN17-015 Page 2 of 3
Meeting Date: 9/5/2017
Analysis:
Local government operations are primarily funded from taxes, user fees and charges, fines, and
grants. The City of Huntington Beach charges fees for providing various services and programs to
residents, businesses operating in the City, and visitors. These fees include providing cultural and
recreational activities, issuing building permits, activating residential water and sewer accounts,
conducting inspections of commercial buildings to ensure fire safety and compliance with local and
State building codes and regulations, and many other services. In some cases, fees are charged at
full-cost recovery for providing services. In other cases, fee recovery is less than 100 percent,
which can be due either to market conditions, government mandated caps or the recognized benefit
of subsidizing certain programs to the community. As a general rule, the City may not recover from
service users more than the cost incurred to provide the service pursuant to State law. Revenue
received from fees is deposited into the applicable funds including: the General Fund, Water Fund,
CUPA, and other Funds of the City.
In order to establish fees on the basis of full-cost recovery, it is necessary to first determine the cost
of services. To ensure appropriate fee amounts are being assessed, the City employed the
assistance of a professional fee study and cost allocation plan consultant, NBS. Based on the
results of that study, the City Council reviewed and approved adjustments to multiple fees and
created a Consolidated Master Fee and Charges Schedule on November 7, 2016.
Finance Commission — As part of the City Council approval of the Citywide Master Fee and
Charges Schedule, the Finance Commission was asked to review the proposed changes to
coincide with the annual budget development process. At the regularly scheduled meetings of the
Finance Commission held on July 26, 2017, and August 23, 2017, proposed adjustments to the
Master Fee and Charges Schedule were reviewed and discussed. The Finance Commission
recommends increasing certain fees to 100% cost recovery as shown in Exhibit A and phasing-in
other fee increases to 100% cost recovery over a two-year period.
Charges for Services - Charges for recreation/cultural programs collected by the Community
Services Department are not limited to the cost of service, but rather are set at the discretion of the
City. Many of these programs have recommended fees that are below the 100 percent cost
recovery threshold. The practice of supporting certain social, cultural, and recreational programs
allows for the continued provision of affordable recreational and cultural services to the residents of
Huntington Beach, while maintaining consistency with current market rates for similar services in
neighboring cities. Fees for the Adventure Playground are recommended to increase by $1.00 from
$3.00 to $4.00 per person. It is also recommended the Surf Class Parking Pass be revised from
$5.00 per year to $5.00 per semester.
Fire Department Life Safety Inspection and State Mandated Inspection Fees - Fees represent
charges to recover costs of city services pertaining to life safety inspections for businesses and
State mandated inspections for hotels, motels, and multifamily units. As with user fees, 100
percent cost recovery is the goal for certain inspection fees so that the General Fund does not
subsidize services that have a largely private benefit. The amount charged cannot exceed the
actual cost of providing the services.
In order to mitigate the impact of changes to fire life safety inspection fees, it is proposed to have a
"phased" implementation for smaller businesses. While the goal is to eventually reach 100 percent
cost recovery, the phased-in implementation would allow for that goal to be reached over a two-
year period.
HB I 7- Item 13. - 2
Dept. ID FN17-015 Page 3 of 3
Meeting Date: 9/5/2017
Electric Vehicle Charging Station Rate - The City of Huntington Beach offers 12 Electric Vehicle
(EV) charging stations at various locations throughout the city. The City currently charges $0.22
per kWh for use of the stations. Staff is recommending to increase the rate to $0.29 per kWh to
fully cover the costs associated with the EV charging stations' usage. The costs include electricity
and other costs charged to the City. The City's cost of electricity per kWh is approximately $0.16.
The remaining $0.13 per kWh is derived from costs paid to ChargePoint, a third party vendor that
maintains the charging terminals, provides network service, and administers the program.
Conclusion - The fee study conducted in 2016 allows the City to capture and calculate cost
information needed to adjust fees and to determine the full cost of providing certain services.
Overall, the recommended changes on Exhibit A will reduce the subsidy from the General Fund in
Fiscal Year 2017/18 and the City could experience a revenue enhancement of $133,000 this next
fiscal year should the recommended fees and charges be adopted by the City Council.
With implementation of the annual review of the Citywide Master Fee and Charges Schedule during
the annual budget making process, all fees at less than 100 percent cost recovery can be revised to
generate additional revenue if needed, and charges can be evaluated to ensure alignment with
market conditions. A Master Schedule also helps to promote the annual review process due to the
simplicity of the format and the ease of reviewing one Master Schedule and one Resolution (versus
numerous schedules and resolutions) further promoting best practices and providing the public
greater transparency into the fee setting process.
If approved by the City Council, adjustments to the Citywide Master Fee and Charges Schedule will
become effective 60 days after City Council adoption, or November 5, 2017.
Environmental Status: Not applicable.
Strategic Plan Goal:
Improve Quality of Life
Enhance and Maintain Infrastructure
Strengthen Economic and Financial Sustainability
Enhance and Maintain Public Safety
Enhance and Maintain City Service Delivery
Attachment(s):
1. Resolution No. 2017-46, "A Resolution of the City Council of the City of Huntington Beach
Amending Resolution Nos. 2016-59, 2017-28 and 2017-44 Establishing the Consolidated
Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution
No. 3)."
2. Public Hearing Notifications.
Item 13. - 3 HB -3I8-
'7' �0/7
RESOLUTION NO. 2017-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
AMENDING RESOLUTION NOS. 2016-59, 2017-28 AND 2017-44 ESTABLISHING THE
CONSOLIDATED COMPREHENSIVE CITYWIDE MASTER FEE AND CHARGES
SCHEDULE (SUPPLEMENTAL FEE RESOLUTION NO. 3)
WHEREAS, the City Council adopted Resolution 2016-59 establishing the Consolidated
Comprehensive Citywide Master Fee and Charges Schedule (the "Fee And Charges Schedule");
and
The City Council temporarily amended the Fee And Charges Schedule pursuant to
Resolution No. 2017-28, and further amended the Schedule pursuant to Resolution No. 2017-44;
and
The City Council desires to update the Fee and Charges Schedule; and
The City Council had reviewed the Citywide User Fee and,Rate Study conducted by NB
(the "Fee Study") in support of Resolution No. 2016-59. In the case.of the Fire Department fees
F-99 through F-103, and F-124 identified in Exhibit A to this Resolution, the City Council
established the fees at less than the 100% cost recovery the Fee Study recommended. The City
Council desires to increase said fees to no more than full cost recovery; and
The City Council further desires to increase the Community Services Department charges
for entrance to or use of City property identified at Exhibit A to this Resolution; and
The City Council further desires to add the Electric Vehicle Charging Rate to Exhibit A
to this Resolution. The Charging Rate is set at the average cost of electricity to the City;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Huntington Beach adopts the Fees and Charges in the Recommended Fee Level column attached
in Exhibit A, which shall become effective sixty (60) days following the adoption of this
Resolution, and continue thereafter.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the day of � � , 2017.
PIA I Avg
ayor
REVI ND APPROVED: APPROV RM:
it Manager City Attorney
INITIATED D APPROVED:
L ,-\Chief Financi Officer
17-5974/164226/SFF
/Ud. ZO/7— y
EXHIBIT A
Master Fee and Charges Schedule FY 17-18 Adjustments
No. Description Current Fee Recommended % Cost
Fee Level Recovery
Community Services Department
Charge Adventure Play Ground- Residents $3.00/person $4.00/person 100%
Charge Adventure Play Ground-Non Residents/Groups $3.00/person $4.00/person 100%
Charge Surf Class Parking Pass $5.00/year $5.00/semester 100%
Public Works Department
Charge Electric Vehicle Charging Rate $0.22/kWh $0.29/kWh 100%
Fire Department
FIRE/LIFE SAFETY INSPECTION
F-99 Up to 750 sq. ft [27]new $ 45 $ 60 75%
F-100 751 -2,500 sq. ft $ 60 $ 90 75%
F-101 2,501 -5,000 sq. ft. $ 131 $ 170 85%
F-102 5,001 -25,000 sq. ft. $ 209 $ 273 85%
F-103 25,001 - 50,000 sq. ft. $ 470 $ 563 100%
STATE MANDATED INSPECTIONS [26]
Hotel, Motel & Multifamily Inspections
F-124 per additional unit over 3 units $ 1 $ 1.33 100%
No. Notes
[27]New-Multi-tenant commercial/industrial inspection is conducted for common fire features that are the responsibility of the
F-99 building complex,mall owner or management company including egress,sprinklers,alarms,private fire hydrants,and emergency
access.
[26]Revised-Includes fire and life safety inspection for common and commercial areas. If the structure meets the definition of
F-124 "high rise,"the"high rise"fee applies in lieu of this fee.
F-241 Fire Plan Review Inspection Specific Events 5,001-25,000sf Event Area Note[20]Revised-One temporary operational permit
included.Each additional operational permit is billed at the adopted rates.
8/23/17
Res. No. 2017-46
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on September 5, 2017 by the following vote:
AYES: O'Connell, Semeta, Delgleize, Hardy, Brenden
NOES: None
ABSENT: Posey, Peterson
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
PUBLIC HEADING
CITY OF HtNTINGTON BEACH
Public Hearing on the Adoption of Resolutions Amending the Comp �h iiYeFee,::
chedule Including City User Fees,Rates/Charges,and Developmeri
Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach,in
the Council Chambers of the Civic Center,Huntington Beach located at 2999 Main Street,at the hour of 6:09
PM,or as soon as possible thereafter on Tuesday,the 5th day of September 2917,for the purpose of considering
the Adoption of Resolutions Amending the Comprehensive Fee Schedule including City User Fees,Rates/Charges,
and Development Fees.
The revisions to be considered are for cost recovery purposes and to set charges for public access and use of certain
City property for the purpose of raising revenue and fall under the responsibility of the following City Departments:
• Community Services Department
• Fire Department
• Public Works Department
All interested persons are invited to attend to express their opinions for,or against,the proposed fee revisions with
written or oral comments.Written communications to the City Council should be mailed to the Office of the City
Clerk at the address below.Further information may be obtained from the Finance Department,2099 Main Street,
Huntington Beach,CA,92648-2702 or by telephone(714)536-5630.
The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or
access to,or treatment or employment in,city programs or activities.The City of Huntington Beach is an equal
opportunity employer.
Dated:August 17,2017 City of Huntington Beach
August 24,2017 By:Robin Estanislau,City Clerk
2000 Main Street
Huntington Beach,CA 92648-2702
Telephone:(714)536-5405
http://huntinglanbeachca.gov/hbpubliccomments
Published:The Huntington Beach Wave August 17,24,2017 19994769
HB -321- Item 13. - 6
/ 7/l
r
l ,
PUBLIC HEARING
CITY OF HUNTINGTON BEACH
Notice of Public Hearing on the Adoption of Resolutions Amending the Comprehensive Fee
Schedule Including City User Fees, Rates/Charges, and Development Fees
Notice is hereby given that a public hearing will be held by the City Council of the City of
Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach located at
2000 Main Street, at the hour of 6:00 PM, or as soon as possible thereafter on Tuesday, the 5tn
day of September 2017, for the purpose of considering the Adoption of Resolutions Amending
the Comprehensive Fee Schedule including City User Fees, Rates/Charges, and Development
Fees.
The revisions to be considered are for cost recovery purposes and to set charges for public
access and use of certain City property for the purpose of raising revenue and fall under the
responsibility of the following City Departments:
• Community Services Department
• Fire Department
• Public Works Department
All interested persons are invited to attend to express their opinions for, or against, the
proposed fee revisions with written or oral comments. Written communications to the City
Council should be mailed to the Office of the City Clerk at the address below. Further
information may be obtained from the Finance Department, 2000 Main Street, Huntington
Beach, CA, 92648-2702 or by telephone (714) 536-5630.
The City of Huntington Beach endeavors to accommodate persons of handicapped status in the
admission or access to, or treatment or employment in, city programs or activities. The City of
Huntington Beach is an equal opportunity employer.
Dated: August 17, 2017 City of Huntington Beach
August 24, 2017 By: Robin Estanislau, City Clerk
2000 Main Street
Huntington Beach, CA 92648-2702
Telephone: (714) 536-5405
http://huntingtonbeachca.gov/hbpubliccomments
Switzer, Donna
From: Loadsman, Mary
Sent: Friday, August 11, 2017 8:08 AM
To: Switzer, Donna
Subject: RE: Copy for the new order
Perfect—thank you so much! Hope you enjoyed your weekend O
/ 0JY LBat&8,6ra
Administrative Assistant/Finance
City of Huntington Beach
Tel: 714 536-5630/Fax: 714 536-5934
mloadsman@surfcity-hb.org
From: Switzer, Donna
Sent: Thursday, August 10, 2017 5:58 PM
To: Loadsman, Mary
Subject: FW: Copy for the new order
Hi Mary,
I will be out of the office tomorrow so I wanted to forward you the proof of publication for the legal section now since I
have received it already. I will send you proof of publication, for both Legal and Display, on Monday via inter-office mail.
Have a great weekend!
Donna
From: David Ward [mailto:dawardCcbscng.com]
Sent: Thursday, August 10, 2017 4:11 PM
To: Switzer, Donna
Subject: Re: Copy for the new order
Thank you for the kind words Donna.
Here is the version for the Legal section.
I will send you the display version once I get it back from the artist.
Ad#10994763
Run Dates 8/17 & 8/24
Cost $306.00
PROOF
i
PUBLIC HEARING
CITY OF HUNTINGTON BEACH
Notice of Public Hearing on the Adoption of Resolutions
Amending the Comprehensive Fee Schedule Including City
User Fees, Rates/Charges, and Development Fees
-Notice is hereby given that a public hearing will be held by the City
j
Council of the City of Huntington Beach, in the Council Chambers of
-.the Civic Center, Huntington Beach located at 2000 Main Street, at the
'hour of 6: 00 PM, or as soon as possible thereafter on Tuesday, the Sth
b i
ay of September 2017, for the purpose of considering the Adoption of
,Resolutions Amending the Comprehensive Fee Schedule including
;City User Fees, Rates/Charges, and Development Fees.
;The revisions to be considered are for cost recovery purposes and to
;set charges for public access and use of certain City property for the
;purpose of raising revenue and fall under the responsibility of the fol-
dowing City Departments-
o Community Services Department
Fire Department
Public Works Department
A I I interested persons are invited to attend to express their opinions
;for, or against, the proposed fee revisions with written or oral com-
ments. Written communications to the City Council should be mailed
to the Office of the City Clerk at the address below. Further informa-
,tion may be obtained from the Finance Department, 2000 Main
-,Street, Huntington Beach, CA, 92648-2702 or by telephone (714) 536-
,5630,
'The City of Huntington Beach endeavors to accommodate persons of
'handicapped status in the admission or access to, or treatment or em-
ployment in, city programs or activities, The City of Huntington
-Beach is an equal opportunity employer,
;gated: August 17, 2017 City of Huntington Beach
August 24, 2017 BY: Robin Estanislau, City Clerk
2000 Main Street
Huntington Beach, CA 92648-2702
Telephone: (714) 5365405
http://hunt ingtonbeachca.gov/hbpubliccomments
-Published: The Huntington Beach Wave 10994763
David Ward
Legal Advertising Rep
2190 S. Towne Centre Pl.
Anaheim, CA 92806
714-796-6764
PUBLIC HEARING
CITY OF HUNTINGTON REACH
• , • men ing the omprehensi�e'F
Schedule Including City User Fees,Rates/Charges,' de
Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach,in
the Council Chambers of the Civic Center, Huntington Beach located at 2000 Main Street, at the hour of 6:00
PM,or as soon as possible thereafter on Tuesday,the 5th day of September 2017,for the purpose of considering
the Adoption of Resolutions Amending the Comprehensive Fee Schedule including City User Fees,Rates/Charges,
and Development Fees.
The revisions to be considered are for cost recovery purposes and to set charges for public access and use of certain
City property for the purpose of raising revenue and fall under the responsibility of the following City Departments:
• Community Services Department
• Fire Department
• Public Works Department
All interested persons are invited to attend to express their opinions for,or against,the proposed fee revisions with
written or oral comments.Written communications to the City Council should be mailed to the Office of the City
Clerk at the address below.Further information may be obtained from the Finance Department,2000 Main Street,
Huntington Beach,CA,92648-2702 or by telephone(714)536-5630.
The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or
access to,or treatment or employment in,city programs or activities.The City of Huntington Beach is an equal
opportunity employer.
Dated:August 17,2017 City of Huntington Beach
August 24,2017 By:Robin Estanislau,City Clerk
2000 Main Street
Huntington Beach,CA 92648-2702
Telephone:(714)536-5405
hftp://huntingtonbeachca.gov/hbpubliccomments
Published:The Huntington Beach Wave August 17,24,2017 10994769