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HomeMy WebLinkAboutAdopt Resolution No. 2018-29, a Resolution of the City Counc Pveb 7-D City of Huntington Beach File #: 18-063 MEETING DATE: 6/4/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Gilbert Garcia, Chief Financial Officer Subject: Adopt Resolution No. 2018-29, a Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charge Schedule (Supplemental Fee Resolution No. 5) - Continued from May 21, 2018 with Public Hearing Open 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 $19.5 million in annual All Funds revenue with $18.3 million in the General Fund. In the Adopted General Fund Budget of$224 million for FY 2017/18, 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. If adopted as proposed, the updated Schedule may generate up to $88,000 in additional revenue in the Fourth of July Fund (Fund 204) in the next fiscal year to help ensure a balanced budget for the event. The FY 2018/19 Proposed Budget includes the anticipated revenues in the Fourth of July Fund. There are no anticipated changes to General Fund revenues. Recommended Action: A) Conduct a public hearing regarding the Master Fee and Charges Schedule Adjustments; and, B) Adopt Resolution No. 2018-29, "A Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5)" Alternative Action(s): Amend the Master Fee and Charges Schedule and adopt as revised, within legal constraints. City of Huntington Beach Page 1 of 4 Printed on 5/31/2018 F;;r.°re eH i;y Legismr" File #: 18-063 MEETING DATE: 6/4/2018 Analysis: Local government operations are primarily funded from taxes, users 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 meeting of the Finance Commission held on April 25, 2018, proposed adjustments to the Master Fee and Charges Schedule were reviewed and discussed. The Finance Commission recommends approving Resolution No. 2018-29, a Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charge Schedule (Supplemental Fee Resolution No. 5) excluding the language "and, to add a new fee for California Fire Code (CFC) Maintenance Testing and Inspection Electronic Report submittal." Finance Commission recommends approving all adjustments and footnotes on Exhibit A except for the addition of the California Fire Code (CFC) maintenance Testing and Inspection Electronic Report submittal fee (F-261). Community Services Department Fourth of July Changes The recommended rates referenced in Exhibit A are administrative in nature and as such do not represent increased rates, but rather institutionalize the rates that were previously adopted by the City Council in 2016 and 2017 through Council Resolutions 2016-31 and 2017-28. The rates were implemented in order to temporarily raise parking rates on the two days before the Fourth of July Holiday itself(July 2nd and July 3rd) in the attended south beach lots and at the Main Promenade Parking Structure. Staff is now recommending that previously adopted rates become a permanent part of the Master City of Huntington Beach Page 2 of 4 Printed on 5/31/2018 File #: 18-063 MEETING DATE: 6/4/2018 Fee and Charges Schedule. Since the Fourth of July falls on a different day of the week each year, the recommendation provides for increased rates on the Fourth of July itself, as well as for each of two additional days immediately preceding and/or following the Fourth of July as selected by the Director of Community Services. The updated schedule is anticipated to generate amounts similar to prior years, approximately $88,000 over a three-day period. Fire Department False Alarm/Non-Emergency Calls Billing and Electronic Inspection Report Fee Fire Department false alarm billing rates will not change. The recommended change to the fee schedule includes expanding the false alarms to include non-emergency service calls, and adding a footnote to explain the circumstances under which billing will occur. The Department is also recommending to add a new fee for a vendor service that proactively manages submissions of third party testing results for sprinkler, fire alarm, restaurant hood and other protection systems in a cloud-based environment. Current Fire Department staffing and data systems are challenged to keep up with the large number of systems and reports, which are generally mailed or faxed. The inefficiencies in the current process appear to cause a portion of building owners to wait to receive violations before maintaining their systems. A key fire prevention goal is to reduce risk and promote compliance in an efficient and cost- effective manner. The current system does not adequately accomplish that goal. Fire department follow-up on inspection, testing, and maintenance (ITM) reports is difficult given current resources. The solution is to either (1) utilize outside contractors that perform the service; or (2) invest in in- house staffing. Staff recommends to utilize vendors, such as Compliance Engine, to provide both risk reduction and maximum efficiency for a small fee of$12. The fee will be paid by the business requiring inspection directly to the vendor. The vendor will maintain the inspection and test result documentation and play an active role in obtaining missing or late reports. This arrangement is common with other municipal agencies, such as the cities of Anaheim, Long Beach, Pasadena, and Beverly Hills. These updates to the Fire Department fees will not generate any additional revenues to the City. Library Department Charges Charges for the rental of the Theater and meeting room spaces at the Central Library are not limited to the cost of service, but rather are set at the discretion of the City. The Central Library was expanded in 1994, to provide an additional venue for cultural and educational programming in the community. The practice of supporting cultural and educational programs allows for the continued provision of affordable cultural services to the residents of Huntington Beach, while maintaining consistency with current market rates for similar services in neighboring cities. Charges for all the meeting rooms and Theater are being rounded up or down, to make costs more consistent with other services, and to enhance customer service with more predictable costs for events and activities. The Theater rates are seeing a slight increase, due to rounding up the rates, while reducing the number of different rates overall. The larger meeting spaces, like the C/D Rooms are seeing a slight increase City of Huntington Beach Page 3 of 4 Printed on 5/31/2018 .�__u Oy Legismr'' File #: 18-063 MEETING DATE: 6/4/2018 due to popularity and rounding of the dollar amounts for simplification. The increases are minimal and should have limited impact on potential clients. The City does not anticipate any net changes to revenues due to these updates to library charges. 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 are anticipated to increase revenues by $88,000 in the Fourth of July Fund this next fiscal year should the recommended fees and charges be adopted by the City Council. There are no anticipated changes to General Fund revenues. 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 after City Council adoption, or July 1, 2018. 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 Services Delivery Attachment(s): 1. Resolution No. 2018-29, a Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5). 2. Public Hearing Notice. 3. Master Fee and Charge Schedule Adjustments Presentation City of Huntington Beach Page 4 of 4 Printed on 5/31/2018 ;•r�,-:_.., oy Legs<ar'" RESOLUTION NO. 2018-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING RESOLUTION NO. 2016-59, ESTABLISHING THE CONSOLIDATED COMPREHENSIVE CITYWIDE MASTER FEE AND CHARGES SCHEDULE (SUPPLEMENTAL FEE RESOLUTION NO. 5) 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 desires to increase the Community Services Department charges for entrance or use of City property identified in Exhibit A to this Resolution; and The City Council further desires to adjust the library charges for use of City property identified in Exhibit A to this Resolution; and The City Council further desires to add footnotes to Fire Department fees regarding false alarm billing rates to explain the circumstances under which billing will occur, and,to add a new fee for California Fire Code (CFC) Maintenance Testing and Inspection Electronic Report submittal, identified in Exhibit A to this Resolution. NOW, the City Council of the City of Huntington Beach does hereby resolve as follows: The City of Huntington Beach adopts the Fees and Charges in the Recommended Fee Level column attached in Exhibit A, which shall become effective July 1, 2018, following the adoption of this Resolution, and continue thereafter. 18-6405/178566/DO 1 RESOLUTION NO. 2018-29 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 4th day of June , 2018. Mayor REVIEW APPROVED: APPROVED ORM: Cilf/Y4anager City Attorney 10toz, q\1l 1 t b &u/ ITIATED AND APPROVED: Chief NnancialOfficer 18-6405/178566/DO 1 EXHIBIT A Master Fee and Charges Schedule FY 18-19 Adjustments Effective 7/1/2018 No. Description Current Fee Recommended %Cost Fee Level Recovery Community Services Department $30.00 for July 4th,plus$25.00 flat rate for each of two additional $25.00 days immediately Charge South Beach Attended Lots-4th of July Flat Rate (July 4th only) preceding and/or N/A following July 4th as selected by the Director of Community Services Charge Main Promenade Parking Structure(4th of July only) $27.00 $30.00 N/A Main Promenade Parking Structure(two additional first 30 minutes, first 30 minutes, Charge days immediately preceding and/or following July 4th no charge no charge N/A as selected by the Director of Community Services) Up to two hours Up to two hours (includes first 30 (includes first 30 N/A Minutes) Minutes) 1.00/hour 2.00/hour After two hours, After two hours, $1.00/each 20 $2.00/each 20 N/A minutes minutes Maximum Daily Maximum Daily N/A Rate$17.00 Rate$27.00 Evening Rate Evening Rate (after 9:00 pm- (after 9:00 pm- N/A Prevailing Hourly Prevailing Hourly Rate or 5.00) Rate or 10.00 Fire Department FALSE ALARM/NON-EMERGENCY SERVICE CALLS RESIDENTIAL&COMMERCIAL No Change to F-233 to F-237 Fee Level. Only change was to add the footnote below. 1 or 2 in 12-month period(No charge 1st 2 in 12 F-233 months $ - $ - N/A F-234 3 in 12-month period $ 120 $ 120 N/A F-235 4 in 12-month period $ 245 $ 245 N/A F-236 5 in 12-month period $ 490 $ 490 N/A Each additional False Alarm Response over 5 in 12- F-237 month period $ 610 $ 610 N/A $12 per CFC regulated F-261 California Fire Code(CFC)Maintenance Testing and features for new N/A each 100% Inspection Electronic Report Submittal submission or Actual Cost No. Notes F-233 to False alarms include(1)system or detector malfunction,including improper performance of fire alarm system that is not a result of a proper F-237 system response to environmental stimuli such as smoke or high heat conditions,and(2)unintentional system or detector operation(no fire),includes tripping an interior device unintentionally. Non-emergency service calls include(1)lock-ins(non-emergency),(2)smoke or odor removal(no fire),(3)removal of a victim from a stalled elevator that has known mechanical issues, (4)other abuses of Fire Department services for repeat non-emergency conditions(excludes medical). Library-Charges Effective 7/1/2018 Central Library Theater and Meeting Room Rental Charges Hourly Rate(unless otherwise noted) Current Charges Recommended Charges B Room Non Profit(501c3)-Resident $ 51.00 B Room $ 50.00 Non Profit(5016)- Non Resident $ 63.00 $ 60.00 Business/private-Resident $ 83.00 $ 80.00 Business/private-Non Resident $ 95.00 $ 90.00 Balboa Room Non Profit(5016)-Resident $ 51.00 Balboa Room $ 50.00 Non Profit(5016)- Non Resident $ 63.00 $ 60.00 Business/private-Resident $ 76.00 $ 80.00 Business/private-Non Resident $ 89.00 $ 90.00 C Room(piano) Non Profit(5016)-Resident $ 76.00 C Room(piano) $ 80.00 Non Profit(501c3)- Non Resident $ 89.00 $ 90.00 Business/private-Resident $ 114.00 $ 115.00 Business/private-Non Resident $ 127.00 $ 130.00 D Room Non Profit(5016)-Resident $ 76.00 D Room $ 80.00 Non Profit(5016)- Non Resident $ 89.00 $ 90.00 Business/private-Resident $ 114.00 $ 115.00 Business/private-Non Resident $ 127.00 $ 130.00 C/D Room Non Profit(5016)-Resident $ 139.00 C/D Room $ 140.00 Non Profit(5016)- Non Resident $ 164.00 $ 165.00 Business/private-Resident $ 202.00 $ 200.00 Business/private-Non Resident $ 228.00 $ 230.00 C/D Room Non Profit(5016)-Resident $ 759.00 C/D Room $ 765.00 flat rate package Non Profit(5016)- Non Resident $ 897.00 flat rate package $ 900.00 Fri/Saturday 6 hour minimum Business/private-Resident $ 1,104.00 8 hour maximum $ 1,100.00 Business/private-Non Resident $ 1,242.00 $ 1,255.00 E Room Non Profit(501c3)-Resident $ 51.00 E Room $ 50.00 Non Profit(5016)- Non Resident $ 63.00 $ 60.00 Business/private-Resident $ 70.00 $ 70.00 Business/private-Non Resident $ 83.00 $ 80.00 Maddy Room Non Profit(5016)-Resident $ 63.00 Maddy Room $ 60.00 Non Profit(5016)- Non Resident $ 76.00 $ 80.00 Business/private-Resident $ 95.00 $ 95.00 Business/private-Non Resident $ 108.00 $ 110.00 Talbert Room Non Profit(501c3)-Resident $ 89.00 Talbert Room $ 90.00 Non Profit(501c3)- Non Resident $ 101.00 $ 100.00 Business/private-Resident $ 139.00 $ 140.00 Business/private-Non Resident $ 152.00 $ 150.00 Library Theater Non Profit(501c3)-Resident $ 115.00 Library Theater $ 115.00 Monday-Friday before 5 pm Non Profit(5016)- Non Resident $ 144.00 Monday-Thursday $ 145.00 Business/private-Resident $ 207.00 $ 210.00 Business/private-Non Resident $ 230.00 $ 230.00 Library Theater Non Profit(501c3)-Resident $ 144.00 Library Theater $ 145.00 Monday-Friday after 5 pm Non Profit(5016)- Non Resident $ 173.00 Friday,Saturday,Sunday $ 175.00 Saturday-Sunday Business/private-Resident $ 316.00 $ 320.00 Business/private-Non Resident $ 345.00 $ 350.00 Tabby Theater Non Profit(501c3)-Resident $ 76.00 Tabby Theater $ 75.00 Non Profit(501c3)- Non Resident $ 95.00 $ 95.00 Ii Business/private-Resident $ 159.00 $ 160.00 Business/private-Non Resident $ 190.00 $ 190.00 Charges for use of City Facilities may be waived for City or Library sponsored and co-sponsored events. The Library Director with approval from the City Manager may provide limited discounts for those willing to commit to a long-term use of the above facilities. All other Library Fees and Charges remain the same,unless noted above. Res. No. 2018-29 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 June 4, 2018 by the following vote: AYES: O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden NOES: None ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 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 Monday, the 21s' day of May 2018, 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 • Library Services 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: May 3, 2018 City of Huntington Beach May 10, 2018 By: Robin Estanislau, City Clerk 2000 Main Street Huntington Beach, CA 92648-2702 Telephone: (714) 536-5405 *" Notice to City Clerk** this copy to run twice in newsprint no later than 19 days prior to the Council Meeting date. Run in both display format and in legal section. City of Huntington Beach x �t MA.STER a ca ✓ ' ADJUSTMENTS R 3 "€ May 21 2018 �y Presented by the Finance Department Master Fee and Charges Schedule' f Financial Best Practices are to update fees every 3 to 5 yearsk The City completed a fee study in FY 2016/17 and adoptedD new Master Fee and Charges Scheduleh5a Annual review of the Master Fee and Char es Schedu .e ✓ - \ Ya g _,_ performed during annual budget process 5 f f 9r . Generates $19.51VI Citywide of which $ ' � � Fund Overall, the Citywide rate ofi recove No net increases,tQ, 'ug ' u � f i Proposed Adjustments Community Services Department Permanently incorporate Parking Rates for 4t" of July Events No change from prior years (revenue of $88,000 in FY2018/19) ` Fire Department - Y � California Fire Code (CFC) Maintenance Testing and Inspection Electronic Report Submittal Fee - New Direct bill by vendor - $12 or Actual Cost— no net impact to City revenues Library Services Department a � Minor modification of charges for rental of the theater and , g r M spaces No net impact to revenues " p Recommended Action ff-11 WAI • Adopt Resolution No. 2018-29, a Resolution of the City Council of the City of Huntington F N Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5) Ii ,aa� � v • Effective 7/1/2018 -. y . 1 r E _ 6/4/2018 City of Huntington Beach SUPPLEMENTAL MASTED Fit i�►(V(J� t,�tiK1�t� S�.NEDULE ADJUSTMENTS f � w, June 4,2018 Presented by the Finance Department Master Fee and Charges Schedule Financial Best Practices are to update fees every 3 to 5 years The City completed a fee study in FY 2016/17 and adopted a new Master Fee and Charges Schedule Annual review of the Master Fee and Charges Schedule performed during annual budget process Generates $19.5M Citywide of which $18.3M is in General Fund Overall, the Citywide rate of recovery is 73% No net increases to budgeted revenues from proposed adjustments COMMUNICATION : i Date- g . : i 6/4/2018 Proposed Adjustments Community Services Department Permanently incorporate Parking Rates for 4"'of July Events No change from prior years(revenue of$88,000 in FY2018/19) Library Services Department Minor modification of charges for rental of the theater and meeting room spaces No net impact to revenues Fire Department California Fire Code(CFC) Maintenance Testing and Inspection Electronic Report Submittal Fee - New Direct bill by vendor-$12 or Actual Cost—no net impact to City revenues 3 Proposed Fire Department Fee California Fire Code requires periodic testing of fire protection systems by a licensed contractor, and requires submission of these reports to the Fire Department Verifying annual testing makes for a safer community and limits City and business liability NFPA reports that annually 12%of fire sprinkler systems fail primarily due to systems being shut off and lack of maintenance Proposal is to have a vendor proactively manage submissions of third party inspection and testing results No cost to the City of Huntington Beach —inspection company billed directly by vendor- $12 per regulated system Common arrangement among municipal governments a 6/4/2018 Recommended Action • Adopt Resolution No. 2018-29, a Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5) • Effective 7/1/2018 5 Pk6 Mb 5-0-Z 6 P % V SaiEm-,19yov7) Dept. ID FN18-007 Page 1 of 4 Meeting Date: 5/21/2018 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/21/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Gilbert Garcia, Chief Financial Officer SUBJECT: Adopt Resolution No. 2018-29 amending Resolution No. 2016-59 Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5) 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 $19.5 million in annual All Funds revenue with $18.3 million in the General Fund. In the Adopted General Fund Budget of $224 million for FY 2017/18, 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. If adopted as proposed by staff, the updated Schedule may generate up to $88,000 in additional revenue in the Fourth of July Fund (Fund 204) in the next fiscal year. The FY 2018/19 Proposed Budget includes the anticipated revenues in the Fourth of July Fund. There are no anticipated changes to the General Fund revenues. Recommended Action: A) Conduct a public hearing regarding the Master Fee and Charges Adjustments; and, B) Adopt Resolution No. 2018-29, "A Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5)." Alternative Action(s): Amend the Master Fee and Charges Schedule and adopt as revised, within legal constraints. Item 23. - 1 HB -1738- Dept. ID FN18-007 Page 2 of 4 Meeting Date: 5/21/2018 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 meeting of the Finance Commission held on April 25, 2018, proposed adjustments to the Master Fee and Charges Schedule were reviewed and discussed. The Finance Commission recommends approving No. 2018-29, a Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5) excluding the language "and, to add a new fee for California Fire Code (CFC) Maintenance Testing and Inspection Electronic Report submittal". Finance Commission recommends approving all adjustments and footnotes on Exhibit A except for the addition of the California Fire Code (CFC) Maintenance Testing and Inspection Electronic Report submittal fee (F-261). Community Services Department Fourth of July Charges - The recommended rates referenced in Exhibit A are administrative in nature and as such do not represent increased rates, but rather institutionalize the rates that were previously adopted by the City Council in 2016 and 2017 through Council Resolutions 2016-31 and 2017-28. The rates were implemented in order to temporarily raise parking rates on the two days before the Fourth of July Holiday itself (July 2 and July 3) in the attended south beach lots and at the Main Promenade Parking Structure. Staff is now recommending that previously adopted rates become a permanent part of the Master Fee and Charges Schedule. Since the Fourth of July falls on a different day of the week each year, the recommendation provides for increased rates on the Fourth of July itself, as well as for each of two additional days immediately preceding and/or following July 4 as selected by the Director of Community Services. The updated schedule is anticipated to generate amounts similar to prior years - approximately $88,000 over the three-day period. This will help to ensure adequate funding for the 4th of July Event and Celebration. KB -t 739- Item 23. - 2 Dept. 1 D FN 18-007 Page 3 of 4 Meeting Date: 5/21/2018 Fire Department False Alarm/Non Emergency Service Calls Billing and Compliance Engine Fees — Fire Department false alarm billing rates will not change. The change to the fee schedule includes expanding the false alarms to include non-emergency service calls, and adding a footnote to explain the circumstances under which billing will occur. The Department is also adding a fee for a new service that proactively manages submissions of third party testing results for sprinkler, fire alarm, restaurant hood and other protection systems in a cloud-based environment. Current Fire Department staffing and data systems cannot keep up with the large number of systems and reports, which are generally mailed or faxed. This fee will be paid by the inspection company directly to the vendor. The vendor will maintain the inspection and test result documentation and play an active role in obtaining missing or late reports. This arrangement is common with other municipal agencies, such as the cities of Anaheim, Long Beach, Los Angeles, etc. These updates to the Fire Department fees will not generate any additional revenues to the City. Library Department Charges - Charges for the rental of the Theater and meeting room spaces at the Central Library are not limited to the cost of service, but rather are set at the discretion of the City. The Central Library was expanded in 1994, to provide an additional venue for cultural and educational programming in the community. The practice of supporting cultural and educational programs allows for the continued provision of affordable cultural services to the residents of Huntington Beach, while maintaining consistency with current market rates for similar services in neighboring cities. Charges for all the meeting rooms and Theater are being rounded up or down, to make costs more consistent with other services, and to enhance customer service with more predictable costs for events and activities. The Theater rates are seeing a slight increase, due to rounding up the rates, while reducing the number of different rates overall. The larger meeting spaces, like the C/D Rooms are seeing a slight increase due to popularity and rounding of the dollar amounts for simplification. The increases are minimal and should have limited impact on potential clients. The City does not anticipate any net changes to revenues due to these updates to library charges. 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 is anticipated to increase revenues by $88,000 in the Fourth of July Fund this next fiscal year, as reflected in the FY 2018/19 Proposed Budget, should the recommended fees and charges be adopted by the City Council. There are no anticipated changes to General Fund revenues. 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 after City Council adoption, or July 1, 2018. Environmental Status: Not applicable. Item 23. - 3 HB -1740- Dept. ID FN18-007 Page 4 of 4 Meeting Date: 5/21/2018 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. 2018-29, a Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5). 2. Public Hearing Notifications. xB -1741- Item 23. - 4 RESOLUTION NO. 2018-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING RESOLUTION NO. 2016-59, ESTABLISHING THE CONSOLIDATED COMPREHENSIVE CITYWIDE MASTER FEE AND CHARGES SCHEDULE (SUPPLEMENTAL FEE RESOLUTION NO. 5) WHEREAS,the City Council adoptedResolution 2016-59 establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule(the"Fee and Charges Schedule"); and The City Cou"ncil 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 desires to increase the Community Services Department charges for entrance or use of City property identified in Exhibit A to this Resolution; and The City Council further desires to adjust the library charges for use of City property identified in Exhibit A to this Resolution;and The City Council further desires to add footnotes to Fire Department fees regarding false alarm billing rates to explain the circumstances under which billing will occur, and, to add a new fee for California Fire Code(CFC)Maintenance Testing and Inspection Electronic Report submittal, identified in Exhibit A to this Resolution. NOW,the,City Council of the City of Huntington Beach does hereby resolve as follows: The City of Huntington Beach adopts the Fees and Charges in the Recommended Fee Level column attached in Exhibit A, which shall become effective July 1, 2018, f©llowing the adoption of this Resolution, and continue,thereafter. i E ! I 18-6405/178566/DO 1 RESOLUTION NO. 2-18-29 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2018. Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City Manager City Attorney 10t tit E INITIATED AND APPROVED: Chief Financial Officer 18-6405/178566/DQ 1 EXHIBIT A Master Fee and Charges Schedule FY 18-19 Adjustments Effective 7/1/2018 No. Description Current Fee Recommended %Cost Fee Level Recovery Community Services Department $30.00 for July 4th, plus$25,00 flat rate for each of two additional $25.00 days immediately Charge South Beach Attended Lots-4th of July Flat Rate (July 4th only) preceding and/or NIA following July 4th as selected by the Director of Community Services Charge Main Promenade Parking Structure(4th of July $27.00 $30.00 N/A Main Promenade Parking Structure(two additional Charge days immediately preceding and/or following July first 30 minutes, first 30 minutes, N/A 4th as selected by the Director of Community no charge no charge Services Up to two hours Up to two hours (includes first 30 (includes first 30 N/A Minutes) Minutes) $1.001hour $2.00/hour After two hours, After two hours, $1.00/each 20 $2.00/each 20 N/A minutes minutes Maximum Daily Maximum Daily NIA Rate$17.00 Rate$27.00 Evening Rate Evening Rate (after 9:00 pm- (after 9:00 pm- N/A Prevailing Hourly Prevailing Hourly Rate or$5.00) Rate or$10.00 Fire Department FALSE ALARM/NON-EMERGENCY SERVICE CALLS RESIDENTIAL&COMMERCIAL No Change to F-233 to F-237 Fee Level. Only change was to add the footnote below. F-233 1 or 2 in 12-month period(No charge 1st 2 in 12 NIA months) $ $ - F-234 3 in 12-month period $ 120 $ 120 NIA F-235 4 in 12-month period $ 245 $ 245 NIA F-236 5 in 12-month period $ 490 $ 490 N/A F-237 Each additional False Alarm Response over 5 in NIA 12-month period $ 610 $ 610 $12 per regulated fire Compliance Engine(Fire Protection Maintenance protection F-261 Testing and Inspection Electronic Report new N/A system for each 100% Submittal) submission or Actual Cost No. Notes False alarms includes(1)system or detector malfunction,including improper performance of fire alarm system that is not a result of a F-233 to proper system response to environmental stimuli such as smoke or high heal conditions;and(2)unintentional system or detector F-237 operation(no fire),includies tripping an interior device unintentionally. Non-emergency service calls include(1)lock-ins(non-emergency), (2)smoke or odor removal(no fire),(3)removal of a victim from a stalled elevator that has known mechanical issues; (4)other abuses of fire department services for repeat non-emergency conditions(excludes medical). Item 23. - 7 H B -1744_ Library-Charges Effective 7/1/2018 Central Library Theater and Meeting Room Rental Charges Hourly Rate(unless otherwise noted) Current Charges Recommended Charges B Room Non Profit(501c3)-Resident S 51.00 B Room $ 50.00 Non Profit(501c3)- Non Resident $ 63.00 $ 60.00 Business/private-Resident $ 83.00 $ 80.00 Business/private-Non Resident $ 95.00 $ 90.00 Balboa Room Non Profit(5016)-Resident $ 51.00 Balboa Room $ 50.00 Non Profit(501c3)- Non Resident $ 63.00 $ 60.00 Business/private-Resident $ 76.00 $ 80.00 Business/private-Non Resident $ 89.00 $ 90.00 C Room(piano) Non Profit(501c3)-Resident $ 76.00 C Room(piano) $ 80.00 Non Profit(5016)- Non Resident $ 89.00 $ 90.00 Business/private-Resident $ 114.00 $ 115.00 Business/private-Non Resident $ 127.00 $ 130.00 D Room Non Profit(5016)-Resident $ 76.00 D Room $ 80.00 Non Profit(501c3)- Non Resident $ 89.00 $ 90.00 Business/private-Resident $ 114.00 $ 115.00 Business/private-Non Resident $ 127.00 $ 130.00 C/O Room Non Profit(501c3)-Resident $ 139.00 C/D Room $ 140.00 Non Profit(501c3)- Non Resident $ 164.00 $ 165.00 Business/private-Resident $ 202.00 $ 200.00 Business/private-Non Resident $ 228.00 $ 230.00 C/D Room Non Profit(5016)-Resident $ 759.00 C/D Room $ 765.00 flat rate package Non Profit(501c3)- Non Resident $ 897.00 flat rate package $ 900.00 Fri/Saturday 6 hour minimum Business/private-Resident $ 1,104.00 8 hour maximum $ 1,100.00 Business/private-Non Resident $ 1,242.00 $ 1,255.00 E Room Non Profit(5016)-Resident $ 51.00 E Room $ 50.00 Non Profit(501c3)- Non Resident $ 63.00 $ 60.00 Business/private-Resident $ 70.00 $ 70.00 Business/private-Non Resident $ 83.00 $ 80.00 Maddy Room Non Profit(5016)-Resident $ 63.00 Maddy Room $ 60.00 Non Profit(5016)- Non Resident $ 76.00 $ 80.00 Business/private-Resident $ 95.00 $ 95.00 Business/private-Non Resident $ 108.00 $ 110.00 Talbert Room Non Profit(501c3)-Resident $ 89.00 Talbert Room $ 90.00 Non Profit(501c3)- Non Resident $ 101.00 $ 100.00 Business/private-Resident $ 139.00 $ 140.00 Business/private-Non Resident $ 152.00 $ 150.00 Library Theater Non Profit(501c3)-Resident $ 115.00 Library Theater $ 115.00 Monday-Friday before 5 pm Non Profit(5016)- Non Resident $ 144.00 Monday-Thursday $ 145.00 Business/private-Resident $ 207.00 $ 210,00 Business/private-Non Resident $ 230.00 $ 230.00 Library Theater Non Profit(501c3)-Resident $ 144,00 Library Theater $ 145.00 Monday-Friday after 5 pm Non Profit(501c3)- Non Resident $ 173.00 Friday,Saturday,Sunday $ 175.00 Saturday-Sunday Business/private-Resident $ 316.00 $ 320.00 Business/private-Non Resident $ 345.00 $ 350.00 Tabby Theater Non Profit(5010)-Resident $ 76.00 Tabby Theater $ 75.00 Non Profit(501c3)- Non Resident $ 95.00 $ 95.00 Business/private-Resident $ 159.00 $ 160.00 Business/private-Non Resident $ 190,00 $ 190.00 Charges for use of City Facilities may be waived for City or Library sponsored and co-sponsored events. The Library Director with approval from the City Manager may provide limited discounts for those willing to commit to a long-term use of the above facilities. All other Library Fees and Charges remain the same,unless noted above. H B -1745- Item 23. - 8 PUBLIC HEARING CITY OF HUNTING TON 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 Monday, the 215t day of May 2018, 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 • Library Services 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: April 26, 2018 City of Huntington Beach May 3, 2018 By: Robin Estanislau, City Clerk 2000 Main Street Huntington Beach, CA 92648-2702 Telephone: (714) 536-5405 ** Notice to City Clerk ** this copy to run twice in newsprint no later than 19 days prior to the Council Meeting date. Run in both display format and in legal section. Item 23. - 9 HB -1746- knjelz b D k, Ve. 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 Monday, the 21st day of May 2018,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 •Library Services 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. City of Huntington Beach By:Robin Estanislau,City Clerk 2000 Main Street,Huntington Beach,CA 92648-2702 Telephone:(714)535-5405 http:/Muntinglonbeachca.gov/HBPublicComments/ Dated:May 3,2018 May 10,2018 Published Huntington Beach Wave 11113542 Switzer, Donna From: David Ward <daward@scng.com> Sent: Friday, April 27, 2018 10:25 AM To: Switzer, Donna Subject: Re: FW: Public Hearing Notices Attachments: City of HB Proof Display Ad PH Budget Fiscal Year 2018-2019.pdf; City of HB Proof Display Ad PH Adoption of Fees 11113542.pdf Hello again Donna. Here are the Display versions of the two notices. David Ward Legal Advertising Rep 2190 S. Towne Centre PI. Anaheim, CA 92806 714-796-6764 daward@scng.com PLEASE NOTE THE E-MAIL ADDRESS HAS CHANGED :wam SUUTHEnn �r cnffUnnIn NEWS GROUP On Tue, Apr 24, 2018 at 5:03 PM, David Ward<daward(r,,scng com> wrote: Good morning Donna. Here are the two notices for the legal section of the paper. The other two that will run in the Main section of the paper have to be created by our artists. Once I have those back, I'll send those to you as well. Budget Fiscal Year 2018/2019 Ad#11112691 Run Dates 5/3 & 5110 Cost $342 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 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 Monday, the 21st day of May 2018, 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 • Library Services 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. City of Huntington Beach By: Robin Estanislau, City Clerk 2000 Main Street Huntington Beach, CA 92648-2702 Telephone: (714) 536-5405 http://huntingtonbeachca.gov/HBPublicComments/ Dated: May 3, 2018 May 10, 2018 Switzer, Donna From: David Ward <daward@scng.com> Sent: Tuesday, April 24, 2018 5:04 PM To: Switzer, Donna Subject: Re: FW: Public Hearing Notices Good morning Donna. Here are the two notices for the legal section of the paper. The other two that will run in the Main section of the paper have to be created by our artists. Once I have those back, I'll send those to you as well. Budget Fiscal VeaT 2018/2'01-9 A&44-14-2691 R.u-n-Dates 5/3-&5/-10 Co"342 PROOF- 1 Run Dates 5/3 & 5/1 Cost $330 PROOF 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 Monday, the 21st day of May 2018, for the purpose of considering the Adoption of Reso- lutions 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- lowing City Departments: • Community Services Department • Fire Department • Library Services Department All 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 Beath, 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. City of Huntington Beach By: Robin Estanislau, City Clerk 2000 Main Street Huntington Beach, CA 92648-2702 Telephon�: (714��26 54Q5 http://huntingtonbeac ca.gov ublicCommentsl Dated: May 3, 2018 l May 10, 2018 Published : The Huntington Beach Wave 11112707 l 3 5/21/2018 City of Huntington Beach SUPPLEMENTAL MASTER FitE AND tNAF�� tS St;NEDULE ADJUSTMENTS May 21,2018 Presented by the Finance Department Master Fee and Charges Schedule Financial Best Practices are to update fees every 3 to 5 years The City completed a fee study in FY 2016/17 and adopted a new Master Fee and Charges Schedule Annual review of the Master Fee and Charges Schedule performed during annual budget process Generates $19.5M Citywide of which $18.3M is in General Fund Overall, the Citywide rate of recovery is 73% No net increases to budgeted revenues from proposed adjustments COMMUNICATION • .. . i 5/21/2018 Proposed Adjustments Community Services Department Permanently incorporate Parking Rates for 4'�'of July Events No change from prior years (revenue of$88,000 in FY2018/19) Fire Department California Fire Code(CFC) Maintenance Testing and Inspection Electronic Report Submittal Fee- New Direct bill by vendor-$12 or Actual Cost—no net impact to City revenues Library Services Department Minor modification of charges for rental of the theater and meeting room spaces No net impact to revenues ��ecommended A�*��n • Adopt Resolution No. 2018-29, a Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59, Establishing the Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 5) • Effective 7/1/2018