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HomeMy WebLinkAboutItem 1b - Resolution No. 6987 establishing various fees for City servicesoxpor ted 'may rugws[5, Ap03 STAFF REPORT Office of the City Manager DATE: August 20, 2013 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager SUBJECT: RESOLUTION NO. 6987 ESTABLISHING AND /OR ADJUSTING VARIOUS FEES FOR CITY SERVICES; AND FINDING THAT THIS RESOLUTION IS EXEMPT FROM THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Recommendation: Adopt SUMMARY The City of Arcadia periodically reviews its fees and charges for services to make sure they are consistent with the current cost of providing the service. Each department has recently completed a review of their fees, and the proposed changes are outlined in this report and in Resolution No. 6987. Should Resolution No. 6987 be approved by the City Council, the new fee amounts will become effective October 1, 2013. BACKGROUND City fees are reviewed on a regular basis for the purpose of making sure they are consistent with the cost of providing the service. Fee amounts are set at a rate that enables the City to recover all or a portion of the cost of the service. In no instance may a fee exceed the cost of providing the service. Before changing or setting a fee, staff conducts a cost analysis study to determine the actual cost of the service. A comprehensive cost allocation study was conducted by the City in 2012, which serves as the basis for the cost analysis studies performed on each user fee. In addition to reviewing such things as staff and /or consultant time and materials, the analysis takes into account the impact to the end user and the amount charged by other municipalities for similar services. This ensures that the established fees do not overburden the rate payer. Fees for City Services August 20, 2013 Page 2 of 5 DISCUSSION The City of Arcadia has approximately 940 different user fees. Of this amount, it is proposed that 60 be increased, eight (8) be lowered, two (2) be established, and one (1) eliminated. The remaining 871 fees will remain unchanged. The current review of fees has resulted in proposed changes to fees in the Recreation and Community Services, Development Services, and Fire Departments. The changes are detailed on Exhibit A to Resolution No.6987, and are summarized below. Recreation and Community Services Department The only change for the Recreation and Community Services Department is the removal of the $5 fee called "Class Registration Online Administration." This fee was created to cover the cost of online registration for recreation programs; it was approved prior to executing an agreement with the current service provider and never implemented. The current service provider charges registrants $3 plus 3% of the total transaction, with payments made directly to the service provider; therefore, the established fee is obsolete. Development Services Department The Development Services Department is recommending adjusting and /or adding fees to modernize the current schedule and to achieve better cost recovery, mostly in the areas of design review and plan checking services. Below are a few notes on some of the Development Services Department fees: Architectural Design Review In May of this year the City Council voted to charge an amount for Architectural Design Review that would fully recover the cost of staff work, which was estimated to be as high as $2,200. Since that time, staff has worked to streamline the process of Design Review and accelerate the turnaround time. This has led to less processing, oversight, and review by staff and a more efficient procedure in general. As a result of these internal changes, the current cost of Design Review is $1,595 per application. It is recommended that the current fee be increased to $1,500., up from $1,225, Lot Line Adjustments and Certificates of Compliance Lot Line Adjustments and Certificates of Compliance are processes that property owners, developers, and realtors occasionally apply for in order to adjust legal parcels. The process is somewhat labor- intensive because of the technical review, research, Fees for City Services August 20, 2013 Page 3 of 5 and routing that is required. The new amounts of $750 for a lot line adjustment and $500 for a Certificate of Compliance will make the fees more in line with the cost of providing the service. The current fee for a lot line adjustment is $500 and there is no set fee for a Certificate of Compliance or Parcel Map Waiver. Specific Plans While not common, when Specific Plans are proposed, they are time consuming and complicated efforts. This is because they effectively create an entirely new set of zoning standards for the subject area. They are a Zone Change, General Plan Amendment, and a Zoning Code Text Amendment all in one. Taken together, those three efforts would cost $5,360. To date, there has not been a listed fee for a Specific Plan. Based on the amount of work involved, it is recommended that the cost for a Specific Plan be set at $5,000 and $2,000 for a Specific Plan Amendment. California Environmental Quality Act A constantly evolving State requirement is the need to comply with the California Environmental Quality Act (CEQA). For certain projects (estimated around 10 -12 per year), the City must prepare what is called an Initial Environmental Study (IS). The IS must contain a number of environmental categories such as air quality, water quality, and traffic, and each of these categories must be reviewed against established standards and the project's impacts on these standards. The State continues to expand the types of items that must be reviewed, most recently adding greenhouse gas emissions and additional air quality inputs. The City currently charges $500 to prepare an IS, which is far below the actual cost of $2,422. The recommendation is to increase the cost of an IS to $1,500 to recover more of the actual cost of providing the service. It should be noted that this is a service that the developers can conduct on their own if they wish; therefore, the City's fees must be competitive with private service providers. Even at the $1,500 level, it is expected that the City charge will be below alternative options. The City has an incentive to capture as much of this work as possible as it streamlines the overall development process and ensures that local standards are met. State Building Code The State of California recently adopted changes to the Statewide Building Code, including changes affecting the plan check and permit issuance process. First, the State requirements for environmental review ( "Cal- Green" standards) require plan check professionals to review construction methodologies and plans for environmental categories and specific compliance standards. These standards are more rigid and require additional work for which the City is currently not being compensated. Accordingly, it is recommended that the City add a 10% charge to all building permits requiring Cal -Green review. The 10% charge is in line with the amount authorized in the Cal -Green standards. Fees for City Services August 20, 2013 Page 4 of 5 Similarly, State requirements related to compliance with the Americans with Disabilities Act (ADA) require new and much more stringent review. Right now, the City is not charging for this additional review, and it is estimated by the City's plan check consultants that it may lead to as much as 25% additional plan review time. To be on the conservative side, it is recommended that an additional 15% charge be added to the base plan check fee for all relevant plan check projects, which includes commercial, industrial, and limited residential projects. The City will track actual additional costs and time spent on the review and will adjust the fee accordingly over time. ADA standards also require additional field work by City Inspectors to ensure compliance; therefore, it is recommended that a 10% increase be added to the base Building Permit issuance charge to cover this cost. Fire Department The cost analysis conducted by the Fire Department resulted in a recommendation to increase 53 of its 71 fees, to decrease eight (8), and to add on one (1) new fee related to hotel and motel inspections. In the past, hotels and motels were charged the basic Business Inspection Fee of $75. During the cost analysis process, it was determined that the amount of time spent on the fire inspections and administration for hotels and motels warrants a fee of $265. This is because an entire hotel complex is far more time consuming to inspect than a typical office or retail space in the City. The new fee rates will allow the City to recover its costs for providing the service. PUBLIC COMMENTS /NOTICE Consideration of Resolution No. 6987 requires a public hearing, which was noticed to the public in the Arcadia Weekly newspaper on August 5 and August 8, 2013. As of the time this report was written, no comments had been received. ENVIRONMENTAL ANALYSIS The establishment and /or adjustment of fees are statutorily exempt from CEQA per Section 15273 of the CEQA Guidelines (Sections 21080(b)(8) and 21083, Public Resources Code). FISCAL IMPACT The net fiscal impact from the fee adjustments is estimated at $165,777 ($157,750 for the Development Services Department and $8,027 for the Fire Department), although it should be noted that this estimate is dependent on the level of participation by the user of the services after they become effective on October 1, 2013. The new fee rates are not reflected in the adopted Fiscal Year 2013 -14 budget. Fees for City Services August 20, 2013 Page 5 of 5 RECOMMENDATION It is recommended that the City Council adopt Resolution No. 6987 establishing and /or adjusting various fees for City services; and finding that this Resolution is exempt from the requirements of the California Environmental Quality Act. Approved. Dominic Lazzare�t City Manager / ii m i imiTii■awne lii� ourew• sma Exhibit "A" RESOLUTION NO. 6987 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ESTABLISHING AND /OR ADJUSTING VARIOUS FEES FOR CITY SERVICES; AND FINDING THAT THIS RESOLUTION IS EXEMPT FROM THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The establishment and /or adjustment of fees are statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to Section 15273 of the CEQA Guidelines (Sections 21080(b)(8) and 21082, Public Resources Code). SECTION 2. Based on a cost allocation study performed by each City department, the fees set forth in this Resolution are necessary for the purposes set forth in this Resolution. Said fees do not exceed the estimated costs for providing the applicable service or programs; the fees set forth in this Resolution bear a reasonable relationship to the cost of the respective service or program involved; the fees bear a fair and reasonable relationship to the benefit the payer obtains or the burden caused to the City in providing the service or programs; and the fees are not being imposed for general revenue purposes, but instead for full or partial recovery of the costs of providing said services and programs. Said fees are to cover the costs of various services and programs set forth in the Fee Schedule, attached hereto as Exhibit "A ". SECTION 3. The City Council hereby adopts the Fee Schedule, attached hereto as Exhibit "A ". 1 SECTION 4. Any fees adopted prior to this Resolution which are inconsistent herewith are hereby repealed effective upon the date the fees set forth in the attached Exhibit "A" take effect. SECTION 5. This Resolution shall become effective October 1, 2013. SECTION 6. The City Clerk shall certify the adoption of this Resolution. Passed, approved and adopted this day of , 2013. ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney E Mayor of City of Arcadia EXHIBIT "A" RECREATION & COMMUNITY SERVICES DEPARTMENT FEE ADJUSTMENTS DESCRIPTION CURRENT FEE COST OF SERVICE PROPOSED FEE FEE DIFFERENCE TOTAL REVENUE CHANGE DESCRIPTION /JUSTIFICATION This fee was created to cover the cost of online registration collected for recreation Class registration online $5 $0 $0 ($5) $0 programs and approved prior to the administration fee agreement with the current service provider. The current provider charges the actual participant $3, plus 3% of the total transaction and payments are made directly from the participant to the service provider. This fee is obsolete and was never implemented. EXHIBIT "A" DEVELOPMENT SERVICES DEPARTMENT FEE ADJUSTMENTS TOTAL CURRENT COST OF PROPOSED FEE REVENUE DESCRIPTION FEE SERVICE FEE DIFFERENCE CHANGE DESCRIPTION /JUSTIFICATION This fee increase covers the cost of Architectural Design $1,225 $1,595 $1,500 $275 $27,500 staff review of single - family, multi - Review family, and commercial /industrial design review. This includes the costs of City Council required neighbor notification. The original estimate for this fee was upwards of $2,200. However, recent changes in the streamlining of processing of these cases has kept this recommended increase a small one. Lot Line Adjustments $500 $1,099 $750 $250 $750 Lot line adjustments must be routed to with Certificate of other departments for review and a Compliance Certificate of Compliance must be prepared and sent to LA County for recordation. This modest increase will pay for staff review by all departments. Certificate of $0 $729 $500 $500 $1,500 A Certificate of Compliance is often Compliance or Parcel requested to ensure a lot is legal and Map waiver these documents are recorded. Staff time is needed to research lot and prepare the certification. There is currently no charge for this service. EXHIBIT "A" DEVELOPMENT SERVICES DEPARTMENT FEE ADJUSTMENTS DESCRIPTION CURRENT FEE COST OF SERVICE PROPOSED FEE FEE DIFFERENCE TOTAL REVENUE CHANGE DESCRIPTION /JUSTIFICATION Specific Plan and $2,000 $8,865 $5,000 $3,000 (Plan) $3,000 Currently, we charge a fee of $2,000 Specific Plan (Plan) (Plan) (Plan) for a Specific Plan or Amendment. The Amendment costs of these plans is much greater in $2,000 $3,689 $2,000 $0 (Amend) terms of staff time and effort. Many (Amend.) (Amend.) (Amend.) departments are required to review and provide assistance with the technical details of these plans. The Plans also have posting and notification requirements as well as legal review. We expect to get a maximum of one of these plans per year. Initial Environmental $500 $2,422 $1,500 $1,000 $10,000 State requirements for CEQA are Study (leading to a growing increasingly complex and the conclusion of a City's fee has not been updated for Negative Declaration many years. The costs of performing a or Mitigated Negative legal Initial Study and determination far Declaration. outstrip the current charge. There is a great deal of technical research that must be done to prepare an environmentally - compliant document. This fee also includes state required posting and notice charges. EXHIBIT "A" DEVELOPMENT SERVICES DEPARTMENT FEE ADJUSTMENTS DESCRIPTION CURRENT FEE COST OF SERVICE PROPOSED FEE FEE DIFFERENCE TOTAL REVENUE CHANGE DESCRIPTION /JUSTIFICATION California Green Code Varies Varies 10% Varies $89,000 In January, 2011, the State mandated Plan Check Fees increase to the adoption of the 2011 California (environmental review base Plan Building Code, which included a series of certain building Check Cost of Code requirements referred to as the permits) of qualifying "Green Building Code ". On January 1, building 2014 the new 2013 California Building permits. Code will be adopted which includes a new expansive Green Building Code. These new environmental standards will be more stringent than the previous 2011 Code and call for tougher energy regulations, water conservation, building materials review, and more sustainable construction practices. Due to the increasing complexity of building permit review and plan check, the proposal is to add a new "Cal Green Plan Check Fee" which is equal to 10% of the base plan check fee. The new 2013 California Green Code requires additional work from plan checkers, the Building Official and permit techs. EXHIBIT "A" DEVELOPMENT SERVICES DEPARTMENT FEE ADJUSTMENTS DESCRIPTION CURRENT FEE COST OF SERVICE PROPOSED FEE FEE DIFFERENCE TOTAL REVENUE CHANGE DESCRIPTION /JUSTIFICATION Accessibility Review Varies Varies 15% Varies $14,200 There have been significant changes in (ADA) for Building increase to the 2013 Statewide Building Code Permit Plan Check base Plan adoption regarding State Accessibility Check Cost regulations. These fees will only apply to commercial, industrial, and limited Accessibility Review 10% residential projects. These changes (ADA) for Building increase to Varies $11,800 require substantial additional review Permit issuance base time from Plan Check consultants, the Building Building Official, and building techs. Permit Cost The City's contract Plan Check firms estimate that the new Accessibility standards could lead to up to 25% more time on qualifying projects. To be conservative, the City is recommending a 15% increase to plan check costs, with the goal of monitoring actual costs over the coming year to determine sufficiency. On the Building Permit side, a 10% increase is recommended to the base cost of a Building Permit to cover the cost of our inspectors reviewing for compliance with the new ADA standards. Again, this fee will only be charged to commercial, industrial and limited residential projects. EXHIBIT "A" FIRE DEPARTMENT FEE ADJUSTMENTS TOTAL CURRENT COST OF PROPOSED FEE REVENUE DESCRIPTION FEE SERVICE FEE DIFFERENCE CHANGE DESCRIPTION /JUSTIFICATION CALIFORNIA FIRE The Fire Department currently issues 37 CODE PERMITS different types of annual and temporary permits as required by the California Fire Code. With each issuance of a permit, a fire inspection is required along with corresponding administrative time to process the permit. A recent cost allocation analysis and performance time review determined that 36 of the 37 fees will be raised between $10 -$70 to reflect the updated inspection and administrative costs associated with the issuance of these permits. Aerosol Product $385 $428.80 $425 $40 $0 Amusement Building $270 $305.89 $305 $35 $305 Assembly $270 $286.40 $285 $15 $1,350 Candles /Open Flame in $85 $95.47 $95 $10 $60 Assembly Carnivals & Fairs $385 $428.80 $425 $40 $160 Combustible Dust $270 $305.89 $305 $35 $140 Producing Operations EXHIBIT "A" FIRE DEPARTMENT FEE ADJUSTMENTS DESCRIPTION CURRENT FEE COST OF SERVICE PROPOSED FEE FEE DIFFERENCE TOTAL REVENUE CHANGE DESCRIPTION /JUSTIFICATION Combustible Fiber Storage $270 $305.89 $305 $35 $0 Compressed Gases $335 $351.86 $350 $15 $240 Covered Mall $220 $244.92 $240 $20 $40 Cryogens $270 $305.89 $305 $35 $105 Dry Cleaning Plants $270 $305.89 $305 $35 $210 Exhibits/Trade Shows $220 $244.92 $240 $20 $60 Explosives /Blasting $220 $244.92 $240 $20 $0 Fireworks /Aerial Display $625 $696.67 $695 $70 $70 Flammable /Combustible Liquids $345 $359.81 $380 $35 $735 Hazardous Materials 1 to 3 Chemicals $270 $302.37 $300 $30 $180 Hazardous Materials 4 to 6 Chemicals $325 $359.85 $355 $30 $120 Hazardous Materials >_7 Chemicals $385 $428.80 $425 $40 $840 Hazardous Production Materials Facility $270 $305.89 $305 $35 $35 Helicopter /Helistop $95 $98.99 $95 $0 $0 EXHIBIT "A" FIRE DEPARTMENT FEE ADJUSTMENTS TOTAL CURRENT COST OF PROPOSED FEE REVENUE DESCRIPTION FEE SERVICE FEE DIFFERENCE CHANGE DESCRIPTION /JUSTIFICATION High Piled Combustible $395 $443.80 $440 $45 $630 Materials Hot -work Operations $270 $286.40 $305 $35 $910 Industrial Baking /Drying $270 $305.89 $305 $35 $245 Oven Liquid Gas Fueled $215 $244.92 $240 $25 $100 Vehicles in Assemblies Liquified Petroleum $220 $244.92 $240 $20 $160 Gases >_5 Gallons Lumberyard $270 $305.89 $305 $35 $0 Magnesium Working $270 $305.89 $305 $35 $0 Miscellaneous $270 $305.89 $305 $35 $35 Combustible Material Storage Motor Vehicle Fuel $270 $286.40 $285 $15 $690 Dispensing Station/Repair Garage Open Burning $115 $129.96 $125 $10 $0 Organic Coatings $270 $305.89 $305 $35 $0 Pyrotechnical & Special $385 $428.8 $425 $40 $0 Effects Material Refrigeration Equipment $270 $305.89 $305 $35 $490 Spraying /Dipping $270 $305.89 $305 $35 $210 EXHIBIT "A" FIRE DEPARTMENT FEE ADJUSTMENTS TOTAL CURRENT COST OF PROPOSED FEE REVENUE DESCRIPTION FEE SERVICE FEE DIFFERENCE CHANGE DESCRIPTION /JUSTIFICATION Tent/Canopy $270 $305.89 $305 $35 $1,050 Tire Storage $270 $305.89 $305 $35 $175 Wood Products $270 $305.89 $305 $35 $0 INSPECTIONS AND According to the recent cost allocation SERVICES analysis and performance time review, it was determined that nine Fire Department inspection and service fees will be increased between $5 -$35, seven of them will be reduced by $10 -$155, and one will remain the same to reflect the updated inspection and administrative costs associated with providing these services. Chief Officer Standby $195 /hour $220.93 /hour $220 /hour $25 /hour $0 Engine or Truck $165 /hour $123.49/hour $120 /hour ($45 /hour) ($270) Company Re-inspection Engine or Truck $320 /hour $246.97/hour $245 /hour ($75 /hour) $0 Company Standby Expedite or After Hours $320 $359.81 $355 $35 $35 Inspection False Alarm Response $320 $300.42 $300 ($20) ($1,000) Fire Code Compliance $125 $141.44 $140 $15 $750 Inspection EXHIBIT "A" IaI: 7:8 Q :11:7_1:id►yil:11kN ha9:1:w_\-alib1111V, VCR R DESCRIPTION CURRENT FEE COST OF SERVICE PROPOSED FEE FEE DIFFERENCE TOTAL REVENUE CHANGE DESCRIPTION /JUSTIFICATION Fire Extinguisher Demonstration $180 $198.88 $195 $15 $30 Fire Inspector Standby $105 /hour $121.94/hour $120 /hour $15 /hour $0 Fire Marshal Standby $160 /hour $167.98/hour $165 /hour $5 /hour $0 Fire Safety Officer Movie Standby $120 /hour $114.60 /hour $110 /hour ($10 /hour) ($5,555) Fire Prevention Bureau Re-inspection $170 $190.90 $190 $20 $500 Key Box $50 $60.97 $60 $10 $200 Missed Appointment $140 $152.98 $150 $10 $60 Rescue Ambulance Standby $215 /hour $160.14 /hour $160 /hour ($55 /hour) $0 Roof Covering $645 $493.92 $490 ($155) $0 Title 19 Fire Sprinkler System Certification $60 $60.97 $60 $0 $0 Water Evacuation $320 $246.96 $245 ($75) $0 Weed Abatement $120 $96.50 $95 ($25) $0 EXHIBIT "A" FIRE DEPARTMENT FEE ADJUSTMENTS DESCRIPTION CURRENT FEE COST OF SERVICE PROPOSED FEE FEE DIFFERENCE TOTAL REVENUE CHANGE DESCRIPTION /JUSTIFICATION ANNUAL INSPECTIONS During calendar year 2012, the Fire Department performed a total of 3,220 annual inspections of commercial, multi- family, schools, and brush hazard occupancies. Fire Prevention Bureau conducted 652 of those inspections; fire suppression personnel conducted 2,568 inspections. Based on the recent cost allocation analysis and performance time review, most of the Fire Department annual inspection fees will remain unchanged while the fees for public schools, high - rise buildings, and hospitals will be increased by $35, $70, and $157, respectively. One new annual inspection fee was created for hotels and motels. In the past, hotels and motels were assessed the annual inspection fee for businesses, which is $75. During the cost allocation analysis and performance time review, it was determined that the additional time spent on fire inspections and EXHIBIT "A" FIRE DEPARTMENT FEE ADJUSTMENTS administrative tasks warranted the establishment of an annual inspection fee specifically for motels and hotels. The fee was determined to be $265 to reflect accurate cost recovery. TOTAL CURRENT COST OF PROPOSED FEE REVENUE DESCRIPTION FEE SERVICE FEE DIFFERENCE CHANGE DESCRIPTION /JUSTIFICATION Apartments $75 $76.74 $75 $0 $0 Business Occupancy $75 $76.74 $75 $0 $0 Business Restaurant $95 $96.50 $95 $0 $0 Occupancy Commercial Rental $95 $96.50 $95 $0 $0 Occupancy High -rise Occupancy $580 $650.63 $650 $70 $70 Hospital Occupancy $1,408 $1,569.98 $1,565 $157 $157 Hotel or Motel n/a $267.87 $265 n/a n/a Occupancy NEW Manufacturing /Industrial $75 $76.74 $75 $0 $0 Storage Occupancy Mercantile Occupancy $75 $76.74 $75 $0 $0 Private School $240 $244.89 $240 $0 $0 Occupancy Public School Occupancy $320 $359.81 $355 $35 $420 EXHIBIT "A" FIRE DEPARTMENT FEE ADJUSTMENTS TOTAL CURRENT COST OF PROPOSED FEE REVENUE DESCRIPTION FEE SERVICE FEE DIFFERENCE CHANGE DESCRIPTION /JUSTIFICATION PLAN CHECK All plan reviews of building and fire protection systems for Fire Code compliance are completed in -house by the Fire Marshal. Plan checking rates will be increased by $5 per hour while other plan review fees will be raised by $10- $20 to reflect updated cost recovery. Architectural Design $140 $152.98 $150 $10 $60 Review Expedite or Over -the- $140 $152.98 $150 $10 $60 Counter Plan Check Flammable /Combustible $220 $244.92 $240 $20 $20 Tank Installation or Removal In -house Plan Check $230 /hour $236.94/hour $235 /hour $5 /hour $3,125 Tract Application $155 $167.98 $165 $10 $20