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Home My WebLink About02. PH-Adopt Reso Adjusting the City's Uniform Schedule of FeesI I, OLS 1111 � Lei -] FROM: OFFICE • THE CITY MANAGER BY: ANIL GANDHY, DIRECTOR • FINANCE AND IT 1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING RESOLUTION NO 19-7886 — ADJUSTING THE CITY'S UNIFORM SCHEDULE • FEES. Local government agencies are responsible for providing a variety of services to citizens. These services range from public safety to building and planning. The methods of funding local government services are also varied, and most services are funded by tax revenues and user fee charges. Services that support the community and public safety are typically tax supported, while services that provide for specific individual beneficiaries are generally supported by user fee charges. User fee charges in California are required to comply with the statutory requirements of the California Constitution and the California Code of Regulations. Specifically, Proposition 26, approved by voters in 2010, requires that user fees for activities that benefit specific user groups be set at no more than the actual cost to provide the services. The City of Downey had generally not increased user fees, or had adopted some increases based upon the Consumer Price Index (CPI) adjustment. This resulted in a substantial under - recovery of costs. In late 2016, the City retained Matrix Consulting Group to conduct a City- wide Cost Allocation and User Fee Study to ensure that City fees and rates reflect the true and reasonable cost of delivering services. Matrix Consulting Group also provided, as part of the Study, a recommended range of cost recovery targets that are specific to the industry, end user group and public purpose for which the activity is occurring. While State law does permit the full recovery of costs associated with providing these services, actual cost recovery is a policy decision of the City Council based upon the general public benefit derived from the specific fee, the overall fee purpose, and the need to remain economically competitive. Based on the findings from the Cost Allocation and User Fee Study, the City Council adopted Resolution No. 18- 7813 — Adopting 2018-19 User Fees on June 26, 2018. On September 11, 2019, the City Council approved amendments to the June 2018 adopted fees through Resolution No. 18-7842. These amendments included Police Department, City Clerk's Office, and Fire Department fee changes. RESOLUTION ADJUSTING 2019-20 USER FEES JANUARY 28, 2020 PAGE 2 On June 25, 2019, the City Council adopted Resolution No. 19-7886 — Adopting 2019-20 User Fees and authorizing that User Fee be amended annually according to the area CPI. Staff is proposing the City Council approve amendments to the June 25, 2019 adopted fees through Resolution No. 20 -XXX User fees are attached as "Exhibit A" to Resolution 20 -XX and includes new and increased fees related to the Fire, Community Development, Parks and Recreation, and Police Departments. These changes are highlighted below. Additionally, a couple fees had name changes, but no associating fee changes, in order to better reflect the service being provided. FIRE DEPARTMENT: The Department is recommending implementing a "Pumpkin Patch" fee to cover the cost needed to inspect Pumpkin Patch sites. Since 2015, there has been one (1) Pumpkin Patch event each year in the City, which is coordinated by a for-profit organization. The fee of $200 is to cover the cost of the inspection. The Department is also recommending increasing its Hazardous Materials fees. Last year, the Los Angeles County CUPA auditor, notified the City that its Hazardous Materials Disclosure fees did not cover the costs associated with the City's Hazardous Materials Disclosure program. Currently, the City has 332 Hazardous Materials Discloses sites, which generate $147,116 in revenues. The annual cost for the City's Hazardous Materials Disclosure program is $179,000. The Department has conducted an analysis and developed the proposed fees to cover the cost of the deficit, $31,884 ($179,000-$147,116). Additionally, the Department has compared the proposed fees to those of LA County, and while their fees are structured differently (amount of chemicals rather than the number of chemicals), the City's fees are align with their schedule. Lastly, the Department is recommending implementing a CERS administration fee. CERS is the California Environmental Reporting System. CERS was placed into operation several years ago and requires the City's Hazardous Material Specialist to comply with site inspections and follow ups, Hazardous Materials Business Plan reviews and approvals, enforcement of delinquent payment of fees and other CERS administrative duties. These tasks are in addition to the City's Material Hazardous Disclosure Program duties. During the Los Angeles County CUPA audit, the City was informed it has not been able to complete all the required Hazard Materials inspections and CERS administration needs of the program for the past three years. The LA County CUPA auditor has strongly recommended that the City hire additional staffing to assist in the administration of the program. A CERS administration fee of $60 would be charged to every Hazardous disclosed location and cover the costs for a part-time employee to assist with CERS administration. COMMUNITY DEVELOPMENT - PLANNING: The Community Development Department is recommending implementing a "Board of Building Appeals" fee. The 2016 City Wide Allocation and User Fee Study recommended charging this fee to cover the cost of each appeal. The department is recommending setting the fee at 80 percent cost recovery, resulting in a fee of $1,131.20. POLICE DEPARTMENT The Police Department is recommending to increase fees related to Massage establishments to 100 percent cost recovery. RESOLUTION ADJUSTING 2019-20 USER FEES JANUARY 28, • 0 PAGE PUBLIC WORKS - ENGINEERING The Public Works Department — Engineering Division is recommending to implement fees related to the recently adopted Shopping Cart Containment Ordinance; Shopping Cart Containment Plan Fee, Shopping Cart Containment Plan Renewal Fee, and Shopping Cart Containment Appeal Fee. The new Ordinance helps mitigate the issues related to shopping carts left on public and private properties. The Shopping Cart Containment Plan and Shopping Cart Containment Plan Renewal Fees cover the cost for staff to process the application, review, and approve the cart containment plan. The recommended fee is set at 50 percent cost recovery according to the City-wide Cost Allocation and User Fee Study methodology. The Shopping Cart Containment Plan Appeal fee will be half the cost of the Shopping Cart Containment Plan fee and helps cover the cost of staff reviewing the appeal. PUBLIC WORKS - UTILITIES In compliance with AB 998 "Water Shutoff Protection Act", the Public Works Department — Utilities Division is required to draft a written policy on the discontinuation of resident water service for nonpayment. The policy must contain a plan for deferred or reduce payments, alternative payment schedules, a formal mechanism for a customer to contest or appeal a bill, a telephone number to discuss options, and be posted on the City's website. In conjunction with these items, the Division is recommending the following Water Service Reconnection (Low Income) fees: Delinquent/ Bad Check — Same Day, Delinquent / Bad Check — Next Day, and After Hours Return to Service. Additionally, the Division is recommending establishing a Payment Plan Administrative Fee. All recommended fees are in compliance with AB 988. RECREATION DEPARTMENT The Department is proposing to modify its method for charging for picnic shelter rentals. Due to the park renovations, there are two size picnic shelters at City parks: large and medium, when previously there was one size. As such, the Department is adjusting its fees to reflect the new sizes. Additionally, the Department is currently charging picnic rentals on a per hour basis, and is recommending to charge on an 8 -hour basis for ease of rental for patrons. The cost of service for each picnic shelter is $28 per hour or $224 for 8 hours according to the Citywide Cost Allocation and User Fee Study. The Department is recommending a cost recovering for residents of approximately 70 percent for large picnic shelters and 43 percent for medium shelters. Conversely, commercial renters are being recommended to pay full cost recovery for large picnic shelters and approximately 70 percent cost recovery for medium shelters. RECREATION - RIO HONDO GOLF COURSE: The Department is proposing to add veterans to the discounted Golf Course admission fee that is applied to juniors (under 18 years old) and seniors (65+ years old). FISCAL IMPACT The exact fiscal impact of these fees is not known at this time. Fiscal Responsibility Quality of Life, Safety, and Infrastructure A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING • • NO. :: ORM SCHEDULE OF WHEREAS, the City of Downey performs special services for the benefit of a limited number of persons or entities to whom such services are of value; and WHEREAS, the cost of rendering such services should be borne by that limited group who are the beneficiaries rather than the citizenry at large; and WHEREAS, the City Council is of the opinion also that the charges established for such services should equate to the direct cost thereof to the City of Downey; herein. WHEREAS, the City Council hereby amends the Uniform Schedule of Fees as set forth NOW, •-E, THE CITY COUNCIL OF OF DOWNEY DOES RESOLVEHEREBY • • SECTION 1. That the Pumpkin Path and CERS Administration fees be added to the Fire Department Fee Schedule; the Board of Buildings Appeals fee be added to the Building & Safety Division Fee Schedule; the Shopping Cart Containment Plan, Shopping Cart Containment Plan Renewal, and Shopping Cart Containment Plan Appeal fees be added to the Public Works Department -Engineering Fee Schedule; and the Payment Plan Administrative fee and Water Service Reconnection (Low Income) fees be added to the Public Works Department — Utilities Fee Schedule as set forth in Exhibit A. SECTION 2. That the Hazardous Materials fees in the Fire Department; Massage Permit fees in the Police Department; and the Picnic Shelter and Rio Hondo Golf Course 18 -Hole Weekday fees in the Parks and Recreation Department, be revised to be adjusted in compliance with California law as set forth in Exhibit A. SECTION 3. Resolution No. 19-7886, the Uniform Schedule of Fees, adopted June 25, 2019, is hereby amended with the adoption of this Resolution. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 28th day of January, 2020. BLANCA PECHECO, MAYOR MARIA ALICIA DUARTE, CMC City Clerk Exhibit A Adjusted FY 19-20 User Fees SECTION 4 - FIRE SPECIAL EVENTS FEES Pumpkin Patch (per location 11 S HAiARDOUS MATERIALS -ANNUAL DISCLOSURE (BILLED & COLLECTED BY COPH) # of Disclosures (includes 4 hr, of inspection time) $ 200 00 1-2 Disclosures JPer Inspection $ 280.00 $375,00 3-4 Disclosures Per Inspection $ 373.00 $483.00 5-8 Disclosures Per Inspection $ 653.00 $75906 9-12 Disclosures JPer Inspection $ 933.00 $1,035.00 13 + Disclosures Per Inspection $ 1,212.00 $1,311.00, CALARP Program Fee Per Program I $ 650.00 $93300 KERS Administration Per inspection Site $ $6000 (SECTION 6 - BUILDING & SAFETY (Board of BuHdin A peals Per Appeal S - $ 1,131.201 SECTION 9 - POLICE DEPARTMENT Massage Establishment permit (Deposit + actual cost) Per Permit $ 118.00 $ 215.00 Massage Technician permit Deposit +actual cost) p ( j Per Permit $ 118.00 $ 215.00 Renewal Massacre Establishment and / or Technician permit I. Per Permit $ 118.00 $ 215 00 SECTION 10 - PUBLIC WORKS - ENGINEERING _ Sho ping Cart Containment Plan Fee Per Plan $ - $ 376.59 Sho inq Cart Containment Plan Renewal Fee Per Plan $ $ 94.15 1/2 Cost of Shopping Cart Containment Plan Renewal Fee Per Plan $ - Ori incl Fee SECTION 11 - PUBLIC WORKS - UTILITIES Finance - Utilities Fees Payment Plan Administrative Fee Water Service ReaGtivatio Reconnection I Water Service Reconnection (Low Income) Delinquent / Bad Check - Same Day Delinquent / Bad Check - Next Day After Hours Return to Service SECTION 13 - RECREATION Outdoor Park Facilities Picnic Shelter (Large) - resident daily Picnic Shelter (Large) - commercial _ Picnic Shelter (Me(jium) - resident daily Picnic Shelter (Medium) - commercial F'+s6 -rr�s rpt t�-6aain6mam} �-9GF'�t�a- F7i r �-�-�f:rWffiinirYtk}f�} Rio Hondo Golf Course Non -Resident 18 -Hole Weekday,juniors <18, seniors 65+, & Veterans City of Downey Resident 18 -Hole Weekday. juniors <18. seniors 65+. & Veterans (Each Plan 1 $ - 1 $ 30.00 Each Plan $ $ 50.00 Each Plan $ $ 30.00 Each Plan $ $ 150.00 Daily (10a-6pm) 1 $$ Daily (10a-6pm) $ Daily (1Oa-6p—M)$ $ per �hou $ 26.^. $155.00 $224.00 $105 00 $155.00 JDail10a-6pm) g $ 27,001 $ 27.00 per person 1 per person 1 $ 21 001 $ 21 00