TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing, and adopt resolution amending the Master Fee and Charges Schedule. (Citywide)
DISCUSSION
City Council approval is requested for the List of Proposed Fee Adjustments for the Second Quarter of Fiscal Year 2011 (FY 11) (Attachment A), which describes the proposed changes to the City's Master Fee and Charges Schedule. On January 18, 2011, the City Council approved an amended Master Fee and Charges Schedule for specified City services that incorporated changes for the first quarter of the fiscal year.
The basis for this schedule of fees and charges is the Fee Study, which was originally recommended by the Budget Oversight Committee and commissioned by the City Council on June 3, 2004 to complete a cost accounting of the most significant City services and their related user fees. This schedule is updated annually to encourage full cost recovery for the City's services.
One of the findings of the Fee Study was that the City's process to offset its costs to provide fee-based services did not provide for an inflationary adjustment or other cost growth factors. To provide for a more effective cost recovery, per the City Council's Financial Policy on User Fees and Charges, a mechanism to allow broad-based changes to the City's fees became necessary. Hence, the Master Fee and Charges Schedule, along with quarterly fee updates, were initiated. City staff will continue to bring proposed fee adjustments on an ongoing basis to keep fees up to date.
Please see Attachment A for a List of Proposed Fee Adjustments for the Second Quarter of Fiscal Year 2011. Proposed changes to the Master Fee and Charges Schedule involve several factors as follows:
City Council Financial Policy on User Fees and Charges - The Financial Policy states that departments are expected to recover 100 percent of their actual costs for user fees and charges unless the City Council approves a subsidy. Departments have proposed five changes related to keeping cost recovery efforts in line with actual costs.
Increased Service Demands - Certain new fees are being introduced to address the increased demand for City services. Charging a fee allows residents to enjoy the benefits of a service that may otherwise not be possible without sufficient revenue to offset the cost of providing the service. Some services in low demand are not initially assigned a fee because of the cost of developing a billing process. As demand increases, the impact on the organization increases resulting in an improved cost/benefit ratio. In addition, services sometimes grow from a minimal impact to a larger impact resulting in the need to assign a cost to the service being provided. Changes in the regulatory environment may also result in new fees being developed. Of the fee adjustments being recommended, twelve are in response to increased service demands or to assist in cost recovery efforts.
This matter was reviewed by Assistant City Attorney Michael J. Mais on March 22, 2011 and Budget and Performance Management Bureau Manager Lou Palmer on March 21, 2011.
TIMING CONSIDERATIONS
In order for the fee adjustments to be implemented and new revenue to be generated, the attached resolution must be adopted by the City Council. Therefore, City Council action is requested on May 10, 2011 to allow for increased cost recovery at the earliest possible time.
FISCAL IMPACT
Any General Fund revenue changes described in Attachment A are only estimates based on anticipated service usage. The City's FY 11 adopted General Fund revenue estimates assumed natural growth of fees and charges; therefore, the requested fee increases are required to meet current revenue commitments in the respective departments and will support each department's General Fund operations during the fiscal year. The total value of the annual revenue changes included in Attachment A in all funds is $305,410, with a General Fund impact of $7,790.
Development Services
Code Enforcement
Code Enforcement is seeking to add the Administrative Citation Fee to the Foreclosure Registry Program as referenced in Long Beach Municipal Code 18.24.090 to the Master Fee and Charges Schedule. The Foreclosure Registry Program took effect on February 8, 2011. This ordinance established an abandoned property registration program and was adopted in an effort to protect residential neighborhoods from blight caused by foreclosed properties that are not maintained. The ordinance states that the City may impose a fine of up to one thousand dollars ($1,000.00) per day for each day that the legal owner fails to maintain the property as required by Section 18.24.040, commencing on the day following the expiration of the period to remedy the violation.
Financial Management
Short-Term Entertainment Permit
Financial Management is proposing to add the 12-month Entertainment short-term renewal fee for businesses that were previously granted a one-year, short-term permit and are renewing it for the current year. These businesses are not subject to the intensive background investigation that was conducted during their previous entertainment application process.
Curb Painting
Financial Management is requesting two new fees to obtain a curb painting permit to paint house numbers on curbs. Applicants are charged a $200 fee for administrative processing and background investigations; a $50 fee is charged for non-profit entities. These prospective fees are contingent on the City Council adopting a proposed ordinance, and will allow immediate implementation of the program once the ordinance is finalized.
Vendor Cart Program
Financial Management is requesting to add a new fee for the Vendor Cart Program. An applicant is charged a revocable permit fee of $300 for the implementation and administration of the Downtown Area Vendor Cart Program, as specified by the Long Beach Municipal Code, Title 5.66.060(L).
Fire Department
Plan Check Fees
An hourly option for plan check fees is being proposed. The hourly rate will be based on the actual employees involved in the plan check. Application of the hourly option will be at the discretion of the City Manager and the Fire Chief.
Long Beach Airport
Vehicle Parking Fees at Long Beach Airport
The Airport Parking Lot A fee will be increased from $17/day to $19/day. Lot A is the closest to the terminal building. Lot B, the new parking structure currently under construction, is expected to open later in FY 11 and its rate is proposed at $17/day. In addition, it is proposed that parking be free for all-electric vehicles in any Airport lot. These changes requested for FY 2011 are to generate the revenue needed to meet Airport operational expenditures and fund debt service payments associated with the new parking structure, and will go into effect when the new parking structure opens.
Parks, Recreation and Marine
Parks Nonreservable Areas
The Department of Parks, Recreation and Marine charges a permit administrative fee of $27 for all facility use permits. The fee schedule was updated to clarify it applies to Parks Nonreservable Area permits.
Public Works
Appeal Deposit - Public Walkways Permit
Public Works is proposing to add a new Appeal Deposit Fee for public walkways occupancy permits. Sidewalk occupancy permits are primarily requested by restaurants to provide outside dining for customers and adding more capacity during peak hours. Long Beach Municipal Code (LBMC) 14.14.020 states that no person shall use or occupy the public walkway with an obstruction for any purpose without first obtaining a written permit from the City Council. If an applicant's request for a public walkways occupancy permit is denied or contains restrictions by the Director or Public Works, the applicant/permittee may appeal the decision to the City Council. The proposed fee is to recover staff costs if an applicant/permittee submits a written appeal request regarding the status of a public occupancy permit restriction, revocation or non-renewal.
Parking Meter Fees
In FY10, the City of Long Beach acquired the parking lot located at 189 Park Avenue. The 22-space lot was reconstructed and equipped with a new solar powered multi-meter, with the rate set at $1.00/hour, or $9.00/day. Subsequent to the rate increase, the parking lot has experienced a dramatic decrease in usage. To remedy this, it is recommended that the rate be adjusted to $.50/hr, with a maximum of $3.00/day. Lowering the hourly rate will make the parking lot more attractive to the public and increase utilization. It is estimated that lowering the hourly rate to $.50/hr will bring in approximately $30,000 annually.
Towing
The Public Works Department, Fleet Services Bureau, is requesting new fees in the Towing and Lien Sales Division for an estimated total revenue impact to the Towing Fund of $97,620. Lien sale auction customers will be charged for the keys they receive when purchasing a lien sale vehicle. The fee will be based on the type of key received and whether key production is required. Standard keys will be produced for $65 per key and $165 will be charged for an electronic key. The fee will offset the costs of collecting existing keys and producing missing keys for the customer. These types of fees are an industry standard charge.
Facilities
The Public Works Department, Asset Management Bureau, is requesting a change to the board up fee schedule. As the City no longer maintains staff to provide board up services to the Police and Fire Departments for securing a property, Asset Management has retained a contractor to provide this service. Property owners will now be charged the actual cost the City incurs for the board up and securing of their property whenever the contractor responds to Police/Fire requests. This fee change will allow the City to recoup costs incurred.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AMENDING THE MASTER FEE AND CHARGES SCHEDULE -- SECOND QUARTER FISCAL YEAR 2011 FEE ADJUSTMENTS FOR SPECIFIED CITY SERVICES FOR THE CITY OF LONG BEACH.
Respectfully Submitted,
DAVID S. NAKAMOTO
ACTING DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER