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Recommendation to receive supporting documentation into the record, conclude the hearing, and adopt resolution amending the Master Fee and Charges Schedule for specified City services for the Development Services; Fire; Long Beach Gas and Oil; Library Services; and Public Works Departments. (Citywide)
DISCUSSION
As part of this action, the City Council is requested to consider the List of Proposed Fee Adjustments (Attachment A) and the List of Proposed Deletions and Narrative Changes for Fiscal Year 2010 (Attachment B) describing the proposed changes to the City's Master Fee and Charges Schedule.
> Proposed Fee Adjustments for Fiscal Year 2010
On September 15, 2009, as part of the budget adoption process for FY 10, the City Council approved an amended Master Fee and Charges Schedule for specified City services. The City Council's action established the fees for department services that best effect cost recovery, market and implementation characteristics specific to each fee and operation. Subsequent to adoption on September 15, 2009, Departments noted typographical or numerical inconsistencies requiring follow-up action by the City Council to avoid unintended fiscal impacts.
Proposed changes to the Master Fee and Charges Schedule involve the following factors:
Correctino/Addino Fees and Charqes: After further departmental review, departments propose corrections to fee amounts listed on the Master Fee and Charges Schedule adopted on September 15, 2009. Changes and additions are designed to make certain that fees and charges are implemented according to factors such as cost recovery efforts, State Mandates and cash handling issues.
Lanouaqe Chanaes: One of the results of opportunities for change to the Master Fee and Charges Schedule is greater attention to how the information is presented to the public. During their reviews, departments clarify wording or re-categorize fees to better inform the public of the nature of their fees. The specific reasons are addressed in Attachment B.
Fee Deletions: Some fees have been recommended for deletion from the Master Fee and Charges Schedule. The specific reasons are addressed in Attachment B, which includes a listing of proposed fee deletions.
This letter was reviewed by Assistant City Attorney Michael Mais on September 30, 2009 and Budget and Performance Management Manager, David Wodynski on September 30,2009.
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 October 13, 2009 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 expected service usage. The City's FY 10 adopted General Fund revenue estimates assumed natural growth of fees and charges; therefore, the requested fee changes are required to meet current revenue commitments and to keep the General Fund balanced during the fiscal year.
Department of Development Services
The Department of Development Services is requesting changes to the Master Fee and Charges Schedule to revise fees where the annual adjustment calculation did not fully reflect changes in service demands and cost recovery efforts. The Department is also requesting the re-instatement of one fee which was inadvertently omitted from the September 15, 2009 Master Fee and Charges Schedule. Additionally, the Department is proposing a correction to its General Plan Amendment fee - erroneously listed as $2,698 on the FY 10 Master Fees and Charges Schedule. Prior to adoption, the approved fee amount was $9,108. With the appropriate increase, the department's proposed fee for the General Plan Amendment fee is $9,381. Similarly, the Department is proposing a correction to the Additional Mechanical Plan Check Title 24 for Energy.
Fire Department
The Fire Department is proposing to add a "Vehicle Accident and Hazardous Material Release Response and Mitigation Fee" to charge the responsible party at a vehicle accident with cleanup activities or hazardous material release for the response of fire units and resulting mitigation and safety precaution activities.
The California Vehicle Code (CVC) allows response agencies to recover costs for responding to vehicle accidents and initiating cleanup activities resulting from the accident where the "contents of a vehicle" are deposited upon a street or highway. Vehicle "contents" can include fluids (oil, fuel, antifreeze, etc.) and debris caused by the impact and subsequent damage to the vehicle itself. Currently, the City of Long Beach does not have a fee for these activities.
The Department proposes the fee for the response and mitigation activities be based on the typical amount of time a unit(s) are committed on vehicle accidents or hazardous material releases. The fee amount is reported as a range and the fee amount charge will depend on the severity of the accident and the commitment of fire resources to the mitigation efforts. The responsible party will only be billed when a response with cleanup activities occurs. Accidents not requiring cleanup activities would not generate a bill to the responsible party.
The cost recovery for Fiscal Year 2010 (FY 10) generated from this fee is estimated at $250,000 and is currently budgeted in Fire's FY10 budget. City Council approval of this fee will allow the Department to expedite imposing this fee and collecting revenues in order to meet their FY10 revenue target.
Long Beach Gas and Oil
Following a review of adjustments made for FY 10 and as listed in the FY 10 Master Fees and Charges schedule, Long Beach Gas and Oil (LBGO) recommends that many of its fees adjusted by the citywide fee increase revert to fee amounts existing prior to the adoption of the September 15, 2009 Master Fee and Charges Schedule. LBGO periodically reviews its gas utility service fees and submits recommendations to the City Council to reasonably reflect similar rates and fees charged by the Southern California Gas Company (SoCalGas) and other surrounding gas utilities pursuant to Long Beach Municipal Code Section 15.36.100 and City Charter Section 1502. The fee changes are intended to establish Long Beach gas utility service charges reasonably comparable with those of other like utilities pursuant to Section 1502 of the Long Beach City Charter and allow for cost recovery. Additionally, to reflect the adopted fee amount, LBGO requests a correction to the unit of service for one fee.
Department of Library Services
The Department of Library Services proposes an upwards fee adjustment in Collection Fees and requests changes to the unit of service pertaining to Audio/Book rentals to lengthen the loan time for Video Cassette/DVD and Audio Book rentals.
Department of Public Works
The Department of Public Works is requesting changes related to its Towing Fees and Charges to round fee amounts to the nearest dollar and revert fees to amounts existing prior to the September 15, 2009 Master Fees and Charges Schedule. The Department considered the additional staff time and customer inconvenience involved in implementing the receipt of fractional dollar amounts throughout the towing operation. It is the intention of Fleet Services Towing and Lien Sales Division to submit a fee change to round fees to the nearest dollar.
Additional recommendations have been made to the Towing Drop Fees and the Long Lien Auction Purchase Deposit. In these two cases, fees were adjusted to comply with towing industry standards and State Mandate. The drop fee is calculated in the towing industry by charging half of the towing fee for any weight class. The Lien Auction Purchase Deposit was calculated to cover the additional 10-day of storage for a long-lien vehicle as is mandated by California Vehicle Code.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AMENDING THE MASTER FEE AND CHARGES SCHEDULE FOR SPECIFIED CITY SERVICES FOR THE DEPARTMENTS OF DEVELOPMENT SERVICES, FIRE, LONG BEACH GAS AND OIL, LIBRARY SERVICES AND PUBLIC WORKS
Respectfully Submitted,
Lori Ann Farrell
Director of Financial Management/CFO
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PATRICK H. WEST |
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