Bellflower City Council
July 10, 2023

Comprehensive User Fee ScheduleJULY 20231

Overview – User FeesGenerally, the City provides two types of services:1) General Services are provided for the benefit of the entire community. 2) Special Servicesare provided to or for the private benefit of a limited number of individuals or businesses.User Fees are charged for special services to recover the City’s cost of providing those services.2

Willdan Studies / User Fee UpdatesThe City engaged Willdan Financial Services to prepare a cost of service and fee analysis commonly referred to as a user fee study.Willdan has conducted:Initial Comprehensive Study in September 2005Limited Update in October 2008Comprehensive Study in October 2012Comprehensive Study in March 20173

User Fee Study ObjectivesDetermine the full cost of special services that the City providesDevelop a rational basis for setting a defensible fee scheduleThe City may recover up to the actual cost of providing the special service.The law does not require mathematical certainty in calculating fees; it only requires a reasonable relationship between the cost of service and the fee amount. Identify the recovery level percentageDevelop an updatable and comprehensive list of feesThe fees are proposed to be updated annually using the CPI. The first fee adjustment will be effective 07/01/2025.4

Recoverable Costs / User FeesRecoverable Costs:Staff’s fully burdened hourly rate (FBHR) x Average time it takes to provide the special service, plusFBHR takes into account: Above Costs / Productive Hours (Annual 2080 hours less holidays and leave hours) = FBHROut-of-pocket costs: consultants, contracted legal services, publications, materials, etc.Recommended fees generally rounded down to the whole dollar.5Personnel costs (salaries, benefits and taxes)Operating department’s overhead costs (e.g., Planning Public Works, etc.)Central service departments’ costs (e.g., Finance, City Clerk, Human Resources, etc.)

Sample User Fees Recovered at 100% of CostDescription DeptFullCost CurrentFeeProposedFee NotesAdministrative Approval orReview, Plot Plan Review, MinorPlanning$114.44 $66 $114Environmental Forms (i.e., Notice of Determination, Notice of Completion, etc.)Planning$270.96 $170 $270+ Pass thru fees6

Sample User Fees Recovered at Less Than 100% of CostDescription DeptFullCostCurrentFeeProposedFeePlumbing Permits not associated with Building Permits, no plan check requiredB&S $358.32 $90 $115Plumbing Permits not associated with Building Permit, plan check requiredB&S $537.49 $333 $3507

Sample User Fees Affected by StatutesDescription DeptFullCost CurrentFeeProposedFee NotesSolar PV Systems, Residential (IncludesPlan Check)B&S $537.49 $378 $450Maximum fee per state law is $450. The General Plan & Zoning Ordinance and GIS Update Fees may be reduced to adhere to solar permit fee caps set by the state.Copy, per page, of Political Reform Act filingsCity Clerk$5.48$0.10 + Retrieval Fee of $5 per request for records 5 or more yearsold$0.10 + Retrieval Fee of $5 per request for records 5 or more yearsoldPer Government Code 810088

Sample User Fees Requiring an Actual Cost TrackingDescription Dept Proposed FeeAlley ImprovementsPWFee will be assessed on an A/C basis. Construction of storm drain improvement on City storm drain system, per assemblyPWFee will be assessed on an A/C basis. 9

Sample User Fee Requiring an Upfront DepositDescription DeptFullCost CurrentFeeCurrentFeeCity Council or Planning CommissionApproval: Specific PlanPlanning$6,881.55Fees will be assessed on an A/C basis. An initial deposit of $4,867 needs to be paid in accordance with the Deposit Section.Fees will be assessed on an A/C basis. An initial deposit of $6,800 needs to be paid in accordance with the Deposit Section.10

Fiscal Impact11Estimated Annual Revenue Increase By FundBuilding and Safety Fund $160,000General Plan & Zoning Ordinance Update Fee Fund 19,000GIS Update Fee Fund 6,000General Fund 138,000Total $323,000

Recommendation to the City Council:Open the public hearing; take documentary andtestimonial evidence; and after considering theevidence, consider adopting Resolution No. 23-26 – AResolution adopting a Comprehensive Fee Scheduleto recover costs incurred from providing various publicservices and superseding Resolution No. 17-16.; orAlternatively, discuss and take other action related tothis item.12