Item E-10 Agenda Report — Beverly Hills City Council, September 10, 2024

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AGENDA REPORT
Meeting Date: September 10, 2024
Item Number:

To: Honorable Mayor & City Council
From: Emily Armstrong, Revenue Services Manager
Arlen Eskandari, Assistant Director/Building Official
Patty Betancourt, Special Events and Filming Coordinator Evelin Welch, Community Development Manager
Joana Torres, Community Services Manager
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS

AMENDING THE COMPREHENSIVE SCHEDULE OF TAXES, FEES,

AND CHARGES TO RESTORE CERTAIN EXISTING SPECIAL EVENT

CHARGES, TO ADD TWO NEW SPECIAL EVENT NON-PROFIT FEES,

AND TO ADD A NEW PLANNING APPEAL FEE FOR THE

COMMUNITY DEVELOPMENT DEPARTMENT, AND A CLEAN UP ON

A PER RENTAL RATE FOR THE COMMUNITY SERVICES
DEPARTMENT FOR THE FISCAL YEAR 2024-2025
Attachments: 1. Resolution

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt the resolution amending the City’s Schedule of Taxes, Fees, and Charges for Fiscal Year 2024-25 (“FY 2024-25”) as adopted on April 16, 2024. Amendments include restoring and correcting existing facilities use fees, adding two new special event fees for non-profit organizations, adding a new Planning Commission appeal fee, and a clean up on a per rental rate for the Community Services Department

INTRODUCTION
The Schedule of Taxes, Fees, and Charges (or “Schedule”) was amended April 16, 2024, to adopt the FY 2024-25 rates. Staff has subsequently determined that some updates are required for street closure fees as well as the addition of two Special Events fees for nonprofits. Staff also proposes to add a Planning Commission appeal fee related to a Meeting Date: September 10, 2024
particular type of California Environmental Quality Act review as discussed below. All updates will result in amendments to the Schedule of Taxes, Fees and Charges and associated resolution.

DISCUSSION
The recommended amendments to the Schedule of Taxes, Fees and Charges include the following.

Community Development Department:

Correcting and Restoring Existing Fees
Several facilities use fees for Beverly Canon Gardens were inadvertently listed incorrectly or omitted from the final Schedule adopted by the City Council. The recommended amendments would make the following corrections to the Schedule:
• Correct error in fee description and amount for Private Events for 201-300 guests • Correct error in fee amount for Private Events for 301-400 guests • Restore Cleaning Deposit fee inadvertently omitted from Schedule These fees are increased by the 2.8% CPI consistent with special event fees adopted at the April 16th Council meeting. It should be noted that the fees being amended have not be charged in any special event permits this fiscal year.

In addition, a fee category heading for “Street Closures – Residential Locations” was inadvertently omitted from the Schedule and would be restored. This update is only for formatting and naming purposes, and does not generate any fee amount impacts.

New Non-Profit Fees for Special Events
The schedule includes reduced film permit for all non-profit organizations and reduced street closure fees for Beverly Hills based non-profit organizations. Reductions vary by permit type from 25% to 75%. The Schedule does not include any reduced non-profit fees for special event permits.

The City Council directed staff to develop reduced non-profit fees for special event permits, consistent with those already in place for film permits and street closures. The Schedule authorizes the City Manager to waive event related permit fees up to $1,500 for any event “in which the City is a participant, sponsor or co-sponsor, or where it is consistent with previous City Council action or direction.” However, this does not apply to all non-profit sponsored events.

Large Special Event Permits – non-profit (Beverly Hills based) Large-scale events demand a wide range of planning and the collaboration of multiple City departments. These events often require street closures, substantial traffic control, and the involvement of Police Officers, Traffic Control Officers, Public Works personnel, and other City services. Large-scale events are more complex and require extensive preparation to ensure success and safety of the event. The current permit fee for large special events is $3,972. Pursuant to a comprehensive fee study completed in 2019, this fee does not provide full cost recovery and covers about 53% of the cost to the City to Meeting Date: September 10, 2024
review and process a permit application. Based upon the reduction currently provided in the Schedule for other fees, staff recommends a 75% reduction for large special events sponsored by a non-profit organization based in Beverly Hills, with a resulting fee of $993.

Small Special Event Permits – non-profit (Beverly Hills based) Small-scale events are typically more straightforward and require minimal resources and staff hours at the events. Small-scale events may include the use of a single travel lane or sidewalk and generally do not require significant City involvement. Due to their limited scope, these events can often be managed with minimal planning and coordination from City staff. The current permit fee for small special events is $907. Pursuant to a comprehensive fee study completed in 2019, this fee does not provide full cost recovery and covers about 87% of the cost to the City to review and process a permit application.

Since the fee is already relatively low and does not provide full cost recovery and based upon the reduction provided in the Schedule for other fees, staff recommends a 25% reduction for small special events sponsored by a non-profit organization based in Beverly Hills, with a resulting fee of $680.

The following table shows the number of permits issued and revenue collected over the past three fiscal years for small and large special event permits. Staff does not track the number or type of events sponsored by non-profit organizations or Beverly Hills based organizations, so it is not possible to determine the permit fee revenue paid only by those organizations. Staff estimates that the number of events hosted by non-profit organizations based in Beverly Hills, and the associated permit revenue, is relatively low.

It is also important to note that other permit fees and personnel costs are often required for special events, so the table below does not reflect the total revenue collected by the City for these events.

Small and Large Special Event Permits and Fee Revenue
FY 2021-22 FY 2022-23 FY 2023-24
Small Special Event Permits
Number Issued 143 153 179
Permit Fee $808 $856 $907
Large Special Event Permits
Number Issued 6 13 11
Permit Fee $3,535 $3,747 $3,972
Total
Fee Revenue $136,754 $179,679 $206,045
Sustainable Communities Environmental Assessment (SCEA) – Appeal to the City Council
Senate Bill 375, the Sustainable Communities and Climate Protection Act of 2008, made numerous changes to state planning laws and the California Environmental Quality Act (CEQA). SB 375 created new streamlined environmental review procedures under CEQA for certain residential and mixed-use development projects, including provisions for a new type of environmental review document known as a Sustainable Communities Environmental Assessment (SCEA).

Meeting Date: September 10, 2024
A SCEA can be used to study the potential environmental impacts of residential and mixed-use projects meeting certain environmental, land use, and community benefit criteria. A SCEA requires much of the same analysis and documentation as an Environmental Impact Report but is considered a streamlined process because it reduces the analysis required for a few specific topics of study and follows a modified process and timeline. Developers have started inquiring about the use SCEAs and staff anticipates using SCEAs for certain qualifying projects going forward.

CEQA documents are typically approved by the same decision-making body that makes a decision on the development project itself. For many residential and mixed-use projects, the Planning Commission makes the decision to approve or deny a project through the Development Plan Review process, and therefore also approves the environmental document. However, one peculiarity with SCEAs is that the decision-making body for the SCEA itself is dictated by state law, regardless of the decision-making body for the project itself.

Public Resources Code Section 21155.2(b)(6) provides that the City Council is the authority for review and approval of a SCEA, except that the Planning Commission may serve as the decision-making authority if the Commission’s decision regarding a SCEA may be appealed to the City Council for a fee not to exceed $500.00. Since the City’s fee for appealing a Planning Commission decision to the City Council exceeds $500.00, a SCEA would currently have to be approved by the City Council prior to the Planning Commission considering the project itself, creating a complicated and awkward public hearing process.

To allow for the SCEA review and approval process to occur by the Planning Commission in conjunction with the Development Plan Review application, staff recommends a new appeal fee of $500.00 exclusively for the appeal of Planning Commission decisions regarding SCEAs. This would allow the Planning Commission to review and approve SCEAs in conjunction with considering the project consistent with the City’s existing processes. The $500.00 fee would be only to appeal the decision on the SCEA document.

Anyone wishing to appeal the Planning Commission’s decision on the project application would be required to pay the full appeal fee, which would include an appeal of the decisions on both the SCEA and the project application.

Community Services Department:

Clean Up Fee
Community Services recommends changing the “Room Rental Cleaning Fee” from an hourly fee to “per rental fee” as this was an error not caught during fiscal year 2023-2024 and was carried forward to fiscal year 2024-2025. Historically, this was a per rental fee since an hourly cleaning fee would surpass the total cost of the facility rental.

FISCAL IMPACT
The amendments to correct errors in existing fees and restore fees that were inadvertently omitted will have no fiscal impact because all of the fees are carried forward from the previous fiscal year and no changes are proposed except for the annual 2.8% Consumer Price Index adjustment where applicable. The Room Rental Cleaning Fee has not been charged at an hourly rate and will have no fiscal impact to the City.

Meeting Date: September 10, 2024
The addition of the two non-profit special event fees is expected to have a minimal fiscal impact on permit revenue. The table above shows the number of permits issued and corresponding fee revenue for large and small special event permits over the past three fiscal years. Staff does not track whether the permittee for each event was a non-profit organization or Beverly Hills based, but staff anticipates that the number of events that would qualify for the reduced permit fee is relatively low, minimizing any reduction in revenue.

The cost to the City to process an appeal of the Planning Commission’s decision on a SCEA exceeds $500.00. Since the fee is not intended for full cost recovery, processing appeals would have a fiscal impact. However, this impact is expected to be minimal as staff anticipates relatively few appeals of this type will be filed.

Michael Forbes, AICP
Community Development Director
Approved By
ATTACHMENT 1

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!S Z[\ ]^ N O _`a^
bcdefghi jiklmcnl obp qrjstjtuvwjxyvz{xzv|tbyvyr}rwz}~qwty Certificate Of Completion
Envelope Id: 85E3FEF2AE1B46149FDBB5C5A4C78AFB Status: Sent Subject: Complete with Docusign: Fee Amendment Resolution - 9-10-24 CC Mtg FINAL.pdf Source Envelope:

Document Pages: 13 Signatures: 3 Envelope Originator:

Certificate Pages: 2 Initials: 0 Evelin Welch
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
9/3/2024 4:47:30 PM
Holder: Evelin Welch
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Dave Snow
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 38.122.232.202
Sent: 9/3/2024 5:04:09 PM
Viewed: 9/3/2024 5:07:00 PM
Signed: 9/3/2024 5:07:08 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Michael Forbes
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 174.193.136.78
Signed using mobile
Sent: 9/3/2024 5:07:09 PM
Viewed: 9/3/2024 5:08:23 PM
Signed: 9/3/2024 5:12:18 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Jeff S. Muir
[email protected]
Director of Finance
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 47.6.122.53
Signed using mobile
Sent: 9/3/2024 5:12:20 PM
Viewed: 9/3/2024 5:21:50 PM
Signed: 9/3/2024 5:22:00 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Cindy Owens
[email protected]
Policy & Management Analyst
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 9/3/2024 5:22:03 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Signer Events Signature Timestamp
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Lester J. Friedman
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Keith Sterling
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Adrianne Tarazon
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Megan Grilley
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 9/3/2024 5:04:09 PM
Payment Events Status Timestamps

Beverly Hills City CouncilSeptember 10, 2024

Beverly Hills City Council
September 10, 2024