CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council Item No._______
FROM: City Manager
SUBJECT: Public Hearing Amending the Small Wireless Facility Fee Schedule to Include an Annual Permit Application Fee Adjustment Based On the Consumer Price Index.
MEETING DATE: February 21, 2023
RECOMMENDATION
It is recommended that City Council of the City of Commerce:
1. Hold a Public Hearing to consider a Resolution modifying the Small Wireless Facility (SWF) Fee Schedule to include a Consumer Price Index-based annual adjustment to the SWF Permit Application Fees.
2. Upon conclusion of the Public Hearing, adopt the Resolution to modify the SWF Fee Schedule to include a Consumer Price Index-based annual adjustment to the SWF Permit Application Fees.
BACKGROUND/ANALYSIS
On July 21, 2020, the City Council adopted Resolution 20-75 adopting Design Standards and Guidelines for Small Wireless Facilities, a Small Wireless Facility Fee Schedule, and a Small Wireless Facility License Agreement in compliance with the FCC Third Order and consistent with the authority granted in Section 19.27.100 of the Commerce Municipal Code. However, the application fees for a Small Wireless Facility Permit did not account for the increased costs of processing these applications due to inflation. Conducting a comprehensive analysis of fee-related services and costs annually would be quite cumbersome and costly, even if only for a handful of fees.
Developing annual update mechanisms allows jurisdictions to maintain current levels of cost recovery, while accounting for increases in staffing or expenditures related to permit services. The most common method of increasing fees or cost is to look at regional cost indicators, such as the Consumer Price Index. These factors are calculated by the Bureau of Labor Statistics, put out at various intervals within a year, and are specific to states and regions. Based on recent discussion with Matrix who prepared the fee study in 2020, staff received an addendum to the Study recommending annual fee adjustments (copy attached).
Consequently, staff recommends an annual adjustment to the permit application fees for Small Wireless Facilities to equal the percent change in the Consumer Price Index (“CPI”) for the Los Angeles-Long Beach-Anaheim region from July 21, 2020, the date of adoption of the original Small Wireless Facility Fee Schedule. In no event shall the fees decrease from the prior year. Per the attached Resolution, the CPI-based adjustments will commence sixty (60) days after the adoption of the Resolution per Government Code Section 66017. Notice of public hearing was provided as required by law.
It is recommended that City Council, upon conclusion of the Public Hearing, adopt the attached Resolution Amending the Small Wireless Facility Fee Schedule to Include an Annual Permit Application Fee Adjustment Based on the Consumer Price Index for the Los Angeles-Long Beach-Anaheim region.
FISCAL IMPACT:
In general and over time, there will be an increase in cost to support the SWF Fee to the General Fund if the Annual Fee Schedule Adjustment is not adopted.
RELATIONSHIP TO STRATEGIC GOALS:
This item relates to City Council’s 2016 Strategic Action Plan:
Infrastructure and Facilities
Guiding Principle 1, establish routine and industry best practice maintenance guidelines to monitor the efficiency and operability of current below and above grade infrastructure and facilities.
Respectfully submitted: Edgar P. Cisneros, City Manager Recommended by: Gina Nila, Department of Public Works
Reviewed by: Vilko Domic, Assistant City Manager
Approved as to form by: Noel Tapia, Assistant City Attorney ATTACHMENTS:
1. Resolution
2. Revised SWF Fee Schedule (Exhibit A)
3. Existing SWF Fee Schedule (Exhibit B)
4. Fee Justification Study (Exhibit C)
5. Annual Fee Update Recommendation (Exhibit D)