May 2, 2023
City Council
FIRE DEPARTMENT FISCAL YEAR 2023-2024 USER FEE SCHEDULE UPDATES 1 BACKROUND
2 As part of a general cost recovery strategy, local governments adopt user fees to fund programs and services that provide limited or no direct benefit to the community as a whole.
The City’s Fire-related fees had not been updated in over 10 years.
City hired a consultant (WilIdan) to conduct a study of the user fees charged by the Fullerton Fire Department
Objectives of the Fee Study
3 The total cost of each service included in this analysis is based on the full cost of providing City services, including direct salaries and benefits of City staff, direct departmental costs, and indirect costs from central service support.
This study determines the full cost recovery fee for the City to provide each service; however, each fee is set at the City’s discretion, up to 100% of the total cost, as specified in the report.
Objectives of the Fee Study
4 The principle goal of the study was to help the City determine the full cost of the services that the City provides. In addition, Willdan established a series of additional objectives including:
Developing a rational basis for setting fees
Identifying subsidy amount, if applicable, of each fee in the model Enhancing fairness and equity
Ensuring compliance with State law
Developing an updatable and comprehensive list of fees
Maintaining accordance with City policies and goals
5 The analysis found that most services’ current fees are currently set below full cost. Services are being subsidized, and staff has provided suggested fee levels to increase cost recovery. As a result, there would be:
an increase to 125 fees;
64 new fees would be added;
a decrease to 3 fees,
11 fees would remain as currently set, and;
current Fire fees will increase by an average of $84 or 38%.
Outcome of the Fee Study
New Fee Breakdown
17 of the new fees are for Permits to reflect updates in the 2022 California Fire Code adopted by the City Council. 14 are memorializing rates of service for Suppression fees for service. 9 are for fees for non-state mandated inspections.
6 are for Plan Check fees which are currently in the Community and Economic Development fee schedule. 6 are for services for Fire Prevention outside normal requests which take numerous staff hours to complete. 4 are to update False Alarm and Failure to Comply to Orders or Notices fees. 3 are for Reinspection without any corrections at the time of reinspection. 1 fee to charge for AB-38, Defensible Space Inspections required by state law.
The other additional added fees include 6% Technology Automation Fee for upgrading Fire Prevention software, Accident/Incident Response fee, and a Drug/DUI Incident Response 6 7
It is recommended that City Council:
Direct staff to submit proposed fee changes, as recommended by the Fire fee study, to the current Fire Department Fee Schedule to approach full cost recovery over a three-year (3) period beginning Fiscal Year 2023-2024 for approval at a Public Hearing on June 6, 2023; and Direct staff to submit the proposed new Fire Department fees, as recommended by the Fire fee study, at full cost recovery rate for Fire services currently being provided by the department and are not being recovered starting FY 2023-2024 for approval at a Public Hearing on June 6, 2023.
Recommendation
Questions
8