MINUTES
MALIBU ADMINISTRATION & FINANCE SUBCOMMITTEE
SPECIAL MEETING
APRIL 10, 2024
CITY HALL SURFRIDER ROOM
2:00 P.M.
CALL TO ORDER
Mayor Pro Tem Stewart called the meeting to order at 2:01 p.m.
ROLL CALL
The following persons were recorded in attendance:
PRESENT: Mayor Pro Tem Doug Stewart and Councilmember Bruce Silverstein ALSO PRESENT: Steve McClary, City Manager; Joseph Toney, Assistant City Manager; Rene’e Neerrnann, Finance Manager; Adrian Fernandez, Assistant Planning Director; and Cynthia Alba, Executive Assistant.
REPORT ON POSTING OF AGENDA
Executive Assistant Alba reported that the agenda for the meeting was properly posted on posted on April 3, 2024.
APPROVAL OF AGENDA
MOTION Councilmember Silverstein moved, and Mayor Pro Tem Stewart seconded a motion to approve the agenda. The question was called, and the motion carried unanimously.
ITEM 1 PRESENTATIONS
None.
ITEM 2 OLD BUSINESS
None.
ITEM 3 NEW BUSINESS
A. Proposed Schedule of Fees for Fiscal Year 2024-25
Recommended Action: Provide a recommendation to the City Council concerning adoption of the Fiscal Year 2024-25 Schedule of Fees.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of April 10, 2024
Assistant City Manager Toney reviewed the staff report and noted that there was a typo on page two of the staff report, the CPI should state 3.4 percent and not 4.3 percent. He explained that the fee schedule numbers would be placeholders until the fee schedule study is concluded sometime around the end of the fiscal year. He explained that the fee schedule adopted at that time would change the rates for the fees. However, in the meantime, they are presenting numbers to account for inflation, which would be 3.4 percent under February’s CPI.
Councilmember Silverstein stated that he would like more information regarding the laws surrounding fees.
City Manager McClary stated that some of those could fall under Prop 218 and added that they could work on getting the specific code section.
Assistant City Manager Toney stated that fees are specific and also include time spent on the project.
Councilmember Silverstein inquired for more information regarding the differences in fees for complex projects and simpler proj ects.
Assistant Manager Toney used a water heater as a sample, where fees would be nominal due to needed staff time. He explained that the initial fee would be the same with fluctuating staff time. However, if projects were to change it would entail other fees.
Mayor Pro Tem Stewart reviewed page one of the schedule and pointed out the different levels of tiers for complex items.
Finance Manager Neermann said that some of the fees are already designed with tiers to allow for complexity. For example, the Building Plan Check is at an hourly rate, with a one—hour minimum.
City Manager McClary stated that he asked Assistant Flaming Director Adrian Fernandez to join the discussion to help clarify the fees for their department.
Mayor Pro Tem pointed out page five as an example of the hourly plan check costs.
City Manager McClary added that there is a limit to the number of resubmissions before they become eligible for more fees.
Assistant City Manager Toney reviewed the details ofthe fee study currently taking place, where average times taken to work on an item are taken into consideration.
He stated that the last time a fee study was conducted was in 2015.
Councilmember Silverstein inquired how often fee studies are required to be updated.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes ofApril 10, 2024
Assistant City Manager Toney explained that they should be conducted Within a reasonable time. He stated that cities could easily fall behind on updates, and if a fee schedule is not updated within a reasonable time, they could see increases, such as a five-dollar fee going up to 35 dollars.
Mayor Pro Tem explained that fees are very granular and that there is an art to the fee schedule. He said that the fees must be reasonable and to scale.
Assistant City Manager Toney stated that the fee study aims to capture those comments regarding scale.
Councilmember Silverstein inquired regarding setting fees for facility use.
Assistant City Manager Toney stated that the city cannot make proflts off services and stated that he would gather more information.
Assistant Planning Director Fernandez responded to an earlier inquiry regarding fees and their varying levels of complexity by using administrative plan review and the 6 levels that correlate with the item. He explained that having different levels leads to fair fees. He added that in the past, they tried doing this part in an hourly pay model, and it led to more staff time needing to track and submit time invoices for different proj ects that can be disputable. He added that new commercial proj ects do require a $20,000 deposit. He added that projects, although the same in nature can take more time than others based on different factors such as appeals.
Mayor Pro Tem inquired regarding the varying price tiers.
Assistant City Manager Toney stated that the department is looking at improving the processes by looking at the possibility of rapid permits. He stated that the City of Oakland is a great example.
Mayor Pro Tem Stewart emphasized the importance of having greater numbers of compliance if permits are more accessible.
Assistant Flaming Director Fernandez stated for over~the—counter applications, a one-hour fee is collected. He added that all fixtures do require a permit. He added that the fees cover processing of the permit and inspections for the most part.
Mayor Pro Tem Stewart added that this is an opportunity to keep things simple to encourage compliance. He confirmed that the increase was 3.4 percent across the board according to February’s CPI and inquired if there were any items that were over or undercharged.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of April 10, 2024
MOTION
Assistant City Manager Toney stated that the information is unknown and still being researched as part of the fee study. He added that it's not necessarily 3.4 percent across the board, and some fees will not change.
Assistant Flaming Director Fernandez explained that there may be expected room for increases in planning fees as the fees have been heavily subsidized in the past and have not been changed in past years.
Assistant City Manager Toney stated that this would need to be a Council policy discussion on Whether they wish to keep using general taxpayer funds on elected services that other residents elect to do.
Councilmember Silverstein inquired if they could make a motion to keep the fees the same until they receive the fee study results.
Mayor Pro Tem Stewart reiterated that he is most worried about compliance and risk management and is also willing to wait for the fee study results.
Councilmember Silverstein inquired about code enforcement Violation fees.
Assistant Flaming Director Fernandez added that there are penalties for municipal code violations.
Mayor Pro Tem Stewart explained that there is a fee for towing cars and fines for parking in the wrong space, he added that it is a fine as opposed to a fee.
Finance Manager Neermann reviewed article 13.b. in the California Constitution and Props 218, 413, and 26.
Mayor Pro Tem Stewart moved, and Councilmember Silverstein seconded a motion to recommend to the City Council to keep fees unchanged until the fee study results have been completed, research self-certification or simple compliance. The question was called, and the motion carried unanimously.
ADJOURNMENT
At 2:46 p.m., Mayor Pro Tem Stewart adj ourned the meeting.
Malibu Administration and Finance Subcommittee
/DOUogdEWART, Mayor Pro Tem
ATTEST:
KM%% CYNTé ALBA, Exe’cutive As§i§tant
Special Meeting
Minutes of April 10, 2024
Approved and adopted by the Administration and Finance
Subcommittee of the City of ‘bu on May 2, 2024.