Agenda packet — Newport Beach City Council, April 23, 2024 (part 3 of 3)

and Jim Hughes, Underwriting Solutions ISO Field Representative, utilized a presentation to discuss the ISO public protection classification, 503 Class 1 graph departments countrywide, fire suppression rating schedule, items evaluated and how the information affects insurance policies. He concluded by presenting a plaque to Fire Chief Boyles and the City.” [Seevideo:thegraphplotted38,000departmentscountrywide,ofwhichonly503were Class1.]

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Proposal 2 from Basin Neighborhood Partners, LLC, Assistant City Manager Jurjis relayed that the lease structure would be between the City and the homeowner for each parcel, the developer would sell the ten units, the City would gain the rights to own the offices and the Galley Café buildings, the Galley Café and offices would have a lease with the City, and the 40 units of dry storage on the 40 units will belong to the City.” [?]

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Committee meeting that was schedule scheduled for April 15, 2024, is postponed” Item 3. Ordinance No. 2024-8: Approving Newport Place Planned Community Development Plan Amendment; and Ordinance No. 2024-9: Approving Development Agreement for the Residences at 1400 Bristol Street (PA2022-0296)
Inthefirstsentenceofits“Discussion,” thestaffreportsaysthat“On April 9, 2024, the City Council conducted a noticed public hearing on the proposed Project,” a“fact” recited inmore detail inthetwoordinancesproposedfor adoption.The publichadalsobeen puton noticethat theCouncil wouldbeholdingahearingonApril 9toconsider overridingafindingof inconsistencybythe County’sAirportLand UseCommission.

Whileahearingmayhavebeentechnicallyheld,theApril 9 videoindicatesitdidnotfollowthe protocol for administrativeandquasi-judicial hearingssetforthon page6 ofCityCouncil Policy A-1.Inadditiontotherebeingnooral announcementofwhatthehearingwasabout,nor a staff report(bothofwhichappear to beoptional),thepresidingofficer didnotinvitetheapplicantto makeapresentationor respond topublictestimony(bothofwhichdoseemtoberequired).

Regardingthesubstanceofthe presentactions,designatingthislocation aspartofthe residential portionoftheNewportPlacePlannedCommunityDevelopmentPlanseemsunwise, Received After Agenda Printed
April 23, 2024
Written Comments
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April23,2024,CityCouncilagendacomments-JimMosher Page2of5 bothbecauseitisdirectlyundertheCity’srequestedflightpathforpiston-poweredaircraftdepartingJohnWayneAirport,andbecausethenoiseimpactonpotentialresidentsfromthe73Freeway(whichitislessthan200feetfrom)doesnotappeartohavebeenconsidered.Itdoesnotsoundlikeapleasantplaceforpeopletolive.

ItalsodoesnotappeartobebeingaddedinsuchawayastoadvancetheCity’svisionofcreatingresidentialcommunitieswalkablyconnectedtoneededservicesintheAirportAreawithassociatedtrafficcalmingmeasures.Onthecontrary,thepedestrianbridgeconnectingthiscomplextothesamedeveloper’sadjacentandpreviously-approvedresidentialcomplexat1300Bristolcontributestoasenseofisolationandself-containmentandnotusingthestreets.Inshort,wedonotseemtohaveaplannedcommunity.

Astothedevelopmentagreement,asIattemptedtopointoutinoraltestimony,the$2,893,383publicbenefitfeeseemsunexplainedandarbitrary.With153baseunitsitfiguresto$18,911perunit,orwith229totalunits,to$12,635perunit.ThiscomparestoAgendaItem4,forwhichthepublicbenefitof$1,628,400for52baseunitsand67totalcomputesto$31,315or$24,304perunit.Tothebestofmyknowledge,noonehasexplainedwhoproposedthesenumbersor onwhatbasis.

Astotheotherimpactfees,IwasundertheimpressiontheCouncilthoughttheAirportArealackedparks,soitissurprisingtoseereliefbeingofferedontheparkfeewhichwouldgotowardcreatingthem.Astothefeesingeneral,IassumetheCityismindfuloftheU.S.SupremeCourt’sApril12decisioninSheetzv.CountyofElDorado,openingthemtonewchallenges.

Item4. OrdinanceNo. 2024-10: ApprovingNewport PlacePlannedCommunityDevelopment PlanAmendment; andOrdinanceNo.2024-11: ApprovingDevelopment Agreement for theResidencesat1401Quail Street (PA2023-0040)SeecommentsonAgendaItem3.Again,thepublicwasnotifiedahearingwouldbeheld,butthevideoagainshowspubliccommentbeinginvitedbeforeandwithoutinvitingtheapplicanttomakeapresentation,andwithoutanyoralannouncement(orinthiscase,withoutevenaprintedannouncementonthescreenbehindthedais)ofwhatcommentwasbeingsoughtabout,ortheapplicantbeinginvitedtorespondtothepublic’scomments.

Althoughnotasclosetothe73FreewayasItem3,this,again,doesnotappeartobepartofanycoherentvisiontocreateatrulyplannedcommunityinNewportPlace.

Item9. Central LibraryElevator ModernizationProject –AwardofContract No. 8939-1(24F02)Formonths,theBoardofLibraryTrusteeshasbeenseeingpatroncommentscomplainingaboutthemainpublicelevatorattheCentralLibrarybeingoutofserviceandaskingwhenitwillberepaired.AtthemeetingsIhaveattended,theyhavebeentoldtherepairworkneededaformalcontractandittakestimetocompleteduetoCityprotocols. 501
April23,2024,CityCouncilagendacomments-JimMosher Page3of5 ThisisthefirstI’veheardthatamoreextensiveCentralLibraryElevatorModernizationProjectwaspartoftheCity’sFacilitiesMaintenanceMasterPlan.

Apparentlythatexplainswhyemergencyrepairswerenotundertaken.

ButitraisesthebiggerquestionofwhatelsemightbeintheFacilitiesMaintenanceMasterPlan.ItisadocumentIhaveheardreferredto,butIdon’tknowwherethepublic(orCouncil)canseeacopyofit.Itisnot,forexample,postedwithothermasterplansunder“Long-TermFinancialPlanning”ontheCity’sFinancialInformationpage.Itis,ofcourse,mentionedintheCIPbudget,where$2.5millionseemstobedevotedtoiteachyear,butwhat,specifically,thatmoneyisexpectedtobespentonisnotclear.

Item11. PlanningCommissionAgendafor theApril 18, 2024Meeting Asindicatedintheagendareport,withtwocommissionersrecusingthemselvesoneach,thePlanningCommissionunanimouslyapprovedtwobusinessitems:approvinga444-unitapartmentprojectin“NewportAirportVillage”andrecommendingCouncilapprovalofamendmentstotheGeneralPlan,ZoningCodeandLocalCoastalProgramrelatedtoimplementingtheGeneralPlanHousingElement.

Theyarerelatedinthatthefirstunderscorestheflawedassumptionsofthesecond,whichissaidtobeneededfortheCitytomeetitsRegionalHousingNeedsAllocationforthecurrentplanningcycle.

However,accordingtostaff’sownassessmentinTableB-1oftheHousingElement,theCityhasenoughprojectsalreadyinthepipelinetomeetits1,409unitabovemoderateincomequota,soitsremainingobligationistoallowfor,atmost,2,048newunitsaffordabletoveryloworlowincomefamilies(withseparatequotasforeach)and659newunitsaffordabletomoderateincomefamilies,foratotalof2,707units.

Instead,therecommendationofthePlanningCommission,goingtotheAirportLandUseCommissionforreviewonMay16,istoprovideessentiallyapermanentblankchecktoallow8,174newunits,spreadoverfivefocusareas.Thereisnoguaranteeanyofthenewallocationwillbeusedtocreatedwellingsaffordabletotherequiredincomecategories.And,despitecleardirectionfromtheCouncilatitsFebruary13,2024,studysession(ItemSS5),noefforthasbeenmadetoincorporateanyprovisionterminatingeligibilityforentitlementoftheseunitswhenandifthecitywideRHNAquotashavebeenmet.

ThePlanningCommissionapprovedNewportAirportVillageprovidedjust37unitsaffordabletoverylowincomefamiliesoutof329baseunits.Evenatthatrate,inanyareawheretheCouncilapprovedPCtext requiredatleast10%affordable,entitlingthefull8,174unitsoftheImplementationPlanwouldproduceonly8,174x37/329=919unitsaffordabletoverylowincometenants.ThatwouldbeinsufficienttomeettheCity’s1,456unitobligationinthatincomecategoryandmakenoprogressatalltowardthelow-andmoderate-incomequotas.

Inotherwords,therecommendedimplementationisnotonlynotcarefullytailoredtoproducenomorethanthestaterequires,asthepublichadbeenledtobelieveitwould,butitappearsdestinedforfailuretomeettherequirementsatall. 502
April23,2024,CityCouncilagendacomments-JimMosher Page4of5 ItishardtoseewhytheelectoratewouldsupportaplanthatgivestheCouncillicensetoapproveagreatdealofhousingthatisnotrequired,whilefailingtoensurethatanyofwhatisrequiredwillbeproduced.

Item13. ResolutionNo. 2024-28: Appeal of PlanningCommission’sApproval of theOrangeCountySanitationDistrict’sBayBridgePumpStationandForceMainsReplacement Project at 250East CoastHighway(PA2023-0076)CongratulationstoMayorProTemStapletonforhiselevationtothepositionofMayorbytheOrangeCountySanitationDistrict’sattorneyonstaffreportpage12-116! IagreewiththeappellantthatforpeopletravelingalongPCH,theproposedstructuresseemvery,andunnecessarily,visuallyintrusive,bothastosizeandlocation.However,astheapplicantpointsout,theappellantsthemselvesseemtowishtoconstructafour-storyparkinggaragewrappingaroundthepumpstationproperty,sotheeffectisdifficulttovisualize.SeethelastpageofthePlannedCommunityNo.9text:

Regardlessoftheultimatebuildout,asIsuggestedtothePlanningCommission,theconstructionoflong,solid,blankwallsalongPCHalsoseemsunnecessary.Theyservenoobviouspurpose(itseemsunlikelythefacilityneedstobeprotectedfromtrafficnoise)andopenworkfencingwouldseemlessintrusive.

Therealsoseemstobealostopportunitytowidenandimprovethesidewalk,heavilyusedbypedestriansandcyclists,that frontsthefacility.Awidersidewalkseemsabetteruseoflandthanextensivelandscaping. 503
April23,2024,CityCouncilagendacomments-JimMosher Page5of5 Item14. OrdinanceNos. 2024-12and2024-13, andResolutionNo.2024-29: RevisingCertainFeesWithintheScheduleof Rents, FinesandFees, AuthorizingtheWaiver of VehicleTowFees, AdoptingaCredit CardConvenienceFee, andUpdatingtheMethodologyforAnnual Consumer PriceIndexCalculationsAsmanypubliccommentershavemadetheCouncilaware,itwilllikelyseeaproposalfromtheHarborCommissiontoincreasetherentchargedformooringstheCitypermitsonstatetidelands.ThatrentispartiallytocompensateforprivateoccupationofpublicpropertybutisalsousedtorecovertheCity’scostofadministeringthemooringprogram,forwhichnoseparatefeeischarged.Whiletheproperrenttochargeisdebatable,theadministrativecostsshouldbecertain.ItwouldseemtheCouncilwouldwanttoknowwhatthatcostis,whichwouldrequireafeestudy.

Regardingthecurrentproposal,itwouldhavebeenhelpfultoprovidearedlineofthechangesbeingmadetotheMunicipalCodebythetwoordinances.Asitis,readersseemtobeleftguessingwhatthemodificationsare.

AstothechangestoExhibitAtoSection3.36.030(thecostrecoverypercentagestable),asIpointedouttotheFinanceCommittee,muchinkisspentrepeatingthatonappeals,therecoveryis0%whenanappellantissuccessful,and50%whennot.Sincethisisstatedasageneralruleatthestartofthetable,thesubsequentrepetitionsseemunnecessary.

Astotheproposed2.85%creditcardservicefeetobephasedinstartingwithutilitybills,itisunclearwhenthiswillstart,orhowtheoutreachwillbeconducted.ManyCitycustomerssignedupforonlinebillpayunderstandingtherewouldbenoservicefee.

AstotheFiscalImpact(staffreportpage14-9),itmightbenotedthatthe$581,000ofadditionalrevenuesisoffsetbytheroughly$100,000ClearSourcechargesforconductingthefeestudies(seecontractapproval,Item12fromSeptember13,2022).

Amongitsservices,page14-3ofthestaffreportsaysClearSourcewastaskedwith“revampint”thepresentationoftheScheduleofRents,FinesandFeestoimproveeaseofuseandreference,asreflectedintheproposedresolution.Itisnotobvioustometheyhavesucceeded.

Item15. ResolutionNo. 2024-30: CommunityDevelopment BlockGrant –2024-2025Annual ActionPlanItwouldbehelpfultoidentifythepropertyorpropertiespurchasedwithCDBGfundsthatgeneratethe$305,774ofprogramincomeanticipatedtosupplementtheannualgrant.

Icouldhavemissedit,butIdon’tseethemlistedinthestaffreportAnnualActionPlan. 504

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NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

April 23, 2024
Agenda Item No. __
ABSTRACT:

Consistent with be st practices and City Council policy, the City of Newport Beach performs an annual study of user fees and charges to ensure that fees and charges do not exceed the cost of providing services. The study focuses on specific departments on a rotating basis so each department is reviewed every three to five years. During Fiscal Year 2023-24, the City of Newport Beach engaged a consultant, ClearSource Financial Consulting (ClearSource), to update the fees in the Finance, Harbor, Public Works, and Utilities Departments, following a cost recovery analysis. Staff also identified other fee updates outside of the studied departments. In addition to the proposed fee updates, staff is recommending modifications to Newport Beach Municipal Code (NBMC) Sections

3.36.030 (Cost Recovery Percentages) to facilitate the changes to authorized levels of cost recovery re quired by the fee changes that are recommended at this time.

Modifications to NBMC Section 15.02.085 (Addition of Section 105.3.1.1 ) are also recommended to modify language pertaining to demolition permits in the Public Works Department.

RECOMMENDATIONS:
a) Conduct a public hearing;
b) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060 (c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; c) Adopt Resolution No. 2024-12, A Resolution of the City of Newport Beach, California, Revising Certain Fees Within the Schedule of Rents, Fine and Fees, Authorizing the Waiver of Vehicle Tow Fees, Adopting A Credit Card Convenience Fee, and Updating the Methodology for Annual Consumer Price Index Calculations; TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason Al-Imam, Finance Director/Treasurer - 949-644-3126, [email protected]
PREPARED BY: Abigail Marin, Budget Analyst - 949-644-3042, [email protected]
TITLE: Ordinance Nos. 2024-12 and 2024-13, and Resolution No. 2024-29, Revising Certain Fees Within the Schedule of Rents, Fines and Fees, Authorizing the Waiver of Vehicle Tow Fees, Adopting a Credit Card Convenience Fee, and Updating the Methodology for Annual Consumer Price Index Calculations
505
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d) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2024 -13, An Ordinance of the City Council of the City of Newport Beac h, California, Amending Section 3.36.030 of the Newport Beach Municipal Code Related to Cost Recovery Percentages; and
e) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2024 -29, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 15.02.085 (Addition of Section 105.3.1.1) of the Newport Beach Municipal Code Related to Demolition Permits.

DISCUSSION:

NBMC Section 3.36, and Council Policy F -4 (Revenue Measures) provide staff an d the City Council with policy guidance related to setting cost recovery targets and updating user fees. User fees, or cost-of-service fees, are charged to a citizen or group for services performed or provided by a government agency on their behalf. If the service primarily benefits an individual or group of people, then the burden of that cost should be borne by the person receiving the benefit. NBMC Section 3.36.030 sets the cost recovery for user fees at 100%, apart from the subsidized fees listed in Exhibit “A” of that same section, as well as those limited by California or federal statutes. A recommendation for less than a 100% cost recovery rate may occur when a service is beneficial to the community at large along with specific individuals or groups, and/or when there is an economic incentive, or disincentive, to do so. In these cases, another City of Newport Beach revenue source – in most cases, the General Fund - subsidizes the service. Any newly proposed fee or fee increase that is not approved by t he City Council will by default be subsidized by the General Fund.

The Schedule of Rents, Fines and Fees (SRFF) primarily includes cost-of-services fees, which are designed to recover the City’s cost to provide the related service. To establish fees based on full cost recovery, it is necessary to determine the cost of services. Using well-established cost accountin g methodologies, the City’s consultant, ClearSource Financial Consulting (ClearSource), conducts a comprehensive review and update of the Citywide cost allocation plan, and direct user fee calculations for each department on a rotating basis every three to five years. This year, ClearSource studied the following departments at staff’s direction:
 Finance
 Harbor
 Public Works
 Utilities

As part of this study, ClearSource met with staff from each studied department to discuss the services provided, the annual volume for those services, and the staff resources and time estimates for delivering the related services. To factor in both direct and indirect costs, ClearSource then calculated the department staff’s fully burdened hourly rate, which includes both internal administrative as well as Citywide overhead costs. The fully burdened hourly rates are applied to the time estimates provided by staff and the fee is 506
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calculated. Based on the results of the fee study, it is not uncommon for some fees to increase while others may decrease. The most common reasons for fees to go up or down are: 1) costs changing over time, most often increasing 2) th e staff performing the service changes, and/or 3) the amount of time to perform the service changes. The proposed fees based on the fee study for the studied departments are detailed in Attachment A.

In addition to the City’s cost -of-service fees, the SRFF includes rents, fines & penalties, and other charges imposed by the City or mandated by the State of California. The amount of these charges is determined in a variety of ways, most commonly market surveys when not mandated by a higher level of governmen t. Where changes are recommended for these non-cost-service components of the SRFF herein, a description of the fee methodology and reason(s) for a recommended change are provided.

On March 12, 2024, staff presented the fee study updates to the Finance Com mittee for consideration. The Finance Committee recommended that the fee updates as presented move forward for City Council consideration.

In addition to the studied department changes, ClearSource was also tasked with reviewing, revamping and consolidating the presentation of the SRFF to facilitate ease of viewing and referencing of rents, fines, and fees. This update has been reflected in the proposed SRFF that is included within Exhibit 1 of the proposed resolution, which is reflected in Attachment B.

The remainder of this report focuses on how studied fees are changing.

Finance Department
The Revenue Division of the Finance Department maximizes and safeguards the City’s revenues by implementing and enforcing Municipal Code revenue programs. These programs include, but are not limited to, tax collection, short term lodging, film permitting and parking. The Revenue Division was last studied in FY 2020-21.

Many of the Finance Department fees have proposed significant decreases due to the improved system processes including the implementation of revised forms in the Revenue Division that have allowed for a more streamlined and efficient cycle processing time.

Notable decreases include the Business License Initial Application (in person), Sidewalk Vending Permit Application , and Sound Amplification permit. On the other side, Short- term Lodging Permits have seen an increase in Initial and Renewal proposed fees as staff time involvement with code enforcement regulation from the Community Development Department is factored into the model. Staff is proposing a phased in approach to full cost recovery over a two -year period to mitigate the impact of the increase in Short-term Lodging Permit fees to the customer.

In this department, two new fees are proposed:

1. Business License Initial Application (online) – The Revenue Division of the Finance Department currently provides review of online Business License Initial 507
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Applications at no cost. Initially, a no cost structure was provided to incentivize individuals to utilize the City’s online portal to streamline the application process, despite staff time involvement. The proposed fee of $6 would allow cost recovery for staff time involved with the review and processing of online applications.

2. Taxicab Operator License Fee – This fee is being proposed as the Orange County Taxi Administration Program (OCTAP), which regulated taxi operations on behalf of participating Orange County cities through a centralized permitting of cab companies, drivers, and vehicles, dissolved on December 31, 2020. The City of Newport Beach will be taking over the processes that OCT AP provided and will perform the regulatory functions within the city. Three fees associated with Taxicab permitting are proposed: a Company Permit fee of $1,660, a Vehicle Permit (per vehicle) fee of $1,399, and a Driver Permit fee of $1,660.

The proposed Finance Department fees would have an overall fiscal impact of $171,000 in increased estimated revenues, with much of the fiscal impact associated with adjustments to short term lodging permit fees, as the City targets a 68% cost recovery for the first year.

Harbor Department
The Harbor Department is responsible for many harbor -related programs and services within the city, including but not limited to, managing the guest marina, and renting available slip space and moorings. The Harbor Department was last studied in FY 2020-

21. Many of the fees have proposed increases to align with the current cost of providing these services.

Many of these fees are market -based rates that are adjusted annually in -line with the regional cost of inflation, typically amounting to $10 or less, t o align the fees with the current cost of providing these services. Fees that have notable increases include Environmental Response, Impound Fees, and the Large Boat Escort/Permit due to transitioning to staff to conduct the response instead of relying on another agency, increase in costs related to staffing, and the recalculation of time and effort in performance service, respectively.

There are several new fees proposed related to harbor services:

1. Towing Fee for Abandoned/Impounded Boats Over 14’ bu t less than 25’ – The Harbor Department needs to move impounded boats more often than originally anticipated. Staff has the capability and capacity to tow boats in this size category. The proposed fee of $377 would allow cost recovery from vessel owners for services provided.

2. Rhine Wharf Permit – The Harbor Department took over the responsibility for writing permits for the use of the commercial Rhine Wharf in 2022. In 2023, there were 53 Rhine Wharf permits issued. The proposed fee of $28 is for processing the applications received and is reflective of the resources dedicated to 508
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application review and permit issuance.

3. Variance Applications – This proposed fee of $498 is reflective of the process and effort required to review harbor related variance requests to deviate from current zoning requirements. The process for variance requests specific to the harbor had not previously been defined since the last fee study and mirrored a structure utilized by the Community Development Department, which has limited applicability to dock, pier permits and other structures over tidelands, prompting the need for a distinct individual fee.

4. Use of electrical cord and/or adapter while at Marina Park – Staff members have frequently loaned their limited supply of electric al adapters to mariners arriving at the Marina Park facility without appropriate equipment. The proposed fee of $10 would allow for cost recovery related to the rental and wear and tear on such equipment provided by the Harbor Department.

5. Purchase (non-return) of electrical cord or adapter – In the event that an electrical adapte r or cord that was loaned to a mariner while staying at the Marina Park facility is not returned or is returned in damaged condition, a proposed fee of $75 would be assessed to reimburse the Harbor Department and allow for the equipment to be replaced.

6. Mooring size exchange – Staff is recommending recovering 100% of the cost of this service as outlined in Attachment B at a fee of $302. Should the City be successful in reconfiguring one or some of the mooring fields according to the Harbor Commission’s recommendations, the opportunity to apply for a mooring size adjustment within the reconfigured field(s) will no longer exist. As defined in Title 17, along with other aspects o f the mooring field optimization project, mooring permittees in a reconfigured field will have the opportunity to apply for a mooring size exchange.

7. Mooring license application fee – The new mooring license program for City controlled moorings launched a t the beginning of 2024. Applications for these mooring licenses are accepted through the City’s online system. The $26 proposed fee considers staff time for reviewing and processing of applications.

8. Mooring license waitlist fee (one time or annual) – Staff has noted that there has been significantly more demand for mooring licenses – currently 16 – than there is supply. Those applicants not offered licenses will be placed on a waitlist for when an existing or new license becomes available. The proposed fee of $34 considers the maintenance of the application records on the waitlist and City resources consumed.

9. Group/exclusive use fee for Marina Park – Staff exerts additional effort when a group of mariners desires to have sole and exclusive access to the Marina Park marina facility due to the time required to coordinate the group member 509
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reservations, arrivals, departures, special requests, and organized activity. The proposed fee of $502 equates to a 100% cost-of-service recovery.

10. Mooring Assists – After Hours – By special arrangement, Harbor Department staff remains on duty past normal working hours to support a visitor or resident mariner getting onto or off a mooring. This proposed fee of $200 considers staff time to provide a service that ensures safety during inclement weather, or for mariners unfamiliar with the harbor and mooring tackle.

11. Deposit/late cancellation fee for use of Human Lift – Marina Park – Staff has noted that on several occasions within the past year, a mariner with a reservation to use the Human Lift at Marina Park cancelled or failed to show up for the use of the lift after utilizing staff time for setup. The proposed fee of $31 considers staff time to setup the lift and is intended to prevent the unnecessary use of resources required for deployment of the lift for unused reservations.

There is no cost to the mariner to use the lift and the deposit is returned when the mariner uses the lift as scheduled or cancels with sufficient advanced notice.

12. Deposit/late cancellation fee for use of Human Lift – Balboa Marina PD – The proposed fee of $117 considers setup and use of the human lift at the new public dock at Balboa Marina which requires more resources than deployment at Marina Park due to the transport required to the location. This fee is also being proposed to prevent cancellations a nd no shows related to reservation for use of the lift. There is no cost to the mariner to use the lift and the deposit is returned when the mariner uses the lift as scheduled or cancels with sufficient advanced notice.

The overall fiscal impact in the Harbor Department pertaining to the proposed service - related fees for a target 100% cost recovery is an estimated increase of $20,000 in revenues, where most of the fiscal impact increase is derived from the adjustments linked to impounded vessel releases.

Public Works
The Public Works Department is responsible for managing a comprehensive capital improvement program, including the promotion of a safe and efficient transportation system. Public Works also manages public property through permitted encroachments ; ensures the safety of utility company activities, private construction , and special events in the public right -of-way; reviews plans for residential and commercial development as they relate to the public right of-way; and oversees activities that protect and improve the harbor and upper bay. The Public Works Department was last studied in FY 2020-21. The proposed changes to Public Works fees cover Engineering & Harbor Resources, Refuse, and Water Quality/Conservation/Environmental Services.

Changes to existing fees for the Public Works Department include:

1. An additional Engineering Field Inspection fee will be applied with a Street Closure Permit that requires a field inspection. This is noted in both the Engineering Field 510
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Inspection fee and the Street Closure Permit fee as a footnote.

2. Recycling Service Fee – Per Residential Unit, Per Month – This fee would replace the two existing fees with one combined fee of $6.39. This fee is a cost-of-service fee based solely on recovery of operational costs associated with the collection of recyclable materials in accordance with State mandates.

3. Construction and Demolition – This fee would make changes to the presentation of the current Demolition fee, distinguishing between Complete Demolition Deposit and Construction Demolition Deposit for a series of valuation ranges as identified in the proposed schedule. The construction and demoli tion deposits are intended to encourage compliance and are refundable if the applicant uses an approved franchise hauler and arranges for an inspection. Should the applicant fail to meet conditions required on the permit, the deposit would be subject to forfeiture. Having two distinguishing fees will aid in achieving waste diversion compliance with Assembly Bill (AB) 939 and CalGreen requirements, as well as allow for accurate reporting to CalRecycle.

The Public Works Department is also proposing changes t o NBMC Section 15.02.085 (Addition of Section 105.3.1.1 ) relating to the administrative code to refine language for the Construction and Demolition permits, as identified in Attachment D.

Most of the fiscal impact in the Public Works Department for service -related fees is associated with adjustments to review of street closure permit requests and administration of diversion requirements associated with construction demolition. An increase of $66,000 in estimated revenues with the proposed fees is anticipated.

Utilities
The Utilities Department is responsible for overseeing the management and maintenance of water, wastewater, storm drain and tidal valve systems to provide clean, safe and responsive utility and infrastructure maintenance services to the community. The department was last studied in FY 2020-21.

The proposed new fees in the department include:

1. Meters, Boxes, Lids, Etc. – The proposed fee consolidates a base fee of $53 plus a pass-through of the actual cost of materials for a meter, box, lid, etc. It should be noted that the pass through of the actual costs of materials is reflected in the current SRFF with price points identified for each meter, box, or lid; the base fee is the proposed new aspect of the fee which would allow for a proposed cost recovery of 100% associated with staff time involvement.

2. Water and Sewer Services Establishment Fee. Remote Activation – The proposed Remote Activation fee of $52 und er the Water and Sewer Establishment Fee requires less staff time than instances where Onsite Activation is required and proposes 100% cost recovery.
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The overall fiscal impact in the Utilities Department pertaining to the proposed service - related fee cha nges is an estimated decrease of $115,000 in revenues, with approximately $143,000 of the decrease pertaining to the new remote activation fee which is offset in part by estimated revenue increases to other fees.

Other Updates
Even when a department is not scheduled for a comprehensive fee study, occasionally, operations will change enough that the non-studied departments will request one or two fee study changes for consideration and adoption. As part of this study and to present a comprehensive and th orough update o f the City’s fees and current operations, staff considered the following additional updates outside of the departments scheduled to be studied.

The Information Technology Department is proposing an hourly rate for A/V technical support related activities for both business hours and non -business hours at $144 and $173, respectively, for a 100% proposed cost recovery. This fee is intended to be charged in any instance in which an additional level of IT support is required, for example, on-site IT support associated with facility rentals.

The Police Department is proposing renaming the Civil Subpoena fee to Civil Subpoena (per day; per employee) and including language to clarify that actual cost will be charged in addition to $275 per day . This fee is utilized when any staff member is requested to appear in court for administrative hearings, civil trials, court actions, etc. Actual amounts paid would be calculated in accordance with California Government Codes 68096.1 and 68097.2.

The Police Department is also proposing a revised fee structure for Towing and Vehicle Release/ Repossession Fees as follows:
 Tow Operator Fee to be eliminated
 Customer Fee increased from $110 to $156
 Vehicle Release Fee increase from $20 to $29

Staff is proposing to eliminate the Tow Operator Fee and have the cost proportioned out to the Customer Fee and the Vehicle Release Fee. This proposal is intended to eliminate the franchise fee and set the user fee at 100% cost recovery with the full cost to be borne by the party being towed. The fee is not intended to be punitive to any victims of a crime; staff is also proposing that the Police Chief have the authority to waive fees related to towing in particular circumstances as reflected in Section 5 of the proposed resolution.

A credit card convenience fee of 2.85% has been included in the all-departments section for online credit card payments . The City has allowed users the convenience of making payments via credit card and has incurred costs in the processing of those payments.

This fee would allow the City to recover its costs associated with online payments. The credit card convenience fee will be phased in across all departments to allow time for outreach to communicate the change and will sta rt with utilities. The fiscal impact associated with adding in the 2.85% fee to online utility bill payments is $439,000. 512
Revising Certain Fees Within the Schedule of Rents, Fines and Fees, Authorizing the Waiver of Vehicle Tow Fees, Adopting a Credit Card Convenience Fee, and Updating the Methodology for Annual Consumer Price Index Calculations April 23, 2024

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_-9

The Community Development Department is proposing minor revisions to descriptions in the Banner Permit fee title to Banner/Sign Permit and to include a footnote in the General Plan Maintenance Fee - % of Building Permit Fee that the fee will be applied as five percent (5%) to permit fees for all new construction, additions, and additions with alterations for residential and commercial projects for clarification purposes.

The Vendor Transaction Fee for Online Payment Processing has been renamed as Parking Meter Mobile Application Payment Processing fee; this fee continues to be a pass-through fee.

CPI Updates – Those fees listed in the SRFF that are subject to CPI adjustment based on prior resolutions are due to be increased by 3 .2% effective July 1, 2024. The City’s methodology in calculating the change in CPI is by comparing the U.S. Bureau of Labor Statistics (BLS) March CPI of the prior year to March CPI of the current year. BLS releases monthly CPI data around mid -month of the f ollowing month (e.g. March 2024 CPI data would be released April 2024). It is proposed that the City update the methodology to compare BLS February CPI of the prior year to February CPI of the current year as identified in the proposed resolution to better align with the timing of when fees are presented to the City Council. The change in CPI from February 2023 to February 2024 is an increase of 3.2%.

Subsequent to July 1, 2024, annual CPI adjustments shall apply to these fees, as well as to the cost-of-service fees for each of the departments that were studied as part of this fee update.

FISCAL IMPACT:

Staff estimates that these fees, if approved by the City Council as recommended, will amount to approximately $ 581,000 of additional revenues for the City. However, this projection does not account for any fees where volume statistics are unavailable. The City Council’s policy of ensuring regular review of the City’s cost-of-service fees and adequate cost recovery will continue to ensure adequate cost recovery from users of the City’s fee- related services. This then facilitates the redirection of general tax revenues currently subsidizing fee -supported services to maintaining and enhancing non -fee supported services and programs.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapt er 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 513
Revising Certain Fees Within the Schedule of Rents, Fines and Fees, Authorizing the Waiver of Vehicle Tow Fees, Adopting a Credit Card Convenience Fee, and Updating the Methodology for Annual Consumer Price Index Calculations April 23, 2024

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_-10
NOTICING:

The agenda item has been noticed according to Government Code Sections 66018(a) and 6062a (published for 10 days, on two publication da tes separated by at least five days between them: notices were published on April 11, 2024, and April 18, 2024), Government Code Sections 66016(a) (notice mailed at least 14 days prior to the meeting to any interested party who files a written request: notices were mailed to Building Industry Association of Southern California, Southern California Edison, an d Southern California Gas Company on April 3, 2024), and the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Fiscal Year 2023-24 Studied Department Changes Attachment B – Resolution Including the Updated SRFF
Attachment C – Ordinance Amending Municipal Code Section 3.36.030 Attachment D – Ordinance Amending Municipal Code Section 15.02.085

514
Illustration of Studied Department Changes
This List Does Not Include All City Fees and Charges
Fees Shown are Limited to Those Studied During the Current Fee Study Cycle

ATTACHMENT A
14-11
515
Fee Type Page
FINANCE - REVENUE SERVICES FEES 3
HARBOR DEPARTMENT SERVICES FEES 5
INFORMATION TECHNOLOGY HOURLY COST FOR DIRECT SERVICES 8

PUBLIC WORKS FEES
ENGINEERING FEES AND HARBOR RESOURCES FEES 9
MUNICIPAL OPERATIONS FEES 12
WATER QUALITY / CONSERVATION / ENVIRONMENTAL SERVICES FEES 13 UTILITY SERVICES FEES 14
CREDIT CARD / MOBILE APPLICATION PAYMENT CONVENIENCE FEE 16 CIVIL SUBPOENA FEES 17
PLANNING AND BUILDING FEES 18
TAXICAB OPERATOR LICENSING FEE 19
TOW FEE / VEHICLE RELEASE FEE 20
City of Newport Beach
Illustration of Proposed Fee Changes
14-12
516
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - FINANCE - REVENUE SERVICES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note

FINANCE - REVENUE SERVICES
1 Adult Oriented Business Permits $1,383.00 $1,404 1% $21 99% 100% 2 Business License Processing Fees
a) Business License Initial Application (online) $0.00 $6 n/a - new n/a - new 0% 100% b) Business License Initial Application (in person) $63.00 $17 -73% ($46) 370% 100% c) Business License - Change in Information $25.00 $14 -43% ($11) 176% 100% d) Business License - Duplicate $12.00 $12 -1% ($0) 101% 100% 3 Dance Permit $186.00 $178 -5% ($9) 105% 100%
4 Escort Service
a) Escort Service Permit $1,186.00 $1,316 11% $130 90% 100% b) Escort Service Per Employee $609.00 $647 6% $38 94% 100% 5 Fire Arms Sales Permit $114.00 $107 -7% ($8) 107% 100% 6 Hotel Special Package Application Review $206.00 $216 5% $10 95% 100% 7 Live Entertainment Permit $184.00 $189 3% $5 97% 100% 8 Parking Permit
a) Preferential Parking Permit $20.00 $24 18% $4 85% 100% b) Parking Permit Replacement Fee $12.00 $12 -1% ($0) 101% 100% 9 Payment Plan Processing Fee
a) Payment Plan - Except Parking $25.00 $36 42% $11 70% 100% b) Payment Plan - Parking
i) Indigent $5.00 $5 0% $0 14% 14%
ii) All Other $25.00 $36 42% $11 70% 100%
10 Short-Term Lodging Permits
a) Short Term Lodging Permits - Initial $175.00 $238 36% $63 58% 79% [a] b) Short Term Lodging Permits - Renewal $92.00 $214 133% $122 27% 64% [b] c) Short Term Lodging Permits - Reinstatement $96.00 $107 11% $11 90% 100% d) Short Term Lodging Permits - reprint $13.00 $12 -9% ($1) 110% 100% e) Short Term Lodging Permits - suspension or revocation hearing - Applicant Successful
$0.00 $0 0% $0 0% 0%
f) Short Term Lodging Permits - suspension or revocation hearing - Applicant Unsuccessful
$538.00 $738 37% $200 73% 100%
Description
14-13
517
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - FINANCE - REVENUE SERVICES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
11 Sidewalk Vending Permit Application $183.00 $107 -42% ($77) 172% 100% 12 Sound Amplification Permit $78.00 $36 -54% ($43) 220% 100% 13 Vehicles for Hire
a) Vehicles For Hire - Annual Per Vehicle Fee $250.00 $250 0% $0 n/a - not examined n/a - not examined b) Vehicles For Hire - Certificate $2,281.00 $2,281 0% $0 n/a - not examined n/a - not examined c) Vehicles For Hire - Driver's Permit $454.00 $454 0% $0 n/a - not examined n/a - not examined d) Vehicles For Hire - Driver's Permit Renewal $443.00 $443 0% $0 n/a - not examined n/a - not examined e) Vehicles For Hire - Fee per Vehicle $250.00 $250 0% $0 n/a - not examined n/a - not examined 14 Zero Bill Reprints No Charge No Charge 0% $0 0% 0%
[a] Full cost recovery for fee is $300. Fee is being phased-in to full cost recovery over two year period. FY 24/25 adopted fee is $238. Fee for FY 25/26 is $300. [b] Full cost recovery for fee is $336. Fee is being phased-in to full cost recovery over two year period. FY 24/25 adopted fee is $214. Fee for FY 25/26 is $336. 14-14
518
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - HARBOR DEPARTMENT SERVICES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note

HARBOR DEPARTMENT
1 Appeals
a) Appeal of Harbormaster Decision to Harbor Commission i) Appellant Successful $0.00 $0 0% $0 0% 0% [a]
ii) Appellant Unsuccessful $1,250.00 $623 -50% ($628) 100% 50% [a] b) Appeal of Harbor Commission Decision to City Council i) Appellant Successful $0.00 $0 0% $0 0% 0% [a]
ii) Appellant Unsuccessful $940.00 $498 -47% ($442) 94% 50% [a] 2 Dinghy Rack Rental
a) Dinghy Rack Rental Application Fee $20.00 $26 28% $6 78% 100% b) Dinghy Rack Rental - Marina Park/Balboa Yacht Basin - Per Month $38.00 $39 2% $1 n/a n/a 3 Environmental Response $77.00 $535 594% $458 14% 100% 4 Impound Fee
a) Impound Fee - Initial $110.00 $243 121% $133 45% 100% b) Impound Fee - Loose or Lost and Found Boats/Vessels $56.00 $106 90% $50 53% 100% 5 Key Card Replacement $13.00 $17 33% $4 75% 100%
6 Large Boat Escort / Permit
a) Large Boat Escort $107.00 $172 60% $65 62% 100%
b) Large Boat Permit (≥80 Lineal Feet) $78.00 $537 588% $459 15% 100% c) Large Boat Permit (≥80 Lineal Feet), Requiring Interagency Coordination $779.00 $1,148 47% $369 68% 100% 7 Live Aboard Permit $395.00 $441 12% $46 90% 100%
8 Lost/Broken Line $64.00 $86 35% $22 74% 100%
9 Marina Park
a) Marina Park Deposit - Slip Reservation Deposit $50.00 $50 n/a n/a n/a n/a b) Marina Park Cancellation Fee $13.00 $17 33% $4 75% 100% c) Marina Park - Flat Rate for Electricity $13 plus actual per kWh usage
$19 plus actual per
kWh usage
varies varies varies varies
Description
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519
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - HARBOR DEPARTMENT SERVICES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
10 Marine Activities Permit
a) Service Providers
i) Initial $386.00 $394 2% $8 n/a n/a
ii) Renewal $87.00 $89 2% $2 n/a n/a
b) Charters, Boat Rentals, Human-Powered Rentals
i) Initial $1,203.00 $1,227 2% $24 n/a n/a
ii) Renewal $465.00 $474 2% $9 n/a n/a
11 Mooring Extension Permit $533.00 $515 -3% ($18) 103% 100% 12 Multiple Vessel Mooring System Application Fee $533.00 $515 -3% ($18) 103% 100% 13 Special Events - Harbor
a) Simple (Raft Up, Boat Race, etc.) $101.00 $136 34% $35 75% 100% b) Complex $519.00 $996 92% $477 52% 100%
14 Temporary Sea Lion Deterrent $148.00 $201 36% $53 74% 100% 15 Towing Fee
a) Boats under 14' $74.00 $129 75% $55 57% 100%
b) Boats over 14' $27 plus 100%
Contractor Cost
$176 plus 100% of
Contractor Cost
varies varies varies 100%
c) Abandoned / Impounded Boats Over 14' but less than 25' n/a - new $377 varies varies 0% 100% 16 Wait List
a) Wait List for Balboa Yacht Basin Slips and Garages $34.00 $34 -1% ($0) 101% 100% b) Wait List for Balboa Yacht Basin/Marina Park Dinghy Racks $27.00 $34 25% $7 80% 100% c) Wait List for Live Aboard $27.00 $30 9% $3 92% 100%
14-16
520
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - HARBOR DEPARTMENT SERVICES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
17 Mooring / Slip Rental / Storage
a) Dinghy Storage - Per Lineal Foot (LF)/Per Night $0.69 $0.70 2% $0.01 n/a n/a b) Guest Moorings - Onshore - Per Lineal Foot (LF)/Per Night $0.69 $0.70 2% $0.01 n/a n/a c) Guest Moorings - Offshore - Per Lineal Foot (LF)/Per Night $1.39 $1.42 2% $0.03 n/a n/a d) Impound - Nightly Storage Fee - Per Lineal Foot (LF)/Per Night Same as Guest Mooring Rate
Same as Guest
Mooring Rate
2% $0.00 n/a n/a
e) Large Vessel (80+ LF) Offshore Guest Mooring - Per Lineal Foot (LF)/Per Night $1.72 $1.75 2% $0.03 n/a n/a f) Large Vessel Guest Anchorage Rate - Non City Tackle - no boat $0.52 $0.53 2% $0.01 n/a n/a g) Marina Park Boat Slips (40' Slip) - Per Night $88.00 $90 2% $2 n/a n/a h) Marina Park Boat Slips (55' Slip) - Per Night $121.00 $123 2% $2 n/a n/a i) Marina Park Boat Slips (Overhang Charge) - Per Foot/Per Night $2.22 $2.26 2% $0.04 n/a n/a j) Moorings - Offshore - Per Lineal Foot (LF)/Per Year $39.38 $40.17 2% $0.79 n/a n/a [b] k) Moorings - Onshore - Per Lineal Foot (LF)/Per Year $19.68 $20.07 2% $0.39 n/a n/a [b] l) Multi-hull Vessel - 2 hulls - Per Lineal Foot (LF)/Per Night $1.66 $1.69 2% $0.03 n/a n/a m) Multi-hull Vessel - 3 hulls - Per Lineal Foot (LF)/Per Night $1.94 $1.98 2% $0.04 n/a n/a 18 Rhine Wharf permit n/a - new $28 n/a - new n/a - new 0% 100% 19 Variance applications n/a - new $498 n/a - new n/a - new 0% 100% 20 Use of electrical cord and/or adapter while at Marina Park n/a - new $10 n/a - new n/a - new n/a n/a 21 Purchase (non-return) of electrical cord or adapter n/a - new $75 n/a - new n/a - new 0% 100% 22 Mooring size exchange n/a - new $302 n/a - new n/a - new 0% 100% 23 Mooring license application fee n/a - new $26 n/a - new n/a - new 0% 100% 24 Mooring license waitlist fee (one time or annual) n/a - new $34 n/a - new n/a - new 0% 100% 25 Group/exclusive use fee for Marina Park n/a - new $502 n/a - new n/a - new 0% 100% 26 Mooring Assists - After Hours n/a - new $200 n/a - new n/a - new 0% 100% 27 Deposit/late cancellation fee for use of Human Lift - Marina Park n/a - new $31 n/a - new n/a - new 0% 100% 28 Deposit/late cancellation fee for use of Human Lift - Balboa Marina PD n/a - new $117 n/a - new n/a - new 0% 100% [a] NBMC Chapter 17.65.
[b] Resolution 2016-17. Adjusted annually by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers ("CPI"), Los Angeles-Riverside-Orange County Region or 2%, whichever is less. 14-17
521
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - INFORMATION TECHNOLOGY
Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note

INFORMATION TECHNOLOGY
1 Hourly Rate for A/V / Technical Support Associated with Fee and Charge Related Activities (e.g., support associated with facility rentals) a) Business Hours - Per Hour n/a - new $144 n/a - new n/a - new 0% 100% b) Non-Business Hours - Per Hour n/a - new $173 n/a - new n/a - new 0% 100% Description
14-18
522
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS ENGINEERING AND HARBOR RESOURCES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note

PUBLIC WORKS - ENGINEERING
1 Covenant Agreement Research & Review Fee (Per Hour) $177.00 $202 14% $25 88% 100% 2 Dining Encroachment
a) Dining Encroachment Permit - Application $486.00 $540 11% $54 90% 100% b) Dining Encroachment Permit - Transfer $223.00 $249 12% $26 90% 100% c) Dining Encroachment Annual Use Fee
i) 100 SF or Less $176.00 $181 3% $5 n/a n/a
ii) Over 100 SF $331.00 $342 3% $11 n/a n/a
3 Document Recordation Fee $216.00 $207 -4% ($9) 104% 100% 4 Easement Deed Research, Reviews/Processing $266.00 $262 -2% ($4) 101% 100% 5 Encroachment & Eng. Agreement Prep
a) Encroachment & Eng. Agreement Prep $609.00 $788 29% $179 77% 100% b) Encroachment & Eng. Agreement Prep - Planning Commission $3,321.00 $2,722 -18% ($599) 122% 100% 6 Encroachment Permit
a) Encroachment Permit With Other Dept./Div. Review $468.00 $525 12% $57 89% 100% b) Encroachment Permit Without Other Dept./Div. Review $266.00 $303 14% $37 88% 100% 7 Engineering Field Inspection - Per Inspection $146.00 $90 -38% ($56) 162% 100% [a],[b] 8 Escrow Account Administration $132.00 $134 2% $2 99% 100% 9 Fair Share Fee $261.30 $270.07 3% $9 n/a n/a
10 Lot Line Adjustment Checking Fee $1,242.00 $1,080 -13% ($162) 115% 100% 11 Monitoring Wells $367.00 $414 13% $47 89% 100%
12 News Rack Permits $64.00 $81 27% $17 79% 100%
13 Oceanfront Encroachment Annual Permit
a) Depth of Encroachment - 0 -5.0 Feet $423.00 $437 3% $14 n/a n/a b) Depth of Encroachment - 5.0 - 7.5 Feet $635.00 $656 3% $21 n/a n/a c) Depth of Encroachment - 7.5 - 10.0 Feet $847.00 $875 3% $28 n/a n/a d) Depth of Encroachment - 10 - 15 Feet $1,272.00 $1,314 3% $42 n/a n/a Description
14-19
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City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS ENGINEERING AND HARBOR RESOURCES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
14 Parcel Map Check $3,286.00 $2,144 -35% ($1,143) 153% 100% 15 Plan Check (per hour) $215.00 $234 9% $19 92% 100%
16 Street Closure Permit
a) Street Closure Permit with Engineering Review
i) Permit Fee $82.00 $96 17% $14 85% 100%
ii) Field Inspection - Per Inspection (if required) n/a $90 n/a $90 100% [b] b) Street Closure Permit without Engineering Review
i) Permit Fee $32.00 $41 27% $9 79% 100%
ii) Field Inspection - Per Inspection (if required) n/a $90 n/a $90 100% [b] 17 Street Easement and Vacation Processing Fee $1,073.00 $1,191 11% $118 90% 100% 18 Temporary No Parking Signs (per sign) $0.80 $1 10% $0 91% 100% 19 Tract Plan Check
a) Up to $100,000 Improvement 6.5% of value up to
$100,000. $390
minimum

6.5% of value up to
$100,000. $390
minimum
0% $0 varies varies
b) $100,000 - $400,000 Improvement $8,680 Base fee for
first $100,000 + 5%
incremental costs
for amount over
$100,000
$8,680 Base fee for
first $100,000 + 5%
incremental costs
for amount over
$100,000
0% $0 varies varies
c) Over $400,000 Improvement $28,710 Base fee
for first $400,000 +
4% incremental
costs for amount
over $400,000
$28,710 Base fee
for first $400,000 +
4% incremental
costs for amount
over $400,000
0% $0 varies varies
20 Traffic Control Plan Check
a) 8½" x 11"/11" x17"; per sheet $82.00 $96 17% $14 85% 100% b) 24" x 36"; per sheet $183.00 $207 13% $24 88% 100%
21 Traffic Study Consultant Cost +
10% City
Administrative Fee
Consultant Cost +
10% City
Administrative Fee
0% $0 0% 100%
22 Traffic Subdivision Plan Check (per hour) $177.00 $222 25% $45 80% 100% 14-20
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City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS ENGINEERING AND HARBOR RESOURCES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
Deposits - (Refundable)
23 Crane Deposit $1,000.00 $1,000 0% $0 n/a n/a
24 Improvements Required By City Determined by
Public Works
Determined by
Public Works
0% $0 n/a n/a

PUBLIC WORKS - HARBOR RESOURCES
25 Piers
a) Residential - Per Square Foot $0.55 $0.55 0% $0 n/a n/a b) Pier Permit Transfer (line moved) $259.00 $324 25% $65 80% 100% 26 Plan Review - (Additional Fees Apply if Public Hearing Required) a) Plan Check Fee - New Construction w/ Agency Approval $259.00 $405 56% $146 64% 100% b) Plan Check Fee - Maintenance $64.00 $162 153% $98 40% 100% 27 Public Hearing Fees (for Appeal, Variance, Plan Review, etc.) a) Public Hearing - Variance (Harbor Commission) varies $2,893 varies varies 0% 100% b) Public Hearing - (Harbor Commission) $2,253.00 $1,765 -22% ($489) 128% 100% c) Public Hearing - Appellant Successful (Harbor Commission) $0.00 $0 0% $0 0% 0% d) Public Hearing - Appellant Unsuccessful (Harbor Commission) $1,250.00 $1,446 16% $196 43% 50% e) Public Hearing - Appellant Successful (City Council) $0.00 $0 0% $0 0% 0% f) Public Hearing - Appellant Unsuccessful (City Council) $940.00 $691 -27% ($250) 68% 50% g) Director/Staff Approval varies $856 varies varies 0% 100% 28 RGP Dredging Permit $3,450.00 $1,703 -51% ($1,747) varies 100% [a] Curb/Gutter/Sidewalk/Driveway/Non-standard Imp. - Each Inspection 1/30'/Sewer/Water Meter/Fire Service/Underground Utilities-Each Insp./location/Parkway Drains - Each Inspection [b] Engineering field inspection fee will be applied with street closure permit when inspections are required. 14-21
525
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS MUNICIPAL OPERATIONS FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note

PUBLIC WORKS - MUNICIPAL OPERATIONS
1 Recycling Service Fee - Per Residential Unit, Per Month $6.56 - $7.03 $6.39 varies varies varies 100% a) Excluding Newport Coast and Santa Ana Heights - Per Residential Unit, Per Month
$7.03 See above n/a n/a n/a n/a
b) Newport Coast - Per Residential Unit, Per Month $6.56 See above n/a n/a n/a n/a 2 Solid Waste Franchise Application $1,005.00 $1,652 64% $647 61% 100% 3 Supplemental Tree Trimming pass through of
100% of contract
svc cost
pass through of
100% of contract
svc cost
n/a n/a 100% 100%
4 Tree Planting / Removal pass through of
100% of contract
svc cost
pass through of
100% of contract
svc cost
n/a n/a 100% 100%
5 Washington Street Trash Bin Variable - See Reso
#97-70 and #2021-
65 Variable - See Reso
#97-70 and #2021-
65 n/a n/a n/a n/a
6 Construction and Demolition
a) Public Works Waste Management Administration Fee $281.00 $303 8% $22 93% 100% b) Construction and Demolition Deposit
i) Complete Demolition Deposit
a) Valuation of $0 to $4,999 $564.00 $564 0% $0 n/a - deposit n/a - deposit b) Valuation of $5,000 to $9,999 $1,127.00 $1,127 0% $0 n/a - deposit n/a - deposit c) Valuation of $10,000 and above $1,692.00 $1,692 0% $0 n/a - deposit n/a - deposit ii) Construction Demolition Deposit
a) Valuation of $100,000 to $299,999 $564.00 $564 0% $0 n/a - deposit n/a - deposit b) Valuation of $300,000 to $599,999 $564.00 $1,127 100% $563 n/a - deposit n/a - deposit c) Valuation of $600,000 and above $564.00 $1,692 200% $1,128 n/a - deposit n/a - deposit b) Demolition Deposit
i) Valuation - $0 - $4,999 $564.00
ii) Valuation - $5,000 - $9,999 $1,127.00
i) Valuation - $10,000 and Above $1,692.00
Description
14-22
526
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - PUBLIC WORKS WATER QUALITY / CONSERVATION / ENVIRONMENTAL SERVICES FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note

PUBLIC WORKS - WQ/CONSERVATION/ENV SVCS
1 EV Charging Rate
a) Base Rate - per kWh $0.50 $0.52 4% $0.02 96% 100%
b) Overstay Rate $0.10 per minute;
$6.00 per hour
$0.10 per minute;
$6.00 per hour
0% $0 n/a n/a [a]
2 Water Quality Construction Site Inspection
a) Site Inspection - Low $161.00 $196 22% $35 82% 100%
b) Site Inspection - Medium $484.00 $589 22% $105 82% 100% c) Site Inspection - High
i) Base Fee - Up to 8 inspections $1,291.00 $1,571 22% $280 82% 100% ii) Fee for each additional inspection if more than 8 inspections are required $161.00 $196 22% $35 82% 100% [a] For maximum fee see 22511.1(A) CVC EV Parking - Not Charging. Per minute rate begins after 10-minute grace period.

Description
14-23
527
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - UTILITY SERVICES FEES
Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note

UTILITIES
Miscellaneous
1 Annual Grease Disposal Mitigation Fee $634.00 $718 13% $84 88% 100% 2 FOG Annual Permit No Charge No Charge 0% $0 0% 0%
3 FOG Non-Compliance $74.00 $75 2% $1 100% 100%
4 Re-inspection Fee $175.00 $196 12% $21 89% 100%
5 Utilities Field Inspection $284.00 $294 4% $10 97% 100% Sewer Related Fees
6 Meters, Boxes, Lids, Etc.
a) Base Fee n/a - new $53 n/a - new n/a - new 0% 100%
b) Plus, Actual Cost of Meter, Box, Lid, Etc. varies Pass-through of Actual Cost of
Materials
varies varies n/a 100%
7 Sewer Only Establishment Fee $52.00 $52 0% ($0) 100% 100% 8 Sewer 4TT Box (Main Line) $38.79 See above n/a n/a n/a n/a 9 Sewer 4TT Box Lid (Main Line) $24.48 See above n/a n/a n/a n/a Water Related Fees
8 Construction Water Meter
a) Establishment Charge - Application $106.00 $105 -1% ($1) 0% 50% b) Meter Deposit $1,250.00 $1,250 0% $0 0% 0%
c) Monthly Charge See - 2" domestic
meter rate
See - 2" domestic
meter rate
n/a n/a 0% 0%
9 Delinquent Water Service Discontinuance $148.00 $147 -1% ($1) 0% 100% 10 Delinquent Water Service Restoration
a) Low Income Household - below 200% of the federal poverty line i) Business Hours $50.00 $50 0% $0 25% 25%
ii) After Hours $150.00 $150 0% $0 74% 74%
b) All Others
i) Business Hours $269.00 $304 13% $35 83% 100%
ii) After Hours $289.00 $336 16% $47 80% 100%
Description
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528
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - UTILITY SERVICES FEES
Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery NoteDescription
11 Hydrant Flow Test
a) Hydrant Flow Test - Highway Test (Night Time) $535.00 $646 21% $111 83% 100% b) Hydrant Flow Test - Non-Highway (Regular Hours) $475.00 $541 14% $66 88% 100% 12 Meters, Boxes, Lids, Etc.
a) Base Fee n/a - new $53 n/a - new n/a - new 0% 100%
b) Plus, Actual Cost of Meter, Box, Lid, Etc. varies Pass-through of Actual Cost of
Materials
varies varies n/a 100%
13 Water and Sewer Service Establishment Fee - Business Hours a) Business Hours
i) Remote Activation (NEW) $123 - $127 $52 varies varies n/a - new 100% ii) Onsite Activation Required $123 - $127 $176 varies varies varies 100% b) Non-Business Hours $339.00 $405 20% $66 84% 100%
14 Water Meter Service Installation Fee $754.00 $754 0% ($0) 100% 100% 15 Water Shut Off-Tag Placement $33.00 $28 -14% ($5) 116% 100% 16 3/4 Inch Meter Box $52.79 See above n/a n/a n/a n/a
17 3/4 Inch Meter Box Lid $25.86 See above n/a n/a n/a n/a 18 5/8 & 3/4 Inch Water Meter $172.40 See above n/a n/a n/a n/a 19 1 Inch Meter Box $78.32 See above n/a n/a n/a n/a
20 1 Inch Meter Box Lid $42.02 See above n/a n/a n/a n/a 21 1 Inch Water Meter $193.95 See above n/a n/a n/a n/a 22 1.5 Inch Turbine Water Meter $491.34 See above n/a n/a n/a n/a 23 1.5 Inch Water Meter $463.33 See above n/a n/a n/a n/a 24 2 Inch Meter Box $138.69 See above n/a n/a n/a n/a
25 2 Inch Meter Box Lid $72.19 See above n/a n/a n/a n/a 26 2 Inch Turbine Water Meter $573.23 See above n/a n/a n/a n/a 27 2 Inch Water Meter $565.69 See above n/a n/a n/a n/a 28 Main Line Valve Box $38.79 See above n/a n/a n/a n/a 29 Main Line Valve Box Lid $34.48 See above n/a n/a n/a n/a 14-25
529
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - CREDIT CARD / MOBILE APPLICATION PAYMENT CONVENIENCE FEE Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Credit Card Convenience Fee (% of fee paid by credit card) n/a - new 2.85% n/a - new n/a - new 0% 100% [a] 2 Parking Meter Mobile Application Payment Processing Fee Vendor Transaction Fee for Online Payment Processing
Pass-Through Pass-Through 0% $0 100% 100% [b]
3 Credit Card Fees on Charges in Excess of $20,000 Pass-Through Pass-Through [c] Description
[a] Credit convenience fees currently applicable for online utility bill payments. The City may determine to apply a similar fee to other receipts collected by the City via credit card (e.g., business license payment). [b] Renaming fee for fee schedule clarity.
[c] Removing from fee schedule. Renamed to Credit Card Convenience Fee. 14-26
530
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - CIVIL SUBPOENA FEES
Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Civil Subpoena (per day; per employee) $275.00 Actual Cost; with $275 per day initial
amount
varies varies n/a n/a [a],[b],[c]
a) All Staff Except Sworn Officers and Firefighters (per day; per employee) $275.00 b) Sworn Officers and Firefighters (per day; per employee) $275.00 Description
[b] Actual amounts paid shall be calculated in accordance with California Government Code 68097.2. (b) The party at whose request the subpoena is issued shall reimburse the public entity for the full cost to the public entity incurred in paying the peace officer, firefighter, state employee, trial court employee, or specified county employee his or her salary or other compensation and traveling expenses as provided for in this section, for each day that the peace officer, firefighter, state employee, trial court employee, or specified county employee is required to remain in attendance pursuant to the subpoena. The amount of two hundred seventy-five dollars ($275), together with the subpoena, shall be tendered to the person accepting the subpoena for each day that the peace officer, firefighter, state employee, trial court employee, or specified county employee is required to remain in attendance pursuant to the subpoena. (c) If the actual expenses should later prove to be less than the amount tendered, the excess of the amount tendered shall be refunded. (d) If the actual expenses should later prove to be more than the amount deposited, the difference shall be paid to the public entity by the party at whose request the subpoena is issued. [a] Actual amounts paid shall be calculated in accordance with California Government Code 68096.1. (a) Any employee of a local agency who is obliged by a subpoena to attend a civil action or proceeding as a witness in litigation in a matter regarding an event or transaction that he or she perceived or investigated in the course of his or her duties, to which that local agency is not a party, shall receive the salary or other compensation to which he or she is normally entitled from that local agency during the time that he or she prepares for his or her response and appearance, during the time that he or she travels to and from the place where the court or other tribunal is located and while he or she is required to remain at that place pursuant to the subpoena. He or she shall also receive from that local agency the actual necessary and reasonable traveling expenses he or she incurred in complying with the subpoena. (b) The party at whose request the subpoena is issued shall reimburse the local agency for the full cost incurred by the local agency in paying the employee his or her salary or other compensation and traveling expenses as provided for in this section, for each day that the employee is required to remain in attendance pursuant to the subpoena. The amount of two hundred seventy-five dollars ($275), together with the subpoena, shall be tendered to that local agency for each day that the employee is required to remain in attendance pursuant to the subpoena. (c) If the actual expenses should later prove to be less than the amount tendered, the excess of the amount tendered shall be refunded. (d) If the actual expenses should later prove to be more than the amount tendered, the difference shall be paid to the local agency by the party at whose request the subpoena was issued. [c] Salary/other compensation shall be determined based on the City's most current adopted salary schedule (top step) by position, subject to existing MOU provisions and minimums for court appearances. If preparation, service, or travel is provided during overtime hours, the City shall use overtime rate for calculating actual costs, subject to existing MOU provisions and minimums for court appearances. 14-27
531
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - PLANNING AND BUILDING FEES Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Banner / Sign Permit $59.00 $59.00 0% $0 n/a n/a
2 General Plan Maintenance Fee - % of Building Permit Fee 5% 5% 0% $0 n/a n/a [a] Description
[a] The fee will be applied as five percent (5%) to permit fees for all new construction, additions, and additions with alterations for the residential and commercial projects. 14-28
532
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - TAXICAB OPERATOR LICENSING Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Taxicab Permitting
a) Company Permit n/a $1,660 n/a n/a n/a 100% [a]
b) Vehicle Permit (Per Vehicle) n/a $1,399 n/a n/a n/a 100% [a] c) Driver Permit n/a $1,660 n/a n/a n/a 100% [a]
Description
[a] Amount shown does not include applicable fingerprint/livescan fees and any fees collected on behalf of other agencies (e.g., Department of Justice fees). 14-29
533
City of Newport Beach

BEFORE AND AFTER ILLUSTRATION - TOW FEE / VEHICLE RELEASE FEE Current Fee Proposed Fee Fee Change % Fee Change $
Current Cost
Recovery
Proposed Cost
Recovery Note
1 Tow Fee / Vehicle Release Fee $185
See below for fee
breakdown
$185
See below for fee
breakdown
0% $0 100% 100%
a) Tow Operator Fee $55
a) Customer Fee $110 $156
b) Vehicle Release Fee $20 $29
Description
14-30
534

ATTACHMENT B
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ATTACHMENT C
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ATTACHMENT D
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On the Agenda: April 23 City Council Meeting

The next City Council meeting is Tuesday, April 23. Items of interest are highlighted below. The entire agenda and reports can be viewed here.

The regular meeting will begin at 4 p.m. Agenda items
include:
• An appeal of the Planning Commission's approval of
an Orange County Sanitation District project to replace its Bay Bridge Pump Station and force mains at 250 E. Coast Highway. The Council will hear an appeal of a January 18 Planning Commission decision to approve a major site development review and coastal development permit to allow demolition of the existing pump station and construction of a new, larger facility and associated force mains.
• Approval of certain fee updates in the City's Schedule of Rents, Fines and Fees. The City performs an annual study (of specific departments on a rotating basis) to ensure that fees and charges do not exceed the cost of providing services. This action would update certain fees in the Finance, Harbor, Public Works, and Utilities departments, following a cost recovery analysis. The recommendations also include adjustments to the Police Department's towing fees, a credit card convenience fee for online transactions, and an update to the City's methodology for annual Consumer Price Index calculations.
• Approval of the Community Development Block Grant 2024-2025 Annual Action Plan. The City receives funds each year through the federal Community Development Block Grant (CDBG) program to benefit those with low and moderate incomes, aid in the prevention of neighborhood deterioration, and meet other urgent community development needs due to natural disasters or other emergencies. The Council will consider programs and funding proposed for Fiscal Year 2024-25.

VIEW THE FULL AGENDA>>

603
April 23, 2024, City Council Agenda Comments
The following comments on items on the Newport Beach City Councilagendaare submitted by:

Jim Mosher ([email protected]), 2210 Private Road, Newport Beach 92660 (949-548-6229) Item 1. Minutes for the April 9, 2024 City Council Meeting Thepassagesshownin italicsbeloware fromthe draftminutes with suggested corrections shownin strikeout underline format.Thepagenumbersrefer to Volume66.

Page 70 ends

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Regardingthesubstanceofthe presentactions,designatingthislocation aspartofthe residential portionoftheNewportPlacePlannedCommunityDevelopmentPlanseemsunwise, Received After Agenda Printed
April 23, 2024
Written Comments
604
April23,2024,CityCouncilagendacomments-JimMosher Page2of5 bothbecauseitisdirectlyundertheCity’srequestedflightpathforpiston-poweredaircraftdepartingJohnWayneAirport,andbecausethenoiseimpactonpotentialresidentsfromthe73Freeway(whichitislessthan200feetfrom)doesnotappeartohavebeenconsidered.Itdoesnotsoundlikeapleasantplaceforpeopletolive.

Althoughnotasclosetothe73FreewayasItem3,this,again,doesnotappeartobepartofanycoherentvisiontocreateatrulyplannedcommunityinNewportPlace.

Item9. Central LibraryElevator ModernizationProject –AwardofContract No. 8939-1(24F02)Formonths,theBoardofLibraryTrusteeshasbeenseeingpatroncommentscomplainingaboutthemainpublicelevatorattheCentralLibrarybeingoutofserviceandaskingwhenitwillberepaired.AtthemeetingsIhaveattended,theyhavebeentoldtherepairworkneededaformalcontractandittakestimetocompleteduetoCityprotocols. 605
April23,2024,CityCouncilagendacomments-JimMosher Page3of5 ThisisthefirstI’veheardthatamoreextensiveCentralLibraryElevatorModernizationProjectwaspartoftheCity’sFacilitiesMaintenanceMasterPlan.

Apparentlythatexplainswhyemergencyrepairswerenotundertaken.

Theyarerelatedinthatthefirstunderscorestheflawedassumptionsofthesecond,whichissaidtobeneededfortheCitytomeetitsRegionalHousingNeedsAllocationforthecurrentplanningcycle.

Inotherwords,therecommendedimplementationisnotonlynotcarefullytailoredtoproducenomorethanthestaterequires,asthepublichadbeenledtobelieveitwould,butitappearsdestinedforfailuretomeettherequirementsatall. 606
April23,2024,CityCouncilagendacomments-JimMosher Page4of5 ItishardtoseewhytheelectoratewouldsupportaplanthatgivestheCouncillicensetoapproveagreatdealofhousingthatisnotrequired,whilefailingtoensurethatanyofwhatisrequiredwillbeproduced.

Therealsoseemstobealostopportunitytowidenandimprovethesidewalk,heavilyusedbypedestriansandcyclists,that frontsthefacility.Awidersidewalkseemsabetteruseoflandthanextensivelandscaping. 607
April23,2024,CityCouncilagendacomments-JimMosher Page5of5 Item14. OrdinanceNos. 2024-12and2024-13, andResolutionNo.2024-29: RevisingCertainFeesWithintheScheduleof Rents, FinesandFees, AuthorizingtheWaiver of VehicleTowFees, AdoptingaCredit CardConvenienceFee, andUpdatingtheMethodologyforAnnual Consumer PriceIndexCalculationsAsmanypubliccommentershavemadetheCouncilaware,itwilllikelyseeaproposalfromtheHarborCommissiontoincreasetherentchargedformooringstheCitypermitsonstatetidelands.ThatrentispartiallytocompensateforprivateoccupationofpublicpropertybutisalsousedtorecovertheCity’scostofadministeringthemooringprogram,forwhichnoseparatefeeischarged.Whiletheproperrenttochargeisdebatable,theadministrativecostsshouldbecertain.ItwouldseemtheCouncilwouldwanttoknowwhatthatcostis,whichwouldrequireafeestudy.

Regardingthecurrentproposal,itwouldhavebeenhelpfultoprovidearedlineofthechangesbeingmadetotheMunicipalCodebythetwoordinances.Asitis,readersseemtobeleftguessingwhatthemodificationsare.

Icouldhavemissedit,butIdon’tseethemlistedinthestaffreportAnnualActionPlan. 608

15-1

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

April 23, 2024
Agenda Item No. 15

ABSTRACT:

The City of Newport Beach receives funds each year through the U. S. Department of Housing and Urban Development (HUD) program for Community Development Block Grants (CDBG), to benefit those with low and moderate incomes, aid in the prevention of neighborhood deterioration, and meet other urgent community development needs due to natural disasters or other emergencies. In compliance with the CDBG program regulations, the City prepares a grant application , in the form of an Annual Action Plan , outlining how funds will be used in the community . The plan implements strategies adopted in the City’s five-year Consolidated Plan. For the City Council's consideration are the specific programs and funding proposed for Fiscal Year 202 4-2025, allocating approximately $399,099 in grant funds and $305,774 in program income.

RECOMMENDATIONS:
a) Conduct a public hearing to receive comments on the Annual Action Plan; b) Find the approval of the 2024 -2025 Annual Action Plan exempt from the National Environmental Policy Act (NEPA) pursuant to 24 CFR Part 58, Section 58.34; c) Find the approval of the 2024 -2025 Annual Action Plan exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable in direct physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physica l change to the environment, directly or indirectly;
d) Adopt Resolution No. 2024 -30, A Resolution of the City Council of the City of Newport Beach, California, Approving the 2024 -2025 Annual Action Plan for Allocation of the Federal Community Development Bl ock Grant Program Funds for Fiscal Year 2024-2025; and
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected]
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator - 949-644- 3236, [email protected]
TITLE: Resolution No. 2024 -30: Community Development Block Grant – 2024-2025 Annual Action Plan
609
Resolution No. 2024-30: Community Development Block Grant – 2024-2025 Annual Action Plan
April 23, 2024

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e) Authorize the City Manager to:
a. Proportionally adjust appropriations to specific programs and projects as necessary to conform with the final 2024-2025 formula grant allocation of CDBG funds from HUD if the appropriation is more or less than $399,099; b. Submit the 2024-2025 Annual Action Plan to HUD;
c. Execute the 202 4-2025 CDBG Program Grant Agreement and all related documents on behalf of the City of Newport Beach;
d. Execute all sub-recipient agreements with the non-profit organizations receiving allocations of CDBG funds in the 2024-2025 Action Plan; and e. Authorize the Community Development Director, or his designee, to be the official representative of the City of Newport Beach, administer the 202 4-2025 Annual Action Plan and submit required environmental documentation to HUD for CDBG projects.

DISCUSSION:

The City receives a formula grant allocation of CDBG funds each year from the federal government, a program run by HUD. The objective of the CDBG program is to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low - and moderate -income persons. CDBG is authorized under Title I of the Housing and Community Development Act of 1974. CDBG funds may be used for a wide variety of programs, services and facilities improvements, including but not limited to:
 Community and senior services
 Fair housing enforcement and landlord/ tenant mediation  Homeless prevention and domestic violence programs
 Public facilities and infrastructure improvements
 Disabled (ADA) accessibility improvements
 Housing programs
 Section 108 loan payments

Since July 1, 1989, the City has received total direct allocation of approximately $15.6 million of CDBG funds from HUD with annual allocations ranging from a low of $319,676 in 2017, to a high of $534,000 in 1995. The 20 24-2025 formula grant allocation is anticipated to be approximately $399,099, based on last year’s grant amount. In addition, the City will be using $305,774 in program income from the lease of property acquired with CDBG funds, for a total of $704,873 to be programmed for fiscal year 2024-2025.

According to CDBG regulations, the City may spend up to 20 % of the an nual formula grant allocation of CDBG funds for program administration and 15 % for community services such as senior meal delivery, senior services, or homeless prevention programs.

The remaining amount of funding may be used for projects such as street an d sidewalk improvements, disabled accessibility improvements, and public facilities improvements such as the construction or rehabilitation of park and recreational facilities , provided the projects meet applicable CDBG regulations and national objectives. 610 Resolution No. 2024-30: Community Development Block Grant – 2024-2025 Annual Action Plan
April 23, 2024

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Each year, the City uses a portion of the funds reserved for program administration to comply with Fair Housing Act requirements and make fair housing enforcement and landlord/tenant mediation services available to the community. These services have been provided free of cost to City residents by the Fair Housing Foundation since 2011.

On January 13, 2024, the City published a Notice of Funding Availability (NOFA) in the Daily Pilot newspaper and on the City website, to announce the availability of CDBG funds and solicit proposals from tax-exempt, nonprofit organizations that provide eligible CDBG services or projects that benefit the residents.

In response to the NOFA, six nonprofit organizations submitted applications for CDBG grants. In consideration of the funding available, the amount of funding requested, past performance, anticipated benefit to the residents, and the City’s priorities, staff recommends program/project funding levels in the Action Plan as follows:

Category Requested Recommended
Public Services (subject to 15% grant cap) Limit of $105,730 Meals on Wheels OC: Home Delivered Meals $30,000 $30,000 Families Forward: Housing Program $20,000 $20,000
Newport Beach: City Motel Voucher Program $30,000 $30,000 Boys and Girls Club: Career Development $50,000 $25,730 Administration (subject to 20% grant cap) Limit of $140,973 CDBG Program Administration $67,819 $67,819
CDBG Program Administration: 2025 -2029
Consolidated Plan and Analysis to Impediments
to Fair Housing Preparation
$0 $61,094
Fair Housing Foundation: Fair Housing Services $12,000 $12,000 Capital Projects $458,170
Trellis International: Senior Home Maintenance $15,000 $15,000 San Miguel Park Playground Replacement & ADA
Upgrades
$0 $443,170
Total $224,819 $704,873

The Action Plan, found in the draft resolution (Attachment A), describes each program. In consideration of the amount of public service funding available and the amount of public service funding requested, staff did not recommend fully funding the new public services applicant, Boys and Girls Club . Doing so would impact the City’s ability to fund the requests of the three existing public service providers which have a focus on preventing and addressing homelessness in the City. It should be noted the home delivered meals program has previously been operated by Age Well Senior Services, but due to a redistricting, the service provider for the City will be changing to Meals on Wheels OC.

Historically, the existing service provider s have successfully accomplished their annual performance goals and provided high quality services to City residents.

611
Resolution No. 2024-30: Community Development Block Grant – 2024-2025 Annual Action Plan
April 23, 2024

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With the proposed funding levels shown in the table above, Meals on Wheels OC plans to serve approximately 35 City residents during the 2024-2025 fiscal year; the agency’s focus is serving meals to homebound senior citizens. Seniors make up approximately 24% of the City’s population. Families Forward plans to serve approximately 25 unduplicated City residents with the proposed funding level and will provide services to families to prevent and address homelessness. Staff also recommends allocating funding to supplement the City's motel voucher program that is part of the City's ongoing efforts to address homelessness and provide for street exits. F unding will provide approximately 30 individuals with short-term lodging as a temporary interim housing solution as they transition to long-term housing and family reunifications.

Under the Capital Projects category, $ 458,170 is available to be programmed . S taff recommends $15,000 to be allocated to Trellis International for its ‘Labors of Love’ home maintenance program to assist low - and moderate -income senior residents at risk of losing their housing due to deferred maintenance or code enforcement violation s. The balance of the funding to be allocated under the Capital Projects category, $443,170, is proposed to be added to the funding of $229,768 allocated under the CDBG 2023 -2024 Annual Action Plan to further supplement the City’s costs for the San Miguel Park playground. The Recreation and Senior Services Department, with construction and project management by the Public Works Department, is overseeing the playground replacement project and is proposing to install inclusive playground equipment that can be accessed by all children regardless of physical ability. The project is still in the design phase, and the total project costs are still being developed. Staff will return to the City Council for approval of the project once the design has been finalized.

Each of the programs and projects recommended above are contemplated within the Strategic Plan priorities of the 2020-2024 Consolidated Plan.

On March 23, 2024, staff published a notice in the Daily Pilot informing the general public that the City of Newport Beach had prepared the Draft 20 24-2025 Annual Action Plan.

The notice also indicated the plan would be available for review and comment until April 23, 2024. The public has been provided an opportunity to provide oral and/ or written comments on the proposed activities included in the Draft 2024-2025 Annual Action Plan.

At the time this report was prepared, no public comments have been received.

Additionally, the current Citizen Participation Plan requires that a public hearing be held to receive testimony from interested residents or parties regarding the Action Plan. The April 23, 2024, public hearing fulfills this requirement.

CARES Act Funding Update

Under the 2020 federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the City received additional CDBG funding from HUD . A Substantial Amendment to the 2020-2021 Annual Action Plan was approved by the City Council in July 2021 that funded activities related to preventing and responding to homelessness. A contract with Mind OC for the Be Well OC Mobile Crisis Response Team Program was approved by City Council in September 2021, and the program began in March 2022, and has so far spent $618,845 of $741,079 of the CDBG CARES Act funds. The funds will continue to be used toward the Mind OC contract until fully expended. 612
Resolution No. 2024-30: Community Development Block Grant – 2024-2025 Annual Action Plan
April 23, 2024

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FISCAL IMPACT:

This item provides for the City Council approval of the use of an estimated $ 399,099 of CDBG funds, and $305,774 in program i ncome for the 2024-2025 fiscal year, to be adjusted by the city manager as necessary to conform with the final 20 24-2025 formula grant allocation from HUD. The costs associated with staff management of the CDBG program are approximately $17,000 per year.

ENVIRONMENTAL REVIEW:

The development of required plans and allocation of CDBG program funds is an administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National Environmental Policy Act of 1969 (NEPA), as amended.

Staff recommends the City Council find the adoption of the 2024-2025 Annual Action Plan is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical c hange in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

In accordance with HUD requirements for a 30 -day public review and comment period, notice of the public hearing was published in the Daily Pilot on March 23, 2024. Notice was also sent to each of the applicants requesting funding and emailed to all parties that signed up to receive email notifications from the Planning Division of the Community Development Department. Further, t he agenda item has been noticed according to the Brown Act (72 hours in advance of the meeti ng at which the City Council considers the item).

ATTACHMENT:

Attachment A – Resolution No. 2024-30 (2024-2025 Annual Action Plan included)

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On the Agenda: April 23 City Council Meeting

The next City Council meeting is Tuesday, April 23. Items of interest are highlighted below. The entire agenda and reports can be viewed here.

VIEW THE FULL AGENDA>>

680
April 23, 2024, City Council Agenda Comments
The following comments on items on the Newport Beach City Councilagendaare submitted by:

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Regardingthesubstanceofthe presentactions,designatingthislocation aspartofthe residential portionoftheNewportPlacePlannedCommunityDevelopmentPlanseemsunwise, Received After Agenda Printed
April 23, 2024
Written Comments
681
April23,2024,CityCouncilagendacomments-JimMosher Page2of5 bothbecauseitisdirectlyundertheCity’srequestedflightpathforpiston-poweredaircraftdepartingJohnWayneAirport,andbecausethenoiseimpactonpotentialresidentsfromthe73Freeway(whichitislessthan200feetfrom)doesnotappeartohavebeenconsidered.Itdoesnotsoundlikeapleasantplaceforpeopletolive.

Althoughnotasclosetothe73FreewayasItem3,this,again,doesnotappeartobepartofanycoherentvisiontocreateatrulyplannedcommunityinNewportPlace.

Item9. Central LibraryElevator ModernizationProject –AwardofContract No. 8939-1(24F02)Formonths,theBoardofLibraryTrusteeshasbeenseeingpatroncommentscomplainingaboutthemainpublicelevatorattheCentralLibrarybeingoutofserviceandaskingwhenitwillberepaired.AtthemeetingsIhaveattended,theyhavebeentoldtherepairworkneededaformalcontractandittakestimetocompleteduetoCityprotocols. 682
April23,2024,CityCouncilagendacomments-JimMosher Page3of5 ThisisthefirstI’veheardthatamoreextensiveCentralLibraryElevatorModernizationProjectwaspartoftheCity’sFacilitiesMaintenanceMasterPlan.

Apparentlythatexplainswhyemergencyrepairswerenotundertaken.

Theyarerelatedinthatthefirstunderscorestheflawedassumptionsofthesecond,whichissaidtobeneededfortheCitytomeetitsRegionalHousingNeedsAllocationforthecurrentplanningcycle.

Inotherwords,therecommendedimplementationisnotonlynotcarefullytailoredtoproducenomorethanthestaterequires,asthepublichadbeenledtobelieveitwould,butitappearsdestinedforfailuretomeettherequirementsatall. 683
April23,2024,CityCouncilagendacomments-JimMosher Page4of5 ItishardtoseewhytheelectoratewouldsupportaplanthatgivestheCouncillicensetoapproveagreatdealofhousingthatisnotrequired,whilefailingtoensurethatanyofwhatisrequiredwillbeproduced.

Therealsoseemstobealostopportunitytowidenandimprovethesidewalk,heavilyusedbypedestriansandcyclists,that frontsthefacility.Awidersidewalkseemsabetteruseoflandthanextensivelandscaping. 684
April23,2024,CityCouncilagendacomments-JimMosher Page5of5 Item14. OrdinanceNos. 2024-12and2024-13, andResolutionNo.2024-29: RevisingCertainFeesWithintheScheduleof Rents, FinesandFees, AuthorizingtheWaiver of VehicleTowFees, AdoptingaCredit CardConvenienceFee, andUpdatingtheMethodologyforAnnual Consumer PriceIndexCalculationsAsmanypubliccommentershavemadetheCouncilaware,itwilllikelyseeaproposalfromtheHarborCommissiontoincreasetherentchargedformooringstheCitypermitsonstatetidelands.ThatrentispartiallytocompensateforprivateoccupationofpublicpropertybutisalsousedtorecovertheCity’scostofadministeringthemooringprogram,forwhichnoseparatefeeischarged.Whiletheproperrenttochargeisdebatable,theadministrativecostsshouldbecertain.ItwouldseemtheCouncilwouldwanttoknowwhatthatcostis,whichwouldrequireafeestudy.

Regardingthecurrentproposal,itwouldhavebeenhelpfultoprovidearedlineofthechangesbeingmadetotheMunicipalCodebythetwoordinances.Asitis,readersseemtobeleftguessingwhatthemodificationsare.

Icouldhavemissedit,butIdon’tseethemlistedinthestaffreportAnnualActionPlan. 685

Newport Beach City CouncilApril 23, 2024

Newport Beach City Council
April 23, 2024