Attachment E
Ordinance No. 2026-XX
ORDINANCE NO. 2026-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AMENDING SECTION
3.36.030 (COST RECOVERY PERCENTAGES) OF THE
NEWPORT BEACH MUNICIPAL CODE AND REPEALING
EXHIBIT A OF SECTION 3.36.030 (COST RECOVERY
PERCENTAGES) OF THE NEWPORT BEACH MUNICIPAL
CODE
WHEREAS, Section 200 of the CityCharter,of the Cityof Newport Beach (“City”), vests the City Council with the authority to make and enforce all laws, rules and regulationswith respect to municipal affairssubject only to the restrictionsand limitations contained inthe City Charter and the State Constitution,and the power to exercise, or act pursuant to any and allrights,powers, and privilegesor procedures granted or prescribed by any law of the State of California;
WHEREAS, the City funds certain municipal services, which are typically performed without request by the user, that benefit the public generally and are traditionallyfunded by tax revenue;
WHEREAS, the Cityperforms other services which are funded, inwhole or inpart, by the person requesting the service;
WHEREAS, Subsection (A) of Section 3.36.030 (Cost Recovery Percentages) of the Newport Beach Municipal Code (“NBMC”) provides that the cost recovery percentage appropriate for each user service shall be one hundred percent (100%), unless the amount ismodified or reduced by ExhibitA to Section 3.36.030 (“ExhibitA”); WHEREAS, to streamline government regulation, reduce redundancy, and expedite updates to the City’suser fees, the City Council desires to repeal ExhibitA of Section 3.36.030 and incorporate itsprovisions directlyintothe City’sSchedule of Rents, Fines and Fees (“SRFF”);
WHEREAS, in coordination with this ordinance, a resolution has been presented to the City Council to revise the SRFF to incorporatethe provisions of Exhibit A intothe SRFF; and
WHEREAS, City staffrecommends that City Council adopt the proposed revisions to NBMC Section 3.36.030.
Ordinance No. 2026-
NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows:
Section 1:
hereby amended to read as follows:
Section 3.36.030 (Cost Recovery Percentages) of the NBMC is Section 3.36.030 Cost Recovery Percentages.
The municipal functionsthe City Council has determined to be user services and for which the City Council has initiallydetermined the actual costs and the appropriate cost recovery percentage are described in the fee resolution. The cost recovery percentage appropriate for each user service shall be one hundred (100%) percent, with the exception of the user services identified in the fee resolutionas being subject to a lower cost recovery percentage and those services for which the fee is limitedby statute.The City Council may include in the fee resolution a schedule to phase in specificfee increases as provided in the fee resolution.
“A.
B. The City Council shallestablish,pursuant to the fee resolution,the actual fee or charge foreach user service described in the fee resolution.The fee or charge shallbe based upon the actual cost of providing the user service,multipliedby the relevant cost recovery percentage.
C. The City Council may, without amending this chapter, modify (increase or decrease) the fee resolutionto amend the amount of any fee or charge for,and the actual cost of providing,any user service upon a determination that there has been an increase or decrease in one or more of the cost factors relevant to the calculationof the actual cost of providing that service.
D. The City Council may modify the municipal functions determined to be user services in the fee resolutionand the cost recovery percentage for any service by amending the fee resolution.
E. Fees for service established in the fee resolution may be waived as provided by resolutionof the City Council.”
Section 2:
NBMC ishereby repealed.
Exhibit A of Section 3.36.030 (Cost Recovery Percentages) of the The recitalsprovided in thisordinance are true and correct and are incorporated intothe operative portionof thisordinance.
Section 3:
Ordinance No. 2026-
If any section, subsection, sentence, clause or phrase of this ordinance isforany reason held to be invalidor unconstitutional, such decision shall not affectthe validityor constitutionalityof the remaining portionsof thisordinance. The City Council hereby declares that itwould have passed thisordinance and each section, subsection, sentence, clause or phrase hereof, irrespectiveof the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 4:
The CityCouncil findsthe introductionand adoption of this ordinance isnot subjectto the CaliforniaEnvironmental QualityAct (“CEQA”) pursuant to Sections 15060(c)(2) (the activitywillnot resultin a director reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activityis not a project as defined in Section 15378) of the CEQA Guidelines, CaliforniaCode of Regulations, Title 14, Division6, Chapter 3, because ithas no potentialfor resultingin physical change to the environment, directlyor indirectly.
Section 5:
Except as expressly modified in this ordinance, allother sections, subsections, terms, clauses and phrases set forthinthe Newport Beach Municipal Code shallremain unchanged and shallbe infullforce and effect.
Section 6:
Ordinance No. 2026-
The Mayor shallsign and the City Clerk shallattestto the passage of thisordinance. The City Clerk shallcause the ordinance, or a summary thereof,to be published pursuant to City Charter Section 414. This ordinance shallbe effectivethirty (30) calendar days afteritsadoption.
Section 7:
This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 28th day of July,2026, and adopted on the 25th day of August, 2026, by the followingvote,to-wit:
AYES;
NAYS:
ABSENT:
Lauren Kleiman, Mayor
ATTEST:
Lena Shumway, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY’S OFFICE
Aaron C. Harp, City Attorney