Agenda Item: 2
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: June 14, 2022
SUBJECT: ANNUAL ADJUSTMENT TO FEES AND AMENDMENTS TO THE
FEE SCHEDULE
DEPARTMENT: Administrative Services
PRESENTER: Johanna Medrano
RECOMMENDED ACTION
City Council:
1. Conduct the public hearing on the proposed fee adjustments.
2. Adopt a resolution establishing a schedule of fees and charges for City services.
BACKGROUND
In 1990, the City Council directed staff to prepare a study identifying the full cost of providing services. The result of this effort was the adoption of City Council policy establishing cost- recovery standards, adoption of the City's first full-cost based fee schedule, and an ongoing mechanism to assess the cost of City of Santa Clarita (City) services and to adjust fees accordingly.
Propositions 4 and 13 establish the "costs reasonably borne" philosophy. The philosophy necessitates the determination of the full business cost of each City-provided service, the identification of the beneficiary of each service, and the evaluation of services to determine an appropriate level of cost recovery for each. "Costs reasonably borne" implies a direct relationship between payment of fees and charges and receipts of services. The direct fee/service and tax equity relationship does not exist when tax monies are used to subsidize services received by only a small portion of the taxpaying public, or by non-residents.
As a best practice, the City conducts a comprehensive fee study every five years to ascertain and recover the costs associated with providing services to the public. Fiscal Year (FY) 2018-19 was the last time the comprehensive study was conducted. Annually, thereafter, staff examines the fees to ensure accuracy of cost for providing such services and applies the Consumer Price Index
(CPI) percentage to those fees reasonably determined necessary.
Proposed Fees and Charges for Fiscal Year 2022-23
Development-Related Fees:
For FY 2022-23, staff recommends development-related fees and charges be increased by the December year-end CPI for the urban consumers of the Los Angeles, Riverside, and Orange County areas. The percentage increase, as reported by the United States Department of Labor, is
6.57 percent.
While the majority of development-related fees and charges are recommended to increase by the December 2021 CPI of 6.57 percent, certain development fees will be adjusted according to the FY 2018-19 fee study. These fees were identified in the City’s last comprehensive study as needing to be adjusted through a phased approach over a period of up to five years in order to reach an appropriate level of cost recovery.
In accordance with the Two-Unit Residential Development and Urban Lot Split Ordinance adopted by City Council on January 25, 2022, staff is recommending the addition of two new fees. These fees, as permitted by Senate Bill 9, will recover the associated costs of implementing two-unit residential development and urban lot splits on a parcel zoned for a single-family dwelling unit. Other development fees will be adjusted according to adopted City resolutions.
The Building Industry Association (BIA) was directly contacted regarding the proposed development-related fees and industrial waste fees. California Government Code section 66017(a) requires a development-related fee to be effective no sooner than 60 days following adoption of the fee, charge, or increase. The City historically has allowed for a 90-day waiting period between fee adoption and implementation; therefore, development-related fees will have an effective date of September 14, 2022.
Other Miscellaneous Non-Development Related Fees:
Like development-related fees, the City’s fee schedule identifies other miscellaneous non- development related fees, including film fees, needing to be adjusted by CPI. In order to reach an appropriate level of cost recovery, a few fees were increased above the CPI by no greater than 9 percent. Examples of these fees include Vehicle Impound Release, Handicap Parking Citation Process, and Road Use - Filming fees. Transit and Library Service Fees will remain unchanged.
After a couple of years providing City Hall Ceremonies, staff, in collaboration with our Consultant reviewed the fees for marriage services to ensure the most accurate cost of providing this service. Staff is recommending a Marriage Services Administrative Fee to recover the direct cost associated with providing these services.
Recreation Fees:
Most community services, events, and facility rental fees remain unchanged, including fees at our Community Centers, Cowboy Festival, and Marathon. Certain recreation and community service fees are recommended to increase by CPI, such as Aquatics, Youth and Adult Sports, and Camps, as well as Park Field Use, while Prime Time Preschool fees will increase by no more than 10 percent. The fees being recommended to increase are still below market and have not
been increased since our FY 2018-19 Fee Study.
Furthermore, the City's fee schedule includes programming fees for the newly acquired ice rink facility, The Cube. Fees provided are currently in effect and are in line with the market rate and consistent with other facilities operated by the City’s operator, American Sports Entertainment Company (ASEC) and the LA Kings, collectively referred to as JV Ice at The Cube. The facilities programming continues to grow and is including new fees such as Camp Chillin, Figure Skating Shows, Special Events Enhancements, as well as discounts.
Parking Violations:
Staff completed a benchmark study of comparable cities within the County of Los Angeles and found that the majority of our fees fall below the average. Therefore, staff is recommending an increase by the 6.57 percent CPI with the exception of No Parking (Temporary/Alleys/Anytime), Parking Vehicles for Sale, and Double-Parked fees. These fees are being recommended to increase to the benchmark average as they are significantly lower than most cities.
Effective Dates:
This resolution shall go into full force and shall be effective immediately but shall be subject to the terms and conditions of Chapter 3.32 of the Santa Clarita Municipal Code. Development- related fees will go into effect September 14, 2022; Recreation fees will go into effect October 1, 2022; aquatic fees and special event fees will go into effect January 1, 2023, while all other fees will go into effect on July 1, 2022.
ALTERNATIVE ACTION
Other action as determined by Council.
FISCAL IMPACT
It is estimated that if adopted and implemented, the proposed schedule of fees and charges for service will result in additional annual revenue to the General Fund of approximately $598,084.
Revenues will be reviewed at mid-year and adjustments deemed appropriate will be recommended at such time.
ATTACHMENTS
Notice of Public Hearing
Resolution