Agenda Item: 2
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: June 13, 2023
SUBJECT: ANNUAL ADJUSTMENT TO FEES AND AMENDMENTS TO THE
FEE SCHEDULE
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston
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 2023-24
Development-Related Fees:
For FY 2023-24, staff recommends development-related fees and charges be increased by the December year-end CPI for the urban consumers of the Los Angeles-Long Beach-Anaheim area.
The percentage increase, as reported by the United States Department of Labor, is 4.93 percent.
While the majority of development-related fees and charges are recommended to increase by the December 2022 CPI of 4.93 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 Senate Bill 379, an online system is being implemented by September 2023 to verify solar system code compliance and instantaneously issue solar permits. As a result, total fees for a standard residential roof top solar system will be reduced by approximately $200.
Other development fees will be adjusted according to adopted City resolutions.
The Building Industry Association (BIA), Santa Clarita Valley Chamber of Commerce, Santa Clarita Valley Economic Development Corporation, Southern California Edison, Southern California Gas Company, and Valley Industry Association (VIA) were 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 13, 2023.
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 Film Permit and Road Use - Filming fees. Transit and Library Service Fees will remain unchanged.
Recreation, Community Services, Facility Rentals and Events Fees:
Most recreation fees will be increased by CPI, such as Aquatics, City Sports, Camp Clarita, Prime Time Preschool, and Special Events. Most facility rental fees will be increased by CPI including Park Field Use, Santa Clarita Sports Complex, Newhall Community Center, and Canyon Country Community Center. Some community services, events, and facility rental fees remain unchanged, including fees for The MAIN, Cowboy Festival, and Community Court. Fees being recommended to increase remain at or below market.
The majority of The Cube facility rental and programs rates will be increased by CPI. However, some fees are adjusted more than the CPI to align them with the current market rates. These include The Cube fees for filming taking place on the ice, Banquet Room rentals, and Birthday
Party packages. Party packages have been modified to make different levels of offerings available to accommodate patron demand and preferences.
Parking Violation Fees:
Parking Violation Fees will remain the same. When compared to the benchmark average, fees continue to be 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 13, 2023; Recreation fees will go into effect October 1, 2023; aquatic fees and special event fees will go into effect January 1, 2024, while all other fees will go into effect on July 1, 2023.
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 $397,960.
Revenues will be reviewed at mid-year and adjustments deemed appropriate will be recommended at such time.
ATTACHMENTS
Notice of Public Hearing
Resolution