Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: June 25, 2024
SUBJECT: ANNUAL ADJUSTMENT OF FEES AND AMENDMENTS TO THE
FEE SCHEDULE
DEPARTMENT: Administrative Services
PRESENTER: Amy Seyerle
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, every five years the City examines the costs associated with providing services to the public. Fiscal Year (FY) 2018-19 was the last time the comprehensive study was conducted. During the current fiscal year, staff worked in conjunction with an independent third party, Revenue and Cost Specialists, LLC, to conduct a time-motion study and create a cost
allocation plan to determine the most accurate cost of providing services to the public. All City departments participated in the study to determine the amount of time the employee is involved in each City service. For FY 2024-25, staff recommends Citywide fees and charges, including fees for Development, Recreation and Community Services, Facility Rentals, and Administrative Services be adjusted in accordance with the costs determined by this study. Adjustments to the fees include both increases as well as decreases to the costs of services.
Fees being added to the schedule for FY 2024-25 include The Big I Do marriage ceremony, Walk of Western Stars Dinner event, and new classes offered through the Community Centers including Youth Fitness, Adult Fitness, and Enrichment Classes.
Transit Services:
Transit fares for the City were last adjusted in 2015. Recommendations are being made to bring fares in line with the rest of Los Angeles County, as the current rates are among the lowest in the region. The proposed changes are being introduced in two phases, as detailed in Exhibit B of this report. Phase I, which would go into effect July 1, 2024, would increase single ride fares for fixed route transit services and introduce a discount equal to the proposed increases for riders paying with a TAP card. Rates for Micro Transit (GO! Santa Clarita) and the Dial-a-Ride services would also see a fare increase.
Phase II would go into effect January 1, 2025. At that time monthly passes would be eliminated and daily and weekly fare capping would be introduced for riders paying with their TAP card.
The daily fare cap for local service is $3.00 per day, with a weekly cap of $10.00. Once those levels are reached, additional trips would be free within the corresponding daily or weekly timeframe. The greatest advantages of fare capping for riders is the ability for them to “pay as they go,” rather than paying for a monthly pass upfront.
Parking Violations:
For FY 2024-25, there are no recommended changes to the bail fee schedule.
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 and Impact fees will go into effect September 23, 2024; Recreation fees will go into effect October 1, 2024; The Cube’s fees will go into effect across three dates: July 1, August 18, and September 1, 2024; Aquatic fees and Transit Phase II fees will go into effect January 1, 2025, while Transit Phase I and all other fees will go into effect on July 1, 2024.
The Building Industry Association, Santa Clarita Valley Chamber of Commerce, Santa Clarita Valley Economic Development Corporation, Southern California Edison, Southern California Gas Company, and Valley Industry Association were directly contacted regarding the proposed development-related fees and industrial waste fees. The 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 23, 2024.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
It is estimated that if adopted and implemented, the proposed schedule of fees and charges for services will result in additional annual revenue to the General Fund of approximately $333,000.
Revenues will be reviewed at mid-year and adjusted as needed.
ATTACHMENTS
Notice of Public Hearing
Resolution