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12. Approval of New FeesFile #: 3381 TO: FROM: DATE: SUBJECT: Claremont City Council Agenda Report TARA SCHULTZ, CITY MANAGER ADAM PIRRIE, FINANCE DIRECTOR JUNE 23, 2020 ADOPTION OF SERVICES AN 2020 SUMMARY Item No: 12. Reviewed by: City Manager: TS Finance Director: AP A RESOLUTION APPROVING NEW FEES FOR VARIOUS CITY PROGRAMS AND D AUTOMATIC ANNUAL COST OF LIVING INCREASES, EFFECTIVE JULY 1, The City of Claremont charges fees for a large variety of services provided by all the City's operating departments, from permit review fees charged by the Community Development Department and facility rental fees charged by the Human Services Department to administrative fees charged by the Financial Services Department. To recover direct and indirect management support costs associated with providing certain services, the City Council adopted a Comprehensive User Fee Schedule that allows for automatic annual cost of living increases in 2018. To continue to meet the goal of recovering the cost of providing services, the City proposes to establish new fees for its programs and services as specified in the attached resolution. The proposed resolution also provides a mechanism to increase these new fees annually based upon the Consumer Price Index (CPI) for the Los Angeles -Long Beach -Anaheim region for April to April. Fee increases pursuant to the CPI will be administratively approved by the City Manager and presented to the City Council as an informational item. RECOMMENDATION Staff recommends that the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, ADOPTING A SCHEDULE OF NEW FEES FOR VARIOUS CITY PROGRAMS AND SERVICES AND AUTOMATIC ANNUAL COST OF LIVING INCREASES. CLAREMONT Page 1 of 4 Printed on 6/18/2020 ALTERNATIVES TO RECOMMENDATION In addition to the recommendation, there are the following alternatives: A. Request additional information from staff. B. Reject the proposed fee changes. FINANCIAL REVIEW The staff cost to prepare this report is estimated at $1,437, which is included in the operating budget of each of the City's operating departments. ANALYSIS The City of Claremont charges fees for a large variety of services provided by the City's operating departments to recover direct and indirect management support costs associated with providing services. Periodically staff identifies new services or modification of services that require new fees to recover the cost of providing services. Staff believes that it is important to adjust fees on a regular basis to keep pace with inflation and avoid the growth of General Fund subsidies for services provided. Accordingly, the proposed resolution allows for fees to increase annually based upon the April to April Consumer Price Index for the Los Angeles -Long Beach -Anaheim region. Using the April CPI figure will allow staff the necessary time to implement fee adjustments effective July 1 of each year. If approved, the new fees will become effective July 1, 2020 and will be incorporated into the Comprehensive User Fee Schedule. Notable new fees by department are as follows: Financial Services During the 2020-21 Budget Workshop on May 9, 2020, staff received direction from the City Council to bring forward a credit card convenience fee to cover bank charges the City pays for credit card transactions. A survey of eight surrounding cities indicated that four out of the eight were charging convenience fees ranging from 2 to 2.1 percent. Staff has determined that a 2 percent convenience fee would allow the City to recover a significant portion of its card processing fees and would be in line with the market. Staff has also requested an analysis of the City's card processing fees by its current processor to determine options for reducing the cost of accepting credit cards as a form of payment for City services. Community Development The Engineering Division proposes to add two new fees. Geotechnical Reports are used to evaluate the site conditions and design construction recommendations specific to the project. The information contained in these reports is referred to during the project design phase, construction period, and after completion of the project. The proposed fee of $826.40 addresses the staff time required to coordinate, review, and approve Geotechnical Reports. CLAREMONT Page 2 of 4 Printed on 6/18/2020 Industrial Wastewater Permits are required by Los Angeles County for any business which generates, handles, or disposes of industrial wastewater. The permits require a review to determine if facilities have adequate pretreatment systems to ensure that facilities are designed so as to not create a nuisance, menace the public peace, health and or safety, or impact the public sewer system, soil, underground or surface waters. The proposed fee of $723.10 addresses the staff time required to coordinate and review Industrial Wastewater Permit Applications. Human Services The Human Services Department completed a survey in March 2020 of cities that offer similar facility reservations programs to that of Claremont. Staff found that the cities surveyed charged fees to maintain their audio-visual equipment (updated laptops, newly installed wireless sound equipment, projectors, screens) and furniture to a certain standard. Based on the results of the survey, staff has determined it was necessary to implement new fees to maintain the quality of the City's audio-visual equipment and furniture. Other new fees related to facility rentals will allow the City to recover more of the cost of providing the opportunity for outside groups to rent and utilize City facilities for their programs and events. Cemetery Oak Park Cemetery has had issues with families scheduling services and not notifying Cemetery staff when services have been cancelled or rescheduled with the mortuary. Similarly, on occasion services have been scheduled at a specific time and the mortuary is late in arriving at the Cemetery for the service. Late arrivals and services that are cancelled without notice result in added staffing costs for the burial crews and Cemetery Sales and Services Coordinator; therefore, staff proposes incorporating fees of $45 for late arrivals and $270 for no shows to cover these costs. Occasionally families and mortuaries request that Oak Park Cemetery staff serve as pallbearers. This often necessitates bringing in a third staff person to assist with the service; however, there is currently no fee charged to provide this service. When pallbearing assistance is not coordinated in advance, burial crews must call on staff to set aside other tasks to assist with little or no notice. Staff proposes incorporating a $45 pallbearing fee which will help to ensure that extra staffing costs are recuperated, and that advanced notice is provided. RELATIONSHIP TO CITY PLANNING DOCUMENTS Staff has evaluated the agenda item in relationship to the City's strategic and visioning documents and finds the following: Council Priorities- This item addresses the City Council priority on Financial Sustainability. Economic Sustainability Plan - This item applies to the Statements of City Council Basic Values on Economic Sustainability contained in the Economic Sustainability Plan. General Plan - This item relates to General Plan Implementation Measure 1-18: Continue to maintain accurate records of City revenues, investments, fund balances, expenditures, employee related costs, and other financial matters. Provide periodic updates to the City Manager and City Council on the City's financial condition. 2019-20 Budget - This item meets the Financial Services Department Work Plan Goal to provide CLAREMONT Page 3 of 4 Printed on 6/18/2020 administrative support to the City Manager, City Council, and all operating departments on a daily and long-range planning basis. CEQA REVIEW This item is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a "project" as defined in Section 15378). Under CEQA Guidelines Section 15378(b)(4) and (5), "government fiscal activities, which do not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment" and "continued administrative activities and organization activities that will not result in a direct or indirect physical change in the environment" are not CEQA projects. The adoption of the new fees is an organizational activity of the government, which involves the fiscal activities but does not commit to any specific project, as such, this item is not a CEQA project. Even if this item were subject to CEQA, it is statutorily exempt pursuant to CEQA Guidelines Section 15273(a)(1), (2), and (4). Per this exemption, CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges that are imposed for certain purposes, such as meeting operating expenses, purchasing supplies and equipment, or funding capital projects that are necessary to maintain service within existing service areas. The purpose of the item is to establish or amend fees to ensure the City recoups some or all of the costs of providing the service for which the fee was imposed. Finally, this item is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) because there is no potential for causing a significant effect on the environment. The adoption of the Schedule of New Fees will not have a significant effect on the environment because the action will not result in or lead to a physical change in Claremont. Therefore, no additional environmental review is needed at this time. PUBLIC NOTICE PROCESS This item has been noticed in accordance with all applicable State and local laws, including but not limited to Government Code Sections 6062a, 66016, 66017 and 66018. Due to the current health orders related to the COVID-19 pandemic, parts of the City's regular agenda distribution process have been suspended as public review copies cannot be placed at their regular locations due to facility closures, or limited access. The agenda and this staff report are available on the City's website. If you desire a copy, please contact the City Clerk's Office. Submitted by: Adam Pirrie Finance Director Attachment: Resolution to Adopt Schedule of New Fees Prepared by: Bibi Ameer Accounting Supervisor CLAREMONT Page 4 of 4 Printed on 6/18/2020 ATTACHMENT RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, ADOPTING A SCHEDULE OF NEW FEES FOR VARIOUS CITY PROGRAMS AND SERVICES AND AUTOMATIC ANNUAL COST OF LIVING INCREASES WHEREAS, state law authorizes local agencies to collect fees to defray the costs of providing programs and services, and WHEREAS, the City of Claremont provides a variety of services to the general public and other governmental agencies, and WHEREAS, the City desires to recover direct and indirect management support costs associated with the costs of providing services, and WHEREAS, in order to meet these goals and interests, the City Council previously approved City Council Resolution 2018-54 (adopted September 11, 2018), which established a Citywide User Fee Schedule, and WHEREAS, to continue to meet these goals and interests, the City proposes to establish certain new fees for its programs and services as set forth in the exhibit to this Resolution, attached hereto and incorporated herein, and WHEREAS, the purpose of the new fees established by this Resolution is to recover the costs incurred by the City for these services, and WHEREAS, City staff analyzed the cost of providing these services, and the fees established by this Resolution do not exceed the estimated cost of providing the services for which the fees are charged, and WHEREAS, notice of a public hearing before the City Council of the City of Claremont concerning the new fees was given in accordance with all applicable State and local laws, including but not limited to Government Code sections 6062a, 66016, and 66018, and WHEREAS, on June 23, 2020, the City Council of the City of Claremont conducted a duly noticed public hearing concerning the new fees; and WHEREAS, the cost estimates and fee calculations applicable to the new fees were presented to a the City Council at the above -referenced public hearing, at which members of the public were able to present written and oral comments regarding the fees, and the documentation corroborating City staff's analysis was available for public inspection and review at least ten (10) days prior to that public hearing, and Resolution No. 2020 - Page 2 WHEREAS, the City Council has considered the information and public testimony presented in the public hearing, the new fees set forth in the exhibit, staffs analysis of the costs of providing the services for which the fees are charged, the staff report, and any written correspondence relating to this item, all of which are included in the public record and incorporated herein by reference. NOW THEREFORE, THE CLAREMONT CITY COUNCIL DOES HEREBY RESOLVE: Section 1. Recitals. The above recitals and true and correct and incorporated herein as if set forth in full. Section 2. Findings. The City Council finds and determines that the fees for services and the billing and overhead rates established by this Resolution do not exceed the estimated reasonable costs of services for which they were imposed and otherwise comply with the provisions of California law and specifically Government Code Sections 66000 et seq. Section 3. CEQA. The fees for services and the billing and overhead rates are statutory and categorically exempt from the requirements of the California Environmental Quality Act (CEQA). Setting these fees fits within the statutory exemption for City decisions involving rates, tolls, or other charges contained within Public Resources Code Section 21080(b)(8) and Section 15273 of the CEQA Guidelines. Section 4. Adoption of New Fees. The City Council hereby approves, adopts, and establishes the new fees for programs and services set forth in the Exhibit. Section 5. Effective Date. The fees set forth in the Exhibit to this Resolution shall take effect immediately. Section 6. Automatic Annual Cost of Living Fee Increases. All fees set forth in the attached Exhibit to this Resolution shall be increased by the Consumer Price Index ("CPI") on July 1st of each year, provided that the proposed CPI increase is necessary to provide the cost of providing the service for which the fee is charged. These increases shall be based on the CPI for all urban consumers for the Los Angeles -Long Beach -Anaheim area, published by the United States Department of Labor, Bureau of Labor Statistics for the period of April of the previous year through April of the current year; provided, however, that no inflationary adjustment may exceed the cost of providing the service for which the fee is imposed. The City Manager shall approve the annual increase in fees administratively and present the increased fees to the City Council as an informational items Section 7. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution is, for any reason, held to be invalid by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity of Resolution No. 2020 - Page 3 the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution, and each section, subdivision, sentence, clause, phrase, or portion of this Resolution irrespective of the fact that one or more provisions may be declared invalid. Section 8. The City Clerk shall cause a certified copy of this Resolution to be recorded in the Official Records of the County of Los Angeles. Section 9. The Mayor shall sign this resolution, and the City Clerk shall attest and certify to the passage and adoption thereof. PASSED, APPROVED, AND ADOPTED this 23rd day of June 2020. Mayor, City of Claremont ATTEST: City Clerk, City of Claremont APPROVED AS TO FORM: 2 . ..... .... City Attorn ity of Claremont Resolution No. 2020 - Page 4 EXHIBIT SCHEDULE OF NEW FEES Description Unit Prcip4sed Fee Finance Credit/Debit Card Convenience Fee 2% Transaction 2% Engineering Geotechincal Report Per Report $ 826.40 Industrial Wastewater Permit Application Review Each $ 723.10 Human Services Virtual Camp Registration Fee $ 10.00 Virtual Equipment Maintenance Fee $ 5.00 Large Size Event - Padua Room Per hour $ 40.00 Large Size Event - Padua Room Application Fee (Non -Refundable) $ 25.00 Large Size Event - Padua Room Administration Fee (Non -Refundable) $ 25.00 Facility Attendant (Required for Non -Operating Hours - Min of 2 Staff Members) Per hour $ 52.00 Audio Video Equipment Fee $ 25.00 Kitchen Use Fee - Padua, Creative Arts Room and Large Sized Events $ 25.00 Cancellation Fee - Padua, Creative Arts Room and Large Sized Events $ 75.00 Taylor Hall Application Fee $ 40.00 Cemetery Late Fee Per Half Hour $ 45.00 No Show Fee $ 270.00 Pallbearing Fee $ 45.00