Chapter 3.36
COST RECOVERY FOR USER SERVICES

Sections:

3.36.010    Findings.

3.36.020    Definitions.

3.36.030    Cost Recovery Percentages.

3.36.040    Late Fees and Charges.

3.36.050    Severability.

3.36.010 Findings.

The City Council of the City of Newport Beach finds as follows:

A.    The City funds certain municipal services such as fire, police and residential trash collection using primarily property, sales and other tax revenues. These municipal services are typically performed without request by the user, benefit the public generally, and are traditionally funded by tax revenue.

B.    The City performs other services and offers certain programs which are funded in whole or in part by the person or entity requesting the service or participating in the program. These services and programs are typically initiated by an application submitted by the person requesting the service or program participation, primarily benefit the person requesting the service or participation, and are traditionally funded in whole or in part from fees charged to the person who initiates the services.

C.    The City Council has retained consultants to conduct cost allocation plan and cost of services studies. Cost allocation studies determine the general City and departmental overhead rates to be used in calculating the cost of City services. Cost of services studies determine the costs of providing certain City services by, among other things, identifying the City employees performing the service and the amount of time spent in performing the service. The City Council has thoroughly reviewed and considered the studies prior to adopting the ordinance codified in this chapter. In order to ensure that fees charged for services are an accurate reflection of actual costs, the City Council finds that cost studies should be conducted at least every five years.

D.    The Finance Committee of the City Council has conducted public meetings to discuss the cost allocation plan and cost of services studies, the factors relevant to the appropriate cost recovery percentage for the services studied, and to receive public input on the issues. The Finance Committee has submitted recommendations to the City Council regarding the appropriate cost recovery percentage and those recommendations have been reviewed and considered by the City Council prior to adopting the ordinance codified in this chapter.

E.    The City Council has fully complied with provisions of State and local law in establishing the cost recovery percentages specified in this chapter, including, Section 66000 et seq. of the Government Code, and Articles XIIIC and XIIIB of the State Constitution. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 1 (part), 1997)

3.36.020 Definitions.

For purposes of this chapter, the following definitions shall apply:

“Actual cost” means the estimated cost to the City of providing a user service to a user as initially determined by analysis of the cost factors in the studies and as modified from time to time in accordance with changes in cost factors.

“Cost factors” means the various factors identified in the studies relevant to the calculation of the actual cost to the City of providing user services to a user.

“Cost recovery percentage” means the percentage of the actual cost to the City of providing a user service that the City Council determines should be recovered from the user.

“Cost studies” means the Cost of Services and Cost Allocation Studies conducted by the City’s consultant(s).

“Fee resolution” means the resolution adopted by the City Council pursuant to this chapter which establishes the fees and charges for user services.

“User” means the person or entity who requests, by filing an application or otherwise, City performance of, or user’s participation in, a user service.

“User services” means the services or programs identified in the cost studies and which are funded, in whole or in part, by fees or charges imposed on the user of the service. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 1 (part), 1997)

3.36.030 Cost Recovery Percentages.

A.    The municipal functions the City Council has determined to be user services and for which the City Council has initially determined 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 listed in Exhibit “A” and those services for which the fee is limited by statute. The City Council may include in the fee resolution a schedule to phase in specific fee increases over a period not to exceed four years.

B.    The City Council shall establish, pursuant to the fee resolution, the actual fee or charge for each user service described in the fee resolution. The fee or charge shall be based upon the actual cost of providing the user service, multiplied by the relevant cost recovery percentage.

C.    The City Council may, without amending this chapter, modify (increase or decrease) the fee resolution to 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 calculation of the actual cost of providing that service.

D.    The City Council may modify the municipal functions determined to be user services in the fee resolution and the cost recovery percentage for any service only by amending this chapter.

E.    Fees for service established in the fee resolution may be waived by the City Council. The City Manager may waive fees imposed on nonprofit organizations for nonprofit sponsored events in an amount not to exceed one thousand dollars ($1,000.00) per year.

Exhibit A

The City’s cost of providing the following services shall be recovered through direct fees charged for services. Exhibit “A” limits cost recovery fees to the percentages or dollar amounts indicated below.

Service

Percentage of Cost or Amount to Be Recovered from Direct Fees

Community Development

 

Building

 

Appeals Board Hearing—Applicant Successful

0%

Appeals Board Hearing—Applicant Unsuccessful

50%

Harbor Construction

50%

Permit Issuance (Counter Only) Electrical, Plumbing

$35

Preliminary Plan Review

First Two Hours Free, Full Cost Thereafter

Life Safety Services

 

Candle Permit Program

76%

Care Facilities

7—99 Clients

36%

Care Facilities >99 Clients

40.8%

Commercial Day Care Facilities

36%

Hotels/Motels

50—299 Rooms

36%

Hotels/Motels

300 or More Rooms

92.4%

Operational Permits—Level 1

40%

Operational Permits—Level 2

38.1%

Residential Care Facility Prelicense Inspection

96%

Special Event Permits—Single Event

88%

State Fire Clearance

82%

Planning

 

Appeals to City Council

50%

Appeals to Planning Commission

50%

Reasonable Accommodation

0%

Recreation and Senior Services

 

Adult Sports

50%—95%

Administrative Processing Fee

$5

Badge Replacement

$5

After School/Camp Programs

 

Camps

20%—50%

After-School/Teen Program

20%—50%

Pre-School Program

20%—50%

Aquatics

20%—50%

Contract Classes

50%—95%

Class Refunds

 

$74 or less

$10

$75 or more

$20

Youth Sports

20%—50%

Special Events—Levels 1, 2, and 3

 

Resident, Level 1 and Late Fees for Level 1

0%—20%

Resident, Levels 2—3 and Late Fees for Levels 2—3

20%—50%

Nonresident, Levels 1—2 and Late Fees for Level 1

20%—50%

Nonresident, Level 3 and Late Fees for Levels 2—3

50%—95%

Appeal to City Council

50%—95%

Natural Resources Programs

0%—20%

Senior Services

 

Oasis Transportation

$1—$3 each way

Contract Classes

20%—50%

Fitness Center

50%—95%

Library Services

 

Passport Photo

$10

Use Fees—Materials

$1

Inter-Library Loan

$5

Fire and Marine

 

Emergency Medical Services

 

Advanced Life Support (ALS)—Nontransport

$400

Basic Life Support (BLS)—Nontransport

$400

ALS First Responder Fee

$400

BLS First Responder Fee

$400

Marine

 

Junior Guards—Participation Fee

$727

Police

 

Bike Licenses

17%

Secondhand/Pawn Dealer Tag Check

0%

Registrant—Narcotics

0%

Impound Fee

Maximum Permitted by Contract

Public Works

 

Engineering

 

Encroachment Permit without Other Department/Division Review

88%

Encroachment Permit with Other Department/Division Review

57%

Harbor Resources

 

Appeal of Lease/Permit under Section 17.60.080

$100

Finance

 

Payment Plans (Except Parking)

$25

Parking Hearings

0%

Admin. Cite Hearings

0%

Municipal Operations

 

Construction Water Meter Establishment

50%

Fats, Oils, and Grease (FOG) Annual Permit

0%

City Council, Board, Commission, Committee or Any Individual Member Thereof When Acting within the Scope of Their Official Duties

Review from a Lower Body or Official

$0

(Ord. 2018-15 § 1, 2018; Ord. 2018-13 § 1, 2018; Ord. 2016-14 § 1, 2016; Ord. 2015-29 § 1, 2015; Ord. 2015-9 § 1, 2015; Ord. 2013-18 §§ 1, 2, 2013; Ord. 2013-1 § 1, 2013; Ord. 2011-28 § 1, 2011; Ord. 2011-10 § 1, 2011; Ord. 2009-32 § 1 (Exh. A), 2010; Ord. 2009-21 § 1 (Att. 1), 2009; Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 2004-4 § 3, 2004; Ord. 2002-26 Exh. A, 2002; Ord. 2000-24 § 1, 2000; Ord. 98-18 § 1, 1998; Ord. 97-8 §§ 1 (part), 2, 1997)

3.36.040 Late Fees and Charges.

Notwithstanding any other provision of this Code, the City Council shall establish, in the fee resolution, late fees and interest to be paid by any user of user services who fails to make payments when required by this Code or any resolution, policy, or program adopted by the City Council. To the maximum extent practical, the late fees and interest shall be uniform for all user fees. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 1 (part), 1997)

3.36.050 Severability.

If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this chapter. The City Council declares that it would have passed the ordinance codified in this chapter and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. (Ord. 2008-14 § 1 (Exh. 1) (part), 2008: Ord. 97-8 § 2, 1997)