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HomeMy WebLinkAboutItem CJ SEA( 9� AGENDA STAFF REPORT C4OFORN.if DATE: April 9, 2018 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Victoria Beatley, Director of Finance /City Treasurer SUBJECT: Adopt Resolution No. 6806 Repealing Resolution No. 6249 Effective April 30, 2018 SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6806 repealing Resolution No. 6249, a Resolution of the Seal Beach City Council Amending the City's Comprehensive Fee Resolution to Adopt an Annual Increase Provision for Certain Fees Based Upon Increases to the Consumer Price Index to Recover Costs Associated with Providing Public Services BACKGROUND AND ANALYSIS: On April 23, 2012, the City Council conducted a duly noticed public hearing concerning the proposed fees. At the conclusion of the public hearing, the City Council adopted a motion to amend the City's Fee Schedule to establish the fees charged by the City for providing services and to be adjusted annually on July 1 st of each year in accordance with the increase in the Consumer Price Index ( "CPI "). The adjustment was to be equal to the increase, if any, to the Consumer Price Index for All Urban Consumers for the Los Angeles- Riverside - Orange County Metropolitan Area published by the United States Department of Labor, Bureau of Labor Statistics for the 12 month period ending December 31, 2011, and published each anniversary of December 31 thereafter. Since the time of adoption of Resolution No. 6249 the Consumer Price Index has risen approximately nine percent in total but incrementally some of the fee adjustments were so small that no change was made to some of the fees. At the same time, salary and benefit costs have risen at a much greater pace than inflation. Further, the United States Department of Labor has stopped issuing the specific CPI Index cited in the Resolution. There are many data points that are relevant to the City's determination of what fair and adequate City fee amounts should be. The repeal of this Resolution will allow staff to recommend to the City Council incremental adjustments to the fees that will bring the cost of service more in line with the reasonable cost of providing the service, which can never be exceeded. Agenda Item C Strategic Planning Objective: If approved this item will help to meet the March 7, 2018 Strategic Planning Meeting goal of "Achieve Short- and Long -term Fiscal Sustainability" by allowing the City the ability to bring fees into line with actual costs. Any fee increases still must be considered and approved by the City Council following a public hearing. The purpose for the repeal is to allow for flexibility and reality in adjusting the fees in the City's Comprehensive Fee Schedule. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: By repealing the requirement to raise fees only in accordance with the prior December Consumer Price Index, staff will be able to recommend that the City Council adjust the fees based upon actual changes in costs to provide the specific services. The result could be an increase in revenue, the impact of which is unknown at this time. RECOMMENDATION: That the City Council adopt Resolution No. 6806 repealing Resolution No. 6249, a Resolution of the Seal Beach City Council Amending the City's Comprehensive Fee Resolution to Adopt an Annual Increase Provision for Certain Fees Based Upon Increases to the Consumer Price Index to Recover Costs Associated with Providing Public Services SUBMITTED BY: ?/cctaua beatC # Victoria Beatley, Director of Finance /City Treasurer Prepared by: ATTACHMENTS: A - Proposed Resolution 6806 B - Resolution 6249 Page 2 NOTED AND APPROVED: JW 5Z. 9rr94cun Jill R. Ingram, City Manager Attachment "A" RESOLUTION NUMBER 6806 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL REPEALING RESOLUTION NO. 6249 AND THE ANNUAL INCREASE PROVISION FOR CERTAIN FEES BASED UPON INCREASES TO THE CONSUMER PRICE INDEX TO RECOVER COSTS ASSOCIATED WITH PROVIDING PUBLIC SERVICES WHEREAS, on April 23, 2012, the City Council conducted a duly noticed public hearing concerning the proposed fees. At the conclusion of the public hearing, the City Council adopted a motion to amend the City's Fee Schedule to establish the fees charged by the City for providing services be adjusted annually on July 1st of each year in accordance with the increase in the Consumer Price Index ( "CPI "). The adjustment will be equal to the increase, if any, to the Consumer Price Index for All Urban Consumers for the Los Angeles- Riverside - Orange County Metropolitan Area published by the United States Department of Labor, Bureau of Labor Statistics for the 12 month period ending December 31, 2011, and published each anniversary of December 31 thereafter; WHEREAS, since the time of adoption of Resolution No. 6249 the Consumer Price Index has risen approximately nine percent in total but incrementally some of the fee adjustments were so small that no change was made to some of the fees. At the same time salary and benefit costs have risen as a much greater pace. In addition, Department of Labor will no longer publish the specific index cited going forward. The repeal of this resolution will allow staff to recommend to the City Council incremental adjustments to the fees that bring the cost of service more in line with the reasonable cost of providing the service; and WHEREAS, at the March T2018 Strategic Planning Meeting the goal "Achieve Short- and Long -term Fiscal Sustainability" was updated to include the need to repeal this resolution. The purpose for the repeal is to allow for flexibility in adjusting the fees in the City's Comprehensive Fee Schedule. NOW THEREFORE THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. That the Seal Beach City Council hereby repeals Resolution No. 6249 titled "A Resolution of the Seal Beach City Council amending the City' s Comprehensive Fee Resolution to adopt an annual increase provision for certain fees based upon increases to the Consumer Price Index to recover costs associated with providing public services. Section 2. That the City Council's fee - setting processes shall continue to follow the applicable provisions of State law and the City Charter. Resolution Number 6806 Section 3. The City Clerk shall certify to the passage and adoption of this resolution. This Resolution shall be effective upon adoption. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 9`h day of April , 2018 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Mike Varipapa, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6806 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of April , 2018. Robin L. Roberts, City Clerk Attachment "B" RESOLUTION NUMBER 6249 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AMENDING THE CITY'S COMPREHENSIVE FEE RESOLUTION TO ADOPT AN ANNUAL INCREASE PROVISION FOR CERTAIN FEES BASED UPON INCREASES TO THE CONSUMER PRICE INDEX TO RECOVER COSTS ASSOCIATED WITH PROVIDING PUBLIC SERVICES ' THE SEAL BEACH CITY COUNCIL DOES RESOLVE AND FIND AS FOLLOWS: Section 1. The City of Seal Beach ( "City") has conducted an extensive analysis of its services, the costs reasonably borne by the City in providing those services, the beneficiaries of those services, and the revenues produced by those paying fees and charges for special services. Section 2. The City retained an independent consultant, Matrix Consulting Group ( "Matrix "), to conduct said analysis of the City's services and related costs. Matrix completed that certain Final Report on the Cost of Services Study ( "Study") dated March 21, 2012, a copy of which is attached hereto as Exhibit "A" and incorporated by this reference, and is on file with the City Clerk. The Fee Study set forth a mechanism for ensuring that fees adopted by the City do not exceed the reasonable estimated cost for providing the services for which the fees are charged. Section 3. California Government Code Section 66000 at seq. authorizes the City to adopt fees for municipal services, provided such fees do not exceed the ' cost to the City of providing the services. Section 4. On April 23, 2012, the City Council conducted a duly noticed public hearing concerning the proposed fees. At the conclusion of the public hearing, the City Council adopted a motion to amend the City's Fee Schedule to establish the fees charged by the City for providing services be adjusted annually on July 1st of each year in accordance with the increase in the Consumer Price Index ( "CPI "). The adjustment will be equal to the increase, if any, to the Consumer Price Index for All Urban Consumers for the Los Angeles- Riverside- Orange County Metropolitan Area published by the United States Department of Labor, Bureau of Labor Statistics for the 12 month period ending December 31, 2011, and published each anniversary of December 31 thereafter. Section 5. The adoption of this Resolution approves and sets forth a procedure for determining fees for the purpose of meeting the operating expenses of City departments and is, therefore, exempt from the California Environmental Quality Act (Public Resources Code Sections 21080 et seq.) pursuant to Public Resources Code Section 21080(b)(8)(A). Section 6. All requirements of California Government Code Sections 66016 and 66018 are hereby found to have been satisfied. ' Section 7. The City Council hereby finds that an annual increase to user fees based upon increases to the CPI will not exceed the cost to the City of providing the services to which such fees apply. The basis for the fees and charges contained therein is set forth in the Study. Section 8. The City Council hereby approves the Study attached as Exhibit A as the City's comprehensive user fee report. Section 9. The City Clerk shall certify to the passage and adoption of this resolution. Resolution Number 6249 PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 23rd day of April , 2012 by the following vote: AYES: Council Member j1Q��/��dl�� 1 NOES: Council Members ABSENT: Council ABSTAIN: Council ATTEST: .. . I JL i. STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } 1, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6249 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 23rd day of April , 2012. '