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June 26, 2000
STAFF REPORT
TO: Mayor Campbell and Members of the City Council
THRU: Keith Till, City Manager
FROM: Pamela Arends -King, Director of Administrative Services/Treasurer
SUBJECT: COMPREHENSIVE FEE SCHEDULE 2000/2001
SUMMARY OF REQUEST:
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Establish the rates and amounts of fees and charges for certain goods, services and
facilities provided by the City of Seal Beach and supersede inconsistent provisions of
previously approved resolutions.
BACKGROUND:
Under State of California guidelines, fees and charges for municipal goods and services
are to be set at a rate equivalent or below costs incurred in providing for that service.
Fees are to be based on an analysis of costs and may not be arbitrarily set. A fee or
charge may, as a matter of public policy, be set at a rate below costs, when a public
benefit or good exists in having the General Fund subsidy for specific service to an
individual(s).
For the 2000/2001 fiscal year, staff reviewed fees and charges and recommends fees and
charges authorized and established in prior year Comprehensive Fee Schedule remain the
same except for the following fee increases:
• Transportation Facilities and Programs Development Fees and
Transportation Facilities and Programs Development Application Fees paid by
developers, increased 3.3 %. The 3.3% increase is the "Engineering News Record
Construction Cost 20 City Average" from 1999 to 2000.
• Vehicle release fee increased from $15.00 to $20.00 to accurately recover labor and
material costs.
• Special Trash Removal Type A increased$17.50 to $45.00 and Type B
Increased $8.00 to $30.00. The trash removal fees had not been increased in prior
years, therefore the public works department completed an analysis of what it actually
costs to provide special trash removal and increased the rate accordingly.
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Agenda Item
Comprehensive Fee Schedule 2000/2001
Page 2
• Lot Line Adjustment: Map Checking initial minimum deposit increased by $50.00 to
$350.00. This increase ensures recovery of the cost of review and map check.
• Sewer Service Connection Charges based on water meter size were established for
Residential, Commercial, Industrial, and Governmental. The fee is calculated using
the value of the existing system not subject to replacement through the existing CIP
and the total annual water use by the sewer system customers in billing units.
Therefore, the connection fee per unit of water use is determined. The connection fee
per meter size is then calculated as the product of this unit by 12 months, and the
average water use per meter size as shown in the approved Sewer Rate Study
resulting in the following rates: 5/8 ", 3/4" meters connection fee for residential is
$1,092 and Commercial, Industrial and Governmental is $1,167. 1" meter connection
fee for residential is $1,414 and Commercial, Industrial and Governmental is $2,271.
1.5" meter connection fee for residential is $2,633 and Commercial, Industrial and
Governmental is $2,988. 2" meter connection fee for residential is $3,950 and
Commercial, Industrial, and Governmental is $12,261. 3" meter connection fee for
residential is $28,414 and Commercial, Industrial and Governmental is $34,276. 4"
meter connection fee for residential is $47,455 and Commercial, Industrial and
Governmental is $57,246. 6" meter connection fee is non - applicable for residential,
however the Commercial, Industrial and Governmental connection fee is $87,150. 8"
meter connection fee for residential is non - applicable for residential, however the
Commercial, Industrial and Governmental connection fee is $346,727.
• Minimum deposit of $250.00 for Fire Hydrant Flow Testing was established to ensure
recovery of labor costs and materials.
• Water Use /Billing Fees were established and increased to recover labor costs and
overhead. The Water Tum -on Fee for new customers increased from $15.00 to
$20.00. A 10% late payment penalty was established for water bills paid after 35
days as incentive for customers to pay in a timely manner. This late payment penalty
compares with several other cities within Orange County. The water turn -on fee for
customers whose water was turned off due to failure of paying their water bill
increased from $15.00 to $75.00. This charge recovers the costs of personnel time to
track the delinquent account, make four special trips to tag the customers door, turn
the water off and turn the water back on. The $75.00 fee is comparable to other
Orange County cities. Customers whose doors are tagged more than two times due
to non - payment of water bill will be charged a $30.00 fee every time the water meter
reader must tag their door.
Comprehensive Fee Schedule 2000/2001
Page 3
FISCAL IMPACT:
The recommended Comprehensive Fee Schedule will balance cost recovery of services
rendered and, therefore, reduce General Fund tax and revenue subsidies.
RECOMMENDATION:
City Council adopt the Comprehensive Fee Schedule establishing the rates and amount of
fees and ch//arges for good, services and facilities provided by the City of Seal Beach.
-QiYL Q — .
Pamela Arends -King, Director o dministrative Services /Treasurer
NOTE AND PROVED:
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Keith Till, City Manager