Westminster City Council
SUBJECT
Title
Public Hearing - Fee Study and Revisions to Citywide Fees and Fine Schedules.
End
publichearing
• Staff Report
• Mayor and City Council Questions for Staff
• Public Comments
• Mayor and Council Member Discussion
• Council Action
End
From: Erin Backs, Finance Director
Requested by: Administration
Prepared by: Erin Backs, Finance Director
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RECOMMENDED ACTION
Recommendation
Adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, ADOPTING A REVISED SCHEDULE OF FEES AND CHARGES FOR SPECIAL SERVICES AND A SCHEDULE OF MISCELLANEOUS FINES.”
end
BACKGROUND
The City engaged Revenue & Cost Specialists, LLC (RCS) to prepare a cost of services study for services provided by the City. This study analyzed the City’s operations to determine the City’s full costs of services that are provided on a cost-recovery basis. To prepare the study, RCS met with each department to review and adjust the time spent by city position to perform each service detailed in the study. The cost for each position and the applicable overhead is based on the city’s budget.
For reference, the full study is attached (Attachment 1). Special consideration should be given to the following:
• Pages 9-14 summarize the services by department or type.
• Pages 16-42 detail the current and recommended fees in service number order.
• Pages 44-333 detail the services with a description and the related costs. This is in service number order.
• Pages 336-339 list the current and suggested Westminster Code Violation fines.
• Pages 340-343 list the current and suggested vehicle and traffic fines.
• Page 344 lists the current animal control fines. No changes are suggested to these fines.
As summarized on page 14 of the study, RCS estimates that, if implemented, its recommended rates will augment the City’s fee revenues by approximately $406,775 annually.
The City last completed a cost services study in June 2023. Staff recommended in 2023 that the City reevaluate its fees every two years and recommends that this practice be continued.
Many of the fees in the Community Development Department have been significantly adjusted. In some cases, these adjustments reflect recent experiences in processing applications. For example, the fee for Development Review applications has been modified to add a per-unit charge for each multi-family unit, as large residential projects do require more review time. Other fees have been reduced as the assumptions regarding which staff members will be doing the work have changed. The prior fee study assumed the Director would be issuing Sidewalk Vendor Permits and most sign permits. Since planners are actually issuing these permits, the fees were reduced. Staff is also trying to simplify submittal requirements for applicants. The current fee resolution identifies complex and standard conditional use permits (CUPs). Staff has since clarified these procedures. In addition, due to the efforts to streamline procedures, the proposed fee to process a CUP is $7,625, where the current fee is $9,875 for a standard CUP and $16,515 for a complex CUP. The deferral of zoning compliance review to the building plan check stage has increased plan check fees for some application types, but this increase in fees is offset by the elimination of the fees that were previously imposed for a separate zoning compliance review.
The fees for building applications have remained fairly constant. The time required to check plans, issue permits and inspect buildings has not changed significantly with the introduction of electronic plan review. Fees for Code Enforcement services are also fairly consistent with the current fee schedule.
The most significant change from the study is related to the cost of the Special Event Permit (S-122), which is currently set at $100 for all events. Based on the study of actual time, the special event permit fee cost has been identified as $1,480 for a simple event and $2,520 for a complex event. A simple event is described as an event that has a singular activity or attraction, is short in duration, and is reoccurring. A complex event is described as one that may have multiple attractions or components; requires multiple inspections and/or coordination meetings such as circuses, carnivals, festivals, parades, and night markets; may have rides, animals, fireworks, inflatables, impacts to traffic, and/or numerous vendors; occurs over multiples days/weeks; and has high impact and staff involvement. Although the amount in the proposed resolution remains at the current $100 fee, given the significant difference between the fee and actual costs, staff would require direction if Council desires to reevaluate the fee amount or the structure of the fee.
The Credit Card Processing fee (S-138.1) recommendation of 3% on all credit card payments over $500 was approved in August 2021. However, due to the changes with upgrading Munis cashiering and online payments of development fees, this implementation of this fee was delayed. If the City Council chooses to go forward with the new adjusted fees, staff will work to implement this fee on all credit card payments over $500. Potential new revenue is $198,475.
A second phase was added to the fee study in January 2020 to review vehicle code fines, ordinance violations, and administrative citations. These recommendations are included on page 335 and are Exhibit B to the resolution.
FISCAL IMPACT
There is no budget adjustment requested at this time. A full year of cost recovery could produce $406,775 in additional revenue. If approved, the revised development fees would be implemented September 1, 2025, and all other fees would be implemented July 10, 2025. Development fees are identified on the attached Summary of Changes schedule. The recommended increase as presented by the study is allocated to various revenue accounts, the majority of which reside in the General Fund and are allocated to various services as follows:
Development Services $153,200
Public Safety Services ($90,600)
Recreation $31,800
Utility and Maintenance Services $89,900
Administrative Services $222,475
$406,775
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
If all the recommendations and suggestions made in this report are adopted, the City's financial picture will be improved by approximately $406,775 annually. In addition, more equity between taxpayers and fee-payers, as well as fairness between property-related and non-property-related services could be secured, assisting in the City's continued efforts towards financial stability into the future.
ATTACHMENTS
1. City of Westminster Fee Study Update
2. Proposed Resolution
3. Resolution Attachment Exhibit A - Fees
4. Resolution Attachment Exhibit B - Fines
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager