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Home My WebLink About1/21/2009 - STAFF REPORTS - 1.A. °FppLM SpR ry F G U yi r�`'F°lnkP. CITY COUNCIL STAFF REPORT DATE: JANUARY 21, 2009 PUBLIC HEARING SUBJECT: ADOPTING FEES FOR EVENT HOUSE REGISTRATION AND APPEALS, AND AMENDING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 21578 AS AMENDED FROM: David H. Ready, City Manager BY: Department of Finance SUMMARY The City Council will consider a resolution amending the Comprehensive Fee Schedule for event house registration and appeals. RECOMMENDATION: ' 1. Open the public hearing and receive public testimony. 2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING FEES FOR EVENT HOUSE REGISTRATION AND APPEALS, AND MODIFYING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 21578 AS AMENDED." STAFF ANALYSIS: The City Council recently enacted Ordinance No. 1745 for the registration and regulation of event houses, and staff is recommending the City Council establish fees to collect the cost to the City of providing the various public services associated with this ordinance. As the provider to these regulatory and registration programs, cities are relying on user fees that are charged for the various public services. Generally, state law requires that fees charged by local agencies by reasonably related to the actual cost of providing the service. The City retained a consultant, Revenue and Cost Specialists, LLC, to prepare a Cost of Service Fee Study. The study is attached. Item No. 1 • A . City Council Staff Report January 21, 2009-- Page 2 Adoption of Regulatory Fees FISCAL IMPACT: The estimated annual revenue and City cost to administer the Event House Registration and Appeals is $14,740. The Resolution provides that a CPI increase be calculated and incorporated effective July 1, 2010, to ensure that changing economic conditions do not impair the real value of the fees and charges. GEOFFR Y RIEHL, Finance Director DAVID H. READY anager 'Attachments: Proposed Resolution and Schedule 1 Cost of Service Fee Study Notice of Public Hearing C2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,- ESTABLISHING FEES FOR EVENT HOUSE REGISTRATION AND APPEALS, AND MODIFYING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 21578 AS AMENDED. WHEREAS, the City, under various statutory provisions under California Government Code, may set and collect fees for the costs of providing various public services to the community; and WHEREAS, the City Council recently enacted Ordinance No. 1745 providing for the regulation and registration of Event Houses; and WHEREAS, a duly-noticed public hearing was held on January 21, 2009, in accordance with the provisions of the California Government Code; and WHEREAS, the supporting data was available for public inspection and review for ten (10) days prior to the public hearing; and WHEREAS, the City Council has considered any verbal and/or written testimony, and has reviewed and considered the information and testimony provided at the.public hearing by staff and the public. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS: SECTION 1. FINDINGS. a. City staff has completed an analysis of fees for the regulatory and registration programs as indicated in the recitals. b. There is a reasonable relationship between the amount of the fee and the estimated reasonable cost of providing the type of service for which the fee is imposed. c- The fees do not exceed the estimated reasonable cost of providing the service for which the fee is charged. SECTION 2. FEES IMPOSED. a. The City Council adopts the Event House Registration and Event House Appeal Fees as proposed on Schedule 1 of this Resolution and incorporated by reference. ca Resolution No, Page 2 b. On July I" of each year, effective July 1, 2010, all service fees and charges shall be automatically adjusted by an amount equal to the percentage of increase or decrease in the Consumer Price Index for this region, as last computed for the previous twelve (12) months, to reflect cost-of-living changes and to ensure that changing economic conditions do not impair the real value of the fees and charges. SECTION 3. SEVERABILITY. Each component of the fees and all portions of this Resolution are severable. Should any individual component of the fee or other provision of this Resolution be adjudged to invalid, the remaining provisions shall be fully effective, and the fee shall by fully effective except as to that portion that has been judged to be invalid. SECTION 4. EFFECTIVE DATE. a. The fees imposed by Section 2(a) of this Resolution shall be immediately effective upon adoption of this Resolution. SECTION 5. COMPREHENSIVE FEE SCHEDULE. The City Clerk is hereby authorized and directed to incorporate said fees, charges and modifications into the Comprehensive Fees Schedule, adopted Resolution No. 21578, as amended. C�� Resolution No. Page 3 ADOPTED THIS 215i DAY OF JANUARY, 2009. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 22387 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on January 21, 2009, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California 0� SCHEDULEI CITY OF PALM SPRINGS SUMMARY OF PROPOSED FEES REF # SERVICE PROPOSED FEE S-010 EVENT HOUSING REGISTRATION 1-100 Participants $145 101-250 Participants $190 251+ Partici ants $350 S-011 EVENT HOUSING APPEAL $130 per appeal c� m Cost of Service Fee Study forthe City of Palm Springs NOVEMBER 2008 Prepared by: Revenue & Cost Specialists, LLC 1519 East Chapman Ave,Suite C Fullerton, CA 92831 www.revenuecost Com (714) 992-9020 Copyright, 2006 by Revenue& Cost Specialists 7 EXECUTIVE SUMMARY Due to demands inade of the City, it is essential that the City Council and management have complete information upon which to set fees for the following programs: Vacant Buildings Downtown Newsracks Event Housing Vacation Rentals 911 Emergency Response Dispatch This Report provides that information for the above programs and services. Schedule 1, following, provides a summary of the proposed fees for these services. Schedule 2, following that, provides a summary of the revenues, costs, and subsidies for these services. Costs Generally Defined The basic costs of operating any business are direct labor and employee benefits, direct materials, allied indirect costs, and overhead costs. Determination of "Costs These cost elements have been determined in a businesslike manner per basic business principles, and applied to these services, and accormnodates the published intent and definitions of the Authors of Article XIMB of the State Constitution. Thus a logical, legal, and Constitutionally-mandated cost-consciousness can be applied to City operations. The far more explicit definitions of costs applied by the Authors were utilized, thus laying a Constitutional base under the work of this Report. Principle Involved. A basic principle involved in this Report is the recognition of those full business costs as used and as defined by the Authors of the Constitutional annendment, NOT just those costs which it might decide to use in some other cost analysis methodology or that other jurisdictions not so coinplying might use. 1 City of Palm. Springs Cost of Service Fee Study Service Center Worksheets The data shown on Schedule 2 forms the basis for preparation of two different worksheets. The first, "Revenue and Cost Summary Workshcet" is on the left hand side of Appendix A. These worksheets include a description of the service, the current fee structure, the suggested recovery rate, and other pertinent information. Also included is the revenue and cost comparison and suggestions for fee modifications. Presented on the facing page, titled "Cost Detail Worksheet", is the workshect which details the costs involved in each service. This page identifies those employees providing the service, the time spent, and their related costs. The time and unit information comes from interviews with City staff. Each component of the cost is described below. TYPES OF COSTS Salaries and Wages City government is in fact a service industry, therefore it is natural that salaries make up the largest single element of cost in most services. EaIpLoyee Fringe Bensfits Since the mutual time of an employee has been fully allocated to service centers, fringe benefit costs also must be included. The City provides the following fringe benefits for its employees: 1) PERS Retirement 2) Workers' Compensation Insurance 3) Disability Insurance 4) Medical Insurance 5) Medicare G) Unemployment Insurance 7) Holiday Pay, Uniform, Car, and Tool Allowance 2 . � s City of Palm Springs Cost of Service Fee Study All of these costs are current operating expenses and included in the City's Annual Budget. Fringe Benefit costs were accumulated and reduced to a percentage of salary for the employees as a whole. Maintenance and Operation Costs All maintenance and operation costs, including non-personnel expenses such as professional services, insurance, operatiug supplies, etc., were derived from the 2008-2009 Council-approved budget and allocated via percentages or through actual allocation to each of the service centers identified in a department or division. Overhead Costs Although overhead is a well established and necessary expense item in business, it is only recently that govermnents started adopting business techniques. Govermment is no different than a good corporation-- that was and still is "Buy good management". RCS utilizes two types of overhead, which are discussed below. General City Overhead would be for the general administration of the City, such as the following: City Council City Manager City Clerk City Attorney Pinance Each service is very important to the smooth functioning of the City, But, their primary function is to support other departments and not to provide an eud-user service to the public. Departmental Administration can be as simple as the time of the department head, the departmental secretary or the division managers. The purpose of these services is to insure the smooth functioning of the department. Asset Replacement Cost. The cost of the 911 Emergency Dispatch System was allocated on a depreciation basis over a 15 year life. Therefore the cost included in the Report zepresents 1/15th of the total system cost. 3 City of Pawl Springs Cost of Service Fee Study GENERAL REC0NEAENDATIONS Adotioii of Modifications to Current Fee Structure It is recommended that the City Council adjust the fee schedule for the enumerated services presented in this Report. Use of the "full business costing" concept will create consistency in the establislunent OF fees and allow for timely adjustment in fees to reflect changes in the cost of services. Review of Suggested Recovery Rates The City Council should review the suggested the Suggested Recovery Rates to determine how much of each service should be recovered through fees and how much should be subsidized drrough the City's tax dollars. This review is very important because it gives City staff direction as to what the Council wants to subsidize and what it does not. All Things To All People. While the City is deciding who to subsidize and what to finance, it should remember it cannot provide all things to all people. It should therefore prioritize what it hopes to accomplish. If the Council decides to provide more subsidies today, it is doing so at the expense of other services which can only be financed by tax dollars, such as Police services, Fire services, and maintenance of the City's infrastructure. Therefore the Council must decide which direction it wants to proceed in, fully aware of the consequences of either action. SUMMARY If the recommendations included in this Report are adopted, the costs for the programs and services included here will be paid for by the individuals using those services. 4 i� SCHEDULE1 CITY OF PALM SPRINGS SUMMARY OF PROPOSED FEES REF # SERVICE PROPOSED FEE S-010 EVENT HOUSING REGISTRATION 1-100 Participants $145 101-250 Participants $190 251+ Participant $350 S-011 EVENT HOUSING APPEAL S130 per appeal r.: SCHEDULE 2 CITY OF PALM SPRINGS SUMMARY OF REVENUES, COSTS, AND SUBSIDIES FISCAL YEAR 2008-2009 TOTAL % RECOVERY TOTAL PROFIT/ REF# SERVICE CENTER REVENUE TOTAL COST (SUBSIDY) ACTUAL SUGGEST (1) (2) (3) (4) (5) (6) (7) S-010 EVENT HOUSING REGISTRATION $0 $14,609 ($14,609) 0.0% 100% S-011 EVENT HOUSING APPEAL $0 5131 ($131) 0.0% 10000 GRAND TOTAL $0 $14,740 (14,740) 0.0% 100% c..a APPENDIX A REVENUE AND COST SUMMARY WORKSHEETS Matched With COST DETAIL WORKSHEETS CITY OF PALM SPRINGS REVENUE AND COST SUMMARY WORKSHEET FISCAL YEAR 2008.2009 SERVICE REFERENCE NO. EVENT HOUSING REGISTRATION 8-010 PRIMARY DEPARTMENT UNIT OF SERVICE SERVICE RECIPIENT PLANNING APPLICATION Resident/Business DESCRIPTION OF SERVICE Registration of houses which have events so as to control the impact on the neighborhood. ❑URRENT FEE STRUCTURE None REVENUE AND COST COMPARISON UNIT REVENUE: $0,00 TOTAL REVENUE: $0 UNIT COST: $182.61 TOTAL COST: $14,609 UNIT PROFIT(SUBSIDY): S(182.61) TOTAL PROFIT(SUBSIDY): $(14,609) TOTAL UNITS: 80 PCT_COST RECOVERY: 0.00% SUGGESTED FEE FOR COST RECOVERY OF: 100 1-100 participants-$145 101-250 participants -$190 251+participants-$350 November 4,2008 CITY OF PALM SPRINGS COST DETAIL WORKSHEET FISCAL YEAR 2008-2009 SERVICE REFERENCE NO, EVENT HOUSING REGISTRATION 5-010 NOTE TOTAL UNITS Unit Casts are an Average of Total Units 80 DEPARTMENT POSITION TYPE UNITTIME UNIT COST ANN.UNITS TOTAL COST PLANNING SERVICES ASSISTANT PLANNER 1-100 Participants 0.50 $A5.24 50 S2,262 PLANNING SERVICES PLANNING ADMIN COORD. 1-100 Participants 0.50 $42.97 50 S2149 PLANNING SERVICES PRINCIPAL PLANNER 1-100 Panlclpants 008 $13.82 50 S691 PLANNING SERVICES PLANNING TECHNICIAN 1.100 Participants 0.50 $43.57 50 $2.179 TYPE SUBTOTAL 1.58 $145-60 $7,280 PLANNING SERVICES ASSISTANT PLANNER 101-250 Panlclparas 1.00 S90.48 20 S11810 PLANNING SERVICES PLANNING ADMIN COCRD. 101.250 Particlpants 0.50 $42,97 20 $859 PLANNING SERVICES PRINCIPAL PLANNER 101.250 Participants 0.08 S13.82 20 5276 PLANNING SERVICES PLANNING TECHNICIAN 101.250 Participants 0.50 S43.57 20 $871 TYPE SUBTOTAL 2.08 $190.84 53,817 POLICE POLICE LIEUTENANT 251+Participants 0.50 $94'g1 10 $048 FIRE FIRE PREVENTION SPECIALIS 251+Participants 0.50 $42.99 10 $430 PLANNING SERVICES ASSISTANT PLANNER 251+Participants 125 $113.10 10 $11131 PLANNING SERVICES PLANNING ADMIN.COORD. 251+Participants 0.50 $42.97 10 $430 PLANNING SERVICES PRINCIPAL PLANNER 251+Participants 0.08 $13,82 10 $13a PLANNING SERVICES PLANNING TECHNICIAN 251+Participants 050 $43,57 10 $436 TYPE SUBTOTAL 3.33 $351,20 $3,513 TOTALS 6.99 $182.61 $14,609 �N November 4,2008 T � s CITY OF PALM SPRINGS REVENUE AND COST SUMMARY WORKSHEET FISCAL YEAR 2008-2009 SERVICE REFERENCE NO. EVENT HOUSING APPEAL S-011 PRIMARY DEPARTMENT UNIT OF SERVICE SERVICE RECIPIENT PLANNING APPEAL Rcsident/Business DESCRIPTION OF SERVICE Processing an appeal of the decision of an Event House Registration application. CURRENT FEE STRUCTURE None REVENUE AND COST COMPARISON UNIT REVENUE: $0.00 TOTAL REVENUE: $0 UNIT COST: $131.00 TOTAL COST: $131 UNIT PROFIT(SUBSIDY): $(131.00) TOTAL PROFIT(SUBSIDY): $(131) TOTAL UNITS: 1 PCT.COST RECOVERY: 0.00% SUGGE$TED FEE FOR COST RECOVERY OF: 100% $130 per appeal November 4.2008 CITY OF PALM SPRINGS COST DETAIL WORKSHEET FISCAL YEAR 2005-2009 SERVICE REFERENCE NO. EVENT HOUSING APPEAL 5-011 NOTE TOTAL.UNITS Unit Costs are an Average of Total Units 1 DEPARTMENT POSITION TYPE UNITTIMF UNIT COST ANN.UNITS TOTAL C05T PLANNING SERVICES PLANNING TECHNICIAN 1.50 $130.70 1 $131 TYPE SUBTOTAL 1.50 $130.70 $131 TOTALS 1.50 $131,00 $131 November 4.2006 1 NOTICE OF PUBLIC HEARING CITY OF PALM SPRINGS FEES FOR EVENT HOUSE REGISTRATION AND APPEALS NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing on January 21, 2009, at 6:00 p.m. in the City Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262. The purpose of this hearing is to consider the adoption of fees for event house registration and appeals. REVIEW OF INFORMATION: The staff report and other supporting documents regarding this matter are available for public review at the City Hall between the hours of 8:00 a.m. and 5.00 p.m., Monday through Friday. Please contact the Office of the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review these documents. COMMENT: Response to this notice can be made verbally at the Public Hearing and/or in writing before the hearing. Written comments can be made to the City Council by letter (for mail or hand delivery) to: James Thompson, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed project in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Geoffrey S. Kiehl, City Treasurer and Director of Finance, (760) 323-8229. Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs y puede hablar con Nadine Fieger telefono (760) 323-8245. j; les Thompson, City Clerk CITY OF PALM SPRINGS PUBLIC HEARING NOTIFICATION 1) CITY CLERK'S DEPARTMENT James Thompson, City Clerk Meeting Date: January 21, 2009 Subject: ADOPTION OF FEES FOR EVENT HOUSE REGISTRATION AND APPEALS AFFIDAVIT OF MAILING 1, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was mailed to each and every person on the attached list on January 8, 2008, in a sealed envelope, with postage prepaid, and depositing same in the U.S. Mail at Palm Springs, California. (5 notices) I declare under penalty of perjury that the foregoing is true and correct. Kathie Hart, CMC Chief Deputy City Clerk AFFIDAVIT OF PUBLICATION I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on January 10, 2009. 1 declare under penalty of perjury that the foregoing is true and correct. � 5 � Kathie Hart, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Dolores Strickstein, Secretary, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the City Clerk on January 8, 2009. 1 declare under penalty of fperjury that the foregoing is true and correct. Dolores Stricksteini Secretary 20 PROOF OF PUBLICATION This is space for County Clerk's Filing Stamp (2015.5.C.C.P) STATE OF CALIFORNIA County of Riverside I am a citizen of the United States and a resident of Proof of Publication of the County aforesaid; I am over the age of eighteen ---------------------------------------- years,and not a party to or interested in the above-entitled matter.I am the principal clerk of a printer of the,DESERT SUN PUBLISHING COMPANY a newspaper of general circulation, printed and published in the city of Palm Springs, ., - County of Riverside,and which newspaper has been ao 012D— _ .____- NOTICE OF PUBLIC HEARING adjudged a newspaper of general circulation by the CITY OF PALM SPRINGS Superior Court of the County of Riverside,State of -FEES ATI EVENT HOUSE APPEALS q-FEES ORE ANDourE California under the date of March 24, 19W Case NOTICE IS HEREBY GIVEN that the Cdy Number 191236;that the notice,of which the Council of me,city of Palm Sprmgs,California,will annexed is a printed co set in a not smaller hold a public haunnpp on January 21, 2009, at P PY( type 6-00 .m. in the CIII Council Chamber at City than non panel,has been published in each regular 1•1111, 0200 E. rfathquitz Canyon way Palm Springs,CA 92262, and entire issue of said newspaper and not in any The purpose of this he is le, consider the supplement thereof an the following dates,to wit: adoption of Ira^for eventns house house regisualion antl appeals n REVIEW OF INFORMATION : Tho opt re- January 10 ',2009 pad and ether sup orlep tl ublic nts regarding --------------------_--_----_-- this matter are n the hie for uhlic a.m.a at the Clry Hell between lilt hours oI 8:00 am.end contact5:00 he pp m of the ity rgo Friday.0)323 204ifthe would of the schedule Clerk n ap o) tmeni to e you iew ' would like to schedule do appointment to review All in the year 2009 these documents. COMMENT: Resppon.,c to this notice can be made vocally at the Publicitenacomman�can 00 wrlt- I certify(or declare)under penalty of perjury that the Ing before the hcarin.t ' foregoing is true and correct. delivery)tlae Ctry council by letter per mail or hand tl' - 2200 e.Tahquitz Can yonW,y_ laik Dated at Paint Springs,California this--14 ,—day palm Spimgs CA rJ2262—' Any chalirnge of the pmposcd protect In court of---------- January i------------------,2009 may be limited to rming only those issuuo ni°ntl 1 at the public hearing du,Cnbed In this notice,or in writtenolrvoRd correspondence d to the Chy Clerk at, or grief, to the ppubllc hearing (Govornment Code Section 65009`b)(2)). I An opportunity will be given at.,aid I eiring for all -- interested puranna to he heard Question..toga- _ Ing tills case may be directed to Geoffreyy S Kiehl, N 5 gnat, 8 1 Treasurer and Director of Finance "aC)323- ( �,; , Si neceslte ayuda con csLtvvC:iyyrllp podavor Ilame a Nadine Recur In Ielonop(76U)323--8245 hnblar con ---Jama571iUmp�'oi�.1i,City clerk J� .mot to r U Published:1110109 'NEIGHBORHOOD COALITION REPS Case MODCOM AND MR PETE MORUZZI HISTORIC SITE REP%�—. PALM SPRINGS MODERN COMMITTEE PHN for CC Meeting P.O. BOX 4738 PALM SPRINGS, CA 92263-4738 CITY OF PALM SPRINGS CASE PLANNING SERVICES DEPARTMENT MRS.JOANNE BRUGGEMANS VERIFICATION NOTICE=> ATTN SECRETARY 506 W. SANTA CATALINA ROAD PO BOX 2743 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92263-2743 MS MARGARET PARK AGUA CALIENTE BAND OF CAHUILLA AGUA CALIENTE BAND OF CAHUILLA INDIANS 777 E.TAHOUITZ CANYON WAY,#301 PALM SPRINGS, CA 92262 ,._,_, _...._...... ;, ... Mr. Fred Bell, Executive Director SPONSORS,' ' 7J ,. _. _, ) Building Industry Association 77-570 Springfield Lane, Suite E Palm Desert, CA 92211 � eArM sp Al� City of Palm Springs U � v * * Office of the City Clerk 3200 H. laliquuz Canyon Way • Palm 8prmgs, CnLCornia 72262 CqL \P'IFOR Tel (760) 323-820"1 • Fax (760) 322-8332 • Wcb wwwpglmsprnngs-c2 qav NOTICE OF ADJOURNMENT NOTICE IS HEREBY GIVEN that the Regular Meeting held on January 7, 2009, the City Council of the City of Palm Springs adjourned to Wednesday, January 14, 2009, at 6:00 p.m., Council Chamber, City Hall, 3200 East Tahquitz Canyon Way, preceded by Closed Session starting at 4:30 p.m. in the Small Conference Room. I, James Thompson, City Clerk of the City of Palm Springs, California, certify this Notice required of Adjournment was posted at or before 5:30 p.m., January 8, 2009, as r eq by established policies and procedures. Pnes Thompson ity Clerk _ Post Office Box 2743 • Palm Springs, California 92263-2743