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RPVCCA_SR_2010_03_02_08_Oversized_Vehicle_Permit_Parking_Fee RANCHO PALOS VERDES PUBLIC HEARING Date: March 2, 2010 Subject: Oversized Vehicle and Neighborhood Permit Parking Fee Establishment Subject Property: Citywide 1. Declare the Hearing Open: Mayor Wolowicz 2. Report of Notice Given: City Clerk Morreale 3. Staff Report & Recommendation: Nicole Jules, Senior Engineer 4. Public Testimony: Appellants: N/A Applicant: N/A 5. Council Questions: 6. Rebuttal: 7. Declare Hearing Closed: Mayor Wolowicz 8. Council Deliberation: 9. Council Action: W:\AGENDA\Public Hearing Formats\public hearing format Council- Oversized Vehicles.doc Revised: 2/25/10 8-1 TO: FROM: DATE: SUBJECT: REVIEWED: Staff Coordinator:Nicole Jules,Senior Engineer 1'"\ccr RECOMMENDATION ADOPT RESOLUTION NO.2010 ESTABLISHING FEES FOR THE OVERSIZED VEHICLE AND NEIGHBORHOOD PERMIT PARKING PROGRAMS. BACKGROUND On June 18,2009,the City Council approved adoption of the Oversized Vehicle and Neighborhood Permit parking programs.At the time of program approval,staff introduced recommended fees associated with administering the programs and informed the City Council that formal fee adoption will be brought back for approval when revisions to the City's cost based fees program are proposed. Both permit parking programs became effective January 1,2010 and staff is recommending establishment of the fees for continued implementation of the program. DISCUSSION Oversized Vehicles Implementation of the Oversized Vehicles permit program requires an additional 10 percent of one full time equivalent staff person which results in the use of overtime as Public Works staff is currently fully committed. The proposed permit fee will help offset the on-going administrative costs of the program.The program costs are outlined below in Table 1: 8-2 Oversized Vehicle and Neighborhood Permit Parking Fee Adoption March 2,2010 Page 2 Table 1 Oversized Vehicle Pro ram Costs Costs: Public Education $ Subtotal FY 2009/10 $ $82,540 $20,000 $12,000 $34,040 Not Determinable $ Sheriff's Department* Field Review Revenue Generated throu h Permit Fees Revenue Generated throu h Permit Fees Start U Costs* Si na e Maintenance PW Staff Processing Permits &Related Work On oin Costs Field reviews $ Pro ram Start-u Install si na e **$ Public Education $ PW Staff Processing Permits &Related Work Fabricate ermits $ *City staff time required to implement the program is estimated to be ten percent of a full time staff person,the Sheriff's enforcement costs are not included in this estimate.Costs included are those associated with: resident inquiries;complaints about perceived safety issues;Traffic Engineering evaluation of site conditions between 1 and 5 reviews annually (site visits and a report are estimated to cost between $300 and $1,000 per Visit);increased monitoring could affect the City's traffic safety program. **Signage has been installed at all entry points to the City.Staff determined thirty locations where signs are required.This number could increase in the future as recommended by the City Attorney or at the Sheriff Department's request. The start-up costs for this program were $82,540 (signage -$31,000,education - $20,000,permits -$2,000,field reviews -$3,000,and blended fully burdened salaries- $26,540).Ongoing costs for subsequent years will be $34,040 (permits -$2,000, education -$1,500,reviews -$3,000,signage maintenance -$1,000 and blended fully burdened salaries $26,540). The Management Partners Report stresses that fees charged for City services should fully cover the costs of services provided and should be established through a cost-8-3 Oversized Vehicle and Neighborhood Permit Parking Fee Adoption March 2,2010 Page 3 based fee analysis and subsequently established by the City Council.Considering that multiple staff personnel may process permit applications a blended fully burdened staff rate was initially used in determining the initial fee which would need to be about $412 and renewal permit fees would need to be set at $170 annually.Fees set at this level would be considerably higher than neighboring cities. Staff has reviewed fees collected in neighboring cities for oversized vehicle parking and found that $45.00 per year is the average.Staff is proposing for consideration,due to the unique conditions of the City,setting permit fees at $100 for the initial permit and $60 per year for subsequent renewal permits.At these rates,if 200 permits are issued annually,the initial subsidy will be $62,540;and the subsidy for subsequent years will be $22,040. Neighborhood Permit Parking Currently,it costs the City approximately $2,278 per street enrolled to administer the neighborhood permit parking program.As indicated in Table 2,the City costs include distributing parking decals and maintaining neighborhood signs for one street. Program administration will require additional staff time.Staff spends minimal time monthly managing the program for five neighborhoods.With the program as proposed,it is estimated that each new permit will take approximately one half hour to process and about 15 minutes to process permit renewals. Table 2 summarizes the estimated tasks and costs incurred when processing an application for a street that desires permit parking. Total Start-u Costs Cost er household for a tical street $2,278/40 Recommended Fee **Assuming 1 new street (40 properties per street) $1052 $430 $512 $284 $2,278 $56.95 $50 In looking at Table 2,the start-up costs to implement a permit parking program for one street is $2,278.When this amount is distributed over the average number of households on a typical street,the start up cost per household is $56.95.Therefore,staff is recommending a fee of $50 for a new street that desires permit parking. 8-4 Oversized Vehicle and Neighborhood Permit Parking Fee Adoption March 2,2010 Page 4 Administration 40 Permit Renewal and Database Maintenance Si n maintenance Cost er household for a t $726 $18.15 Recommended Fee **Assuming 1 street (40 properties per street) $18 In looking at Table 3,the annual cost to maintain a permit parking program for one street is $726.When this amount is distributed over the average number of households on a typical street,the annual cost per household is $18.15.Therefore,staff is recommending a fee of $18 for a street to maintain permit parking. The current permit parking fee of $1.25 was established in 1981 when the program was first initiated and has not been updated since.Staff's recommended fee considers the current costs associated with administering the program. Staff contacted several neighboring Cities to inquire about their residential permit program fees and found that the Cities of Torrance,Palos Verdes Estates and Manhattan Beach all have residential permit parking programs.Their corresponding fees are listed below in Table 5. Table 5 Agency Initial Fee Replacement Fee Palos Verdes Estates $0 $10 Torrance $0 $25 Manhattan Beach $30 $30 The Management Partners Report stresses that fees charged for City services should fully cover the costs of services provided and should be established through a cost-based fee analysis and subsequently established by the City Council.However,staff recognizes that to fully capture all costs would create a burdensome cost to residents when compared to similar fees of neighboring cities. In looking at the fees that neighboring Cities charge and when compared to the City's current fee of $1.25,City Council may wish to consider setting a fee of $50 for an initial permit,$18 for renewal and $10 annually for guest permits. If the recommended fees as stated are acceptable,staff is recommending adoption of Resolution No.2010 Establishing fees for the oversized vehicle and neighborhood permit parking programs. 8-5 Oversized Vehicle and Neighborhood Permit Parking Fee Adoption March 2,2010 Page 5 ALTERNATIVE As an alternative,the City Council may choose to take no action at this time or establish different fees as may be appropriate. FISCAL IMPACT Approving staff's recommendation will not result in any adverse impacts to the General Fund however,not proceeding with Staffs recommendation may result in a permit parking program that is fully subsidized by the City.If the recommendation is approved, permit fees and program costs will be accounted for in the Traffic Management program of the General Fund. Attachment: Resolution No.2010-_ 8-6 RESOLUTION NO.2010-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING FEES FOR THE OVERSIZED VEHICLE PROGRAM AND NEIGHBORHOOD PERMIT PARKING PROGRAM THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES RESOLVE AS FOLLOWS: WHEREAS,the City of Rancho Palos Verdes ("City")has conducted an analysis of the new Oversized Vehicle Program and Neighborhood Permit Parking Program, including its services,the costs reasonably borne by the City in providing those services,and the beneficiaries of those services;and WHEREAS,the City utilizes a mechanism for ensuring that fees adopted by the City for services rendered do not exceed the reasonable estimated cost for providing the services for which the fees are charged;and WHEREAS,California Government Code Section 66000,et.seq.authorizes the City to adopt fees for municipal services,provided such fees do not exceed the cost to the City of providing the service;and WHEREAS,on March 2,2010,the City Council conducted a duly noticed public hearing concerning the fees proposed to be adopted,and all requirements of California Government Code Sections 66016 and 66018 are hereby found to have been satisfied; and WHEREAS,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 Section 21080 et seq.)pursuant to Public Resources Code Section 21080(b)(8)(A). NOW,THEREFORE,the City Council of the City of Rancho Palos Verdes does hereby resolve as follows: Section 1.The facts set forth in the Recitals of this Resolution are true and correct and are hereby incorporated by reference as though set forth in full. Section 2.The City Council hereby finds that none of the fees imposed by the Oversized Vehicle Program and the Neighborhood Permit Parking Program,attached hereto as Exhibit A and incorporated herein by reference,exceed the cost to the City of 1 R6876-0001\1208430v1.doc 8-7 providing these services.The basis for the fees contained in Exhibit A is set forth in the staff report dated ,2010,which is attached hereto and incorporated herein by this reference and is filed with the City Clerk. Section 3.The City Council is taking action only on those fees that are being approved,as set forth in Exhibit A.All other fees and charges set forth in the City's Master Fee Schedule are not being modified by this Resolution and shall continue and remain in effect unless and until modified by further resolution or ordinance of this Council. Section 4.The City Council shall direct staff,either internally or through a third party,to perform a periodic thorough analysis of fees imposed by the Oversized Vehicle Program and/or the Neighborhood Permit Parking Program.Based on the results of said periodic review(s),the City Council shall revise such fees as warranted.Until a periodic analysis is completed,and after the fee adjustments detailed in Exhibit A are implemented,the City Council may review the fees as often as annually and,after conducting a duly noticed public hearing,may increase them by the percentage increase in City salaries and benefits,as reflected in the City's audited financial statements,that have occurred since the date of the last adjustment of the fees. Section 5.The City Clerk shall certify to the passage,approval,and adoption of this resolution,and shall cause this resolution and her certification to be entered in the Book of Resolutions of the City Council of the City. PASSED,APPROVED and ADOPTED this __day of 2010. STEFAN WOLOWICZ,Mayor ATTEST: CARLA MORREALE,City Clerk 2 R6876-0001\1208430v1.doc 8-8 State of California ) Cou nty of Los Angeles )ss City of Rancho Palos Verdes ) I,Carla Morreale,City Clerk of the City of Rancho Palos Verdes,hereby certify that the above Resolution No.2010-_,was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on ,2010. City Clerk 3 R6876-0001\1208430v1.doc 8-9 EXHIBIT A RESOLUTION NO.2010-XXX OVERSIZED VEHICLE AND NEIGHBORHOOD PERMIT PARKING FEE SCHEDULE Fee Description Proposed Fee Effective 3/2/2010 Neighborhood Parking Initial Permit $50 Neighborhood Parking Renewal Permit $18 Neighborhood Guest Parking Permit $10 Neighborhood Decal replacement $1.50 Oversized Vehicle Initial Permit $100 Oversize Vehicle Renewal Permit $60 Oversize Vehicle Guest permit $100 Oversize Vehicle Decal replacement $1.50 4 R6876-0001\1208430v1.doc 8-10