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CC RES 2021-015 I RESOLUTION NO. 2021-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES RESCINDING RESOLUTION NOS. 2009-19 AND 2010-77 AND ADOPTING AN UPDATED MASTER SCHEDULE OF FEES AND CHARGES FOR CITY SERVICES THEREBY ESTABLISHING AN UPDATED TOTAL COST ALLOCATION PLAN, APPROVING AN UPDATED COST OF SERVICES ANALYSIS, APPROVING THE FULLY BURDENED HOURLY RATES. 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 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; and WHEREAS, the City retained an independent consultant, Revenue & Cost Specialists, LLC ("RCS"), to conduct said analysis of the City's services and related costs. RCS completed that certain Total Cost Allocation Plan and Service Cost Update (the "Fee Study") dated April 30, 2019, a copy of which was distributed to the City Council and is on file with the City Clerk. The Fee Study set forth 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 April 20, 2021, the City Council conducted a duly noticed public hearing to consider the new fees proposed to be adopted; 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 Sections 21080 et seq.) pursuant to Public Resources Code Section 21080(b)(8)(A); and WHEREAS, all requirements of California Government Code Sections 66016 and 66018 are hereby found to have been satisfied. 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 set forth in the Master Fee Schedule ("Master Fee Schedule") attached hereto as Exhibit 1 and incorporated by reference, exceeds the cost to the City of providing the service to which such fee applies. The basis for the fees and charges contained in the Master Fee Schedule is set forth in the Fee Study, which is incorporated herein by this reference and attached hereto as Exhibit 2. The City Council hereby establishes the total cost allocation plan and approves the cost of services analysis as contained in the City's Fee Study. Section 3. The City Council hereby approves and adopts the Master Fee Schedule as the master schedule of fees applicable to specified municipal services provided by the City of Rancho Palos Verdes. Any restatement in the Master Fee Schedule of existing rates and amounts for previously imposed fees is for the purpose of administrative convenience and is not intended, and shall not be construed, as the imposition, extension, or increase of any such fee. Section 4. Costs Reasonably Borne Defined. "Costs reasonably borne," as used and ordered to be applied in this Resolution, shall consist of the following elements: r A. All applicable direct costs including, but not limited to, salaries, wages, overtime, employee fringe benefits, services and supplies, maintenance and operation expenses, contracted services, special supplies, and any other direct expense incurred by the City. B. All applicable indirect costs including, but not restricted to, building maintenance and operations, equipment maintenance and operations, communications expenses, information technology costs, printing and reproduction, vehicle expenses, insurance and like expenses, when distributed, based on an accounted and documented rational proration system. C. Fixed asset recovery expenses, consisting of depreciation of fixed assets, and additional fixed asset expense recovery charges calculated on the current estimated cost of replacement, divided by the approximate life expectancy of the fixed asset were considered and adjusted accordingly by the City Council. D. Citywide support, expressed as a percentage, distributing and charging the expenses of the City Council, City Attorney, City Manager, City Clerk, and Finance and Information Technology Department, and all other staff and support service provided to the Resolution No. 2021-15 111 Page 2 of 6 I entire city organization. Support shall be prorated between tax-financed services and fee- financed services on the basis of said percentage so that each tax and fee and charge shall proportionately defray such support costs. E. Departmental support, expressed as a percentage, distributing and charging the cost of each department head and his or her supporting expenses. F. Debt service costs, if applicable, consisting of repayment of principal, payment of interest, and trustee fees and administrative expenses for all applicable bond, certificate, or securities issues or loans of whatever nature or kind. Any required coverage factors or required or established reserves beyond basic debt service costs also shall be considered, if applicable, as a cost if required by covenant within any securities ordinance, resolution, indenture or general law applicable to the City. Section 5. Fully Burdened Hourly Rates. "Fully Burdened Hourly Rates" attached hereto as Exhibit 2 shall be applied to all trust deposit charges or to fees that are to be collected for which a flat rate or per unit cost cannot be established due to the nature of the regulation, product, or service to be provided. Fully burdened hourly rates shall be consistent with the definition of "costs reasonably borne" as defined above and shall be applied as follows: Direct Hourly Salary (1) + Services and Supplies (2) Direct Expenses + Departmental Support (3) = Fully Burdened Hourly Rate (1) Includes employee salary and benefits and is based on a 1,580 hour productive work year. (2) Proportionate share is based on total departmental services and supplies divided by productive work hours (1,580) times the ratio of the employee's salary and benefits to all department employees' salaries and benefits. (3) Proportionate share is based on the departmental overhead cost divided by productive work hours (1,580) times the ratio of the employee's salary and benefits to all department employees' salaries and benefits. Section 6. Separate Fee for Each Application. All fees set by this resolution are for each identified application that is being processed. Additional fees shall be required for each additional application or service that is requested or required. Where fees are indicated on a per-unit of measurement basis, the fee is for each identified unit or portion thereof within the indicated ranges of such units. Resolution No. 2021-15 Page 3 of 6 Where additional fees need to be charged and collected for completed staff work, or where a refund of excess deposited monies is due, and where such charge or refund is ten dollars ($10.00) or less, a charge or refund need not be made, pursuant to California Government Code Sections 29373.1 and 29375.1 and amendments thereto, and because the cost to the City of processing a refund or collecting the charge will exceed the cost of the refund or charge. City staff has calculated it would cost the City $42.78 to process a refund (0.25 hours of staff time at the Fully Burdened Hourly Rate of $114.17 plus 0.16 hours of staff time at the Fully Burdened Hourly Rate of$89.01), and it would cost the City $37.67 to collect the charge (0.33 hours of staff time at the Fully Burdened Hourly rate of $114.17). Section 7. Trust Deposits. In addition to the fees and charges for an application, each applicant shall be responsible for the full cost of services provided on behalf of the City by outside consultants that have been retained by the City to render services specifically in connection with the processing of the application. Each applicant shall be required to pre-pay, in the form of a trust deposit with the City, the estimated amount of the cost of any such services to be provided in connection with the processing of the application. The trust deposit shall be remitted to the City prior to commencement of covered services. The staff member responsible for processing the application shall establish the initial amount of the trust deposit for a given application. The trust deposit required shall be sufficient to cover the estimated costs of the services to be provided plus the estimated cost of staff time, at the Fully Burdened Hourly Rate, for overseeing outside consultants and administering the trust deposit. Services routinely provided to the City by the City Attorney and other consultants that are included in the Fully Burdened Hourly Rates shall be exempt from this condition. However, the trust deposits shall include the costs of extraordinary services, including, but not limited to, geological reviews, preparation of environmental impact reports and other environmental documentation, and special services by the City Attorney that arise directly from the particular application and are not within the scope of services that are routinely provided to the City. In the event the trust deposit exceeds the actual costs incurred for a particular application, the City will refund the surplus. If, conversely, the actual costs will exceed the amount on deposit, the City shall notify the applicant in writing that additional funds are required to replenish the trust deposit. The applicant shall replenish the trust deposit within ten (10) days of receipt of notice from the City that additional funds are needed; the replenishment amount shall be based upon an estimate by City Staff of the cost of services that will be provided by the City during the next ninety (90) days. If an applicant fails to timely replenish a trust deposit, the City shall suspend all processing of the application until such time as the applicant remits the required additional funds. Section 8. The fees specified in the Master Fee Schedule shall become effective on July 1, 2021; provided, however, that those fees shall not be applicable to any application received by or deemed "complete" by the City prior to July 1, 2021, and such applications shall continue to be subject to the fee schedule in effect when the application was deemed complete. Resolution No. 2021-15 Page 4 of 6 I Section 9. The City Council hereby directs staff to return annually with the Master Fee Schedule for the City Council to review and determine if the fee should be adjusted by the March urban consumer price index (CPI-U) for Los Angeles, Riverside, and Orange County. Based on the results of said annual review, the City Council shall revise such fees, charges and rates as warranted. Section 10. The City Council hereby directs staff to either internally or through a third party, to perform a thorough analysis of fees, charges and rates every five years from the date of this adopted resolution. Based on the results of said periodic review, the City Council shall consider revising such fees, charges and rates as warranted. Until a periodic analysis is completed, and after the fee adjustments detailed in Exhibit 1 are implemented, the City Council may review the fees, charges and rates as often as annually and, after conducting a duly noticed public hearing, may increase the portion of the fees, charges and rates directly related to employee salaries and benefits by the percentage increase in City salaries and benefits, as calculated by comparing the City's most recently adopted budget for City salaries and benefits, divided by the number of full-time employees budgeted for that year, to the adopted budget for City salaries and benefits, divided by the number of full-time employees budgeted, that was in effect on the date of the last adjustment of the fees. Section 10. Any person paying a given fee who feels that any fee or charge determined and set is in excess of the percentage of costs reasonably borne by the City and to be recovered as set out in this Resolution, or has not been reviewed within the review schedule as set forth herein, may appeal in writing to the City Council. Section 11. 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. I Resolution No. 2021-15 Page 5 of 6 PASSED, APPROVED and ADOPTED this 20th day of April 2021. - s .,ALft,' e ' Mayor ATTEST: - / •• DeplAA'y City Clerki State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2021-15, was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on April 20, 2021. die's"Cillad2c -N°141 City Clerk 111 IResolution No. 2021-15 Page 6 of 6