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ORDINANCE NO. 3410 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 3.45 OF THE CHULA VISTA MUNICIPAL CODE (MASTER FEE SCHEDULE) (SECOND READING AND ADOPTION)
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RECOMMENDED ACTION
Recommended Action
Council adopt the ordinance.
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SUMMARY
The City regularly receives requests for fee waivers. Per the Chula Vista Municipal Code and the City’s Master Fee Schedule, the City Manager’s authority to waive fees is limited to the greater of $2,500 or 25% of the fee imposed per the Schedule. Larger fee waivers require Council action. In order to increase efficiency and timeliness in responding to minor fee waiver requests, an increase in the City Manager’s fee waiver authority from $2,500 to $7,500 is recommended. Additional guidance regarding fee waivers is provided in various City Council Policies. Repeal of these policies and consolidation of all fee waiver authority and guidance in the Master Fee Schedule is also recommended.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that this activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The Master Fee Schedule (“Schedule”) is a centralized listing of fees charged by the City for services, administrative acts, and other legally required fees. The Schedule and Chapter 3.45 of the Chula Vista Municipal Code both include provisions for fee reductions, waivers, deferrals, or a combination thereof (generally “waivers”), and identify a Waiving Authority based upon the amount of waiver requested. For waivers less than or equal to the greater of $2,500 or 25% of the fee imposed, Waiving Authority is vested in the City Manager, or their designee. For fee waivers in excess of this threshold, City Council approval is required. Waivers by both the City Manager and the City Council require a public hearing (unpublished, but directly noticed to interested parties).
The dollar limit on the City Manager’s Waiver Authority was established via Ordinance 2506 in 1992, and has remained unchanged since that time. Preparing a fee waiver request for Council consideration requires significant staff expense and approximately three weeks to process. Increasing the City Manager’s waiver authority from $2,500 to $7,500 will reduce the number of fee waivers requiring Council action. Delegating this additional authority to the City Manager will reduce General Fund costs and improve the City’s ability to respond to minor fee waiver requests in a timely manner. Further efficiencies are gained by removing the public hearing requirement. Notice to interested parties will continue to be provided.
Controls to ensure transparency and fairness are also proposed. A maximum annual City Manager waiver amount per organization of $7,500 is recommended, with each school site considered an organization for purposes of the cap. Organizations requesting annual waivers in excess of $7,500 would require Council approval. Transparency and accountability will be achieved through an annual accounting to the City Council of the fees waived by the City Manager, to be provided in conjunction with the regular fourth quarter financial report. Waiver decisions by the City Manager will be appealable to the City Council. Decisions by the City Council will be considered final.
Fee Waiver Authority & Guidance Consolidation
The City has adopted a number of documents addressing the issue of fee waivers, including the previously described language in the Schedule and Municipal Code. Additional guidance can be found in the City Council’s Policy Manual (Policies 200-01, 267-05, and 861-04, see Attachments 1 through 3). Establishing fee waiver authority in multiple documents may lead to confusion and inconsistency. In order to reduce future confusion and errors, consolidating all fee waiver authority and guidance to the Master Fee Schedule (Attachment 4) and repealing the above referenced City Council Policies is recommended.
Master Fee Schedule Administrative Update Authority
Additional edits to explicitly authorize staff to make minor administrative updates to Chapter 1 of the Master Fee Schedule are also recommended. For ease of reference, Chapter 1 provides data and rates that are not subject to approval of the City Council, but that may impact fee payers. For purposes of determining eligibility for low income fee programs, the Master Fee Schedule details the 80% level of median family income for the San Diego Metropolitan Statistical Area, as determined by the federal Department of Housing and Urban Development (HUD). Allowing staff to administratively update the income rates listed will ensure current information is provided to the public. Similarly, the City Council does not take action to approve the City’s fully burdened hourly rates. Allowing staff to administratively update the Master Fee Schedule to reflect current rates supports transparency in the City’s full cost recovery billing.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Standardizing and consolidating fee waiver authority and increasing the authority delegated to the City Manager supports the Operational Excellence goal by increasing efficiency. It also supports the Connected Community goal by reducing barriers to community organizations seeking fee waivers.
CURRENT YEAR FISCAL IMPACT
No appropriations are recommended in conjunction with this item. Increasing the City Manager’s fee waiver authority streamlines the waiver process, increasing efficiency and reducing staff costs. Actual impacts will vary based upon the number of fee waivers that would have required Council action but that are now processed administratively.
ONGOING FISCAL IMPACT
Increasing the City Manager’s fee waiver authority streamlines the waiver process, increasing efficiency and reducing staff costs. Actual impacts will vary based upon the number of fee waivers that would have required Council action but that are now processed administratively. Annual reports to the City Council of fee waivers approved will ensure a transparent process and provide an opportunity for the City Council to provide additional guidance regarding administrative approval of fee waivers in the future.
ATTACHMENTS
1. City Council Policy 200-01: Specific Categories of Development Project Assistance or Fee Subsidies
2. City Council Policy 267-05: Waiver of Fees for Community Service Organizations
3. City Council Policy 861-04: Green Fees at Chula Vista Municipal Golf Course
4. Redline Master Fee Schedule Section 1-100 (General - Introduction)
Staff Contact: Tiffany Allen, Development Services Department