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08.01 Draft Report User Fee Study CJ`_c�.�� 2 e�'� ��-�- DRAFT Report on the Citywide Cost of Services (User Fee) Study �� ;�� ,; �� : ��% �� CITY OF ORANGE, CALIFORNIA � a ��u matrix �� consulting group , April 2018 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 1 2. LEGAL FRAMEWORK AND POLICY CONSIDERATIONS 4 3. USER FEE STUDY METHODOLOGY 7 4. RESULTS OVERVIEW 10 5. CITY CLERK 11 6. COMMUNITY DEVELOPMENT- BUILDING 14 7. COMMUNITY DEVELOPMENT- PLANNING 47 8. COMMUNITY SERVICES- FILMING 52 9. COMMUNITY SERVICES- PARKS AND RECREATION 54 10. FINANCE 63 11. FIRE 67 12. LIBRARY 77 13. POLICE 80 14. PUBLIC WORKS- ENGINEERING 86 15. PUBLIC WORKS- MAINTENANCE 91 16. PUBLIC WORKS-TRAFFIC/TRANSPORTATION 94 17. PUBLIC WORKS-WATER 96 18. COMPARATIVE MARKET SURVEY 101 19. COST RECOVERY 103 DRAFT Cost of Services(User Fee) Study CITY OF OFiANGE, CALIFORNIA 1 . EXECUTIVE SUMMARY The report, which follows, presents the draft results of the Cost of Services (User Fee) Study conducted by the Matrix Consulting Group for the City of Orange. � 1 PROJECT BACKGROUND AND SCOPE OF WORK The Matrix Consulting Group analyzed the cost of service relationships that exist between fees for service activities in the following departments: City Clerk, Community Development, Community Services, Finance, Fire, Library, Police, and Public Works. The results of this Study provide a tool for understanding current service levels, the cost and demand for those services, and what fees for service can and should be charged. i � 2 GENERAL PROJECT APPROACH AND METHODOLOGY The methodology employed by the Matrix Consulting Group is a widely accepted "bottom up" approach to cost analysis, where time spent per unit of fee activity is determined for each position within a Department or Division. Once time spent for a fee activity is determined, all applicable City costs are then considered in the calculation of the "full" cost of providing each service. The following table provides an overview of the cost components used to establish the "full" cost of providing services included in this Study: Table 1: Cost Components Overview Cost Com onent Descri #ion ��, Po�,,,� a �� ,�,��, o��, � �� aA„� „F�,a��Ar�, „�� , �� „�„�rwti ��,a�� ,�� u,o�,�� Direct Fiscal Year 2017/18 Budgeted salaries, benefits and allowable expenditures. Indirect Division and departmental administration / management and clerical support, along with Citywide overhead as calculated through the City's Cost Allocation Plan. Together, the cost components in the table above comprise the calculation of the total "full" cost of providing any particular service, regardless of whether a fee for that service is charged. The work accomplished by the Matrix Consulting Group in the analysis of the proposed fees for service involved the following steps: • Staff Interviews: The project team interviewed City staff regarding their need for clarification to the structure of existing fee items, or for addition of new fee items. Matrix Consulting Group Page 1 DRAFT Cost of Services{User Fee) Study CITY OF ORANGE, CALIFORNIA • Data Collection: Data was collected for each permit / service, including time estimates and volume of activity. In addition, all budgeted costs and staffing levels for Fiscal Year 17/18 were entered into the Matrix Consulting Group's analytical software model. • Cost Analysis:The full cost of providing each service included in the analysis was established. • Review and Approval of Results with City Staff: Department and City management have reviewed and approved these documented results. A more detailed description of user fee methodology, as well as legal and policy considerations are provided in subsequent chapters of this report. �° � 3 CURRENT COST RECOVERY When comparing FY18 fee-related budgeted expenditures with fee-related revenue generated in Fiscal FY17 the City is under-recovering its costs by approximately $4.3 million and recovering about 59% of its fee-related costs annually. The following table outlines these results on a departmental basis: Table 2: Departmental Cost Recovery Based on Fe�Related Revenue& Expenditures Department Revenue at Total Annual Annual Surplus/ Cost Current Fee Cost (Deficit) Recovery% � , ��u,r�,�„ � e�� a,< �, �, d��v�� ,�W�,,, , ,, ��w�,�� a,,�„mm � �� ,��m City Clerk $102,335 $203,222 ($100,887) � 50% Community Development + � � Building $2,755,850 � $3,476,260 ($720,410) i 79% Planning $68,900 $120,819 ($519,919) ! 57% Subtotal $2,732,004 $3,597,079 ($772,329) I 79% Community Services j Filming $3,840 $6,866 ($3,026) � 56% Parks& Recreation $985,329 � $2,021,445 ($1,036,116) � 49% Subtotal $989,169 � $2,028,311 � ($1,039,142) � 49%� Finance $561,994 � $1,818,818 ( ($1,256,824) � 31% Fire $520,420 f $822,248 � ($301,828) � 63% Library $64,623 � $113,298 � ($48,675) I 57°/a Police $512,308 ( $826,572 ( ($314,264) ; 62% Public Works � � i Engineering $261,035 � $460,924 ($199,889) ; 57% Maintenance $26,700 ; $26,772 ($72) � 100% Traffic $25,966 � $25,966 � $0 i 100% Water $253,495 � $484,283 ($230,788) � 52% Subtotal $567,196 � $997,945 ($430,749) � 57% TOTAL $6,142,795 $10,407,493 ($4,264,698) 59% Matrix Consulting Group Page 2 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA The detailed documentation of the Study will show an over-collection for certain fees (on a per unit basis), and an undercharge for others. Overall, the City is providing an annual subsidy to fee payers for fee-related services included in this analysis. The display of the cost recovery figures shown in this report are meant to provide a basis for policy development discussions among Council members and City staff, and do not represent a recommendation for where or how the Council should take action. The setting of the "rate" or "price" for services, whether at 100 percent full cost recovery or lower, is a policy decision to be made only by the Council, often with input from City staff and the community. �;� 4 CONSIDERATIONS FOR COST RECOVERY POLICY AND UPDATES The Matrix Consulting Group recommends that the City use the information contained in this report to discuss, adopt, and implement a formal Cost Recovery Policy, and also to implement a mechanism for the annual update of fees for service. 1 Adopt a Formal Cost Recovery Policy The Matrix Consulting Group strongly recommends that the Council adopt a formalized, individual cost recovery policy for each department included in this Study. Whenever a cost recovery policy is established at less than 100%of the full cost of providing services, a known gap in funding is recognized and may then potentially be recovered through other revenue sources. The Matrix Consulting Group considers a formalized cost recovery policy for various fees for service an industry Best Management Practice. 2 Adopt an Annual Fee Update/Increase Mechanism The purpose of a comprehensive update is to completely revisit the analytical structure, service level estimates and assumptions applied in previous studies, and to account for any major shifts in cost components or organizational structures. The Matrix Consulting Group believes it is a best management practice to perform a complete update of a Fee Assessment every 3 to 5 years. In between comprehensive updates, the City could utilize published industry economic factors such as CPI or other regional factors to update the cost calculations established in the Study on an annual basis. The City could also consider the use of its own anticipated labor cost increases such as step increases, benefit enhancements, or cost of living raises. Alternatively, the project team will provide the City with a user fee model, which can be utilized to update time estimates and costs on an annual basis. Utilizing an annual increase mechanism would ensure that the City receives appropriate fee and revenue increases that reflect growth in costs. Matrix Consulting Group Page 3 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CA�IFOFiNiA 2. LEGAL FRAMEWORK AND POLICY CONSIDERATIONS A "user fee" is a charge for service provided by a governmental agency to a public citizen or group. In California, several constitutional laws such as Propositions 13, 4, and 218, State Government Codes 66014 and 66016, and more recently Prop 26 and the Attorney General's Opinion 92-506 set the parameters under which the user fees typically administered by local government are established and administered. Specifically, California State Law, Government Code 66014(a), stipulates that user fees charged by local agencies "...may not exceed the estimated reasonable cost of providing the service for which the fee is charged". � 1 GENERAL PRINCIPLES AND PHILOSPHIES REGARDING USER FEES � Local governments are providers of many types of general services to their communities. While all services provided by local government are beneficial to constituents, some services can be classified as globally beneficial to all citizens, while others provide more of a direct benefit to a specific group or individual. The following table provides examples of services provided by local government within a continuum of the degree of community benefit received: Table 3: Services in Relation to Benefit Received "Globai" Community Benefi# Global" Benefit and an �n�ovidual or Group Benefit Individual or Group Senefit «� � „��,9, ��.,ro��o�� <�� , W�d��,�a<��,�,� �� ,�,�,,�,�� ,��,�� a�m�� • Police i • Recreation/Community �• Building Permits • Park Maintenance I Services • Planning and Zoning Approval � • Fire Suppression / • Site Plan Review �� Prevention I • Engineering Development Review Facility Rentals ,o.e� ,,,��„_ ., ��A �� a��,�,b�, � ,4�.,..e� �o�, �,,,�,�,,,,,..�� „ ,,rem„��,�,�, .., ............. Funding for local government is obtained from a myriad of revenue sources such as taxes, fines, grants, special charges, user fees, etc. In recent years, alternative tax revenues, which typically offset subsidies for services provided to the community, have become increasingly limited. These limitations have caused increased attention on user fee activities as a revenue source that can offset costs otherwise subsidized (usually) by the general fund. In Table 3, services in the"global benefit"section tend to be funded primarily through voter approved tax revenues. In the middle of the table, one typically finds a mixture of taxes, user fee, and other funding sources. Finally, in the "individual / group benefit" section of the table, lie the services provided by local government that are typically funded almost entirely by user fee revenue. Matrix Consulting Group Page 4 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CA�IFORNIA The following are two central concepts regarding the establishment of user fees: • Fees should be assessed according to the degree of individual or private benefit gained from services. For example, the processing and approval of a land use or building permit will generally result in monetary gain to the applicant, whereas Police services and Fire Suppression are examples of services that are essential to the safety of the community at large. • A profit-making objective should not be included in the assessment of user fees. In fact, California laws require that the charges for service be in direct proportion to the costs associated with providing those services. Once a charge for service is assessed at a level higher than the actual cost of providing a service, the term "user fee" no longer applies. The charge then becomes a tax subject to voter approval. Therefore, it is commonly accepted that user fees are established at a level that will recover up to, and not more than, the cost of providing a particular service. �0 2 GENERAL POLICY CONSIDERATIONS REGARDING USER FEES F Undoubtedly, there are programs, circumstances, and services that justify a subsidy from a tax based or alternative revenue source. However, it is essential that jurisdictions prioritize the use of revenue sources for the provision of services based on the continuum of benefit received. Within the services that are typically funded by user fees, the Matrix Consulting Group recognizes several reasons why City staff or the Council may not advocate the full cost recovery of services. The following factors are key policy considerations in setting fees at less than 100 percent of cost recovery: • Limitations posed by an external agency. The State or an outside agency will occasionally set a maximum, minimum, or limit the jurisdiction's ability to charge a fee at all. An example includes time spent copying and retrieving public documents. • Encouragement of desired behaviors. Keeping fees for certain services below full cost recovery may provide better compliance from the community. For example, if the cost of a permit for changing a water heater in a residential home is higher than the cost of the water heater itself, many citizens will avoid pulling the permit. • Effect on demand for a particular service. Sometimes raising the "price" charged for services might reduce the number of participants in a program. This is largely the case in Recreation programs such as camps or enrichment classes, Matrix Consulting Group Page 5 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA where participants often compare the City's fees to surrounding jurisdictions or other options for leisure activities. • Benefit received by user of the service and the community at large is mutual. Many services that directly benefit a group or individual equally benefit the community as a whole. Examples include Recreation programs, Planning Design Review, historical dedications and certain types of special events. The Matrix Consulting Group recognizes the need for policies that intentionally subsidize certain activities. The primary goals of a User Fee Study are to provide a fair and equitable basis for determining the costs of providing services and assure that the City is in compliance with State law. Once the full cost of providing services is known, the next step is to determine the "rate" or "price" for services at a level which is up to, and not more than the full cost amount. The City Council is responsible for this decision, which often becomes a question of balancing service levels and funding sources. The placement of a service or activity within the continuum of benefit received may require extensive discussion and at times fall into a "grey area". However, with the resulting cost of services information from a User Fee Study, the Council can be assured that the adopted fee for service is reasonable, fair, and legal. Matrix Consulting Group Page 6 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 3. USER FEE STUDY METHODOLOGY The Matrix Consulting Group utilizes a cost allocation methodology commonly known and accepted as the "bottom-up" approach to establishing User Fees. The term means that several cost components are calculated for each fee or service. These components then build upon each other to comprise the total cost for providing the service. The components of a full cost calculation are typically as follows: Table 4: Full Cost Calculation Components Cost Component Descri tion �� , <o a�a�d ,r ,�R.�,� ,.�,.�ti �, ��d��w,,. „<,,. � , o.��, ��a� : �.�� ,��„ o,� ,,� ,, �, , a„a. � .., Direct Salaries, benefits and direct divisional expenditures. Departmental Overhead Division or Departmental administration /management and clerical support. City costs associated with central services such as payroll, human Citywide Overhead resources, budgeting, City management, etc. Calculated by the City through a separate study. The general steps utilized by the project team to determine allocations of cost components to a particular fee or service are: • Calculate fully burdened hourly rates by position, including direct & indirect costs; • Develop time estimates for each service included in the study; • Include any actual material costs and equipment rental rates; • Ensure that not more than 100% of a position's time is allocated between fee & non-fee services. The results of these allocations provide detailed documentation for the reasonable estimate of the actual cost of providing each service. The following sections highlight critical points about the use of time estimates and the validity of the analytical model. 1 TIME ESTIMATES ARE A MEASURE OF SERVICE LEVELS REQUIRED TO �� PERFORM A PARTICULAR SERVICE One of the key study assumptions utilized in the "bottom up" approach is the use of time estimates for the provision of each fee related service. Utilization of time estimates is a reasonable and defensible approach, especially since experienced staff inembers who understand service levels and processes unique to the City of Orange developed these estimates. Matrix Consulting Group Page 7 DRAFT Cost of Services{User Fee) Study CITY OF ORANGE, CALIFORNIA The project team worked closely with Departmental staff in developing time estimates with the following criteria: • Estimates are representative of average times for providing services. Estimates for extremely difficult or abnormally simple projects are not factored into this analysis. • Estimates reflect the time associated with the position or positions that typically perform a service. • Estimates provided by staff are reviewed and approved by the division / department, and often involve multiple iterations before a Study is finalized. • Estimates are reviewed by the project team for "reasonableness" against their experience with other agencies. • Estimates were not based on time in motion studies, as they are not practical for the scope of services and time frame for this project. The Matrix Consulting Group agrees that while the use of time estimates is not perfect, it is the best alternative available for setting a standard level of service for which to base a jurisdiction's fees for service and meets the requirements of California law. The alternative to time estimating is actual time tracking, often referred to billing on a"time and materials" basis. Except in the case of anomalous or sometimes very large and complex projects, the Matrix Consulting Group believes this approach to not be cost effective or reasonable for the following reasons: • Accuracy in time tracking is compromised by the additional administrative burden required to track, bill, and collect for services in this manner. • Additional costs are associated with administrative staff's billing, refunding, and monitoring deposit accounts. • Customers often prefer to know the fees for services in advance of applying for permits or participating in programs. • Applicants may request assignment of less expensive personnel to their project. • Departments can better predict revenue streams and staff needs using standardized time estimates and anticipated permit volumes. Situations arise where the size and complexity of a given project warrants time tracking and billing on a "time and materials" basis. The Matrix Consulting Group has Matrix Consulting Group Page 8 DRAFT Cost of Services(User Fee) S#udy CITY OF ORANGE, CALIFORNIA recommended taking a deposit and charging Actual Costs for such fees as appropriate and itemized within the current fee schedule. 2 CROSS CHECKS ENSURE THE VALIDITY OF OUR ANALYTICAL MODEL In addition to the collection of time estimate data for each fee or service included in the User Fee Study, annual volume of activity data assumptions is also a critical component. By collecting data on the estimated volume of activity for each fee or service, a number of analyses are performed which not only provide useful information regarding allocation of staff resources, but also provide valuable cross checks that ensure the validity of each model. This includes assurance that 100% of staff resources are accounted for and allocated to a fee for service, or "other non-fee" related categories. Since there are no objectives to make a profit in establishing user fees, it is very important to ensure that services are not estimated at a level that exceeds budgeted resource capacity. By accounting for not more than 100% of staff resources, no more than 100% of costs will be allocated through the Study. Matrix Consulting Group Page 9 DRAFTCos#of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 4. RESULTS OVERVIEW The motivation behind a cost of services (User Fee) analysis is for the City Council and Departmental staff to maintain services at a level that is both accepted and effective for the community, and also to maintain control over the policy and management of these services. It should be noted that the results presented in this report are not a precise measurement. In general, a cost of service analysis takes a "snapshot in time", where a fiscal year of adopted budgeted cost information is compared to the same fiscal year of revenue, and workload data available. Changes to the structure of fee names, along with the use of time estimates allow only for a reasonable projection of subsidies and revenue. Consequently, the Council and Department staff should rely conservatively upon these estimates to gauge the impact of implementation going forward. Discussion of results in the following chapters is intended as a summary of extensive and voluminous cost allocation documentation produced during the Study. Each chapter will include detailed cost calculation results for each major permit category including the following: • Modifications or Issues: discussions regarding any revisions to the current fee schedule, including elimination or addition of fees. • "Per Unit" Results: comparison of the full cost of providing each unit of service to the current fee for each unit of service (where applicable). • Annualized Results: utilizing volume of activity estimates annual subsidies and revenue impacts were projected. • Jurisdictional Comparison: a brief comparison of current permits and services with other local jurisdictions. The full analytical results were provided to Department staff under separate cover from this summary report. Matrix Consulting Group Page 10 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 5. CITY CLERK The City Clerk primarily serves to provide support to City Council and administer elections on behalf of the City. The Department also serves as the Records Manager on behalf of the City and provides customer service through administering passport services. The fees examined within this study relate to typical City Clerk services such as provision of municipal code books, records (Paper and Electronic), and Passport Fees. � 1 FEE SCHEDULE MODIFICATIONS In discussions with staff in the City Clerk Department, there were no significant modifications made to the fee schedule. The primary modification related to the removal of the Audio Tape and Video Tape copies as those media are no longer provided by the City. The DVD Copy fee was expanded to include the term CD, resulting in DVD (video) and CD (audio) copy being represented through one fee line item. � 2 DETAILED RESULTS �y ,F The City Clerk Department provides services as it relates to provision of Municipal Code Book, Subpoena for Records, and Passport Processing. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title /name, current fee, total cost, and surplus or deficit associated with the City Clerk. Table 5:Total Cost Per Unit Results—City Clerk Current Total Cost Surplus/ Fee Name Fee Per Unit �Deficit) per Unit Document Certification �� " � � �� $6 � � �� ' ��$27 ($22)� Filing of Circulators of an Initiative $200 $329 ($129) Orange Municipal Code Book $52 $600 ($548) Orange Municipal Code Supplement(3 times per year) $40 $50 ($10) Subpoena for Records (Evidence Code Section 1563) $15 $24 ($9) Witness/Subpoena Fee (Govt Code Section 68096.1) $150 $24 $126 - per day deposit Photocopy: Election-Related $0.10 $0.88 ($0.78) Black &White $0.15 $0.88 ($0.73) Color Copy $0.25 $0.88 ($0.63) Information Requests-per hour $0 $73 ($73) CD/DVD Copy $10 $28 ($18) Passport Processing $25 $55 ($30) Passport Photo � $10. �$12 ($2) Matrix Consulting Group Page 11 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA A majority of the fees relating to City Clerk are set by the state and shown an under- recovery. The average per unit recovery for the City Clerk is approximately 89%. The largest under-recovery, at $548, is associated with the municipal code book while the largest over-recovery ($126) is related to the Witness /Subpoena Fee. � 3 ANNUALREVENUEIMPACTS The City Clerk is currently under-recovering its fee-related costs associated with its services by approximately $101,000. The following table shows the annual workload volume for FY 17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 6: Annual Results—City Clerk Fee Name Annual Volume �evenue at Ar�nua! Annual Surplus Current Fee Cost 1{Deficit) 0 �� ,.,,d.,, . , � �. � , 7 � ��,.,� a �,., �, Document Certification 98 $490 $2,684 ($2,194)� Passport Processing 3,183 $79,575 $173,554 ($93,979) Passport Photo 2,227 $22,270 $26,984 ($4,714) TOTAL $102,335 $203,222 $(100,887) Overall, the City Clerk is recovering approximately 50% of its fee-related costs. The largest source of the City's deficit relates to the Passport Processing fee at approximately $94,000. However, as that fee is set by the Federal Government, the City Clerk will not be able to increase that fee to recover its costs. � 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsections provide a comparative look at two of the City Clerk Services evaluated. 1 Document Certification The City is currently charging $5 for pocument Certification. This study has assessed the full cost of providing Document Certification at $27, resulting in a $22 deficit. The City certified 98 documents in the last fiscal year, therefore, this is a high volume activity for the City. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 12 DRAFTCost of Services(User Fee) Study CITY OF OFiANGE, CA�IFORNIA Document Certification -3 pages $30 $25 � $20 a� � ��5 �Review Fee � � $10 Average $5 $- °' c � o �' � o �a� �U a� a m3 a' oo � C7 �U �o � � c Q�� u� � � c7 As the graph indicates, the total cost for the City of Orange to certify documents is significantly higher than the fee being assessed by other jurisdictions. The current fee level for document certification for the City of Orange while higher than the average, is in compliant with State regulations. 2 CD/DVD Copy The City is currently charging $10 for CD / DVD copies, while it is costing them $28 to provide this service, resulting in a per unit deficit of $18. The City did not process any CD /DVD copies in the last fiscal year, however, this is a common fee charged by many local jurisdictions. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. CD/DVD Copy $30 $25 � $20 "- �Review Fee �- $15 �E � $10 Average $5 $- �c @Jo �' c a�i > rn a� �U a� Q � o � j � o o � � OU `�o� � �� O�� v� As the graph above indicates the City of Orange is charging below the average fee seen for CD /DVD Copies and has the potential to increase the fee and still be in line with other jurisdictions. Matrix Consulting Group Page 13 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 6. COMMUNITY DEVELOPMENT - BUILDING The Building Division is responsible for conducting inspections of development projects to ensure compliance with local and state building codes. Additionally, the Division oversees the plan check and permit issuance process for all development projects within the City of Orange and coordinates with any other City Departments involved in the process. The fees examined within this study relate to Building Plan Check, Inspection, Mechanical, Electrical, Plumbing, and other Miscellaneous Building Permit Fees. The following subsections discuss modifications to the current fee, the total cost per unit results, the annual implications of the results, and a jurisdictional comparison. �� 1 FEE SCHEDULE MODIFICATIONS During discussions with Building Division staff there were several modifications made to the Fee Schedule. The primary modification related to converting the Building Division from being on a valuation-based plan check and inspection fee schedule to a schedule based upon square footage, occupancy type, and construction type of the project. Additionally, the project team worked with staff to identify flat fees for common miscellaneous permits such as Residential Remodels, Reroofs, Patios, Photovoltaic Systems, Fences, Walls, Windows, etc. The addition of these items as flat fees will simplify the administration process at the counter and also better inform the customers of their fees up front. Another new fee that was added to the fee schedule was a Technology Fee that can be assessed based upon the percentage of the valuation of the development project. 2 DETAILED RESULTS— MECHANICAL, ELECTRICAL, AND PLUMBING FEES The Building Division currently assesses a variety of standalone fees for mechanical, electrical, and plumbing permits. The total cost calculated for each service includes direct staff costs, direct material costs(where applicable), Departmental and Citywide overhead. The following table details the title / name, current fee, total cost, and surplus or deficit associated with each Mechanical, Electrical, and Plumbing permit. Table 7:Total Cost Per Unit Results—Mechanical, Electrical, Plumbing,etc. Fee Name Current Total Cost Per Surplus/ Fee Unit (Deficit) per Unit BUILDING DIVISION: ��,��Po��, ��,��„��,��„�m„�m��,�d<��n�� ,��d,v,� Inspection outside of normal business hours-3 hr min $270 $466 ($196) Re-inspection fees during business hours-3 hr min $180 $311 ($131) Inspection for which no fee is indicated -3 hr min $180 $311 ($131) Matrix Consulting Group Page 14 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Fee Name Current Total Cost Per Surplus/ Fee Unit (Deficit) per Unit �Plan review for changes,additions,�and revisions to��$81 �� 113 �� ($32) � plan - 1 hr min Change of Occupancy, requiring new C. of O. - 1/2 hr $30 $48 ($18) min. Security Plan Check-2 hr min $227 ($227) Alternate Materials or Methods Request- 1/2 hr min. $40 $57 ($17) Records Research - 1/2 hr min $48 ($48) ELECTRICAL: Service or Panel: 600V- 200 amp $100 $104 ($4) 200-1,000 amp $110 $104 $6 1,000+ amps $120 $207 ($87) Self Contained Appliances $20 $0 $20 Outlets-per item $2 $10 ($8) Lights-per item $2 �� ($8) Switches- per item $2 $10 ($8) Power Equipment: Up to 1 HP or to 1 kva $25 $52 ($27) Over 1 HP $35 $104 ($69) Sign & Circuit(electrical portion only) $100 $104 ($4) Temporary Power- (main pole of equipment) $40 $52 ($12) Temporary Power-distance poles-per pole $40 $52 ($12) Busways $65 $104 ($39) Factory Wired Appliance $10 $52 ($42) Private street Light $100 $104 ($4) Issuance Fee $15 $48 ($33) Plan Review- 1/2 hr min $40 $57 ($17) Inspection of Solar Panel System- 1/2 hr min. $30 $52 ($22) Inspection of items not listed - 1/2 hr min $30 $52 ($22) Re-inspection fee- 1/2 hr min $30 $52 ($22) PLUMBING: Water Closet $15 $52 ($37) Urinal $15 $52 ($37) Bathtub(including shower head) $15 $104 ($89) Shower Stall $15 $104 ($89) Kitchen Sink $15 $52 ($37) Dishwasher $15 $52 ($37) Garbage Disposal $15 $52 ($37) Cfothes Washer $15 $52 ($37) Water Heater $15 $104 ($89) Sewer(new, add, alter, repair) $15 $104 ($89) Water Softener $15 $52 ($37) Clothes Dryer $15 $104 ($89) Gas Piping - per outlet $15 $21 ($6) Miscelianeous Fixtures $15 $104 ($89) Lawn Sprinklers $15 $52 ($37) Industrial Waste Receptors $15 $104 ($89) Drainage Piping (alter, repair) $15 $52 ($37) Drinking Fountain $15 $52 ($37) Matrix Consulting Group Page 15 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Fee Name Current Total Cost Per Surplus/ Fee Unit (Deficit) per Unit ��,�� ,��,�� „�„�� ,�� o��,�� Roof Drainage System $15 $104 ($89)� Cesspool $15 $104 ($89) Septic Tank $50 $293 ($243) Backflow Devices- per device $15 $104 ($89) Solar Systems(plumbing portion) $50 $167 ($117) Issuance Fee $15 $44 ($29) Plan Review- 1/2 hr min $40 $63 ($23) Inspection of Solar Panel System - 1/2 hr min. $30 $52 ($22) Inspection of items not listed - 1/2 hr min $30 $52 ($22) Re-inspection fee- 1/2 hr min $30 $52 ($22) MECHANICAL: Heater- less than 100,000 BTU $45 $104 ($59) Heater-greater than 100,000 BTU $55 $155 ($100) Air Conditioner: 0-100,000 BTU $25 $104 ($79) 100,000-1,000,000 BTU $40 $155 ($115) 1,000,000+ BTU $55 $207 ($152) Air Handler- 10,000 CFM or less $45 $104 ($59) Air Handler-over 10,000 CFM $55 $155 ($100) Evaporative Cooler $55 $78 ($23) Ventilation Fan $15 $52 ($37) Fans $15 $52 ($37) Grease Hoods $15 $207 ($192) Mechanical Firebox (metal Fireplace) $15 $104 ($89) Registers (inlet or out�et) $15 $10 $5 Issuance Fee $15 $48 ($33) Plan Review- 1/2 hr min $40 $48 ($8) Inspection of Solar Panel System - 1/2 hr min. $30 $52 ($22) Inspection of Items not listed- 1/2 hr min $30 $52 ($22) Re-inspection fee- 1/2 hr min $30 $52 ($22) NEW FEES: Pool /Spa $165 $207 ($42) Kitchen/Bathroom Remodel (less than 500 sq. ft.) $452 $575 ($124) Technology Fee-°/a Of V8luatlOn 0.04% Code Compliance Fees: Special Promotion (Banner) Permit $60 $275 ($215) Special Event Application/ Permit $60 $2,577 ($2,517) Reinspection Fee $299 As the table above indicates, the Building Division is recovering for the majority of its fees as it relates to the Mechanical, Electrical, and Plumbing Fees. The largest source of under-recovery for the Division is related to the Special Event Application / permit at $2,517 per unit. Followed by that large per unit under-recovery, the second highest under- recovery is$243 per unit for a Septic Tank. The average per unit recovery for the Division is 44%. Matrix Consulting Group Page 16 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 3 TECHNOLOGY UPDATE FEE Through the Building Division fee study, the project team worked with Department staff to identify a Technology Fee. The Technology Fee is a fairly common fee that is assessed by a variety of jurisdictions. The purpose of the fee is to help fund the ongoing maintenance costs of the permitting software, as well as obtain funding to update the permitting software system as necessary. The fee is similar in nature to the General Plan Update Fee and as such, in order to remain consistent, the project team calculated the Technology Fee as a percentage of Project Valuation. As the Mechanical, Electrical, and Plumbing Cost per Unit Results show, the total cost calculated for the Technology Update Fee is 0.04% of project valuation. Similar to the General Plan Update Fee, a separate fund should be established for the Technology Update Fee. At the issuance of every building permit, 0.04% of the project valuation will be used to assess a technology fee. The Technology Fee will then be deposited in a separate fund within the City and used to pay for any permitting maintenance or software upgrades as necessary. In order for a Technology Fee to be established and compliant with best management practices and regulations, a separate fund must be created for collection. �F � 4 DETAILED RESULTS — MISCELLANEOUS FEES � As discussed in the modification section, the Building Division is transitioning to a square- footage based fee schedule; therefore, miscellaneous services such as re-roofs, photovoltaic systems, porches, walls, decks, retaining walls, and fences that were previously assessed based upon valuation will be assessed on a flat fee. The development of a flat fee for these services will simplify the current building schedule for administration purposes from the customer and staff perspective. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title / name, and the total cost calculated for these services. While there is a current fee for these services, because it is based on valuation it is extremely variable and therefore not shown in this table. Table 8:Total Cost Per Unit Results—Miscellaneous Fees Work Item Unit Total Cost Per Unit Antenna—Telecom Facility �� Cellular/Mobile Phone, free-standing each $311 Cellular/Mobile Phone, attached to building each $311 ArborlTrellis each $311 Matrix Consulting Group Page 17 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Work Item Unit Total Cost Per Unit � �� <�� ,� �� Awning/Canopy(supported by buildin�) each $177 Balcony addition each $281 Carport each $495 Chimney Repair each $177 Close Existing Openings Interior wall each $149 Exterior wall each $172 Covered Porch each $252 Deck (wood) each $252 Deck Railing each $173 Demolition (up to 3,000 sf) Commercial each $242 Residential each $222 Disabled Access Compliance Inspection per hour $284 Door New door(non structural) each $166 New door(structural shear wall/masonry) each $166 Fence Over 6 ft. in height up to 100 If $166 Each addl 100 If each 100 If $18 Fireplace Masonry each $325 Pre-Fabricated/Metal each $242 Flag pole(over 20 feet in height) each $242 Foundation Repair each $335 Garage(detached) Wood frame up to 1,000 sf each $427 Masonry up to 1,000 sf each $510 Modular Structures Partition—Commercial, Interior(up to 30 If) up to 30 If $114 Additional partition each 30 If $43 Partition—Residential, Interior(up to 30 If) up to 30 If $114 Additional partition each 30 If $43 Patio Cover Wood frame up to 300 sf $252 Metal frame up to 300 sf $252 Other frame up to 300 sf $229 Additional patio each 300 sf $99 Enclosed, wood frame up to 300 sf $266 Enclosed, metal frame up to 300 sf $266 Enclosed, other frame up to 300 sf $276 Additional enclosed patio each 300 sf $99 Photovoltaic System Residential each $309 Commercial up to 10 kw $535 Commercial, each additional 1 kilowatt each 1 kw $58 Pile Foundation Cast in Place Concrete (first 10 piles) up to 10 $577 Additional Piles (increments of 10) each 10 $577 Driven (steel, pre-stressed concrete) up to 10 $577 Matrix Consulting Group Page 18 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Work Item Unit Total Cost Per Unit �� Additional Piles (increments of 10) �� each 1�0�� $577 Product Review per hour $120 Re-roof Residential each $254 Multi-Family Dwelling up to 500 sf $706 Commercial up to 500 sf $817 Commercial Addition each 500 sf $420 Retaining Wall (concrete or masonry) Standard (up to 50 If) up to 50 If $381 Additional retaining wall each 50 If $58 Special Design, 3-10' high (up to 50 If) up to 50 If $415 Additional retaining wall each 50 If $58 Special Design, over 10' high (up to 50 If) up to 50 If $433 Additional retaining wall each 50 If $58 Gravity/Crib Wall, 0-10' high (up to 50 If) up to 50 If $194 Additional Gravity/Crib Wall each 50 If $58 Gravity/Crib Wall, over 10' high (up to 50 If) up to 50 If $309 Additional Gravity/Crib Wall each 50 If $58 Roof Structure Replacement up to 100 sf $214 Additional roof structure replacement each 100 sf $43 Sauna—steam each $171 Siding $0 Stone and Brick Veneer(interior or exterior) up to 400 sf $143 All Other up to 400 sf $166 Additional siding each 400 sf $57 Signs $0 Directional each $214 Ground/Roof/Projecting Signs each $164 Master Plan Sign Check each $0 Rework of any existing Ground Sign each $136 Other Sign each $136 Wall/Awning Sign, Non-Electric each $194 Wall, Electric each $194 Skylight $0 Less than 10 sf each $85 Greater than 10 sf or structural each $143 Stairs—First Flight first flight $171 Each additional flight per flight $48 Storage Racks $0 0-8' high (up to 100 If) first 100 If $115 each additional 100 If each 100 If $58 over 8' high (up to 100 If) first 100 If $171 each additional 100 If each 100 If $58 Supplemental Plan Check Fee(after 3rd review) per hour $120 Supplemental Inspection Fee per hour $111 Swimming PooVSpa Vinyl-lined (up to 800 sf) each $512 Fiberglass each $535 Gunite (up to 800 sf) each $535 Additional pool (over 800 sf) each 100 sf $231 Matrix Consulting Group Page 19 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Work item Unit Total Cost Per Unit �na ,��,�� ,��,�o��,�� , , ��.=,��P p�,,,,uu��,��,�� Commercial pool (up to 800 sf) each $572 Commercial pool (over 800 sf) each $572 Spa or Hot Tub (Pre-fabricated) each $225 Window or Sliding Glass Door Replacement each $108 New Window(non structural) each $136 New window(structural shear wall/masonry) each $309 Bay Window(structural) each $309 As the table above and on the previous pages indicate, there are a variety of fees that are being added to the Building Fee Schedule. As discussed previously, implementing these items as flat fees provides residents and developers with an easier calculation for commonly requested services. � 5 DETAILED RESULTS — PLAN CHECK AND INSPECTION SERVICES � The Building Division currently calculates the majority of its services based off of the valuation of the project. However, during discussions with Division and City staff, it was determined that the Building Division should transition to a square footage and occupancy-based fee schedule. Converting from a valuation-based fee schedule to a square-footage based fee schedule provides the Division with a stable, more defensible methodology for calculating fees, and is much more reflective of actual staff services and cost. While this is a conceptual change, it also may require additional internal processes and support during the initial transition. For example, the City's current permitting system may need to be updated in order to incorporate the new fee schedule. Additionally, staff may want to reach out to the building community to inform them of these changes, and work with them in understanding the City's motivations as well as the benefits associated with the new schedule. The square footage, occupancy, and construction-based fee schedule is comprehensive, but enables the Division to most accurately account for fees for a development project based upon different factors. Additionally, the square footage and occupancy-based schedule enables the Division to capture the complexity of the project without relying on valuation. Transitioning away from a valuation-based fee schedule eliminates the need for updating a valuation or relying upon developer estimates for valuation. It simplifies the data collection and fee administration process at the counter, as the permit technician will simply utilize square footage and occupancy type to calculate the fee. The following pages show the Plan Check and Inspection fee schedules for New Construction and Tenant Improvements for the City of Orange. Matrix Consulting Group Page 20 DRAFTCost oi Services(User Fee)Study CITY OF ORANGE,CALIFORNIA Table 9:Total Cost Per UnR Results-Plan Check Fees Construction Type Construction Type Construction Type IA IB IIA,IIB,III IIIB,IV VA,VB Project Base Cost @ Cost for Each Base Cost @ Cost for Each Base Cost @ Cost for Each �gC Size Threshold Additionai Threshold Additiona1100 Threshold Additiona1100 Class IBC Occu anc T Threshoid Size 100 sf* Size sf* Size sf* A-1 Assembl -Fixed Seatin 500 $815 $40.7475 $679 $33.9563 $543 $27.1650 Theater,Concert Hall 2,500 $1,630 $19.5600 $1,358 $16.3000 $1,087 $13.0400 5,000 $2,119 $13.0400 $1,766 $10.8667 $1,413 $8.6933 _ 10,000 $2,771 $32600 $2,309 $2.7167 $1,847 $2.1733 _ - 25,000 $3,260 $10.4400 $2,717 $8.7000 $2,173 $6.9600 - - 50,000 $5,870 $11.7400 $4,892 $9.7833 $3,913 $7.8267 A-2 Assembl-Food 8 Drink 500 $1,589 $79.4588 $1,324 $66.2156 $1,060 $52.9725 Restaurant,Ni ht Club,Bar 2,500 $3,179 $38.1600 $2,649 $31.8000 $2,119 $25.4400 5,000 $4,133 $25.4100 $3,444 $21.175Q $2,755 $16.9400 10 000 $5,403 $6.3550 $4 503 $5.2958 $3,602 $4.2367 25,000 $6,356 $20.3550 $5,297 $16.9625 $4�238 $13.5700 50,000 $11,445 $22.8900 $9,538 $19.0750 $7,630 $15.2600 A-3 Assembl -Worshi ,Amusement 500 $1,834 $91.7025 $1,528 $76.4188 $1,223 $61.1350 - Arcade,Church,Communit Hall 2,500 $3,668 $43.9950 $3,057 $36.6625 $2,445 $29.3300 5,000 $4,768 $29.3550 $3,973 $24.4625 $3,179 $19.5700 _ 10,000 $6,236 $7.3300 $5,196 $6.1083 $4,157 $4.8867 _ - 25,000 $7,335 $23.4600 $6,113 $19.5500 $4,890 $15.6400 50,000 $13,200 $26.4000 $11,000 $22.0000 $8,800 $17.6000 A-4 Assembl-Indoor S ort Viewin 500 $1,467 $73.3620 $1,223 $61.1350 $978 $48.9080 Arena,Skatin Rink,Tennis Court 2,500 $2 934 $35.1960 $2,445 $29.3300 $1,956 $23.4640 5,000 $3 814 $23.4840 $3,179 $19.5700 $2 543 $15.6560 10,000 $4,988 $5.8640 $4,157 $4.8867 $3,326 $3.9093 25,000 $5,868 $18.7680 $4,890 $15.6400 $3,912 $12.5120 50,000 $10,560 $21.1200 $8,800 $17.6000 $7 040 $14.0800 A-5 Assembl -OutdoorActivities 1,000 $856 $21.3938 $713 $17.8281 $571 $14.2625 Amusement Park,Bleacher,Stadium 5,000 $1,712 $10.2600 $1,426 $8.5500 $1,141 $6.8400 10,000 $2,225 $6.8550 $1,854 $5.7125 $1,483 $4.5700 20,000 $2,910 $1.7000 $2,425 $1.4167 $1,940 $1.1333 _ - 50,000 $3,420 $5.4900 $2,850 $4.5750 $2,280 $3.6600 100,000 $6,165 $6.1650 $5,138 $5.1375 $4,110 $4.1100 Matrix Consulting Group Pa9e 21 DRAFT Cost of Services(User Fee)Study CITY OF ORANGE,CAUFORNIA Construction Type Construdion Type Construction Type IA IB II 118 III 1116 IV VA VB Project Base Cost @ Cost for Each Base Cost @ Cost for Each Base Cost @ Cost for Each IBC Size Threshold Additional Threshold Additiona1100 Threshoid Additiona1100 Class IBC Occu anc T Threshold Size 100 sf* Size sf* Size sf* A A Occu nc Tenant Im rovements 500 $367 $18.3375 $306 $15.2813 $245 $12.2250 2,500 $734 $8.7900 $611 $7.3250 $489 $5.8600 - - 5,000 $953 $5.8650 $794 $4.8875 $636 $3.9100 10,000 $1,247 $1.4650 $1,039 $12208 $831 $0.9767 25,000 $1,466 $4.6950 $1,222 $3.9125 $9�8 $3.1300 - - 50,000 $2,640 $5.2800 $2,200 $4.4000 $1,760 $3.5200 B Business-ProfessionalOffice t,000 $1,589 $39.7275 $1,325 $33.1063 $1,060 $26.4850 - - 5,000 $3,179 $19.0800 $2,649 $15.9000 $2,119 $12.7200 - - 10,000 $4,133 $12.7050 $3,444 $10.5875 $2,755 $8.4700 - - 20,000 $5,403 $3.1900 $4,503 $2.6583 $3,602 $2.1267 - - 50,000 $6,360 $10.1700 $5,300 $8.4750 $4,240 $6.7800 - - 100,000 $11,445 $11.4450 $9,538 $9.5375 $7,630 $7.6300 B B Occu anc Tenant im rovements 150 $1,284 $213.9450 $1,070 $178.2875 $856 $142.6300 - 750 $2,567 $102.7050 $2139 $85.5875 $1,712 $68.4700 - - 1500 $3,338 $68.4600 $2,781 $57.0500 $2,225 $45.6400 - 3,000 $4,365 $17.1100 $3,637 $14.2583 $2,910 $11.4067 - - 7,500 $5,135 $54.7800 $4,279 $45.6500 $3,423 $36.5200 - - 15,000 $9,243 $61.6200 $7,703 $51.3500 $6,162 $41.0800 E Educational-Grou Occu aric 1,000 $2,873 $71.8163 $2,394 $59.8469 $1,9t5 $47.8775 - 6+ ersons,u to the 12th Grade 5,000 $5,746 $34.4850 $4,788 $28.7375 $3,83t $22.9900 - - 10,000 $7,470 $22.9800 $6,225 $19.1500 $4,980 $15.3200 - - 20,000 $9,768 $5.7400 $8,140 $4.7833 $6,512 $3.8267 - - 50,000 $11,490 $18.3900 $9,575 $15.3250 $7,660 $12.2600 100,000 $20,685 $20.6850 $17,238 $17.2375 $13,790 $13.7900 E E Occu an Tenantim rovements 500 $1,467 $73.3463 $1,223 $61.1219 $978 $48.8975 - 2,500 $2,934 $35.2200 $2,445 $29.3500 $1,956 $23.4800 5,000 $3,815 $23.4600 $3,179 $19.5500 $2,543 $15.6400 - 10,�0 $4,988 $5.8750 $4,156 $4.8958 $3,325 $3.9167 - 25,000 $5,869 $18.765U $4,891 $15.6375 $3,913 $12.5100 - 50,OQ0 $10,560 $21.1200 $8,800 $17.6000 $7,040 $14.0800 Matrix Consulting Group Page 22 DRAFT Cost ot Services(User Fse)Study CITY OF ORANGE CALIFORNIA Construction Type Construdion Type Construction Type IA IB II IIB IIIA IIIB IV VA VB Project Base Cost @ Cost for Each Base Cost @ Cost for Each Base Cost @ Cost for Each IBC Size Threshold Additional Threshold Additiona1100 Threshold Additiona1100 Class IBC Occu anc T Threshold Size 100 sf* Size sf* Size sf' F-1 Facto Industrial-Moderate Hazard 4,000 $1,462 $3.1770 $1,218 $2.6475 $975 $2.1180 - 20,000 $1,970 $2.5560 $1,642 $2.1300 $1,314 $1.7040 - 40,000 $2,482 $0.6360 $2,068 $0.5300 $1,654 $0.4240 - 80,000 $2,736 $0.9600 $2,280 $0.8000 $1,824 $0.6400 200,000 $3,888 $0.4320 $3,240 $0.3600 $2,592 $0.2880 400,000 $4,752 $1.1880 $3,960 $0.9900 $3,168 $0.7920 F-2 Facto Industrial-Low Hazard 3,000 $1,314 $10.9463 $1,095 $9.1219 $876 $7.2975 15,000 $2,628 $5.2500 $2,190 $4.3750 $1,752 $3.5000 30,000 $3,416 $3.4950 $2 846 $2.9125 $2 277 $2.3300 60,000 $4,464 $0.8900 $3,720 $0.7417 $2,976 $0.5933 150,000 $5,265 $2.7900 $4,388 $2.3250 $3,510 $1.8600 300,000 $9,450 $3.1500 $7 875 $2.6250 $6 300 $2.1000 F F Occu anc Tenantlm rovements 2,000 $954 $11.9160 $795 $9.9300 $636 $7.9440 10,000 $1,907 $5.7240 $1,589 $4.7700 $1,271 $3.8160 - 20,000 $2,479 $3.8040 $2,066 $3.1700 $1,653 $2.5360 - 40,000 $3,240 $0.9600 $2,700 $0.8000 $2,160 $0.6400 100,000 $3,816 $3.0480 $3,180 $2.5400 $2,544 $2.0320 - - 200,000 $6,864 $3.4320 $5,720 $2.8600 $4,576 $2.2880 H-1 Hi h Hazard Grou H-1 1,000 $1,284 $32.0950 $1,070 $26.7458 $856 $21.3967 Pose a detonation hazard 5,000 $2,568 $15.4100 $2,140 $12.8417 $1,712 $10.2733 10,000 $3,338 $10.2600 $2,782 $8.5500 $2,225 $6.8400 20,000 $4,364 $2.5700 $3 637 $2.1417 $2,909 $1.7133 50,000 $5,135 $8.2100 $4,279 $6.8417 $3,423 $5.4733 100,000 $9,240 $9.2400 $7,700 $7.7000 $6,160 $6.1600 H-2 Hi h Hazard Grou H-2 2,000 $1,296 $�6.2000 $1,080 $13.5000 $864 $10.8000 Pose a defla ration hazard 10,000 $2,592 $7.7760 $2,160 $6.4800 $1,728 $5.1840 - 20,000 $3,370 $5.1840 $2,808 $4.3200 $2,246 $3.4560 40,000 $4,406 $1.2960 $3,672 $1.0800 $2,938 $0.8640 - 100,000 $5,184 $4.1520 $4,320 $3.4600 $3,456 $2.7680 - - 200,000 $9,336 $4.6680 $7,780 $3.8900 $6,224 $3.1120 Matrix Consulting Group Page 23 DRAFTCost oT Services(User Fee)Study CITY OF ORANGE,CALIFORNIA Co�struction Type Construdion Type Co�struction Type iq IB II IIB IIIA IIIB IV VA VB Project Base Cost @ Cost for Each Base Cost @ Cost for Each Base Cost @ Cost for Each IBC Size Threshold Additional Threshold Additiona1100 Threshold Additio�a1100 Class IBC Occu anc T Threshold Size 100 sf' Size sf* Size sf• H-3 Hi h Hazard Grou H-3 1,000 $1,238 $30.9488 $1,032 $25.7906 $825 $20.6325 Readii su oR combustion 5,000 $2,476 $14.8650 $2 063 $12.3875 $1 651 $9.9100 10,000 $3,219 $9.9000 $2,683 $8.2500 $2,146 $6.6000 20,000 $4,209 $2.4700 $3,508 $2.0583 $2 806 $1.6467 50,000 $4,950 $7.9200 $4,125 $6.6000 $3 300 $5.2800 100,000 $8,910 $8.9100 $7,425 $7.4250 $5,940 $5.9400 H-4 Hi h Hazard Grou H-4 1,000 $1,540 $38.5140 $1,284 $32.0950 $1,027 $25.6760 Pose heaith hazards 5,000 $3,081 $18.4920 $2,568 $15.4100 $2,054 $12.3280 10,000 $4,006 $12.3120 $3,338 $10.2600 $2,670 $8.2080 20,000 $5,237 $3.0840 $4,364 $2.5700 $3,491 $2.0560 50,000 $6,162 $9.8520 $5,135 $8.2100 $4,108 $6.5680 100,000 $11,088 $11.0880 $9,240 $9.2400 $7,392 $7.3920 H-5 Hi h Hazard Grou H-5 1,000 $1,540 $38.5140 $1,284 $32.0950 $1,027 $25.6760 Semicondudor Fabrication,R&D 5,000 $3,081 $18.4920 $2,568 $15.4100 $2,054 $12.3280 1�,000 $4,006 $12.3120 $3 338 $10.2600 $2 670 $8.2080 20,000 $5,237 $3.0840 $4,364 $2.5700 $3,491 $2.0560 50,000 $6,162 $9.8520 $5,135 $8.2100 $4,�08 $6.5680 - 100,000 $11,088 $11.0880 $9,240 $9.2400 $7,392 $7.3920 H H Occu anc Tenantlm rovements 1,000 $758 $18.9540 $632 $15.7950 $505 $12.6360 5,000 $1,516 $9.0840 $1,264 $7.5700 $1,011 $6.0560 - 10,000 $1,970 $6.0720 $1,642 $5.0600 $1,314 i$4.0480 20,000 $2,578 $1.5080 $2,148 $1.2567 $1,718 $1.0053 - - 50,000 $3,030 $4.8600 $2,525 $4.0500 $2,020 $3.2400 _ - 100,000 $5,460 $5.4600 $4,550 $4.5500 $3,640 $3.6400 I-1 Institutio�al-7+ rsons,ambulato 1,000 $2,029 $50.7390 $1,691 $42.2825 $1,353 $33.8260 5,000 $4,059 $24.3480 $3,383 $20290� $2,706 $16.2320 10,000 $5,276 $16.23f� $4,397 $13.5300 $3,518 $10.8240 20,000 $6 900 $4.0600 $5,750 $3.3833 $4 600 $2.7067 50,000 $8,118 $12.9960 $6,765 $10.8300 $5,412 $8.6640 100,000 $14,616 $14.6160 $12,180 $12.1800 $9,744 $9.7440 Matrix Consulting Group Page 24 DRAFT Cost of Services(User Fee)Study CITY OF ORANGE,CALIFORNIA Construction Type Constructio�Type Construction Type IA IB II IIB III IIIB IV VA VB Project Base Cost� Cost for Each Base Cost @ Cost for Each Base Cost @ Cost for Each IBC Size Threshold Additio�al Thresho�d Additiona1100 Threshold Additiona1100 Class IBC Occu anc T e Threshoid Size 100 sf* Size sf* Size sf* Institutional-6+persons,non- I-2 ambulato 1,000 $2,537 $63.4238 $2,114 $52.8531 $1,691 $42.2825 5,000 $5,074 $30.4350 $4,228 $25.3625 $3,383 $20.2900 10,000 $6,596 $20.2950 $5,496 $16.9125 $4,397 $13.5300 - - 20,000 $8,625 $5.0750 $7,188 $4.2292 $5,750 $3.3833 - 50,000 $10,148 $16.2450 $8,456 $13.5375 $6,765 $10.8300 - 100,000 $18,270 $18.2700 $15,225 $15.2250 $12,180 $12.1800 i-3 Institutional--h+ rsons,restrained 1,000 $2,476 $61.8938 $2,063 $51.5781 $1,651 $41.2625 5,000 $4,952 $29.7000 $4,126 $24.7500 $3,301 $19.8000 10,000 $6,437 $19.8150 $5,364 $16.5125 $4,291 $13.2100 20 000 $8,418 $4.9400 $7,015 $4.1167 $5,612 $3.2933 50,000 $9,900 $15.8400 $8,250 $132000 $6,600 $10.5600 100,OOQ $17,820 $17.82� $14,850 $14.SS00 $11,880 $11.8800 I-4 Institutional-6+ rsons,da care 1,000 $1,864 $46.6163 $1,554 $38.8469 $1,243 $31.0775 - - 5,000 $3,729 $22.3800 $3,108 $18.6500 $2,486 $14.9200 - 10,000 $4,848 $14.9100 $4,040 $12.4250 $3,232 $9.9400 - - 20,000 $6,339 $3.7200 $5,283 $3.1000 $4,226 $2.4800 - 50,000 $7,455 $11.9400 $6,213 $9.9500 $4,970 $7.9600 100,000 $13,425 $13.4250 $11,188 $11.1875 $8,950 $8.9500 I i Occu n Tenant Im ovements 500 $758 $37.8960 $632 $31.5800 $505 $25.2640 2,500 $1 516 $18.2Q40 $1 263 $15.1700 $1,011 $12.1360 5000 $1971 $12.1320 $1643 $10.11�0 $1314 $8.0880 10,OQ0 $2,578 $3.0360 $2,148 $2.5300 $1,718 $2.0240 25 000 $3,033 $9.7080 $2,528 $8.0900 $2,022 $6.4720 50,0�0 $5,460 $10.9200 $4,550 $9.1000 $3,640 $7.2800 L �abs California ONLY 2,000 $2,250 $28.1160 $1,875 $23.4300 $1,500 $18.7440 10,000 $4,499 $13.5000 $3,749 $11.2500 $2,999 $9.0000 20,000 $5,849 $8.9880 $4,8�4 $7.4900 $3,899 $5.9920 _ - 40,000 $7,646 $2.2560 $6,372 $1.8800 $5,098 $1.5040 100,000 $9,000 $7.2000 $7,500 $6.0000 $6,000 $4.8000 200,000 $16,200 $8.1000 $13,500 $6.7500 $10,800 $5.4000 tr Matrix Consulting Group Page 25 ORAFT Cost of Services{User Fee)Study CITY OF ORANGE CAUFORNIFl Co�struction Type Construdion Type Construction Type IA IB II IIB,III IIIB IV VA VB Project Base Cost @ Cost for Each Base Cost @ Cost for Each Base Cost @ Cost for Each IBC Size Threshold Additionai Threshold Additiona1100 Threshold AddiUo�a1100 Class IBC Occu anc T e Threshold Size 100 sf* Size sf Size sf* M Mercantile-Retail or wholesale store 5Q0 $611 $30.5625 $509 $25.4688 $408 $20.3750 2,500 $1,223 $14.6700 $1,019 $12.2250 $815 $9.7800 5,000 $1,589 $9.7950 $1,324 $8.1625 $1,060 $6.5300 10�0 $2,079 $2.4400 $1,733 $2.0333 $1 386 $1.6267 25,000 $2,445 $7.8300 $2,038 $6.5250 $1,630 $5.2200 50,000 $4,403 $8.8050 $3,669 $7.3375 $2,935 $5.8700 M M Occu anc Tenantim rovements 200 $367 $45.8400 $306 $38.2000 $245 $30.5600 1,000 $734 $22.0200 $611 $18.3500 $489 $14.6800 - 2,000 $954 $14.6550 $795 $12.2125 $636 $9.7700 - 4,000 $1,247 $3.6700 $1,039 $3.0583 $831 $2.4467 10,000 $1,467 $11.7300 $1,223 $9.7750 $978 $7.8200 20,000 $2,640 $13.2000 $2,200 $11.0000 $1,760 $8.8000 R-1 Residential-Transient 2,000 $5,994 $6.8063 $4,995 $5.6719 $3,996 $4.5375 Boardin Houses,Hotels,Motels 10,000 $6,539 $10.9050 $5,449 $9.0875 $4,359 $7.2700 2Q,000 $7,629 $5.4450 $6 358 $4.5375 $5 O86 $3.6300 40,000 $8,718 $4.5450 $7,265 $3.7875 $5,812 $3.0300 100,000 $11,445 $4.9050 $9,538 $4.0875 $7,630 $3.2700 20Q,000 $16,350 $8.1750 $13,625 $6.8125 $10,90Q $5.4500 R-2 Residential-Permanent,2+Dwellin s 1,500 $5,994 $9.0750 $4,995 $7.5625 $3,996 $6.0500 A artment,Dormito ,Timeshare 7,500 $6,539 $14.5500 $5,449 $12.1250 $4,359 $9.7000 - 15,000 $7,630 $7.2450 $6,358 $6.0375 $5,087 $4.8300 - 30,000 $8,717 $6.0550 $7,264 $5.0458 $5,811 $4.0367 - - 75,000 $11,441 $6.5550 $9,534 $5.4625 $7,628 $4.3700 150,000 $16,358 $10.9050 $13,631 $9.0875 $10,905 $7.2700 R-3 Dwellin s-Custom Homes 1 500 $1,748 $15.9000 $1,457 $13.2500 $1,166 $10.6000 2,500 $1,907 $31.77� $1,589 $26.4750 $1,272 $21.1800 3,500 $2,225 $31.7775 $1,854 $26.4813 $1483 $21.1850 4,500 $2,543 $39.7350 $2,119 $33.1125 $1,695 $26.4900 6,500 $3,337 $40.8879 $2,781 $34.0732 $2,225 $27.2586 10,�0 $4,769 $47.6850 $3,974 $39.7375 $3,179 $31.7900 Matrix Consulting Group Page 26 DRAFT Cost of Services(User Fee)Study CITY OF ORANGE CALIFORNIA Construction Type Construction Type Construction Type IA IB 11 IIB,IIIA,IIIB IV YA VB Project Base Cost @ Cost for Each Base Cost @ Cost for Each Base Cost @ Cost for Each IBC Size Threshold Additional Threshold Additiona1100 Threshold Additiona1100 Class IBC Occu anc T Threshold Size 100 sf* Size sf* Size sf• R-3 Dwellin s-Models,First Master Plan 1,500 $1,748 $15.9000 $1,457 $13.2500 $1,166 $10.6000 - - 2,500 $1,907 $31.7700 $1,589 $26.4750 $1,272 $21.1800 - - 3,500 $2,225 $31.7775 $1,854 $26.4813 $1,483 $21.1850 - - 4,500 $2,543 $39.7350 $2,119 $33.1125 $1,695 $26.4900 - - 6,500 $3,337 $40.8879 $2,781 $34.0732 $2,225 $27.2586 - - 10,000 $4,769 $47.6850 $3,974 $39.7375 $3,179 $31.7900 R-3 Dwellin s-Production Phase 1,500 $874 $7.9500 $728 $6.6250 $583 $5.3000 of Master Plan re ats 2,500 $954 $15.8850 $795 $13.2375 $636 $10.5900 - 3,500 $1,112 $15.9225 $927 $13.2688 $742 $10.6150 - 4,500 $1,272 $19.8750 $1,060 $16.5625 $848 $13.2500 6,500 $1,669 $20.4086 $1,391 $17.0071 $1,113 $13.6057 - - 10,000 $2,384 $23.8350 $1,986 $19.8625 $1,589 $15.8900 Residential-Assisted Living(6-16 R-4 ersons 1,500 $3,746 $5.6813 $3,122 $4.7344 $2,498 $3.7875 - - 7,500 $4,087 $9.0750 $3,406 $7.5625 $2,725 $6.0500 - - 15,000 $4,768 $4.5450 $3,973 $3.7875 $3,179 $3.0300 - - 30,000 $5,450 $3.7900 $4,541 $3.1583 $3,633 $2.5267 - - 75,000 $7,155 $4.0800 $5,963 $3.4000 $4,770 $2.7200 150,000 $10,215 $6.8100 $8,513 $5.6750 $6,810 $4.5400 R R Occu anc Tenantlm rovements 500 $624 $2.8313 $520 $2.3594 $416 $1.8875 - 2,500 $681 $4.5600 $568 $3.8000 $454 $3.0400 - - 5 000 $795 $22500 $663 $1.8750 $530 $1.5000 10,�0 $908 $1.9000 $756 $1.5833 $605 $1.2667 - - 25,000 $1,193 $2.0400 $994 $1.7000 $795 $1.3600 - 50,000 $1,703 $3.4050 $1,419 $2.8375 $1,135 $2.2700 Storage-Moderate Hazard,Repair S-1 Gara e 500 $1,174 $58.6770 $978 $48.8975 $782 $39.1180 - Motor Vehicles not Hi h Hazard 2,500 $2,347 $28.1760 $1,956 $23.4800 $1,565 $18.7840 - 5,000 $3,052 $18.7680 $2,543 $15.6400 $2,034 $12.5120 - 10,000 $3,990 $4.7000 $3,325 $3.9167 $2,660 $3.1333 - - 25,000 $4,695 $15.0120 $3,913 $12.5100 $3,130 $10.0080 - 50,000 $8,448 $16.8960 $7,040 $14.0800 $5,632 $11.2640 Matrix Consulting Group Page 27 DAAFT Cost of Services(User Fee)Study CITY OF ORANGE,CA�IFORNIA Co�struction Type Construction Type Construction Type IA IB II IIB,III IIIB IV VA VB Project Base Cost @ Cost for Each Base Cost @ Cost for Each Base Cost(a� Cost for Each IBC Size Threshoid Additional Threshold Additiona1100 Threshold Additiona1100 Class IBC Occu anc T Threshold Size 100 sf• Size sf* Size sf• S-2 Stora e-Low Hazard,Parkin Gara es 1 000 $1,761 $44.0070 $1,467 $36.6725 $1,174 $29.3380 O en or Enclosed 5,000 $3,521 $21.1200 $2,934 $17.60� $2,347 $14.0800 10,000 $4,577 $14.0880 $3,814 $11.7400 $3,051 $9.392U 20,000 $5 986 $3.5280 $4,988 $2.94U0 $3,990 $2.3520 50,000 $7 044 $11.2560 $5,870 $9.3800 $4,696 $7.5040 - 100,000 $12,672 $12.6720 $10,560 $10.5600 $8,448 $8.4480 S S Occu anc Tenant Im rovements 500 $672 $33.6188 $560 $28.0156 $448 $22.4125 2,500 $1,345 $16.1400 $1,121 $13.4500 $897 $10.7600 5,000 $1,748 $10.7550 $1,457 $8.9625 $1,166 $7.1700 - 10,000 $2,286 $2.6850 $1,905 $2.2375 $1,524 $1.7900 25,000 $2,689 $8.6250 $2,241 $7.1875 $1,793 $5.7500 50,000 $4,845 $9.6900 $4,038 $8.0750 $3,230 $6.4600 U Accesso -Private Gara e 200 $183 $22.9200 $153 $19.1000 $122 $15.2800 1,000 $367 $10.9950 $306 $9.1625 $245 $7.3300 2,000 $477 $7.3350 $397 $6.1125 $318 $4.8900 4,000 $623 $1.8350 $520 $1.5292 $416 $1.2233 10,000 $734 $5.8650 $61 t $4.8875 $489 $3.9100 20,000 $1,320 $6.6000 $1,100 $5.5000 $880 $4.4000 R3 Residential Room Addition 50 $624 $28.3837 $520 $23.6531 $416 $18.9225 - - 250 $681 $45.4200 $568 $37.8500 $454 $30.2800 - 500 $795 $22.7100 $662 $18.9250 $530 $15.1400 1,000 $908 $18.9250 $757 $15.7708 $606 $12.6167 - - 2,500 $1,192 $20.4150 $993 $17.0125 $795 $13.6100 - - 5,000 $1,703 $34.0500 $1,419 $28.3750 $1,135 $22.7000 SHELL BUILDINGS All Shell Buildi s 1,000 $489 $12.2250 $408 $10.1875 $326 $8.1500 5,000 $978 $5.8800 $815 $4.9000 $652 $3.9200 10,000 $1,272 $3.9120 $1,060 $3.2600 $848 $2.6080 20,000 $1,663 $0.9760 $1,386 $0.8133 $1109 $0.6507 50,000 $1,956 $3.1200 $1,630 $2.6d00 $1,304 $2.0800 - 100,000 $3,516 $3.5160 $2,930 $2.9300 $2,344 $2.3440 Matrix Consulting Group Page 28 DRAFT Cost of Services(User Fee)Study CITY OF ORANGE CALIFORNIA Table 10:Total Cost Per Unit ResuRs-Inspection Fees Construction Type Construction Type Construction Type IA IB IIA,IIB,IIIA IIIB,IV VA,VB Base Costfo� Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each IBC Size Threshdd Additional Threshold Additional Threshoid Additional Class IBC Occu anc T e Threshoid Size 100 sf* Size 100 sf' Size 100 sf• A-1 Assembl-Fixed Seatin 500 $3,696 $184.8000 $3,080 $154.0000 $2,464 $123.2000 - Theater,Concert Hall 2,500 $7,392 $147.8400 $6,160 $123.2000 $4,928 $98.5600 5,000 $11,088 $221.7600 $9,240 $184.8000 $7,392 $147.8400 10,000 $22,176 $49.2767 $18,480 $41.0639 $14,784 $32.8511 - 25,000 $29,568 $14.7900 $24,640 $12.3250 $19,712 $9.8600 - 50,000 $33,265 $66.5300 $27,721 $55.4417 $22,177 $44.3533 A-2 Assembl Food&Drink 500 $5,544 $277.2000 $4,620 $231.0000 $3,696 $184.8000 Restaurant,Ni ht Club,Bar 2,500 $11,088 $221.7600 $9,240 $184.8000 $7,392 $147.8400 5,OQ0 $16,632 $332.6400 $13,860 $277.2000 $11,088 $221.7600 10,000 $33,264 $73.9150 $27,720 $61.5958 $22,176 $49.2767 25,000 $44,351 $22.1850 $36,959 $18.4875 $29,568 $14.7900 - 50,000 $49,898 $99.7950 $41,581 $83.1625 $33,265 $66.5300 A-3 Assembl-Worshi ,Amusement 500 $5,544 $277.2000 $4,620 $231.0000 $3,696 $184.8000 - Arcade,Church,Communi Hall 2,500 $11,088 $221.7600 $9,240 $184.8000 $7,392 $147.8400 - 5,000 $16,632 $332.6400 $13,860 $277.2000 $11,088 $221.7600 10,000 $33,264 $73.9150 $27,720 $61.5958 $22,176 $49.2767 25,000 $44,351 $22.1850 $36,959 $18.4875 $29,568 $14.7900 - - 50,000 $49,898 $99.7950 $41,581 $83.1625 $33,265 $66.5300 A-4 Assembi Indoor S at Viewin 50d $4,435 $221.7600 $3,696 $184.8000 $2,957 $147.8400 Arena,Skatin Rink,Tennis Court 2,500 $8,870 $177.4080 $7,392 $147.8400 $5,914 $118.2720 5,000 $13,306 $266.1120 $11,088 $221.7600 $8,870 $177.4080 10,000 $26,611 $59.132t3 $22,176 $49.2767 $17,741 $39.4213 - - 25,000 $35,481 $17.7480 $29,568 $14.7900 $23,654 $11.8320 50,000 $39,918 $79.8360 $33,265 $66.5300 $26,612 $53.2240 A-5 Assembl-Outdoor Activities 1,000 $6,930 $173.2500 $5,775 $144.3750 $4,620 $115.5000 Amusement Park,Bleacher,Stadium 5,000 $13,860 $138.6000 $11,550 $115.5000 $9,240 $92.4000 - 10,000 $20,790 $207.9000 $17,325 $173.2500 $13,860 $138.6000 - 20,000 $41,580 $46.2000 $34,650 $38.5000 $27,720 $30.8000 50,000 $55,440 $13.8600 $46,200 $11.5500 $36,960 $9.2400 100,000 $62,370 $62.3700 $51,975 $51.9750 $41,580 $41.5800 Matrix Consulting Group Page 29 DRAFT Cost of Services(User Fee)Study CITY OF ORANGE,CALIFORNIA Construction Type Construction Type Construction Type 1 IB II IIB III 1116 IV VA VB Base Costfor Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each IBC Size Threshold Additionai Threshold Additional Threshold Additional Class IBC Occu anc T e Threshold Size 100 sf* Size 100 sf' Size 100 sf" A A Occu anc Tenant Im rovements 500 $1,940 $97.0238 $1,617 $80.8531 $1,294 $64.6825 2,500 $3 881 $77.6250 $3,234 $64.6875 $2 587 $51.7500 5,000 $5,822 $116.4300 $4,851 $97.0250 $3,881 $77.6200 1�,000 $11,643 $25.8800 $9,703 $2t.5667 $7,762 $17.2533 25,W0 $15,525 $7.7400 $12,938 $6.4500 $10,350 $5.1600 - 50,000 $17,460 $34.9200 $14,550 $29.1000 $11,640 $23.2800 B Business-ProfessionalOffice 1,000 $4,158 $103.9500 $3,465 $86.6250 $2,772 $69.3000 - 5,000 $8,316 $83.1600 $6,930 $69.3000 $5,544 $55.4400 10,000 $12,474 $124.7400 $10,395 $103.9500 $8,316 $83.1600 20,000 $24,948 $27.7150 $20,790 $23.0958 $16,632 $18.4767 50,000 $33,263 $8.3250 $27,719 $6.9375 $22,175 $5.5500 100,000 $37,425 $37.4250 $31,188 $31.1875 $24,950 $24.9500 B B Occu anc Tenantlm rovements 150 $277 $46.2000 $231 $38.5000 $185 $30.8000 750 $554 $36.9600 $462 $30.8000 $370 $24.6400 1,500 $832 $55.4400 $693 $46.2000 $554 $36.9600 3,000 $1,663 $12.3150 $1,386 $10.2625 $1 109 $8.2100 7,500 $2,217 $3.7050 $1,848 $3.0875 $1,478 $2.4700 15,000 $2,495 $16.6350 $2,079 $13.8625 $1,664 $11.0900 E Educational-Grou Occu anc 1,000 $2,772 $69.3000 $2,310 $57.7500 $1,848 $46.2000 6+ ersons,u to the 12th Grade 5,000 $5,544 $55.4400 $4,620 $46.2000 $3,696 $36.9600 - 10,000 $8,316 $83.1600 $6,930 $69.3000 $5,544 $55.4400 20,000 $16,632 $18.4850 $13,860 $15.4042 $11,088 $12.3233 50,000 $22,178 $5.5350 $18,481 $4.6125 $14,785 $3.6900 100,000 $24,945 $24.9450 $20,788 $20.7875 $16,630 $16.6300 E E Occu an Tenantim rovements 500 $1,094 $54.7238 $912 $45.6031 $730 $36.4825 2.500 $2,189 $43.7850 $1,824 $36.4875 $1 459 $29.1900 5,OQ0 $3,284 $65.6700 $2,736 $54.7250 $2,189 $43.7800 10,000 $6,567 $14.5950 $5 473 $12.1625 $4,378 $9.7300 25,�OQ $8,756 $4.3650 $7,297 $3.6375 $5 838 $2.9100 - 50,000 $9,848 $19.6950 $8,206 $16.4125 $6,565 $13.1300 Matrix Consulting Group Page 30 DRAFT Cost ot Services(User Fee}Study CITY OF ORANGE,CAUFORNIA Construction Type Construction Type Construction Type IA IB tl IIB III IIIB IV VA,VB Base Costfor Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each IBC Size Threshold Additional Threshold Additional Threshold Additional Class IBC Occu anc T Threshold Size 100 sf* Size 100 sf• Size 100 sf' F-1 Facto Industrial-Moderate Hazard 4,000 $1,417 $2.1990 $1,181 $1.8325 $945 $1.4660 20,000 $1,769 $2.4600 $1,474 $2.0500 $1,179 $1.6400 40,000 $2,261 $1.2600 $1,884 $1.0500 $1,507 $0.8400 - - 80,000 $2,765 $0.6160 $2,304 $0.5133 $1,843 $0.4107 200,000 $3,504 $0.6000 $2,920 $0.5000 $2,336 $0.4000 - 400,000 $4,704 $1.1760 $3,920 $0.9800 $3,136 $0.7840 F-2 Facto Industrial-Low Hazard 3,000 $711 $5.9213 $593 $4.9344 $474 $3.9475 15,000 $1,422 $4.�400 $1185 $3.9500 $948 $3.1600 30,000 $2 133 $7.1100 $1,778 $5.9250 $1 422 $4.7400 60,000 $4,266 $1.5850 $3 555 $1.3208 $2,844 $1.0567 150,000 $5,693 $0.4650 $4,744 $0.3875 $3,795 $0.3100 300,000 $6,390 $2.1300 $5,325 $1.7750 $4 260 $1.4200 F F Occu anc Tenant Im rovements 2,000 $495 $6.1890 $412 $5.1575 $330 $4.1260 - 10,000 $990 $4.9560 $825 $4.1300 $660 $3.3040 20,000 $1,486 $7.4280 $1,238 $6.1900 $990 $4.9520 40,000 $2,971 $1.6480 $2,476 $1.3733 $1,981 $1.0987 _ - 100,000 $3,960 $0.5040 $3,300 $0.4200 $2,640 $0.3360 200,000 $4,464 $2.2320 $3,720 $1.8600 $2,976 $1.4880 H-1 Hi h Hazard Grou H-1 1,000 $465 $11.6300 $388 $9.6917 $310 $7.7533 Pose a detonation hazard 5,000 $931 $9.3100 $775 $7.7583 $620 $6.2067 10,000 $1,396 $13.9600 $1,163 $11.6333 $931 $9.3067 20,000 $2,792 $3.1100 $2,327 $2.5917 $1,861 $2.0733 50,000 $3 725 $0.9300 $3 104 $0.7750 $2,483 $0.6200 100,000 $4,190 $4.1900 $3,492 $3.4917 $2,793 $2.7933 H-2 Hi h Hazard Grou H-2 2,000 $558 $6.9840 $465 $5.8200 $372 $4.6560 - Pose a defla ration hazard 10,000 $1,117 $5.5800 $931 $4.6500 $745 $3.7200 20,000 $1,675 $8.3760 $1,396 $6.9800 $1,117 $5.5840 40,000 $3,350 $1.8560 $2,792 $1.5467 $2,234 $1.2373 100,000 $4,464 $0.5520 $3,720 $0.4600 $2,976 $0.3680 200,000 $5,016 $2.5080 $4,180 $2.0900 $3,344 $1.6720 Matrix Consulting Group Page 31 DRAFT Cost oi Services(User Fee)Study CITY OF ORANGE CALIFORNIA Construction Type Construction Type Construction Type IA IB 11 IIB Ili IIIB IV VA VB Base Costfor Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each IBC Size Threshold Additional Threshold Additional Threshold Additional Class IBC Occu anc T e Threshold Size 100 sf* Size 100 sf* Size 100 sf* H-3 H' h Hazard Grou H-3 1,000 $698 $17.4450 $582 $14.5375 $465 $11.6300 - Readi su rtcombustion 5,000 $1,396 $13.9650 $1,163 $11.6375 $931 $9.3100 10,000 $2,094 $20.9400 $1,745 $17.4500 $1,396 $13.9600 - 20,000 $4,188 $4.6650 $3,490 $3.8875 $2,792 $3.1100 - - 50.00Q $5,588 $1.3950 $4,656 $1.1625 $3,725 $0.93U0 - - 100,000 $6,285 $6.2850 $5,238 $5.2375 $4,190 $4.1900 H-4 Hi h Hazard Grou H-4 1,000 $558 $13.9560 $465 $11.6300 $372 $9.3040 - Pose heaith hazards 5,000 $1,117 $11.1720 $931 $9.3100 $744 $7.4480 - - 10,000 $1,675 $16.7520 $1,396 $13.9600 $1,117 $11.1680 - - 20,000 $3,350 $3.7320 $2,792 $3.1100 $2,234 $2.4880 - - 50,000 $4,470 $1.1160 $3,725 $0.9300 $2,980 $07440 - 100,000 $5,028 $5.0280 $4,190 $4.1900 $3,352 $3.3520 H-5 Hi h Hazard Grou H-5 1,000 $558 $13.9560 $465 $11.6300 $372 $9.3040 - Semiconductor Fabrication,R&D 5,000 $1,117 $11.1720 $931 $9.3100 $744 $7.4480 10,OOQ $1,675 $16.7520 $1,396 $13.9600 $1,117 $11.1680 - 20,000 $3,350 $3.7320 $2,792 $3.1100 $2,234 $2.4880 - 50,000 $4,47Q $1.1160 $3,725 $0.9300 $2,980 $0.7440 - 100,OW $5,028 $5.0280 $4,190 $4.1900 $3,352 $3.3520 H H Occu an Tenantim rovements 1,000 $454 $11.3550 $379 $9.4625 $303 $7.5700 - - 5,000 $908 $9.0720 $757 $7.5600 $606 $6.0480 - - 10,000 $1,362 $13.6200 $1,135 $11.3500 $908 $9.0800 - - 20,000 $2,724 $3.0400 $2,270 $2.5333 $1,816 $2.0267 - - 50,000 $3,636 $0.9120 $3,030 $0.7600 $2,424 $0.6080 - - 100,000 $4,092 $4.0920 $3,410 $3.4100 $2,728 $2.7280 I-1 Institutional-7+ rsons,ambulato 1,000 $699 $17.4570 $582 $14.5475 $466 $11.6380 5.000 $1,397 $13.9680 $1,164 $11.6400 $931 $9.3120 - - 10,OU0 $2,095 $20.9520 $1,�46 $17.46� $1,397 $13.9680 - 20,�00 $4,190 $4.6520 $3,492 $3.8767 $2,794 $3.1013 50,000 $5,586 $1.4040 $4,655 $1.1700 $3,724 $0.9360 100.000 $fi,288 $6.2880 $5,240 $5.2400 $4,192 $4.1920 Matrix Consulting Group Page 32 DRAFT Cost of Services(User Fee)Study CITY OF ORANGE,CALIFORNIA Construction Type Construdion Type Construction Type IA IB IIA,IIB,III IIIB IV VA VB Base Costfor Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each IBC Size Threshold Additional Threshold Additional Threshold Additional Class IBC Occu anc T e Threshold Size 100 sf* Size 100 sf* Size 100 sf* Institutional-6+persons,non- I-2 ambulato 1,000 $873 $21.8213 $728 $18.1844 $582 $14.5475 - - 5,000 $1,746 $17.4600 $1,455 $14.5500 $1,164 $11.6400 10,000 $2,619 $26.1900 $2,183 $21.8250 $1,746 $17.4600 - - 20,000 $5,238 $5.8150 $4,365 $4.8458 $3,492 $3.8767 50,000 $6,983 $1.7550 $5,819 $1.4625 $4,655 $1.1700 - 100,000 $7,860 $7.8600 $6,550 $6.5500 $5,240 $5.2400 I-3 Institutional---6+ rsons,restrained 1 000 $873 $21.8213 $728 $18.1844 $582 $14.5475 5 000 $1 746 $17.4600 $1 455 $14.5500 $1,164 $11.6400 10,000 $2,619 $26.1900 $2,183 $21.8250 $1,746 $17.4600 20,000 $5,238 $5.8150 $4,365 $4.8458 $3,492 $3.8767 50,000 $6 983 $1.7550 $5,819 $1.4625 $4,655 $1.1700 100,000 $7,860 $7.8600 $6,550 $6.5500 $5,240 $5.2400 I-4 Institutional�+ ersons,da care 1,000 $873 $21.8213 $728 $18.1844 $582 $14.5475 5,000 $1,746 $17.4600 $1,455 $14.5500 $1,164 $11.6400 - 10,000 $2,619 $26.1900 $2,183 $21.8250 $1,746 $17.4600 - 20,000 $5,238 $5.8150 $4,365 $4.8458 $3,492 $3.8767 - 50,000 $6,983 $1.7550 $5,819 $1.4625 $4,655 $1.1700 - 100,000 $7,860 $7.8600 $6,550 $6.5500 $5,240 $5.2400 I I Occu anc Tenantlm rovements 500 $517 $25.8390 $431 $21.5325 $344 $17.2260 2,500 $1,034 $20.6520 $861 $17.2100 $689 $13.7680 5,000 $1,550 $3U.9960 $1,292 $25.8300 $1 033 $20.6640 10,000 $3,t00 $6.8960 $2,583 $5.7467 $2,066 $4.5973 25,000 $4,134 $2.0640 $3,445 $1.7200 $2,756 $1.3760 50,000 $4,650 $9.3000 $3,875 $7.7500 $3,100 $6.2000 L Labs California ONLY 2,000 $4,435 $55.4400 $3,696 $46.2000 $2,957 $36.9600 10,000 $8,870 $44.3520 $7,392 $36.9600 $5,914 $29.5680 20,000 $13,306 $66.5280 $11,088 $55.4400 $8,870 $44.3520 - - 4Q000 $26,611 $14.7880 $22,176 $12.3233 $17,74� $9.8587 - 10Q000 $35,484 $4.4280 $29,570 $3.6900 $23,656 $2.9520 - 200,000 $39,912 $19.9560 $33,260 $16.6300 $26,608 $13.3040 Matrix Consulting Group Page 33 DRAFT Cost oi Services(User Fee)Study CITY OF ORANGE CAUFORNIA Constructioo Type Construction Type Constructioo Type I iB Ii IIB Iil IIIB IV VA VB Base Costfor Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each �BC Size Threshoid Additional Threshold Additional Threshold Additional Class IBC Occu anc T e Threshold Size 100 sf• Size 100 sf" Size 100 sf* M Mercantile-Retail orwholesale store 500 $1,109 $55.4475 $924 $46.2063 $739 $36.9650 2,500 $2,218 $44.3400 $1,848 $36.9500 $1 479 $29.5600 5,0� $3,32fi $66.5250 $2,772 $55.4375 $2,218 $44.3500 - 10,000 $6,653 $14.7750 $5,544 $12.3125 $4,435 $9.8500 - - 25,Q00 $8,869 $4.4550 $7,391 $3.7125 $5 913 $2.9700 50,000 $8,983 $19.9650 $8,319 $16.6375 $6,655 $13.3100 M M Occu anc Tenantlm rovements 200 $554 $69.3000 $462 $57.7500 $370 $46.2000 - - 1,000 $1,109 $55.4400 $924 $46.2000 $739 $36.9600 - - 2,000 $1,663 $83.1600 $1,386 $69.3000 $1,109 $55.4400 - - 4,000 $3,326 $18.4850 $2,772 $15.4042 $2,218 $12.3233 - - 10,000 $4,436 $5.5350 $3,696 $4.6125 $2,957 $3.6900 - - 2Q000 $4,989 $24.9450 $4,158 $20.7875 $3,326 $16.6300 R-1 Residentiai-Transient 2,OQ0 $8,870 $27.7200 $7 392 $23.1000 $5,914 $18.4800 - Boardin Houses,Hotels,Motels 10,000 $11,088 $55.4400 $9,240 $46.2000 $7,392 $36.9600 - 20 000 $16,632 $16.62�0 $13,860 $13.8500 $11 088 $11.0800 40,000 $19,956 $7.3900 $16,630 $6.1583 $13 304 $4.9267 - 100,000 $24,390 $8.8800 $20,325 $7.4000 $16,260 $5.9200 - 200,000 $33,270 $16.6350 $27,725 $13.8625 $22,180 $11.0900 R-2 Residential-Permanent,2+Dwellin s 1,500 $8,870 $36.9600 $7,392 $30.8000 $5,914 $24.6400 - A artment,Dormito ,Timeshare 7,500 $11,088 $73.9200 $9,240 $61.6000 $7,392 $49.2800 - - 15,000 $16,632 $22.1700 $13,860 $18.4750 $11,088 $14.7800 - - 30,000 $19,958 $9.8500 $16,631 $8.2083 $13,305 $6.5667 - - 75,000 $24,390 $11.8200 $20,325 $9.8500 $16,260 $7.8800 - - 150,000 $33,255 $22.1700 $27,713 $18.4750 $22,170 $14.7800 R-3 Dwellin s-Custom Homes 1,500 $1,331 $33.2475 $1,109 $27.7063 $887 $22.1650 2 500 $1 663 $83.1675 $1,386 $69.3063 $1,109 $55.4450 - - 3,500 $2,495 $49.8825 $2,079 $41.5688 $1,663 $33.2550 4 500 $2,994 $33.2775 $2,495 $27.7313 $1,996 $22.1850 - 6 5d0 $3 659 $37.995� $3,049 $31.6625 $2,439 $25.3300 - - 10,000 $4,989 $49.8900 $4,158 $41.5750 $3,326 $33.2600 Matrix Consulting Group Page 34 DRAFT Cost of Services{User Fee}S4udy GITY OF ORANGE,CALIFORNIFl Construction Type Constructioo Type Construction Type IA IB II IIB 111 IIIB IV VA VB Base Costfor Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each IBC Size Threshold Additional Threshold Additional Threshold Additional Class IBC Occu anc T Threshold Size 100 sf* Size 100 sf* Size 100 sf* R-3 Dwellin s-Models,First Master Plan 1,500 $1,331 $33.2475 $1,109 $27.7063 $887 $22.1650 - - 2,500 $1,663 $83.1675 $1,386 $69.3063 $1,109 $55.4450 - - 3,500 $2,495 $49.8825 $2,079 $41.5688 $1,663 $33.2550 - - 4,500 $2,994 $33.2775 $2,495 $27.7313 $1,996 $22.1850 - - 6,500 $3,659 $37.9950 $3,049 $31.6625 $2,439 $25.3300 - - 10,000 $4,989 $49.8900 $4,158 $41.5750 $3,326 $33.2600 R-3 Dwellin s-Production Phase 1,500 $1,331 $33.2475 $1,109 $27.7063 $887 $22.1650 ofMasferPlan re eats 2,500 $1,663 $83.1675 $1,386 $69.3063 $1,109 $55.4450 - 3,500 $2,495 $49.8825 $2,079 $41.5688 $1,663 $33.2550 - 4,500 $2,994 $33.2775 $2 495 $27.7313 $1,996 $22.1850 6,500 $3,659 $37.9950 $3,049 $31.6625 $2,439 $25.3300 - - 10,000 $4,989 $49.8900 $4,158 $41.5750 $3 326 $332600 Residential-Assisted Living(6-16 R-4 ersons 1,500 $8,870 $36.9600 $7,392 $30.8000 $5,914 $24.6400 - - 7,500 $11,088 $73.9200 $9,240 $61.6000 $7,392 $49.2800 - - 15,000 $16,632 $22.1700 $13,860 $18.4750 $11,088 $14.7800 - - 30,000 $19,958 $9.8500 $16,631 $8.2083 $13,305 $6.5667 - - 75,000 $24,390 $11.8200 $20,325 $9.8500 $16,260 $7.8800 - 150,000 $33,255 $22.1700 $27,713 $18.4750 $22,170 $14.7800 R R Occu an Tenantim ovements 500 $887 $11.0925 $739 $9.2438 $591 $7.3950 - 2,500 $1,109 $22.1850 $924 $18.4875 $739 $14.7900 - - 5,U00 $1,664 $6.6600 $1,3$6 $5.5500 $1 109 $4.4400 - 10,000 $1,997 $2.9400 $1,664 $2.4500 $1,331 $1.9600 - - 25,000 $2,438 $3.570U $2,031 $2.9750 $1,625 $2.3800 - 50,000 $3,330 $6.6600 $2,775 $5.5500 $2,220 $4.4400 Storag�Moderate Hazard,Repair S-1 Gara e 500 $1,109 $55.4400 $924 $46.2000 $739 $36.9600 - Motor Vehicles not Hi h Hazard 2,500 $2,218 $44.3520 $1,848 $36.9600 $1,478 $29.5680 - - 5,000 $3,326 $66.5280 $2,772 $55.4400 $2,218 $44.3520 - - 10,000 $6,653 $14.7880 $5,544 $12.3233 $4,435 $9.8587 - - 25,OOQ $8,871 $4.4280 $7,393 $3.6900 $5,914 $2.9520 - 50,000 $9,978 $19.9560 $8,315 $16.6300 $6,652 $13.3040 Matrix Consulting Group Page 35 DRAFT Cost of Services(User Fee)Study CITY OF ORANGE,CAUFORNIA Construction Type Construdion Type Construction Type IA IB II IIB,III IIIB IV VA VB Base Costfor Base Costfor Base Costfor Project Cost @ Each Cost @ Each Cost @ Each IBC Size Threshold Additional Threshold Additional Threshold Additional Class IBC Occu a�c T Threshold Size 100 sf* Size 100 sf* Size 100 sf' S-2 Stora e-Low Hazard,Parkin Gara es 1,000 $5,322 $133.0590 $4,435 $110.8825 $3,548 $88.7060 O en or Enclosed 5,000 $10,645 $106.4520 $8,871 $88.7100 $7 096 $70.9680 10,000 $15,967 $159.6720 $13,306 $133.�6Q0 $10,645 $106.4480 20,000 $31,934 $35.4720 $26,612 $29.560Q $21,290 $23.6480 50,000 $42,576 $10.6560 $35,480 $8.8800 $28,384 $7.1040 100,000 $47,904 $47.9040 $39,920 $39.9200 $31,936 $31.9360 S S Occu anc Tenantim rovements 500 $554 $27.7238 $462 $23.1031 $370 $18.4825 - - 2,500 $1,109 $22.1850 $924 $18.4875 $739 $14.7900 - 5,000 $1,664 $33.2700 $1,386 $27.7250 $1,109 $22.1800 10,000 $3,327 $7.3950 $2,773 $6.1625 $2,218 $4.9300 - 25,000 $4,436 $2.2050 $3,697 $1.8375 $2,958 $1.4700 50,000 $4,988 $9.9750 $4,156 $8.3125 $3,325 $6.6500 U Accesso -Private Gara e 200 $609 $76.1663 $508 $63.4719 $406 $50.7775 1,000 $1,219 $60.9300 $1,016 $50.7750 $812 $40.6200 2,000 $1,828 $91.3950 $1 523 $76.1625 $1,219 $60.9300 4,000 $3,656 $20.3200 $3,047 $16.9333 $2,437 $13.5467 - 10,000 $4,875 $6.0900 $4,063 $5.0750 $3,250 $4.0600 - 20,000 $5,484 $27.420d $4,570 $22.8500 $3,656 $18.28W R-3 Residential Room Addition 50 $532 $66.5325 $444 $55.4438 $355 $44.3550 250 $665 $133.0650 $554 $110.8875 $444 $88.7100 - 500 $998 $39.9000 $832 $33.2500 $665 $26.6000 1,000 $1,197 $17.7450 $998 $14.7875 $798 $11.8300 2,500 $1,464 $21.2850 $1,220 $17.7375 $976 $14.1900 - - 5,000 $1,996 $39.9150 $1,663 $33.2625 $1,331 $26.6100 SHELL BUILDINGS All Shell Buildin s 1,000 $665 $16.638Q $554 $13.8650 $444 $11.0920 5,000 $1,331 $13.2960 $1 109 $11.0800 $887 $8.8F>40 10,000 $1 996 $19.9560 $1,663 $16.6300 $1,330 $13.3040 Z0,000 $3,991 $4.4360 $3,326 $3.6967 $2,661 $2.9573 50,000 $5,322 $1.3320 $4,435 $1.1100 $3,548 $0.8880 - 100,000 $5,988 $5.9880 $4,990 $4.9900 $3,992 $3.9920 Matrix Consulting Group Page 36 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA � 6 ANNUAL REVENUE IMPACTS - MECHANICAL, ELECTRICAL, AND PLUMBING The Building Division is currently under-recovering its fee-related costs associated with mechanical, electrical, and plumbing by approximately $586,000. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 11: Annual Results-Mechanical, Electrical, and Plumbing Fee Name Annual Revenue at qnnual Cost Annual Surplus/ Volume Current Fee (Deficit) ELECTRICAL �� - ., . ,� ,.�,„ „ Service or PaneL• 600V- 200 amp 89 $8,900 $9,220 ($320) 200-1,000 amp 92 $10,120 $9,531 $589 1,000+ amps 8 $960 $1,658 ($698) Outlets- per item 13 $26 $135 ($109) Lights- per item 6 $12 $62 ($50) Power Equipment-Up to 1 HP or 1 kVA Temporary Power- (main pole of equipment) 16 $640 $829 ($189) Issuance Fee 233 $3,495 $11,095 ($7,600) Inspection of Items Not Listed-'/z hr min 4 $120 $207 ($87) PLUMBING Water Closet 4 $60 $207 ($147) Bathtub (including shower head) 1 $15 $104 ($89) Kitchen Sink 1 $15 $52 ($37) Clothes Washer 2 $30 $104 ($74) Water Heater 250 $3,750 $25,899 ($22,149) Sewer(new, add, alter, repair) 50 $750 $5,180 ($4,430) Water Softener 13 $195 $673 ($478) Clothes Dryer 2 $30 $207 ($177) Gas Piping - per outlet 8 $120 $166 ($46) Miscellaneous Fixtures 2,776 $41,640 $287,579 ($245,939) Issuance Fee 374 $5,610 $16,605 ($10,995) MECHANICAL Heater- less than 100,000 BTU 70 $3,150 $7,252 ($4,102) Air Conditioner: 0-100,000 BTU 202 $5,050 $20,926 ($15,876) 100,000-1,000,000 BTU 11 $440 $1,709 ($1,269) 1,000,000+ BTU 22 $1,210 $4,558 ($3,348) Air Handler- 10,000 CFM or less 20 $900 $2,072 ($1,172) Registers (inlet or outlet) 81 $1,215 $839 $376 (ssuance Fee 337 $5,055 $16,047 ($10,992) NEW FEES Pool/Spa 1 $165 $207 ($42) Kitchen/Bathroom Remodel 184 $83,125 $105,861 ($22,736) CODE COMPLIANCE FEES Special Promotion (Banner) Permit 372 $22,320 $102,316 ($79,996) Special Event Application/Permit 28 $1,680 $72,161 ($70,481) � TOTAL $200,923 $703,718 ($502,795) Matrix Consulting Group Page 37 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFC?RNIA As the table on the previous page indicates, the Building Division is recovering approximately 29% of its fee-related costs associated with Mechanical, Electrical, and Plumbing Services. The largest source of the subsidy at $246,000 is associated with Miscellaneous Plumbing Fixtures. � 7 ANNUAL REVENUE IMPACTS- MISCELLANEOUS , The Building Division is currently over-recovering it costs by approximately $203,000 as it relates to miscellaneous fees. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated deficit. Table 12: Annual Results-Miscellaneous Revenue at Surplus/ Fee Title Unit Annual Current Fee- Total Cost- �Deficit) - Volume Annual Annual Annual ��, ��,�� ro��„ �u,a, .,, �9�� .� , n..:v:�,�, , ro„, �� 9,a�,e ��,�� „�-�,: � �o�� ,,�, „,� ,��A�,� ,,,,� „��Pm� Antenna-Telecom Facility Cellular/Mobile Phone, free-standing each 31 $26,562 $9,656 $16,906 Cellular/Mobile Phone, attached to building each 3 $2,571 $934 $1,636 Awning/Canopy (supported by building) each 1 $260 $177 $83 Deck (wood) each 5 $2,862 $1,258 $1,604 Demolition (up to 3,000 sf) Commercial each 47 $30,954 $11,352 $19,602 Residential each 35 $10,260 $7,754 $2,505 Disabled Access Compliance Inspection per hour 44 $4,840 $12,485 ($7,645) Door New door (non structural) each 8 $1,753 $1,329 $424 Fireplace Masonry each 2 $630 $649 ($19) Foundation Repair each 15 $7,308 $5,020 $2,288 Garage(detached) Wood frame up to 1,000 sf each 8 $10,988 $3,417 $7,572 Patio Cover Other frame up to 300 sf 56 $18,027 $12,797 $5,230 Additional patio each 300 sf 38 $3,772 ($3,772) Photovoltaic System Residential each 494 $351,831 $152,754 $199,076 Commercial up to 10 kw 13 $33,524 $6,961 $26,563 Commercial each 1 kw 1300 $75,002 ($75,002) Matrix Consulting Group Page 38 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Revenue at Surplus/ Fee Title Unit Annual Current Fee- Total Cost- �Deficit)- Volume Annual Annual Annual �,dRe-roof�� . ��,��a��,�aa� ��A�e� �,��.�,��.,,�ma�, u� ,�� Po�,�,,,,��maa, Residential each 511 $184,395 $129,681 $54,714 Commercial up to 500 sf 65 $50,598 $53,118 ($2,519) Commercial Addition each 500 sf 150 $45,130 $63,015 ($17,885) Retaining Wall (concrete or masonry) Standard (up to 50 If) up to 50 If 34 $8,751 $12,946 ($4,196) Additional retaining wall each 50 If 1 $58 ($58) Special Design, 3-10' high (up to 50 If) up to 50 If 8 $2,993 $3,324 ($331) Additional retaining wall each 50 If 5 $288 ($288) Special Design, over 10' high (up to 50 If) up to 50 If 2 $490 $865 ($375) Additional retaining wall each 50 if 10 $577 ($577) Siding Stone and Brick Veneer(interior or exterior) up to 400 sf 30 $17,453 $4,293 $13,160 Signs Directional each 111 $29,672 $23,733 $5,938 Wall/Awning Sign, Non-Electric each 17 $2,757 $3,295 ($538) Wall, Electric each 59 $13,306 $11,436 $1,870 Stairs-First Flight first flight 3 $4,289 $512 $3,777 Each additional flight per flight 3 $143 ($143) Storage Racks 0-8' high (up to 100 If) first 100 1f 12 $8,100 $1,385 $6,716 each additional 100 If each 100 If 90 $5,192 ($5,192) Swimming PooVSpa Vinyl-lined (up to 800 sf) each 65 $56,200 $33,311 $22,888 Commercial pool (up to 800 sf) each 3 $2,962 $1,717 $1,245 Window or Sliding Glass Door Replacement each 805 $11,866 $87,276 ($75,411) New Window(non structural) each 19 $5,464 $2,587 $2,878 Bay Window (structural) each 1 $187 $309 ($123) TOTAL $946,984 $744,383 $202,601 The Building Division is recovering approximately 127% of its costs related to miscellaneous fees and services. The largest source of this over-recovery is related to Photovoltaic systems. Implementing a flat fee schedule for these types of services will Matrix Consulting Group Page 39 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA help City and Building staff account better for their time and effort spent on these services compared to utilizing a valuation-based fee schedule. �, 8 ANNUAL RESULTS- PLAN CHECK AND INSPECTION The project team reviewed the permitting data for residential and commercial projects to calculate the annual revenue impacts associated with converting from a valuation-based fee schedule to a square footage and occupancy based fee schedule. The following table shows by occupancy type, the total number of projects, the annual revenue, the annual cost, and the associated surplus / (deficit). Table 13: Annual Results-Plan Check&Inspection Occupancy Type #of Annual Revenue Total Annual Annual Surplus/ Projects at Current Fee Cost (Deficit) �A-Tenant �,F��„ ��, .� �,��>, ��<14 �,Ae�� ,a,��17,361 �n� $24,241�,A„ , �d,� ��6,880�� Improvements B-New Construction 1 $12,287 $10,950 $1,337 B-Tenant 376 $880,284 $1,247,410 ($367,126) Improvements M-New Construction 1 $7,111 $3,253 $3,858 R-2 New Construction 14 $104,658 $270,190 ($165,532) R-3 New Construction 34 $101,225 $79,255 $21,970 R-4 New Construction 1 $66,534 $28,650 $37,884 R-Occupancy Tenant 107 $38,528 $109,461 ($70,933) Improvement S1 -New Construction 2 $70,876 $19,144 $51,732 S2-New Construction 3 $185,219 $149,520 $35,699 S-Tenant Improvement 2 $9,536 $2,460 $7,075 U-Accessory 6 $19,900 $6,267 $13,633 R3- Room Addition 73 $94,424 $77,359 $17,065 __ __ _ __ __ _ .. _ __ __ _. _ TOTAL $1,607,943 $2,028,160 ($420,217) As the table above indicates the annual cost recovery for plan check and inspection services is 79%, with a deficit of $420,000. The largest source of this deficit is B Occupancy Tenant Improvements. 9 ANNUAL RESULTS - OVERALL Based upon the results presented in the previous section, as well as the annual analysis comparison conducted for Plan Check and Inspection services, the Building Division is overall under-recovering its cost by approximately $735,000. The following table shows by fee category, the revenue at current fee, the total annual cost, annual surplus/(deficit), and cost recovery percentage. Matrix Consulting Group Page 40 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Table 14: Annual Results—Overall Fee Category Revenue @ Total Annual Cost Current Fee Annual Surplus/ Recovery% Cost (Deficit) ��,�� ,,�,� ��A„.�9 �� ,�,�, �,�,�a� �„�, ��,� �, � �a� � ,b��, ,�,� Mechanical, Electrical, and Plumbing $200,923 $703 718 ($502,795) 29% Miscellaneous Fees $946,984 $744,383 $202,601 127% New Construction,Tenant Improvement, $1,607,943 $2,028,160 ($420,217) 79% and Additions TOTAL $2,755,850 $3,476,260 ($720,410) 79% As the table above indicates the Building Division is recovering approximately 79% of its costs. However, the 79% cost recovery represents a $735,000 subsidy. The largest source of the deficit is Mechanical, Electrical, and Plumbing Permits. � � 10 BUILDING CROSS-DEPARTMENTAL SUPPORT x., As part of the development review process other City Departments and Divisions review the plans and sometimes conduct inspections associated with Building projects/permits. The other City Departments and Divisions that are typically involved in the Building review process are: Public Works, Planning, Fire, and Police. The Public Works Department currently charges separate deposits for its review and inspection as part of the development review process. Similarly, the Planning Division charges a separate flat fee for over the counter review of Building Plans. These fees were assessed as part of each Division's chapter and results. In regards to the Fire Department and Police Department support of the Building Division, the project team worked with staff in each of the Departments to evaluate the total cost associated with plan check and inspection services. In order for the simplest method of assessing fees, the project team calculated Fire and Police support as a percentage of the Building Permit Fee. The following table shows the results for Police and Fire as a percentage of the building permit fee. Table 15: Building Cross Departmental Support Category �� Amount � a�� w� Fire Department 48%of Building Permit Fee Police Department 17%of Buildin�Permit Fee As the table above indicates, the City of Orange should assess a fee for Fire and Police support for Building Plan Check and Inspection to help account for the support provided by those Departments / Divisions during the Building review process. Matrix Consulting Group Page 41 DRAFTCost of Services(User Fee) Study CITY OF OFtANGE, CA�IFORNIA ; 11 JURISDICTION COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at four different scenarios related to Building Plan Check and Inspection as well as two flat fee comparisons. 1 New Single Family Home— 2,622 Sq. Ft., $256,628 Valuation The City of Orange currently assesses Building Plan Check and Inspection fees associated with a New Single Family Home based upon valuation. The full cost associated with the service was calculated based upon the square footage of the New Single Family Home. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Single Family Home - New Permit and Plan Check Fees $5,000 $4,500 $4,000 $3,500 � $3,000 d � $2,500 �Permit a� a $2,000 �Plan Check $1,500 Average $1,000 $500 $- , Orange- Orange- Santa Ana Garden Fullerton- Huntington Costa Current Full Cost- -Sq. Ft. Grove- Valuation Beach- Mesa- Sq. Ft. Valuation Valuation Valuation As the chart above indicates, the City of Orange at its current fee of $3,611 for a New Single Family Home is charging above the average of$3,088. However, its full cost based on square footage is $2,474, which is below the average of other jurisdictions. Matrix Consulting Group Page 42 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 2 Tenant improvement — Retail — 2,743 Sq. Ft., $204,847 The City of Orange currently assesses Building Plan Check and Inspection fees associated with a Retail Tenant Improvement based upon valuation. The full cost associated with the service was calculated based upon the square footage of the Tenant Improvement of the Retail store.The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Tenant Improvement - Retail Permit and Plan Check Fees $3,500 $3,000 $2,500 �Permit � $2,000 ��Plan � Check r � Average a $1,500 $1,000 $500 $- Orange- Orange- Santa Ana- Garden Fullerton- Huntington Costa Mesa Current Full Cost- Sq. Ft. Grove- Valuation Beach- -Valuation Sq. Ft. Valuation Valuation As the graph above shows, the City of Orange's current fee at $3,060 is above the average fee of $2,216 being charged by the surrounding jurisdictions. Similar to the New Single Family Home, the $2,229 fee is in line with the average fee. 3 New Senior Care Facility — 92,528 Sq. Ft., $10,324,274 Valuation The City of Orange currently assesses Building Plan Check and Inspection fees associated with a New Senior Care Facility based upon valuation.The full cost associated with the service was calculated based upon the square footage of the New Senior Care Facility. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 43 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Senior Care Facility - New Permit and Plan Check Fees $so,000 $�o,000 $60,000 $50,000 �Permit N d 1i rr�Plan � $40,000 Check � d Average a $30,000 $20,000 $10,000 $- Orange- Orange- Santa Ana- Garden Fullerton- Huntington Costa Mesa Current Full Cost- Sq. Ft. Grove- Valuation Beach- -Valuation Sq. Ft. Valuation Valuation The chart above shows that the current fee of $67,640 for a New Senior Care Facility is significantly above the average of $52,094. However, the full cost calculated based on square footage is $16,655 and significantly below the average, and only slightly higher than the lowest fee charged by Santa Ana. 4 Tenant Improvement Restaurant— 9,389 Sq. Ft., $1,041,052 Valuation The City of Orange currently assesses Plan Check and Inspection for a Restaurant Tenant Improvement based upon valuation. The full cost calculated through this study calculates it based on the square footage and the occupancy type. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 44 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Tenant Improvement - Restaurant Permit and Plan Check Fees ��2,000 $10,000 N $8,000 y �Permit d � £ $6,000 ��Plan L Check d a $4,000 Average $2,000 $- , , Orange- Orange- Santa Ana- Garden Fullerton- Huntington Costa Mesa Current Full Cost- Sq. Ft. Grove- Valuation Beach- -Valuation Sq. Ft. Valuation Valuation Similar to the previous scenarios, the current fee for the City of Orange at $11,012 is higher than the current average fee charged by jurisdictions ($8,078). The full cost calculated through the study ($8,095) is only slightly higher than the average, but lower than the current fee. 5 Water Heater The City of Orange currently charges a flat fee for a Water heater at $15; however, the study calculated the full cost associated with Water heater at $104. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Water Heater $120 $100 � $80 � a.�Review Fee Y $60 � Average � $40 $20 $- m ca a� c °' c �Uo � c °' 'oo � a�� U � a m a� ca � �oo � C'3 — � O U �o � c�o n�i � p o oC � � c� � Matrix Consulting Group Page 45 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA As the graph on the previous page indicates, the current fee charged by the City of Orange is significantly below the average charged by other jurisdictions ($37). However, its full cost calculated at $104, is the highest fee, and is approximately $16 higher than the second highest fee of$88 charged by Santa Ana. 6 Permit Issuance Fee The City of Orange currently charges a flat fee for a Permit Issuance at$15; however, the study calculated the full cost associated with Permit Issuance at$44, representing a $29 per unit deficit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Permit Issuance Fee $60 $50 � $40 m � $30 �Review Fee �� $20 Average $1� $- � o c °' o � o � a m N 7 � �6 ('� � U � N (�0 � LL- � N� (n �6 O� �� cu `a �a U C� O � As the graph above indicates, the City of Orange's current fee at$15 is below the average of $37 charged by surrounding jurisdictions. However, the full cost of $44 is only slightly above the average and still below the fees charged by Santa Ana and Fullerton. Matrix Consulting Group Page 46 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 7. COMMUNITY DEVELOPMENT - PLANNING The Planning Division is responsible for managing the land use and development priorities issued by the City Council in the General Plan, zoning ordinances, and specific plans. The Division is responsible for two primary functions: Advance Planning and Current Planning. Advance Planning staff provide long range land planning and zoning administrator services. Current Planning is responsible for handling development proposals, as well as on-going public inquiries regarding City development standards and land use. The fees examined within this study relate to Current Planning functions only, including: Temporary Use Permits, Sober Living Permits, and Zoning Verification letters. � � 1 FEE SCHEDULE MODIFICATIONS �� The Planning Fee schedule is segregated between flat fees and deposit-based fees. The focus of this study was primarily on the flat fees. The project team worked with the Planning Division to streamline the current fee schedule by altering some of the names and the classification of its fees. The following points highlight some of these changes: • Eliminated Refund Processing Fee. • Added a new flat fee for Business License Reviews. • Moved the Temporary Use Permit fees from the Building Fee Schedule to the Planning Fee Schedule. • Added a new fee for Zoning Verification Letter, as it was missing from the current fee schedule. • Moved the Outdoor Dining Permits license from Public Works to Planning as the permit is issued by Planning staff and expanded it to include the initial review and the annual permit fee. Identifying and implementing these changes to the Planning Fee Schedule have helped to clarify the fee schedule as well as ensure that all services being provided by the Planning Division are reflected on the fee schedule. � 2 DETAILED RESULTS — FLAT FEES The Planning Division collects flat fees as it relates to Sober Living Permits, Mills Act Program, Zone Clearance, Temporary Use Permits, and Zoning Verification Letters. The total cost calculated for each service includes direct staff costs, direct material costs Matrix Consulting Group Page 47 DRAFTCost of Services(User Fee) Study CITY OF OFiANGE, CA�IFORNIA (where applicable), Departmental and Citywide overhead. The following table details the title / name, current fee, total cost, and surplus or deficit associated with each Planning permit. Table 16:Total Cost Per Unit Results—Planning Total Cost Per Surplus 1 Fee Name Current Fee Unit �Qeficit) per Unit ,,, , ,,.,,.,, : ,,, ,, „ �, < ,� o �. ,.,,..,� � Sober Living Permit Fee $250 $1,781 ($1,531) Mills Act Program: Original Application Fee $1,000 $1,159 ($159) Inspection/Annual Report $30 $79 ($49) Zone Clearance, Over the Counter Review $30 $35 $5 Staff research, information requests-per hour $103 ($103) Temporary Use Permit(recurring) $35 $421 ($386) Temporary Use Permit (non-recurring uses) $70 $1,969 ($1,899) Zoning Verification Letter $64 $452 ($388) Outdoor Dining Permits Initial $50 $396 ($346) Renewal $50 $116 ($66) General Plan Update 0.05%of valuation 0.5%of valuation -0.45% NEW FEES: Business License Review NEW $55 All but one of the fees related to planning services is under-recovering. The largest source of under-recovery on a per unit basis is the Temporary Use Permit— Non-Recurring Uses at $1,899. The average per unit cost recovery for the Division is 31%. � 3 GENERAL PLAN UPDATE SURCHARGE One of the fees identified in the Planning Flat Fees Cost Per Unit results table is the General Plan Update Surcharge. Currently, the Planning Division assesses approximately 0.05% of valuation of each building project for the General Plan Update surcharge. However, based upon the costs associated with updating a General Plan and the total valuation of development activity within the City of Orange, the total cost calculated by the project team is 0.5% of valuation. The following table compares the current annual revenue collected under the General Plan Update compared to the total annual cost associated with the General Plan Update. Table 17: General Plan Update-Annual Analysis Category Amaunt � Revenue at Current Fee $33,123� Total Annual Cost $331,226 Annual Surplus/(Deficit) ($298,103) Cost Recovery% 10% Matrix Consulting Group Page 48 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA As the table above indicates, the City is currently recovering only 10% of its costs related to the General Plan Update. It is the project team's recommendation that the City not only increase the current General Plan Update Surcharge to start collecting enough funds to update the General Plan, but that this collection must be made in a separate fund from the General Fund. The reasoning for a separate fund from the General Fund is to ensure that the funds calculated for this fee are only utilized for the General Plan update and not to fund any operational costs associated with the Planning Division. Separate fund accounting for the General Plan Update is a best management practice and is a requirement associated with the assessment of this type of fee. � 4 DEPOSIT-BASED FEES ya The idea behind deposit-based fees is that they are intended to be cost recovery, as the total time spent on a project is billed to the application. Therefore, the project team did not evaluate the deposit-based fees. However, through this study the project team provided City staff with fully burdened hourly rates to ensure that as staff continue to collect and charge against deposits, they are accounting for their fully burdened cost — direct and indirect. It is the project team's recommendation that the City should review its current deposit levels and where appropriate raise its deposits to ensure that it is capturing the minimum costs associated with processing an application. This is in line with best management practices for deposit-based services. Higher deposit amounts typically are more customer friendly as they result in the department or City providing refunds to applicants rather than invoicing the applicants for additional costs through the deposit-based process. Additionally, the Planning review process involves a variety of City Departments and Divisions. It is the project team's recommendation that in order for the City to account for the true and full cost of providing planning review services, the other City Departments / Divisions should also charge their time and thereby their cost to those planning deposits. This will help ensure the City captures the full cost associated with Planning services. � 5 ANNUAL REVENUE IMPACTS— FLAT FEES � The Planning Division is currently under-recovering its fee-related costs associated with its flat fee services by approximately $52,000. The following table shows the annual workload volume for FY 16/17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Matrix Consulting Group Page 49 ORAFT Cost of Services{User Fee} Study CITY OF ORANGE, CALIFORNIA Table 18: Annual Results—Planning Flat Fees Fee Name Annual Revenue at Total Annual Annua! Surplus Volume Current �ee Cost /{Deficit} �.. „w,..o : a�., � a, ,..,,,, „ , �r,., .ok � Mills Act Program: Original Application Fee 15 $15,000 $17,392 ($2,392) Inspection/Annual Report 24 $720 $1,897 ($1,177) Zone Clearance, Over the Counter Review 1,669 $50,070 $58,997 ($8,927) Temporary Use Permit(recurring) 8 $280 $3,371 ($3,091) Temporary Use Permit(non-recurring uses) 13 $910 $25,591 ($24,681) Zoning Verification Letter 30 $1,920 $13,570 ($11,650) TOTAL $68,900 $120,819 ($51,919) Overall, the Planning Division is recovering approximately 57% of its flat fees related costs. The largest source of the flat fees deficit is the Temporary Use Permit— Recurring, comprising approximately $25,000 of the $39,000 deficit. � 4 JURISDICTIONAL COMPARISON i As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at only the flat fees reviewed through this study. 1 Temporary Use Permit — Recurring Uses The City is currently charging $35 for recurring uses of Temporary Use Permits.The study calculated that the total cost is $421, resulting in a per unit deficit of $386. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Temporary Use Permit $45o Recurrin Uses $400 $350 � $300 u- $250 —Review Fee �� $200 Average � $150 $100 $50 $ �c �Uo �' c a`�i a�i � o �N �U j Q pp � o a�i (6 � �o � � �' (� � �(� c6 p � � LL �� Matrix Consulting Group Page 50 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNlA As the graph above indicates, the current fee being assessed by the City of Orange is below the average fee of$160 associated with Temporary Use Permits—Recurring Uses. The City of Santa Ana, charges$391 for a Temporary Use Permit— Recurring Use, which is only slightly lower ($30) than the total cost calculated for Temporary Use Permits — Recurring Uses through the study. 2 Temporary Use Permit — Non-Recurring Uses The City is currently charging $70 for non-recurring uses of Temporary Use Permits. The study calculated that the total cost is $1,969, resulting in a per unit deficit of $1,899. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Temporary Use Permit Non-Recurring Use $2,500 $2,000 � � $1,500 .�ReviewFee � Average � $1,000 a $500 $ � �s m a� � � o c °' i � � � a m N � � Q �6 � - U � N N � � LL � �� `� �U � O � As the graph above indicates, the current fee being assessed by the City of Orange is below the average fee of $375 associated with Temporary Use Permits— Non-Recurring Uses. Matrix Consulting Group Page 51 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 8. COMMUNITY SERVICES - FILMING The Community Services Department is responsible for managing the City's Commercial Film Permit Process and operations. The Public Affairs and Information Division is responsible for managing filming application fees and permit fees. The fees examined within this study relate to Filming functions only, including application fees and permit fees. Student film permits fall under the purview of the filming guidelines and are handled by the City Clerk's Department. There is a separate agreement in place with Chapman University that provides a transfer of funds in lieu of charging students. �� 1 FEE SCHEDULE MODIFICATIONS The project team worked with Community Services — Public Affairs and Information Division staff to review the current fee schedule for filming services. Based upon discussions with staff no modifications are being proposed to the fee schedule. � 2 DETAILED RESULTS � The Community Services Department collects fees for filming permits. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title / name, current fee, total cost, and surplus or deficit associated with each Filming permit. Table 19: Total Cost Per Unit Results—Filming Fee Name Current Tatal Cost Per Surplus/(Deficit} Fee Unit per Unit u �� .: �„a�„�,,,. �-, ,,. ,�„,,, . � o,..,� ., ��,,; . �. ��., „ ,,,, ,9 .,,.,,,, Application Fees $40 $82 ($42)� Citywide (Excludes Plaza District)—per day $208 $327 ($119) Plaza District Motion—per day $444 $327 $117 Plaza District Still—per day $208 $327 ($119) Parks—per day $218 $163 $55 The greatest deficit ($119) relates to Citywide and Plaza District Still fees, while the largest surplus ($117) relates to Plaza District Motion fees. 3 ANNUALREVENUEIMPACTS The Community Services Division is currently under-recovering its filming fee-related costs associated with its services by approximately$3,000. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Matrix Consulting Group Page 52 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Table 20: Annual Results—Filming Fee Name Annuai Revenue at Annual Cost Annuai Surplus Voiume Current Fee /{Deficit) ,: �,d. ,.� �,,,., „;, . ,, v �, ,.,, ,, ,� ,. ,�,.. �,., ,„a,.,�, „ � ,� , , ,,,,,,,,, ,, � �� , . ,a,..,,, Application Fees � 44 $1,760 $3,596 � � ($1,836) Citywide(Excludes Plaza District) 10 $2,080 $3,269 ($1,189) TOTAL $3,840 $6,866 ($3,026) Overall, the Filming Division is recovering approximately 56%of its filming service related costs. � 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at one common Filming permit and service. 1 Film Permit — 1 day of shooting The city is currently charging $40 for a Film Permit Application and $444 per day for filming at the Plaza District, resulting in a total fee of one day of shooting of $484. The study calculated that the total cost of the application fee and filming for one day at the Plaza combined is$409, resulting in a per unit surplus of$75. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Film Permit - 1 day of filming $600 $500 � $400 Y $300 �Review Fee � $200 Average a $100 $ �� o � a � a>U m c � � oo � ro � OU �� c�a O�� As the graph above indicates, the City of Orange at $484 for 1 day of filming is above the average at $470 compared to other jurisdictions. However, its fee at full cost recovery ($409) is only below the average of $470 charged by other surrounding jurisdictions. Matrix Consulting Group Page 53 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 9. COMMUNITY SERVICES - PARKS AND RECREATION The Community Services Department is responsible for managing city properties to provide a safe and well-maintained community. The Parks and Recreation Division is responsible for maintaining City parks and open space, providing community programs and managing facility rentals. Community programs offered include recreational swim, swim lessons, day camp, and a basketball league. Facility rentals include pool rentals, athletic field rentals, park rentals (green space and picnic areas), and community center rentals. The fees examined within this study relate to Community Programs and Facility Rentals. 1 FEE SCHEDULE MODIFICATIONS During discussions with staff in the Community Services Department, there were no major changes proposed to the current Fee Schedule. The primary change was related to facility and park rentals. The change was to ensure that the four different categories: Non- Orange Based Business, For Profit; Orange-Based Business, For Profit; Non-Resident, Non-Profit; Resident, Non-Profit were represented for all the different types of rentals. Additionally, the project team worked with staff to identify three new fees: Refund Processing Fee, Booth Participation Fee, and Landscape and Irrigation Permit and Plan Check Fee. These are all currently services being provided by the Division, but there is no mechanism or fee in place to recover the costs associated with administering these processes. Identification of these new services will enable the Department and the City to understand the subsidy associated with these services. 2 DETAILED RESULTS The Community Services Department collects fees related to Aquatics, Park Rentals, Community Gardens, Facility Rentals, Special Events, and other community-based services. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), facility and improvement costs, Departmental and Citywide overhead. The following table details the title /name, current fee, total cost, and surplus or deficit associated with each Parks and Recreation permit. Table 21: Total Cost Per Unit Results—Community Services Curren# Fee Totai Surplus/ Fee Name Cost Per (Deficit) � �,�,.,,e, ,A ,� �wa...._e.n,.,..., ,a,.. e .,,..e ....., ., ,:...,r. ,, ��,��., .. ,�.., „...<.. �,,,�, _. „ . Unit per Unit Aquatic Programs: Recreational Swim $2.50 $32 ($29) Recreation Swim Pass- 15 sessions $28 $477 ($449) Matrix Consulting Group Page 54 �RAFT Cost of Services(User Fee) Study GTY OF ORANGE, CALIFORNIA Current Fee To#al Surplus I Fee Name Gost Per (Deficit) Unit per Unit { Group lessons-9 Izessonsa-per participant F � d n �$40 $201 ($161) Swim lessons, private—per lesson $27 $376 ($349) Aqua Aerobics Class— 10 classes $30 $67 ($37) Kids Rule the Pool $7 $28 ($21) Life Guard Training Class $150 $387 ($237) Water Safety Instructor Class $150 $299 ($149) City Special Events-3rd of July 3rd of July Celebration, general public pre-sale $7 $23 ($16) 3rd of July Celebration, general public day of event $7 $23 ($16) 3rd of July Celebration, non-profit pre-sale $4.50 $23 ($18) 3rd of July Celebration, children under 2 $- $23 ($23) Day Camp—Resident $95 $188 ($93) Day Camp—Non-Resident $110 $188 ($78) Basketball League-per season $246 $167 $79 Open Gym - per session $2 $8 ($6) Party Equipment Permit Fee $15 $52 ($37) Moon Bounce Permit $30 $52 ($22) Special Event Permit $60 $239 ($179) New Fees: Refund Processing Fee $10 $85 ($75) Booth Participation Fee-City Sponsored Events Third of July $354 Tree Lighting and Treats in the Streets $354 Landscape& Irrigation Permit& Plan Check $863 FACILITY RENTALS Pool Rentals Groups 1-150 People Deposit $75 $213 ($138) Non-Orange Based Business $435 $851 ($416) Orange Based Business $375 $851 ($476) Non-Resident $145 $851 ($706) Resident, Non-Profit $125 $851 ($726) Groups 151-200 People Deposit $150 $276 ($126) Non-Orange Based Business $765 $1,103 ($338) Orange Based Business $705 $1,103 ($398) Non-Resident $255 $1,103 ($848) Resident, Non-Profit $235 $1,103 ($868) Green/Open Space Fee: Groups 1-50 People Deposit $50 $22 $28 Non-Orange Based Business-per hour $120 $107 $13 Orange Based Business-per hour $90 $107 ($17) Non-Resident- per use $40 $43 ($3) Resident, Non-Profit-per use $30 $43 ($13) Groups 51-100 People Deposit $75 $33 $42 Non-Orange Based Business-per hour $150 $111 $39 Matrix Consulting Group Page 55 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Current Fee Total Surplus/ Fee Name Cost Per {Deficit} Unit per Unit ��. . ,,.�o,a �..w�F..�<. , �, ��,; p , m, ��. �. � ,,.,,. �. .,, w, „ ,nra,,,.,,u, , ti, , � , Oran e Based Business �er hour $120 �� $111 �$9�� Non-Resident - per use $50 $66 ($16) Resident, Non-Profit- per use $40 $66 ($26) Groups 101-200 People Deposit $150 $56 $94 Non-Orange Based Business-per hour $225 $119 $106 Orange Based Business -per hour $195 $119 $76 Non-Resident- per use $75 $112 ($37) Resident, Non-Profit- per use $65 $112 ($47) Groups 201 or More People Deposit $250 $79 $171 Non-Orange Based Business- per hour $330 $179 $151 Orange Based Business-per hour $300 $179 $121 Non-Resident- per use $110 $158 ($48) Resident, Non-Profit- per use $100 $158 ($58) Band Shelis Deposit $50 $51 ($1) Non-Resident- per hour $55 $102 ($47) Resident- per hour $35 $102 ($67) Community Garden Deposit $100 $92 $8 Non-Resident- per year $100 $185 ($85) Resident- per year $75 $185 ($110) Facilities- Handy, Hart, EI Camino, Ambriz, Killefer, and Grijalva Building A Deposit $75 $52 $23 Non-Orange Based Business- per hour $150 $103 $47 Orange Based Business-per hour $90 $103 ($13) Non-Resident- per hour $50 $103 ($53) Resident, Non-Profit- per hour $30 $103 ($73) Facilities-Olive&Shaffer Deposit $75 $58 $17 Non-Orange Based Business- per hour $180 $115 $65 Orange Based Business—per hour $120 $115 $5 Non-Resident- per hour $60 $115 ($55) Resident, Non-Profit- per hour $40 $115 ($75) Picnic Areas: Groups 1-50 People Deposit $50 $56 ($6) Non-Orange Based Business- 1 st Five Hours $240 $112 $128 Non-Orange Based Business- Each Addl Hour $60 $22 $38 Orange Based Business- ist Five Hours $180 $112 $68 Orange Based Business- Each Addl Hour $45 $22 $23 Non-Resident- 1st Five Hours $80 $112 ($32) Non-Resident- Each Addl Hour $20 $22 ($2) Resident- 1st Five Hours $60 $112 ($52) Resident- Each Addl Hour $15 $22 ($7) Groups 51-100 People Matrix Consulting Group Page 56 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Current Fee Total Surplus 1 Fee Name Cost Per (Deficit) Unit per Unit �,,.� . a, ,�a w„a „ d,,.� . � P. .. ,:o.., ,,�,�a� :� . . ,o��:.,,, , ,,,, Deposit $75 $61 $14 Non-Orange Based Business- 1st Five Hours $300 $122 $178 Non-Orange Based Business- Each Addl Hour $75 $24 $51 Orange Based Business- 1st Five Hours $240 $122 $118 Orange Based Business- Each Addl Hour $60 $24 $36 Non-Resident- 1st Five Hours $100 $122 ($22) Non-Resident- Each Addl Hour $25 $24 $1 Resident- 1 st Five Hours $80 $122 ($42) Resident- Each Addl Hour $20 $24 ($4) Groups 101-200 People Deposit $150 $70 $80 Non-Orange Based Business- 1st Five Hours $450 $140 $310 Non-Orange Based Business- Each Addl Hour $112 $28 $84 Orange Based Business- 1st Five Hours $390 $140 $250 Orange Based Business- Each Addl Hour $97 $28 $69 Non-Resident- 1st Five Hours $150 $140 $10 Non-Resident- Each Addl Hour $37 $28 $9 Resident- 1st Five Hours $130 $140 ($10) Resident- Each Addl Hour $32 $28 $4 Groups 201 or more $0 Deposit $250 $79 $171 Non-Orange Based Business- ist Five Hours $660 $158 $502 Non-Orange Based Business- Each Addl Hour $165 $32 $133 Orange Based Business- 1st Five Hours $600 $158 $442 Orange Based Business- Each Addl Hour $150 $32 $118 Non-Resident- 1 st Five Hours $220 $158 $62 Non-Resident- Each Addi Hour $55 $32 $23 Resident- 1st Five Hours $200 $158 $42 Resident- Each Addl Hour $50 $32 $18 All Purpose Courts: (2 Hour Minimum Rental) Lighted Non-Resident- per hour $15 $37 ($22) Resident- per hour $10 $37 ($27) Approved City of Orange Youth Sports Non-Profit Organizations �- $37 ($37) Non-Lighted Non-Resident $15 $36 ($21) Resident $10 $36 ($26) Approved City of Orange Youth Sports Non-Profit $- $36 Organizations ($36) Athletic Fields: (2 Hour minimum rental) Lighted Deposit $50 $51 ($1) Non-Orange Based Business-per hour $135 $102 $33 Orange Based Business-per hour $75 $102 ($27) Non-Resident, Non-Resident Non-Profit- per hour $45 $102 ($57) Resident, Resident Non-Profit-per hour $25 $102 ($77) Approved City of Orange Youth Sports Non-Profit Organizations- per hour $10 $102 ($93) Matrix Consulting Group Page 57 DRAFT Cost of Services(User Fee) Study GITY OF ORANGE, CALIFORNIA Current Fee Tatal Surplus/ Fee Name Cost Per (Deficit) Unit per Uni# � �� Non-Lighted ,n �, � ,,. . � w �„ .��... . ,... , m.o. .. , �. ,,,, „_ �., . . . ,.._,, „ Deposit $50 $46 $4 Non-Orange Based Business-per hour $105 $92 $13 Orange Based Business-per hour $45 $92 ($47) Non-Resident, Non-Resident Non-Profit- per hour $35 $92 ($57) Resident, Resident Non-Profit- per hour $15 $92 ($77) Approved City of Orange Youth Sports Non-Profit $2 $92 Organizations- per hour �$90� Sports Center at Grijalva Park: Gymnasium Deposit $100 $110 ($10) Non-Orange Based Business-per hour $175 $219 ($44) Orange Based Business-per hour $150 $219 ($69) Non-Resident, Non-Resident Non-Profit- per hour $95 $219 ($124) Resident, Resident Non-Profit- per hour $65 $219 ($154) Deposit- muiti use $250 $250 Approved City of Orange Travel Ball /Club/ $65 $219 Competitive Youth Sports Non-Profit ($154) Approved City of Orange Recreation Based Youth $45 $219 Sports Non-Profit ($174) Classroom A Deposit $40 $94 ($54) Non-Orange Based Business-per hour $50 $94 ($44) Orange Based Business-per hour $40 $94 ($54) Non-Resident, Non-Resident Non-Profit- per hour $30 $94 ($64) Resident, Resident Non-Profit- per hour $20 $94 ($74) Classroom B Deposit $40 $94 ($54) Non-Orange Based Business- per hour $50 $94 ($44) Orange Based Business-per hour $40 $94 ($54) Non-Resident, Non-Resident Non-Profit- per hour $30 $94 ($64) Resident, Resident Non-Profit- per hour $20 $94 ($74) Classroom AB Deposit $75 $219 ($144) Non-Orange Based Business -per hour $100 $219 ($119) Orange Based Business-per hour $80 $219 ($139) Non-Resident, Non-Resident Non-Profit- per hour $60 $219 ($159) Resident, Resident Non-Profit- per hour $40 $219 ($179) Dance Room Deposit $75 $188 ($113) Non-Orange Based Business-per hour $100 $188 ($88) Orange Based Business-per hour $80 $188 ($108) Non-Resident, Non-Resident Non-Profit- per hour $60 $188 ($128) Resident, Resident Non-Profit-per hour $40 $188 ($148) Senior Citizen Center: Large Banquet Room Deposit $500 $376 $124 Non-Orange Based Business- 1 st Five Hours $600 $751 ($151) Non-Orange Based Business- Each Addl Hour $120 $111 $9 Matrix Consulting Group Page 58 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CA�IFORMA Curren# Fee Totai Surplus/ Fee Name Cost Per (Deficit) Unit per Unit �� a,� ��,�, �� d,��, , , w� J�,m��, a,, , , , ,,, ,,, ,,, md�, ,,,,,,,,, ,,..- Orange Based Business- 1st Five Hours �� $600 �� $751 �� ($151)�� Orange Based Business- Each Addl Hour $120 $111 $9 Non-Resident- 1 st Five Hours $600 $751 ($151) Non-Resident- Each Addl Hour $120 $111 $9 Resident- 1 st Five Hours $500 $751 ($251) Resident- Each Addl Hour $100 $111 ($11) Meeting Rooms: Deposit $75 $23 $52 Non-Orange Based Business-per hour $50 $46 $4 Orange Based Business-per hour $50 $46 $4 Non-Resident, Non-Resident Non-Profit- per hour $50 $46 $4 Resident, Resident Non-Profit- per hour $30 $46 ($16) A majority of the fees relating to Parks and Recreation services are under-recovering, with roughly 65% of the permits showing a subsidy. The largest deficit ($868) relates to Pool Rentals for a residential non-profit with a group size of 151-200, while the largest surplus ($502) relates to Picnic Area Rentals for a Non-Orange based business for the first five hours for a group size of 200 or more people. The average per unit cost recovery for the Division is 101% and reflects a straight average of cost recovery for each fee included in the study and is not reflective of annual cost recovery for the Department. It is important to note that for Parks and Recreation unlike other services, the current fee should be based upon market factors. The figures represented in Table 18 represent staff time and material cost associated with administering these programs, but do not reflect the actual market value of rental spaces, park rentals, or administering these programs. Therefore, staff and City management should review and utilize these results as a guideline for updating the current fees for service related to Recreation programs and facilities. 3 ANNUALREVENUEIMPACTS The Community Services — Parks and Recreation Division is currently under-recovering its Parks and Recreation fee-related costs associated with its services by approximately $1,036,000. The following table shows the annual workload volume for FY 17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 22: Annual Results—Parks and Recreation Annual Revenue Annual A�nual Fee Name Volume �� urrent �otal Cost 'Urplus/ �,�,_.��.� �� ,.,��.e��,,....., .,,. ,, .,;n .�o,�,�.,E.. �..,,�.,. ,.,.. ee {Def icit j � �,,, ,.e..e�., �� ,.s.a�., :,�.:... .e.e..,. . „ ,..,.,,P.m,„ , Aquatic Programs: Recreational Swim 7,329 $18,323 $233,120 ($214,797) Recreation Swim Pass- 15 sessions 187 $5,236 $89,221 ($83,985) Matrix Consulting Group Page 59 DRAFTCos#of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Annuai �evenue Annual Annual Fee Name Volume at Current Total Cost �urpius/ Fee (Deficit) �� .,,,< ,,,� w,A. �� ,., �. ,,, a�m�.,.,,,,, o R,da ,. � m,,. .a .,<,�.,� ,�,ti��, , , ,, N.,.. ��,ati a Group lessons-9 lessons-per participant �1,624 $64,960 � $326,649 ($261,689)�� Aqua Aerobics Class 56 $1,680 $3,767 ($2,087) City Special Events-3rd of July 3rd of July Celebration, general public pre-sale 10,000 $70,000 $226,530 ($156,530) Day Camp 1,190 $113,050 $223,609 ($110,559) Basketball League-per season 1,720 $423,120 $286,567 $138,553 Open Gym - per week 3,105 $6,210 $25,479 ($19,269) FACILITY RENTALS Green/Open Space Fee: Groups 1-50 People Resident, Non-Profit-per use 2,208 $66,240 $96,031 ($29,791) Band Shells Resident- per hour 435 $15,225 $44,184 ($28,959) Faciiities - Handy, Hart, EI Camino, Ambriz, Killefer, and Grijalva Building A Resident, Non-Profit- per hour 665 $19,947 $68,631 ($48,684) Facilities -Olive& Shaffer Resident, Non-Profit- per hour 817 $24,498 $94,264 ($69,766) Picnic Areas: Groups 1-50 People Resident- 1 st Five Hours 691 $41,460 $77,690 ($36,230) Resident- Each Addl Hour 691 $10,365 $15,538 ($5,173) Athletic Fields: (2 hr min. rental) Lighted Resident, Resident Non-Profit-per hour 330 $8,250 $33,808 ($25,558) Sports Center at Grijalva Park: Classroom B Resident, Resident Non-Profit-per hour 10 $200 $941 ($741) Classroom AB Resident, Resident Non-Profit- per hour 320 $12,800 $70,237 ($57,437) Senior Citizen Center: Large Banquet Room Resident- 1 st Five Hours 108 $54,000 $81,141 ($27,141) Resident- Each Addl Hour 216 $21,600 $24,042 ($2,442) TOTAL $985,329 $2,021,445 ($1,036,116) Overall, the Community Services Department is recovering approximately 49% of its Parks and Recreation service related costs. The largest source of the City's deficit relates to the per participant 9 lesson Group Lesson Aquatics Program, which is costing the City approximately $261,689 in the last fiscal year. This subsidy represents approximately 25% of the Division's overall deficit. It is important to note that the project team utilized the assumption that all rentals were made by residents. Therefore, depending upon the actual usage of the rentals, the subsidy for the Division might be slightly lower than $1,036,000. Matrix Consulting Group Page 60 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at three common Parks and Recreation classes and services. 1 Recreational Swim The City is currently charging $2.5 a person for each recreational swim session. This study has assessed the full cost of providing this service at $32, resulting in a $29.50 deficit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Recreational Swim $35 $30 � $25 a� � $20 _Review Fee � $15 �, Average a $10 $5 $- � c � � p N Q � � � p c6 — � � N c�6 � � �� p� C N � RS O � �U As the graph above indicates, the total cost per person for the City of Orange to provide Recreational Swim sessions is significantly higher than the fee being assessed by other jurisdictions. 2 Park Rentals The City of Orange allows for parks to be rented in a variety of ways, this includes renting either just green space or renting picnic shelters or renting both. The maximum fee charged by the City for Open space on a per unit basis is $330 per hour. This study has assessed the full cost of providing this service at $179, resulting in a $151 surplus. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 61 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CAUFORNIA Park Rentals �350 (Max fee/hr) $300 � $250 a� � $200 �Review Fee � $150 �, Average n' $100 $50 $- a c > o °' c o �' o � mN p j Q N (� 7 '- O � � p U Ua �i c�a � ii �,oC cn -°'a� �.� � c�a o C7 OU As the graph above indicates, the City of Orange is currently charging a higher per hour rate for park rentals than other jurisdictions. 3 Community Center/Facility Rentals The City is currently charging a maximum of $180 per hour for facility rentals (excluding the Sports Center). This study has assessed the full cost of providing this service at a maximum of $115, resulting in a $65 surplus. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Facility Rentals $40o Max fee/hr $350 N $300 LL $250 : $200 �Review Fee y $150 Average °' $100 $50 $- � �o ` � a� c mm �U > m � a�i co � �o c�i � � pU �o a� � � O� � � � m � As the graph above indicates, the City of Orange's fees are well below the average cost of other local jurisdictions. Matrix Consulting Group Page 62 DRAFT Cost of Services(User Fee) Study GITY OF ORANGE, CALIFORNIA 10. FINANCE The Finance Department oversees the budget, purchasing, accounting, and utility billing on behalf of the City. Additionally, the Finance Department oversees the Business Licensing Program. The fees examined within this study relate to Returned Checks and Business Licenses. � 1 FEE SCHEDULE MODIFICATIONS The project team worked with Finance staff to update its current fee schedule to better reflect current practices. The changes to the Finance fee schedule included eliminating fees associated with Budget/CAFR /CIP Documents as those documents are available online. It also included elimination of Payoff Information, as that service is no longer relevant. Additionally, staff decided that for clarification purposes the Business License Taxes identified on the Finance fee schedule would be removed. The Business License taxes schedule is listed in a separate document. � � 2 DETAILED RESULTS The Finance Department collects fees for returned checks and business license reviews. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title / name, current fee, total cost, and surplus or deficit associated with each Finance Department Fee. Table 23:Total Cost Per Unit Results—Finance Fee Name Current To#af Cost Surplus/ Fee Per Unit (Deficit) per Unit � �.,�,,,,,,,, ;,,,, „s�, Y, .�,,, �..,�. �,�.,� , �,,,.,.:,, ,. o„� , �, ,,,:, �<,�,�. �,,,, �, .�,,..�,. d Returned Check Charge— 1 s�Check $25 $52 ($27) Returned Check Charge—Subsequent Checks $35 $52 ($17) Business Licenses: New Business License Application $46 $142 ($96) Annual Renewal Processing Fee— In Person/Mail $23 $76 ($53) Online Business License Renewal $23 $39 ($16) Duplicate Certificate $5 $15 ($10) Change of Location $5 $15 ($10) Massage Permit(Material+ Inspection) $54 $220 ($168) Initial Regulatory Permit Application $46 $176 ($130) Police Regulatory Permit Review $15 $22 ($7) NEW FEE: Secondhand Dealer Renewal Permit $37 Matrix Consulting Group Page 63 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA All of the fees associated with Finance are under-recovering for their services.This under- recovery ranges from a low of $10 for Duplicate Certificates and Change of Location to a high of $168 associated with Massage Permits. On average the per unit cost recovery associated with Finance is 40%. � 3 ANNUAL REVENUE IMPACTS The Finance Department is currently under-recovering its fee-related costs associated with its services by approximately $1.3 million. The following table shows the annual workload volume for FY 17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 24: Annual Results—Finance Annual Revenue at Total Annual Annual Fee Name Volume Current Fee Cost Surplus! (Defiicit) � �. „ . _ _ . . .. ,o.� ., .,., .ti,� ., New Business License A lication 3,618 $166,428 $512,471 ) pp ($346,043 Annual Renewal Processing Fee 16,961 $390,103 $1,283,947 ($893,844) Change of Location 375 $1,875 $5,495 ($3,620) Initial Regulatory Permit Application 78 $3,588 $13,717 ($10,129) Secondhand Dealer Renewal Permit 87 $- $3,187 ($3,187) TOTAL $561,994 $1,818,818 ($1,256,824) Overall, the Finance Department is recovering approximately 31%of its fee-related costs. The largest source of the Department's deficit is associated with Business License Renewals at $894,000. �� 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at three common Finance Department Services. 1 New Business License Application The City is currently charging $46 for a New Business License Application and the study calculated the total cost at $142 for each business license application. It is important to note that the fees being compared refer only to the Business License Application and do not reflect the total cost of the licenses as that typically includes business license taxes, which is not governed by the same principles as a user fee. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 64 DRAFTCos#of Services(User Fee) Study GITY OF ORANGE, CALIFORNIA New Business License Application $160 $140 �, $120 � $100 $80 ..n.Review Fee � $60 Average `m � $40 $20 $- (� C C a1� � � N Q � p � N � �00 N c6� N 7 �U �� N � LL �� As the graph above indicates, the New Business License Application fee charged by the City of Orange is above the average of $33 charged by other surrounding jurisdictions. However, it is important to note that certain agencies, may choose to charge different or lower application fees and recover the costs associated with business licenses through business license taxes. Therefore, the comparison only reflects a portion of the cost that is assessed to businesses when choosing to operate within a city. 2 Business License Renewal The City is currently charging $23 for a Business License Renewal and the study calculated the total cost at$76 for each business license application. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Business License Renewal $ao $�o $60 � $50 � $40 �Review Fee a� $30 Average a $20 $10 $- � o � � � a� o � Q o � � ro � � � U � a�i c�a � � � a�� -� c� � �U � O � Matrix Consulting Group Page 65 DRAFT Cos#of Services(User Fee} Study CITY OF ORANGE, CALIFORNIA As the previous graph indicates, similar to New Business License Applications, the City of Orange's current fee for Business License renewals is above the average of $19 charged by other jurisdictions. Also similar to the New Business License Applications, the fee only represents the cost associated with processing and reviewing the application. Other cities, may choose to charge a lower renewal fee and recover the costs through higher annual business license taxes. Therefore, the comparison only provides a portion of the costs that are associated with a business operating within the City of Orange. 3 Massage Permits The City is currently charging $54 for a Massage Permit Business License and the study calculated the total cost at $220 for each Massage Permit (including inspection). The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Massage Permit $900 $800 $700 y $600 d u- $500 �Review Fee r E $400 a $300 Average $200 $100 $- a� c o �, c � o � o � Q � > @ m U 0 U �a�i m � � a� � � o, a�.- m `° �U � O � As the graph above indicates, the City of Orange is substantially under-charging for Massage Permits compared to the average of $616 charged by other jurisdictions. The full cost recovery fee of$220 for Massage Permits is also significantly below the average. Matrix Consulting Group Page 66 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 11 . FIRE The Fire Department is responsible for preventing or minimizing risk of fire and medical emergencies. There are three divisions: prevention, suppression, and medical services. The Fire Prevention Division is responsible for inspecting facilities for safety and fire risk, providing fire prevention, code enforcement, and hazardous materials programs for public safety, providing public education programs, and preventing fire and medical emergencies. The fees examined within this study include Fire Inspection Fees, Hazardous Materials, and Fire Construction Permits. � 1 FEE SCHEDULE MODIFICATIONS � The project team worked with staff in the Fire Department to go through the current fee schedule and ensure that all services are reflected on the fee schedule. The project team worked with staff to make several modifications to the fee schedule. These modifications included streamlining the current fee schedule by eliminating the itemized list of miscellaneous services that are charged at actual cost and consolidating it into one litem. Additional modifications, included adding the Fire Code Permits to the fee schedule and identifying the Fire Construction Permits that were previously charged based upon valuation. Adding these new fees to the fee schedule will enable the Department to more accurately and transparently account for all of its services being provided on the fee schedule. � 2 DETAILED RESULTS � The Fire Department collects fees for fire code permits, hazardous materials, and fire construction permits. Currently, fire construction permit fees are based upon the building valuation table; therefore, the current fee for the Fire Construction Permits is based upon the average fee paid for those types of services in the previous fiscal year (FY16-17). The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title /name, current fee (flat or average fee based upon valuation), total cost, and surplus or deficit associated with each Fire permit. Table 25:Total Cost Per Unit Results—Fire Current Fee Total Surpius 1 Fee Name Cost Per (Deficit) Unit per Unit Apartment Units�3 or more�-per unit„ �,,, z.. ..,P.vod,.�., u,ym.,., ,... ., , �d,." $25 $32� � � � ($7)� ANNUAL FIRE PERMITS: Inspections: Matrix Consulting Group Page 67 DRAFT Cost of Services(User Fee) Study GITY OF ORANGE, CALIFORNIA Current Fee Total Surplus/ Fee Name Cost Per (Deficit) Unit per Unit „6.� �� ,q�„7, ,q „�.,, ,,..,a , „ ,.�� ,��,,,o o, , ., � . M „ ,,,,,,,, ,, ,,,,,�� „ .� ,,, ,, _. Waste Handling - Including Wrecking Yards,Junk Yards, and $350 $237 $113 Waste Material Handling Open Burning - Excluding Recreational Fires $33 $197 ($164) Open Fiames&Candles $50 $197 ($147) Cellulose Nitrate Film in Group A Occupancy $32 $39 ($7) Combustible Fiber Storage or Handling in Excess of 100 Cubic $350 $158 $192 Feet Cryogenics Fluids Not Requiring Hazardous Materials Disclosure $32 $39 ($7) Dry Cleaning $350 $158 $192 Dust Producing Operation -Combustible Dust $120 $79 $41 Repair Garages- Includes Associated Fuel Dispensing $65 $39 $26 High Piled Storage in Excess of 500 Square Feet $100 $118 ($18) Lumber Yard or Woodworking Plant $350 $237 $113 Magnesium - Melting, Casting, Heat-Treating or Grinding an $60 $79 ($19) Amount in Excess of 10 Pounds Organic Coatings- Production in Excess of 1 Gallon per Day $60 $118 ($58) Ovens, Industrial Baking or Dry $350 $79 $271 Tank Vehicles $30 $39 ($9) Temporary Membrane Structures and Tents $100 $197 ($97) Hot Work; or Cutting or Welding $65 $39 $26 Explosives- Explosive Materials, Fireworks or Pyrotechnic Special $300 $263 $37 Effects (2hr min} Flammable or Combustible/Liquid Pipeline Operation /Excavation $120 $274 ($154) (2 hour min) -per High Rise Building- �ess than 75 Ft. in Height $475 $1,313 ($838) High Rise Building $800 $1,576 ($776) Mall Buildings, Covered or Open-Placement of Fixtures, Displays or Equipment; Display of Liquid or Gas-Fired Equipment;or Use of Open-Flame or Flame-Producing Equipment Temporary Kiosks $50 $131 ($81) Open flame/flame producing devices $50 $131 ($81) Parade Floats $30 $33 ($3) Places of Assembly $350 $158 $192 Spraying or Dipping - Utilization of Flammable or Combustible $100 $79 $21 Liquids or Combustible Powder Tire Rebuilding Piant $65 $79 ($14) Care Facilities: 7-99 Occupants $200 $296 ($96) 100-199 occupants $235 $394 ($159) 200+ occupants $300 $427 ($127) New Facility Inspection Fee: 25 clients or less $50 $394 ($344) 26+ clients $100 $427 ($327) Hospitals &Convalescent: 1-99 beds $200 $296 ($96) 100-199 beds $400 $394 $6 200+ beds $540 $427 $113 Day Care Facilities $100 $197 ($97) General Use Permits-per hour $65 $138 ($73) Fireworks Display- min 2 hours $270 $263 $7 Matrix Consulting Group Page 68 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Current Fee Tatai Surplus 1 Fee Name Cost Per tDBfiCit� „ a��,M� ,,.R� ,�,v , ,, ,,,,.P ,,, ,,,,., ,�-�,� , � . � ,�. ,., ,. , „, Unit per Unit Spill Response: Up to 5 gallons $680 $753 ($73) After Hours Work Fire Safety Specialist (2 hour min.)—per hour $120 After Hours Work Hazardous Materials Specialist(2 hour min)—per $120 hour After Hours Work Fire Captain (2 hour min)—per hour $120 Re-inspection Fee for Rejected Prevention Division Inspection $130 $151 ($21) Report Fees $4 $48 ($44) Standby Time Hazardous Materials Specialist- 2 hour min - per $60 $137 ($77) hour Change Contents- 2 hour min -per hour $60 $474 ($414) Store, Handle, Use Sell -per hour $60 $474 ($414) Review RMMP Plans—per hour $150 $131 $19 Hazardous Materials- Disclosure Fees: 1 material $190 $229 ($39) 2-4 materials $285 $366 ($81) 5-9 materials $380 $503 ($123) 10-15 materials $428 $571 ($143) 16-20 materials $523 $674 ($151) 21-25 materials $618 $845 ($227) 26-30 materials $713 $947 ($234) 31-44 materials $807 $1,050 ($243) 45+ materials $902 $1,187 ($285) Underground Tanks: 1 tank $400 $595 ($195) 2 tanks $400 $732 ($332) 3 tanks $400 $869 ($469) 4 tanks $500 $1,005 ($505) 5 tanks $600 $1,142 ($542) Class I or II liquids Removal $60 $274 ($214) To install, alter, remove, abandon, or temporarily place out of $60 $137 ($77) service To change type of contents to a material other than designed $60 $137 ($77) for- 2 hour min-per hour NEW FEES: Plan Check Hazmat Fee- hourly $137 Existing Tank Monitoring System Restart $547 Aerosol Products- Level 2 or 3 in excess of 500 pounds $118 Amusement Building $328 Aviation Facility $355 Carbon Dioxide System Exceeding 100 pounds of CO2 Used in $1�8 Beverage Dispensing Application Carnival or Fair- Min 2 hours(hourly) $263 Compressed Gas Not Requiring Hazardous Materials Disclosure $�18 Exhibits&Trade Shows- Min 2 hours $263 Flammable& Combustible Liquids $118 Floor Finishing - in Excess of 350 Sq. Ft. Using Class I or II liquids $131 Fruit&Crop Ripening - Using Ethylene Gas $118 Fumigation & Insecticidal Fogging $66 Matrix Consulting Group Page 69 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Current Fee Total Surplus/ Fee Name Cos# Per (Defiicit) Unit per Unit �,.,, ,�, w,a ,.,, , �-n,�,q „�� , ,�.,, xom � . , P„ ,,.m � „.�.��,,,.., � „ _,, m �.A� < a �Hazardous Materials Not Requiring Hazardous Matenals�Disclosure �� $118 Hazardous Production Materials Facility $263 Liquid or Gas-Fueled Vehicle(s) in an Assembly Building $131 Liquid Propane Gas Not Requiring Hazardous Materials Disclosure $1�8 Miscellaneous Combustible Storage in Excess of 2,500 Cubic Feet $1�$ Open Flame or Torch- Removal of Paint or Use within a Wildfire $66 Risk Area Private Fire Hydrant- Use or Removal from Service(1 hour min) $131 Pyrotechnic Special Effects Material - Use or Handling (1 hour min) $131 Pyroxylin Plastics-Storage or Handling in Excess of 25 Pounds; or $237 Assembly or Manufacture of Products containing Pyroxylin Plastics Refrigeration Equipment Regulated by CFC Ch. 6 $118 Rooftop Heliport $118 Storage of Scrap Tires&Tire Byproducts- Exterior Storage $237 Exceeding 2,500 Cubic Feet; or Indoor Storage of Any Amount Wood Products- Storage of Chips, Hogged Material, Lumber or $118 Plywood in Excess of 200 Cubic Feet Activity Related to Motion Picture,Television, or Commercial Production -Change of Building Use or Occupancy;Attendance of $131 Live Audience; Wrap Party; Use of Pyrotechnic Special Effect; Open Flame; Use of Flammable or Combustible Liquid or Gas; 2nd and subsequent Suppression Re-Inspection for Same $158 Violation. FIRE CONSTRUCTION PERMITS: Fire Protection Systems: New: 1-5 devices $188 $821 ($633) 6-15 devices $336 $1,026 ($690) 16-30 devices $694 $1,368 ($674) 31-50 devices $1,552 $1,915 ($363) 50+devices-per device $- $57 ($57) Modifications: 1-5 devices $80 $547 ($467) 6-15 devices $249 $616 ($367) 16-30 devices $592 $889 ($297) 31-50 devices $867 $1,026 ($159) 50+devices-per device $- $57 ($57) Fire Sprinklers- 13/13D/13R: New Construction: Up to 50 Heads $636 $1,231 ($595) 50-100 Heads $797 $1,710 ($913) Each additional 50 heads or portion thereof $50 $274 ($224) Tenant Improvements/Modifications: Up to 50 Heads $209 $684 ($475) 50-100 Heads $273 $889 ($616) Each additional 50 heads or portion thereof $93 $274 ($181) Preaction Fire Sprinklers: New Construction: Up to 50 Heads $1,641 Matrix Consulting Group Page 70 DRAFT Cost of Services{User Fee) Study CITY OF ORANGE, CALIFORNIA Current Fee Totai Surplus! Fee Name Cost Per (Deficit) . , .�„A,� �,., ,�,, , , � , , ,,,, ,�, , ,. ..a�,,,. ..,�,, ,. � �.�.,,,o. ,. _, ,,,,. ,,_, , „ � .,,, .. Unit per Unit � ., _, 50-100 Heads $1,915 � Each additional 50 heads or portion thereof $274 Tenant Improvements/Modifications: Up to 50 Heads $889 50-100 Heads $1,231 Each additional 50 heads or portion thereof $274 Underground Private Fire Service Line $579 $1,573 ($994) Hood Suppression Systems $204 $547 ($343) Spray Booths $162 $684 ($522) Clean Agent Systems $- $957 ($957) Smoke Control Systems $446 $2,462 ($2,016) Fire Pumps $1,708 $1,368 $340 Standpipe System $740 $752 ($12) High Piled Storage $568 $821 ($253) Dry Cleaning $- $547 Dust Production $684 Industrial Ovens $684 High Rise Building - Base (includes 6 floors) $2,736 High Rise Building - per additional floor $274 Temporary Membrane Structures and Tents $616 Tanks: Underground Tanks: First Tank $201 $2,189 ($1,988) Each additional tank $410 Aboveground Tanks First Tank $326 $821 ($495) Each additional tank $2�4 Fuel Modifications $504 $957 ($453) Aboveground Tanks in Vaults Special Events Permit Application $103 Miscellaneous Plan Review- per hour �13� Miscellaneous Services Actual and Materials Cost A majority of the fees relating to Fire services are under-recovering. The greatest deficit ($2,016) relates to Fire Construction Permits for the smoke control systems, while the largest surplus ($192) relates to Dry Cleaning. The average cost recovery on a per unit basis, however, is 80%. 3 ANNUALREVENUEIMPACTS The Fire Department is currently under-recovering its fee-related costs associated with its services by approximately $302,000. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Matrix Consulting Group Page 71 DRAFT Cost of Services(User Fee) Study GITY OF ORANGE, CALIFORNIA Table 26: Annual Results-Fire Annual Revenue Surplus/ Fee Name Volume at Current Total Cost �Deficit) Fee .., , �„ , o ., < o , .. . �r ti , , �,,, ,. , ,��„a , � � .��, , �. , a� .. Apartment Units 3 or more-per unit 948 $23,700 $29,970 ($6,270) ANNUAL FIRE PERMITS: Inspections: Waste Handling - Including Wrecking Yards,Junk Yards, 1 $350 $237 $113 and Waste Material Handling Open Flames&Candles 6 $300 $1,182 ($882) Dust Producing Operation -Combustible Dust 20 $2,400 $1,579 $821 Repair Garages- Includes Associated Fuel Dispensing 104 $6,760 $4,105 $2,655 High Piled Storage in Excess of 500 Square Feet 33 $3,300 $3,907 ($607) Lumber Yard or Woodworking Plant 1 $350 $197 $153 Ovens, Industrial Baking or Dry 7 $2,450 $553 $1,897 Hot Work; or Cutting or Welding 148 $9,620 $5,841 $3,779 Flammable or Combustible/Liquid Pipeline Operation/ � ��20 $274 ($154) Excavation (2 hour min)- per High Rise Building - Less than 75 Ft. in Height 21 $9,975 $27,582 ($17,607) High Rise Building 1 $800 $1,576 ($776) Places of Assembly: 252 $88,200 $39,785 $48,415 Spraying or Dipping- Utilization of Flammable or 5� $5,100 $4,026 $1,074 Combustibie Liquids or Combustible Powder Care Facilities: 7-99 Occupants 8 $1,600 $2,364 ($764) 100-199 occupants 1 $235 $394 ($159) 200+ occupants 1 $300 $427 ($127) Hospitals&Convalescent: 1-99 beds 1 $200 $296 ($96) 100-199 beds 5 $2,000 $1,970 $30 200+ beds 1 $540 $427 $113 Day Care Facilities 47 $4,700 $9,260 ($4,560) Hazardous Materials- Disclosure Fees: 1 material 196 $37,240 $44,917 ($7,677) 2-4 materials 219 $62,415 $80,144 ($17,729) 5-9 materials 98 $37,240 $49,269 ($12,029) 10-15 materials 36 $15,408 $20,561 ($5,153) 16-20 materials 13 $6,799 $8,758 ($1,959) 21-25 materials 4 $2,472 $3,379 ($907) 26-30 materials 4 $2,852 $3,789 ($937) 31-44 materials 4 $3,228 $4,200 ($972) 45+ materials 2 $1,804 $2,373 ($569) Underground Tanks: 1 tank 21 $8,400 $12,498 ($4,098) 2 tanks 11 $4,400 $8,051 ($3,651) 3 tanks 25 $10,000 $21,717 ($11,717) 4 tanks 12 $6,000 $12,066 ($6,066) 5tanks 3 $1,800 $3,427 ($1,627) Class I or II liquids Removal 3 $180 $821 ($641) Matrix Consulting Group Page 72 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Annual Revenue Surplus/ Fee Name Volume at Current Totai Cast �Deficit) Fee �„,, ,,,,�, o�,,,., �,, ,�., , .�,,, ,a r „ �, „ �,, ,�, ,, ,, , ., _ ��. , � „ �, _, . a . , � To install�, alter, remove,�abandon, or temporarily piace 1 $60 $137 ($77) out of service NEW FEES: Liquid Propane Gas Not Requiring Hazardous Materials 5 $592 ($592) Disclosure FIRE CONSTRUCTION PERMITS: Fire Protection Systems: New: 1-5 devices 45 $8,460 $36,932 ($28,472) 6-15 devices 14 $4,704 $14,362 ($9,658) 16-30 devices 7 $4,858 $9,575 ($4,717) 31-50 devices 8 $12,416 $15,320 ($2,904) Modifications: 1-5 devices 57 $4,560 $31,187 ($26,627) 6-15 devices 20 $4,980 $12,311 ($7,331) 16-30 devices 5 $2,960 $4,446 ($1,486) 31-50 devices 4 $3,468 $4,104 ($636) Fire Sprinklers- 13/13D/13R: New Construction: Up to 50 Heads 73 $46,428 $89,868 ($43,440) 50-100 Heads 12 $9,564 $20,518 ($10,954) Each additional 50 heads or portion thereof 10 $500 $2,736 ($2,236) Tenant Improvements/Modifications: Up to 50 Heads 121 $25,289 $82,755 ($57,466) 50-100 Heads 3 $819 $2,667 ($1,848) Each additional 50 heads or portion thereof 6 $558 $1,641 ($1,083) Underground Private Fire Service Line 19 $11,001 $29,888 ($18,887) Hood Suppression System 28 $5,712 $15,320 ($9,608) SprayBooths 2 $324 $1,368 ($1,044) Smoke Control Systems 2 $892 $4,924 ($4,032) Fire Pumps 2 $3,416 $2,736 $680 Standpipe System 1 $740 $752 ($12) High Piled Storage 1 $568 $821 ($253) Underground Tanks: First Tank 9 $1,809 $19,697 ($17,888) Aboveground Tanks First Tank 1 $326 $821 ($495) Fuel Modifications 5 $2,520 $4,787 ($2,267) TOTAL $520,170 $822,183 ($302,013) Overall, the Fire Department is recovering approximately 63%of its service related costs. The largest source of the Department's deficit at $117,000 is related to Fire Sprinklers. Converting these fees from valuation-based to flat fees will help the Department accurately account for the level of support and effort associated with these fees. Matrix Consulting Group Page 73 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA F; 4 JURISDICTIONAL COMPARISON ,,� As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at three common Fire reviews and services. 1 Care Facility Inspection with 200+ Occupants The City is currently charging $300 for a Care Facility Inspection with 200+ Occupants. This study has assessed the full cost of providing these inspections at $392, resulting in a $92 deficit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Care Facility Inspection 200+ Occupants $500 $450 $400 � $350 � $300 .�Review Fee •= $250 � $200 Average a $150 $100 $50 $- \ � � � � o � Q � o � � � � � � U � a�i c�a � a�i � a�� i� � rn �•� °� � � �o m C7 � U O � As the graph above shows, the current fee charged by the City of Orange is below the average of other jurisdictions ($310), while the full cost at $392 is below the highest fee of $442 assessed by Brea / Fullerton. 2 Underground Tank Inspection — 1 Tank The City is currently charging $400 for Underground Tank Inspections for one tank. This study has assessed the full cost of providing these inspections at $595, resulting in a $195 deficit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 74 CITY OF ORANGE, CALIFORNIA DRAFT Cost of Services(User Fee) Study Underground Tank Inspection - 1 Tank $s0o $�00 $600 � � $500 �Review Fee Y $400 �E Average u� $300 � $200 $100 $- � o � � � o a� Q � � o � � � c U � a�i � � � � �� ., � co � �o m C7 � �U As the graph on the previous page indicates, the City of Orange is charging below the average of $530 charged by other surrounding jurisdictions, and its full cost at $595, is below two of the other jurisdictions at$738 and $612. 3 Fire Sprinkler System — New— 50 heads The City is currently charging an average $636 for New Fire Sprinkler System with 50 heads. The study calculated the full cost at $1,231, representing a $595 deficit per unit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 75 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Fire Sprinkler System 50 system heads $1,400 $1,200 $1,000 N d $$�� LL �Review Fee w � $6�� d Average $400 $200 $- c a> � o Q � o U � � � U o ` c � c o `� � � > cn m a a, o � m m U u"i m c7 O rn� c m O As the graph shows, similar to the two other scenarios, the current fee for the City is below the average of $882. However, the full cost recovery calculated through the study at $1,231 is the highest fee compared to surrounding jurisdictions. Matrix Consulting Group Page 76 CITY OF ORANGE, CALIFQRNIA DRAFT Cost of Services(User Fee) Study 12. LIBRARY The Library is responsible for managing and providing access to books, programs, and technology to the Orange community. The Department provides information, resources, and staff to assist the community. The fees examined within this study relate to Library fees for replacement Library cards, printing, damages, and room rentals. , 1 FEE SCHEDULE MODIFICATIONS During discussions with staff, there were several modifications made to the current fee schedule for library services. These modifications included the following items: • Consolidation of Lost Library Card into one fee category — regardless of adult or child. • Elimination of Test Monitoring Services Fees as those services are no longer provided by the Library. • Addition of extended use for interlibrary loans and laptop to accurately reflect services on the fee schedule. • Consolidation of room rentals based upon room size. Implementation of these changes will help streamline the current fee schedule for the Library, as well as ensure that only current services are reflected upon the fee schedule. �� 2 DETAILED RESULTS The Library collects fees for replacement Library cards, printing, and room rentals. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title, current fee, total cost, and surplus or deficit associated with each Library fee. Table 27: Total Cost Per Unit Results—Library Current Tatal Cost Surplus/(Deficit) per Fee Name �� Per Unit Unit M� ,,, ,. ,. ,� , , ,��,, „. ,.., , � ,, � ., ,, �, _ �,,,,o„ �� ,, _,.. Lost Library�Card $2 $6 �$4� Inter-library loan - per item $2 $13 ($11) Processing Fees Damaged & Lost Materials $5 $12 �$�) Local History Reproduction Commercial Use+ Processing Fee $85 $61 $24 Matrix Consulting Group Page 77 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Fee Name Current To#ai Cost Surpius/{Deficit) per Fee Per Unit Unit „� ,«,,.,,, � �,R ,,, , ,. .o� , , ,,..,,,ti� o„x � o , ... �,.,. � ,,....,,,,, , � � � , „ o � � » , � �,,,«,., ., . _.,, �,, ,. ,. . Personal Use - 3 �31 Printing &Photocopying Black&White $0.15 $0.21 ($0.06) Color $0.60 $0.35 $0.25 Not picking up items put on hold-per item $0.50 $23 ($22.50) Facility Rentals(min 2.5 hrs) EI Modena Community Room, Orange Public Library& History Center Room A, Orange Public Library & History Center Room B, Rotary Room,Taft Community Room Non-Profit in Orange $40 $83 ($43) Non-Profit outside of Orange $45 $83 ($38) For Profit in Orange $45 $83 ($38) For Profit outside of Orange $50 $83 ($33) Orange Public Library& History Center Room A&B Non-Profit in Orange $65 $86 ($21) Non-Profit outside of Orange $70 $86 ($16) For Profit in Orange $70 $86 ($16) For Profit outside of Orange $75 $86 ($11) A majority of the fees relating to Library services are under-recovering. The greatest deficit ($43) relates to Room Rentals for Non-Profits in Orange, while the largest surplus ($24) relates to Commercial Use plus processing fee for Local History Reproduction. The average per unit cost recovery for the Department is 68%. � 3 ANNUAL REVENUE IMPACTS The Library is currently under-recovering its fee-related costs associated with its services by approximately $49,000. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 28: Annual Results—Library Fee Name Annual Revenue at Total Cost Surplus/ Volume Current Fee (Deficit} ,�,�.,m� ,,,ti« .,,.�.�< _ ,,,,�., „ ,.,,.,� ,�. ,� ,. � „ r<, , �„� �.x.,,<= ,.,,,,..� ,,,,�,. , , ,��..�., ..w ., �w,. Lost Library Card` 3,102 $6,204 $18,006 ($11,802) � Inter-library loan - per day 121 $242 $1,589 ($1,347) Processing Fees Damaged & Lost Materials 1,000 $5,000 $11,609 ($6,609) Local History Reproduction Commercial Use+ Processing Fee 11 $935 $676 $259 Personal Use(Donation) 30 $- $922 ($922) Printing &Photocopying Black&White 155,015 $23,252 $32,346 ($9,094) Color 13,450 $8,070 $4,757 $3,313 Facility Rentals(min 2.5 hrs) EI Modena Community Room, Orange Public Library & History Center Room A, Orange Public Library& History Center Room B, Rotary Room,Taft Community Room Non-Profit in Orange 523 $20,920 $43,393 ($22,473) TOTAL $64,623 $113,298 $(48,675)_ Matrix Consulting Group Page 78 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Overall, the Library is recovering approximately 57% of its service related costs. The largest source of the City's deficit relates to Room Rentals for Non-Profits in Orange, which cost the City approximately $22,473 in the last fiscal year. �� 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. However, due to the agencies included in this study and for consistency purposes, there were only a few services for Library that were present in other jurisdictions. Therefore, there was insufficient data to provide a useful comparison for the Library Department. Matrix Consulting Group Page 79 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 13. POLICE The Police Department is responsible for law enforcement to ensure safety within the Orange community. There are several divisions within the Police Department: Traffic, Records, and Crime Prevention that are involved with charging fees for services.The fees examined within this study relate to Administrative charges for permit and fines, including copies of reports, ABC Licenses, Parking Permits, Parking Fines, and Fingerprinting. � 1 FEE SCHEDULE MODIFICATIONS There are several modifications that were made to the Police Department's fee schedule to help streamline the current fee schedule. The major modification made to the fee schedule included consolidation of the eight different fees associated with reports into three fees — Basic, Redacted, and Extensive (more than 75 pages). Additionally, the project team worked with Department staff to identify several services that are already being provided by the Department but do not exist on the current fee schedule. These fees include: Purge Letter, Background Checks, University Student Parking Permits, Tow Truck Driver ID Cards, Re-inspection fees, 2"d Appeal of Citations, and Business License Reviews. Identification and addition of these fees, enables the Department to most accurately and transparently reflect all of its services. �i��' 2 DETAILED RESULTS The Police Department collects fees for copies of reports, business licenses, and parking permits. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title / name, current fee, total cost, and surplus or deficit associated with each Police permit. Table 29:Total Cost Per Unit Results—Police Fee Name Current Total Gost Surplus!(Deficit) Fee Per Unit per Unit Retail Establishment Inspection-Firearms ��" ` „ � „ �.. �, „ti ,�.. ,,,.�„r. . .�,., „ .�, .,,.,�,�,, Initiallnspection $68 $244 ($176) Annual Inspection $27 $97 ($70) Other Fees Reports- Basic $20 $27 ($7} Reports- Redacted $50 $41 $9 Matrix Consulting Group Page 80 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CA�IFORNIA Fee Name Current Total Cost Surpius/(Deficit) Fee Per Unit per Unit Extensive Reports(more than 75 pages)`,,,,,,,,, $150„ $82 ,,.,..,,, ° "$68 Copies of Citations-per citation $2 $7 ($5) Photos on DVD -per DVD $15 $51 ($36) Immigration Clearance Letter $57 $27 $30 Fingerprints(livescan) $12 $34 ($22) Vehicle ID Verification - per vehicle $43 $81 ($38) Citation Validation $21 $29 ($8) OMC/CVC Tow Release $40 $210 ($170) Vehicle Repossession $15 $14 $1 Private Property Impound $14 $20 ($6) Civil Subpoena $15 $41 ($26) Witness Fee $150 $61 $89 Bike License: New Bike License $4 $52 ($48) Renewal Bike License $2 $22 ($20) ABC License(Alcoholic Beverage License);fee includes costs to conduct background investigation required by the ABC Dept and to process the application New ABC License Application $1,600 $8,317 ($6,717) Renewal ABC License Application $50 $53 ($3) Massage Operator Testing Service: Background Information $175 $91 $84 Testing Cost(initial or retake} $210 $91 $119 Tow Truck Driver ID Card Fee $54 $69 ($14) On Street Parking of Oversized Vehicles Annual Permit/Sole Means of Transportation $20 $15 $5 Seven-Day Visitor Permit $20 $30 ($10) 30-day Impound Release $150 $264 ($114) Parking Permits: Business Parking Permit $30 $30 ($0) Residential Parking Permit—3 yr renewal Single-Family(up to 5 permits per household) $25 $33 ($8) Duplex (Up to 4 permits per household) $25 $33 ($8) 3+ Units/Apartments(Up to 3 permits per $25 $33 household) ($$) Landlord Permit $25 $32 ($7) Chapman Parking Permit (up to 1 permit per year $25 $30 ($5) per student)—Annuai renewal NEW FEES: Purge Letter $27 U-Visa Nonimmigrant status certification $190 OPM Background Check $27 Re-inspection Fee(upon 3rd inspection)-per hour $97 Tow Truck Driver ID Card Fee- Renewal $54 2nd Appeal of Citation $86 Business License Review $151 A majority of the fees relating to Police services are under-recovering. The greatest deficit ($6,717) relates to New ABC License Applications and the largest surplus ($119) is associated with Massage Operator Testing. The average per unit recovery for the Matrix Consulting Group Page 81 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Department is 84%. 3 ANNUALREVENUEIMPACTS The Police Department is currently under-recovering its fee-related costs associated with its services by approximately $314,000. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 30: Annual Results-Police Annual Revenue at Annual Annual Fee Name Volume Current Fee Cost Surplus/ (Deficit} .,,,.a, . � aw� ,w . ,. . ... T Retail Establishment Inspection-Firearms Initiallnspection 1 $68 $244 ($176) Annuallnspection 18 $486 $1,754 ($1,268) OtherFees Reports- Basic 882 $17,640 $24,101 ($6,461) Reports- Redacted 1,577 $78,850 $64,637 $14,213 Extensive Reports 2 $300 $164 $136 Copies of Citations- per citation 27 $54 $184 ($130) Photos on DVD -per DVD 27 $405 $1,386 ($981) Immigration Clearance Letter 31 $1,767 $847 $920 Fingerprints(livescan) 73 $876 $2,493 ($1,617) Vehicle ID Verification- per vehicle 20 $860 $1,621 ($761) Citation Validation 126 $2,646 $3,693 ($1,047) OMC/CVC Tow Release 713 $28,520 $149,460 ($120,940) Vehicle Repossession 253 $3,795 $3,457 $338 Civil Subpoena 97 $1,455 $3,976 ($2,521) Witness Fee 39 $5,850 $2,398 $3,452 Bike License: New Bike License 25 $100 $1,307 ($1,207) ABC License New ABC License Application 12 $19,200 $99,800 ($80,600) Tow Truck Driver ID Card Fee 52 $2,826 $3,570 ($744) On Street Parking of Oversized Vehicles Seven-Day Visitor Permit 3 $60 $89 ($29) 30-day Impound Release 145 $21,750 $38,263 ($16,513) Business Parking Permit 2,100 $63,000 $63,088 ($88) Residential Parking Permit Single-Family(up to 7 permits per household) 10,472 $261,800 $348,660 ($86,860) New Fees• U-Visa Nonimmigrant status certification 60 $- $11,382 ($11,382) TOTAL $512,308 $826,572 ($314,264) Overall, the Police Department is recovering approximately 62% of its costs in relation to fee-related services. The largest source of this deficit is OMC / CVC Tow Release, Matrix Consulting Group Page 82 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA followed by the Residential Parking Permits and New ABC License Application. 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at three common Police reviews and services. 1 Police Report Photos on DVD The City is currently charging $15 for Police Report Photos on a DVD. This study has assessed the full cost of providing these services at $51, resulting in a $36 deficit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Police Report Photos on DVD $60 $50 � $40 � � $30 .w.Review Fee .� a $20 Average $10 $- � � c °' 'oo � � � o � m � a� U c� c � � @I � � � � �,a� cn � c� � c�a o C7 O OU As the graph above indicates, the City of Orange is currently charging below the average fee of $24 for Police Report Photos on DVD. However, the fee calculated at full cost at $51 is significantly higher than the average fee and is higher than the highest fee of $29 charged by Fullerton for Police Photos on DVDs. 2 Altered Police Reports — 10 pages The City is currently charging $50 for Altered Reports at 10 pages and the study calculated the full cost of this service at $41 for 10 pages, representing a $9 surplus on a per unit basis. The following graph shows how the DepartmenYs current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 83 DRAFTCost of Services(User Fee} Study CITY OF ORANGE, CA�IFORNIA Altered Report- 10 pages $60 $50 � $40 a� Y $30 �Review Fee .� � $20 Average $10 $- °' c U� o ` c °' 'oo � o�� U � Q m a� O � �� o ca � � U c�p � � c O�� t� -�aL c� C7 As the graph above shows, the current and full cost fee for Orange is significantly higher than the average fee of $10 charged by other jurisdictions. 3 30-Day Impound Release The City is currently charging $150 for 30-Day Car Impound Releases. This study has assessed the full cost of providing these services at $264, resulting in a $114 deficit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. 30-Day Impound Release $300 $250 � $200 +_' $150 �Review Fee E a $100 Average $50 $- m ca a� c � c � p � c a� o � �� U > Q op � a� m � �'o a � � � OU `oo � m m �- p� � cA -o m � As the graph above indicates, the current fee is below the average of$180; however, the full cost is higher than all of the surrounding jurisdictions. Matrix Consulting Group Page 84 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Matrix Consulting Group Page 85 DRAFTCost of Services{User Fee) Study CITY OF ORANGE, CALIFORNIA 14. PUBLIC WORKS - ENGINEERING The Engineering and Development Services Division is responsible for conducting reviews related to public and private improvements in the public right-of-way by private development. The fees examined within this study relate to Encroachment Permits, Lot Line Adjustments, Flood Zones, Street Vacations, and Processing applications for Grading and Encroachments. � 1 FEE SCHEDULE MODIFICATIONS In discussions with staff in the Engineering and Development Services Division of the Public Works Department, there were several key modifications that were made to the fee schedule.The following points summarize the modifications made to the fee schedule: • Transition of deposit-based fees of Lot Line Adjustments, Certificate of Compliance, and Certificate of Correction /Amended map into flat fees. • Complete restructuring of the current Encroachment Permit fee structure to better reflect the current services provided over the counter and estimates quoted to private development. • Renaming Street Address Change to "Street Addressing" to better reflect the service being provided. • Elimination of the Blue Lines Fee, Approved Plans and Digital Submittals, and Sale of City Map Book. • Addition of Inspection Outside of Normal Business Hours Fee (4 hr minimum) — specific to Development Engineering inspectors. Identifying and implementing these changes will help Engineering Services better reflect its current practices and services. 2 DETAILED RESULTS— FLAT FEES The Engineering and Development Services Division collects flat fees primarily related to Encroachment Permits, Flood Zones, summary and full abandonments. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title / name, current fee, total cost, and surplus or deficit associated with each Engineering permit. Matrix Consulting Group Page 86 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Table 31:Total Cost Per Unit Results—Engineering Fee Name Current Fee Total Cos# Per Surpius/(Deficit) Unit per Unit b, ,„ ,,,,.A „n, ,„�,�� . ,, �� ,„„, .. ,.... ,,,o m „ .,. ,�a,,,,,,,,, .,, �„d., „�.„a, „., , . DEVELOPMENT SERVICES. Lot Line Adjustment $1,000 $2,014 ($1,014) Certificate of Compliance $500 $2,014 ($1,514) Certificate of Correction/Amended Map $500 $2,014 ($1,514) Process Grading Application $100 $189 ($89) Encroachment Permits: Process Encroachment Application $100 $158 ($58) Driveways- non-arterial $200 $443 ($243) Driveways-arterial $200 $885 ($685) Sidewalk $200 $382 ($182) Streetwork/Trench Repair: 0-100 feet $395 $695 ($300) 100-300 feet $570 $1,008 ($438) 300-500 feet $945 $1,649 ($704) 500-1000 feet $1,360 $2,397 ($1,037) 1,000-1,500 feet $1,710 $3,024 ($1,314) 1,500-2,000 feet $2,020 $3,542 ($1,522) Minor Encroachment Permit $155 $259 ($104) Utility Lateral for house connection $200 $763 ($563) on residentiai streets Fire Service Connection $830 $1,498 ($668) ENGINEERING SERVICES Flood Zone Written Notice $60 $228 ($168) Street Addressing $250 $551 ($301) Summary Abandonment $1,000 $1,438 ($438) Full Abandonment $1,000 $1,438 ($438) Quit Claims $1,000 $1,438 ($438) Simple Research &CD Prep $50 $105 ($55) Map Sheets $51 $71 ($20) NEW FEES: Inspection Outside Normal Business $184 Hours (4 hr min) - per hr All of the fees related to Engineering and Development Services are under-recovering, with the largest under-recovering of $1,522 associated with 1,500-2,000 feet of Street or Trench work for Encroachment Permits in the Public Right-Of-Way. The average per unit recovery for the Engineering Division is 51%. � 3 DEPOSIT-BASED FEES In addition to flat fees, Engineering Services charges deposit-based fees. The philosophy behind deposit-based fees is full cost recovery; however, that full cost recovery is dependent upon the hourly rate used to charge against the deposit, as well as ensuring that all the time that is spent on the project is also accounted for on that project. Matrix Consulting Group Page 87 DRAFTCost of Services{User Feej Study CITY OF ORANGE, CALIFORNIA Through this study the project team has calculated fully burdened hourly rates, reflecting the direct and indirect cost associated with staff working on deposit-based fees. These fully burdened rates have been provided to City staff, and it is the project team's recommendation that they be used to bill towards the deposit-based fees. � 4 ANNUAL REVENUE IMPACTS- FLAT FEES q The Engineering Division is currently under-recovering its flat fee-related costs associated with its services by approximately $200,000. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 32: Annual Results-Engineering Flat Fees Fee Name Annual Revenue at 7otal Annual Annual Surplus/ Volume Current Fee Cost (Deficit) ��d �,.. ,� ,,,��,e . ,, � . . ,� .. „ .: � .: „.,,,,, � ., o.,.,. „ DEVELOPMEIYr SERVICES Lot Line Adjustment 2 $2,000 $4,029 ($2,029) Process Grading Application 20 $2,000 $3,788 ($1,788) Encroachment Permits: Process Encroachment Application 495 $49,500 $77,995 ($28,495) Driveways- non-arterial 17 $3,400 $7,527 ($4,127) Driveways- arterial 3 $600 $2,656 ($2,056) Sidewalk 37 $7,400 $14,116 ($6,716) Streetwork/Trench Repair: 0-100 feet 294 $116,130 $204,247 ($88,117) 100-300 feet 27 $15,390 $27,214 ($11,824) 300-500 feet 8 $7,560 $13,188 ($5,628) 500-1000 feet 10 $13,600 $23,973 ($10,373) 1,000-1,500 feet 1 $1,710 $3,024 ($1,314) 1,500-2,000 feet 6 $12,120 $21,251 ($9,131) Minor Encroachment Permit 23 $3,565 $5,959 ($2,394) Utility Lateral for house connection 11 $2,200 $8,393 ($6,193) on residential streets Fire Service Connection 11 $9,130 $16,474 ($7,344) ENGINEERING SERVICES Flood Zone Written Notice 8 $480 $1,825 ($1,345) Street Addressing 25 $6,250 $13,763 ($7,513) Summary Abandonment 2 $2,000 $2,876 ($876) Full Abandonment 2 $2,000 $2,876 ($876) Quit Claims 4 $4,000 $5,751 ($1,751) TOTAL $261,035 $460,924 ($199,889) Overall, the Engineering Division is recovering approximately 57% of its flat fee-related costs annually. The largest source of that deficit is the Encroachment Permits and those related to 0-100 feet for Streetwork /Trench Repair at$88,000 annually. Matrix Consulting Group Page 88 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA � 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at three common Development Engineering reviews and services. 1 Lot Line Adjustment The City is currently charging a deposit of $1,000 for Lot Line Adjustments, and through this study, the total cost calculated is $2,014. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Lot Line Adjustment $3,000 $2,500 � $2,000 a� � $1,500 �Review Fee � $1,000 Average $500 $- � ° � c � > o 0 U �j ° c m � � a� cu � tL a� a�� m �Y � � m o (� O �U As the graph above indicates, the City of Orange at its current deposit level of $1,000 is below the average of $1,580 being charged by other cities. The City of Orange is transitioning this fee to a flat fee and its full cost is slightly above the average but still below the highest fee on the chart of $2,604 associated with Santa Ana. 2 Encroachment Application A high-volume permit for Engineering Services is the Encroachment Application. The city currently charges a fee of $100 and it costs the city $158 to process the application. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 89 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CA�IFORNIA Encroachment Application $600 $500 � $400 � � -� $300 .�.Review Fee .� a $200 Average $100 $- u�c �Uo �' � � > o �� U a� a o r c � > m c6j � oo � (') � �U �� N c�6 � �j O � (� -O � C7 As the graph above indicates, both the current and full cost for the City of Orange are below the average of $224 associated with surrounding jurisdictions. 3 Minor Encroachment Permit As part of the restructuring process for the Encroachment Permit Applications, the Minor Encroachment Permit Category was created. Based upon the city's current practices, the current fee assessed would be $155 and the full cost is$259. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Minor Encroachment Permit $300 $250 N d �2�� LL � $150 �Review Fee d $100 Average a $50 $- � c U� oz' � a��i a�i � o m m �U j Q pp -p � N � � �'o o ca c`a� — O V 1°o a�i � � ii O �� cn As the graph indicates, the City's current and full cost recovery rates are higher than the average minor encroachment permit fee of $124. Matrix Consulting Group Page 90 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 15. PUBLIC WORKS - MAINTENANCE The Maintenance Division of the Public Works Department is responsible for streets and sidewalks and public infrastructure maintenance. The fees examined within this study relate to inspections of newspaper racks, recycling bins, drop-off boxes, abandoned shopping carts, banner installations and removals, sidewalk cleaning, and graffiti removal. 1 FEE SCHEDULE MODIFICATIONS The project team worked with Maintenance staff to review their current fees on the Public Works Fee schedule. The primary modification made to the fee schedule included identifying a separate section associated with Maintenance-related fees on the fee schedule, as well as combining all of the different temporary use types of boxes and services into a consolidated initial fee and consolidated renewal fee. The Sidewalk Cleaning Fee was renamed to Old Towne Plaza Sidewalk Cleaning fee to clarify that this fee would only be assessed for those cleaning services. Lastly, staff also added new fees related to Tree Removals and Tree Planting. ,,. �, 2 DETAILED RESULTS � The Maintenance Division collects fees for initial and annual inspections of newspaper racks, banner installations, and graffiti removal. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title /name, current fee, total cost, and surplus or deficit associated with each Maintenance-related service. Table 33:Total Cost Per Unit Results—Maintenance Fee Name Curren# Total Cast Surplus/(Deficit} Fee Per Unit per Unit w w�.,�� a, o� .„ ,� .a, �.. �,�., �.< ,� .,,, �„ , � ._ ,, ,� ,,.� , P.m �, ,,, , �.,,.,„ . „ .>, �,,,, ..,,, Initial Inspection &Application - Mail Carriers, $100 $101 ($1) Newspaper Racks, Drop Off Boxes, Recycling Bins, etc. Renewal Inspection -all boxes $35 $51 ($16) Removal of Abandoned Shopping Cart $13 $43 ($30) Banner Installation & Removal $200 $200 $0 Graffiti Removal: 0-50 sq. ft. $120 $113 $7 Each addl sq. ft. $2.35 $0.57 $1.78 Old Towne Plaza Sidewalk Cleaning $0.80 $0.86 ($0.06) NEW FEES: Tree Removal per inch (DBH—Diameter at Breast $37 Height) Tree Plantin�—�er 24 inch box tree $255 Matrix Consulting Group Page 91 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA A majority of the fees relating to Maintenance services are under-recovering. The largest deficit at $30 per unit is related to the Abandoned Shopping Cart, and the largest over- recovery at $7 is related to the Graffiti Removal. The average per unit recovery for the Division is 130%. � 3 ANNUAL REVENUE IMPACTS The Maintenance Division is currently under-recovering its fee-related costs associated with its services by approximately $72. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 34: Annual Results—Maintenance Fee Name Annual Revenue at To#al Cos# Surplus I Volume Current Fee (Deficit} v., a„� o,�: ,a,,., __., , �. , , e, . ,..,,� , , ., ,.� , Initial Inspection &Application Mail Carriers, 93 $9,300 $9,412 ($112) Newspaper Racks, Drop Off Boxes, Recycling Bins, etc. Banner Installation & Removal 87 $17,400 $17,360 $40 _ __. TOTAL $26,700 $26,772 ($72) Overall, the Maintenance Division is under-recovering its cost by $72. Initial Inspection of Mail Carriers, Newspaper Racks, etc. shows an annual under-recovery of $112, while Banner Installation & Removal has an over-recovery of $40. � 4 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at two Maintenance reviews and services that had activity in the previous fiscal year. 1 Initial Inspection — Newspaper Racks The City is currently charging $100 for the Initial Inspection for Newspaper Racks. This study has assessed the full cost of providing these permits at $101, resulting in a $1 deficit. The following graph shows how the Division's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 92 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CAUFORNIA Iniital Inspection - Newspaper Racks $200 10 racks $180 $160 cn $140 ' � $120 �.Review Fee r- $100 � $gp Average � $60 $40 $20 $- �j� �, � > o�a�i ��j a� Q � � � � o o � � O� �O � C C Q�� f6 � As the graph above indicates, based upon a scenario of inspecting 10 racks owned by the same operation, the City of Orange at current and full cost recovery is below the average of $149. 2 Banner Installation & Removal The City is currently charging $200 for Banner Installation and Removal, which is the cost calculated through the study. The following graph shows how the Division's current fee and total cost compare to other local jurisdictions. Banner Installation & Removal $350 $300 � $250 � $200 �Review Fee �E $150 Average a $100 $50 $" c in >, � � � o o�a�i ��j a� Q � o � �U m° � � �� i o � � p�OC cn Similar to the Initial Inspection for Newspaper Racks, the City's current and full cost recovery for Banner Installation & Removal is below the average of$221 associated with other surrounding jurisdictions. Matrix Consulting Group Page 93 DRAFTCost of Services(User Fee) Study GITY OF ORANGE, CALIFORNIA 16. PUBLIC WORKS - TRAFFIC / TRANSPORTATION The Traffic /Transportation Division of Public Works is responsible for identification and maintenance of current and future transportation system needs. This includes reviewing current freeways, bikeways, pedestrian corridors, and conducting reviews on new development projects to assess their impact on the City's current transportation infrastructure. The fees examined within this study relate to the Neighborhood Parking Program and the Transportation Permits. � 1 FEE SCHEDULE MODIFICATIONS During discussions with staff in the Transportation Division and in the Public Works Department, the only modification made to the fee schedule was to move the Street Name Change from the Engineering fee schedule to the Transportation Fee Schedule. s 2 DETAILED RESULTS — FLAT FEES The Transportation Division collects flat fees or initial deposits for Neighborhood Permit Parking Program and the Transportation Permit. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title /name, current fee, total cost, and surplus or deficit associated with each Transportation permit. Table 35: Total Cost Per Unit Results—Transportation Fee Narne C��'rent Tota1 Cost 5urplus! Fee Per Unit (Deficit) per Unit Neighborhood Permit Parking Program Application $1,000 $3,537 ($2,537) Neighborhood Permit Parking Program Processing Fee $1,500 $1,198 $302 Transportation Permit: Per Trip $16 $16 $- Annual $90 _..,. $90 e ., ... . �- , As the table above indicates, the Neighborhood Permit Parking Program Application Fee is under-recovering on a per unit basis by $2,500; however, for the Processing Fee there is an over-recovery of $302 on a per unit basis. The average per unit cost recovery for the Division is 88%. 3 DEPOSIT-BASED FEES The Transportation Division also collects deposit-based fees for some of its services such as TSIP Appeal Fee, Traffic Commission Appeal, or Transportation Demand Management Review. Similar to other departments / divisions within the City, for these Matrix Consulting Group Page 94 DRAFT Cost of Services(User Fee} Study CITY OF ORANGE, CALIFORNIA deposit-based fees, the philosophy is that for these services, there will be full cost recovery. Fully burdened hourly rates have been calculated for staff and have been provided to City staff to be used for billing purposes against deposits, to ensure that all direct and indirect costs associated with these reviews are accounted for when billing to the project. � 4 ANNUALREVENUEIMPACTS The Transportation Division is currently at full cost recovery, as the only fees for which it has volume are related to the state set transportation permits. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Table 36: Annual Results—Transportation Fee Name Annual Revenue at Total Cost Surplus/ ,...., . . , � , . , , mo Volume Current Fee (Deficit) Transportation Permit: Per Trip 661 $10,576 $10,576 $- Annual 171 $15,390 $15,390 $- TOTAL $25,966 $25,966 $- Overall, the Transportation Division is recovering a 100% of its costs related to the Transportation Permit. � 5 JURISDICTIONAL COMPARISON As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. However, as the primary fees charged by the Transportation Division are the state set Transportation Permits, these fees are the same across all jurisdictions. Matrix Consulting Group Page 95 DRAFT Cost of Services(User Fee}Study CITY OF ORANGE, CALIFORNIA 17. PUBLIC WORKS - WATER The Water Division of the Public Works Department oversees potable water for the City and also reviews development projects for water quality activities to ensure the purity and safety of the City's Water supply is in conformance with local, state, and federal guidelines. The fees examined within this study relate to minor plan check and inspection services, utility accounts, broken curb stop, and backflow prevention inspections. 1 FEE SCHEDULE MODIFICATIONS Based upon discussions with staff in the Water Division there were several modifications made to the Water Fee Schedule. These modifications are summarized as follows: • Elimination of fees such as Sanitation Only Establishment Fee, Sanitation rates, Trash rates, and continuous service agreements for landlords, as those services were either eliminated or are services that are free of charge. • Addition of new fees such as Monitoring Well Permits, Returned Payment Processing Charge, Service Call / Door Hanger, and Delinquent Surcharge. • Renaming of current fees such as Dispatch Fee during business hours to Reconnection Fee During Business Hours and Dispatch Fee after hours to After Hours Reconnection Surcharge. Identifying and implementing these changes enable the Water Services Division to better reflect all services being provided on the current fee schedule. 2 DETAILED RESULTS— FLAT FEES The Water Division collects flat fees related to utility account establishments, meter testing, broken curb stop, and reconnection fees. The total cost calculated for each service includes direct staff costs, direct material costs (where applicable), Departmental and Citywide overhead. The following table details the title /name, current fee, total cost, and surplus or deficit associated with each Water Division service. Table 37:Total Cost Per Unit Results—Water Fee Name Curren# Takal Cost Per Surplus/(Deficit) Fee Unit per Unit �„ ,,,,,, ,,u>m � �„ � ,a<, , ,.,,, , , ,P. „ ,o,,,�. .,,,,,,.�,,, ti,.e ,� ,,, ,. �, Plan Check&Inspect�on Fee Water Service, no on-site water facilities $200 $444 ($244) Broken Curb Stop $150 $209 ($59) Pull Water Meter $75 $151 ($76) Matrix Consulting Group Page 96 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Fee Name Current Tatal Cost Per Surplus/(Deficit) Fee Unit per Uni# Utility Account Establishment-per account ' �� $35 $54 ($19) As of Last Read Establishment Fee-per account $10 $22 ($�2) Reconnection Fee-during business hours $50 $93 ($43) After Hours Reconnection Surcharge $50 $125 ($75) Meter Testing -deposit $150 $196 ($46) Research Fee $10 $27 ($17) Backfiow Prevention Inspection $50 $132 ($82) NEW FEES: Monitoring Well Permit(fixed fee) - per application $106 Returned Payment Processing Charge $48 Service Call/Door Hanger $92 Delinquent Surchar�e $30 All of the fees related to the Water Division are under-recovering, with the largest subsidy of $244 associated with Water Service, no on-site water facilities Plan Check and inspection, and the smallest subsidy of $12 associated with As of Last Read Establishment Fee per account. ' 3 DEPOSIT-BASED FEES � The Water Services Division also collects deposits as it relates to Plan Check and Inspection services, Hot Taps, Laterals, and other water-related services. These deposits are meant to not only account for the time spent by staff to plan check and inspect, but to also account for the cost of any materials or consultants used for testing services. Similar, to other deposit-based fees charged throughout the City, the project team provided City staff with fully burdened hourly rates for use in billing to projects. These fully burdened rates will ensure that direct and indirect costs are accounted for in deposits. However, unlike other deposits, it is imperative that the deposits for water services take into account the cost associated with providing materials and replacing materials if materials are destroyed and damaged. 4 ANNUAL REVENUE IMPACTS— FLAT FEES The Water Services Division is currently under-recovering its fee-related costs associated with its services by approximately $231,000. The following table shows the annual workload volume for FY17, projected revenue at current fee, projected annual cost, and the associated annual deficit. Matrix Consulting Group Page 97 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Table 38: Annual Results—Water Fee Name Annual Revenue at Total Annual Annuai Surplus Volume Gurrent Fee Cost 1{Deficit) � ,..,<„ , �w, � ,u,,,,.., , ., o ,,,� .„,, . ...,, , , �. , . , ,. ,,,�� :. .,... , ,:. ��. �,w�, d, , „e, o,„� „ ��,d.� ,,,,. . Pull Water Meter 5 $375 $754 ($379) Utility Account Establishment-per account 4,372 $153,020 $235,850 ($82,830) As of Last Read Establishment Fee- per account 295 $2,950 $6,538 ($3,588) Reconnection Fee-during business hours 1,943 $97,150 $181,191 ($84,041) NEW FEES: Service Call/Door Hanger 217 $20,021 ($20,021) Delinquent Surcharge 1,345 $39,928 ($39,928) TOTAL $235.495 $484,283 ($230,788) Overall, the Water Services Division is recovering approximately 52%of its flat fee-related costs. The primary source of this under-recovery is due to the reconnection fee during business hours, which accounts for $84,000 of the $231,000 annual subsidy. � 5 JURISDICTIONAL COMPARISON � As part of this study, the City wished to understand how their current fees and total cost compared to other similar sized and regionally located jurisdictions. The following subsection provides a comparative look at three common Water Services reviews. 1 Plan Check & Inspection Services — No on-site water facilities The City is currently charging a $200 flat fee for No On-Site Water Facilities, Water Service Plan Check and Inspection Services. The study calculated that the total cost associated with this service is$444, resulting in a$244 deficit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Plan Check& Inspection- No On-Site Water Facilities $10,000 Construction Project $600 $500 � $400 ii �Review Fee -- $300 � Average a $200 $100 $- � o�° >, c > o �� O ; Q O 'C O � � j �U � N «f N � �� (0 � O � OU Matrix Consulting Group Page 98 DRAFT Cos#of Services{User Fee) Study CITY OF ORANGE, CALIFORNIA As the graph indicates, the City's current fee at$200 is significantly below the average of $387 charged by other surrounding jurisdictions. Additionally, the City's full cost at $444 is below the highest fee charged by Santa Ana at $558. 2 Reconnection Fee— During Business Hours As the annual results indicated, the Reconnection Fee During Business Hours is the primary source of deficit associated with Water Services. The City currently charges $40 and it costs $93 to provide this service. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Reconnection Fee- During Business Hours $250 $200 � � $150 � ..—Review Fee � $100 Average � $50 $- \ � �, c � o � Q o � � � � � � � U � a�i c�c a�i LL- N� � � �1 �� N � �U � � � As the graph indicates, the City's current and full cost fee for Reconnection during business hours is below the average of $111 charged by surrounding jurisdictions, and well below the $225 charge by Fullerton. 3 After Hours Reconnection Surcharge The City currently charges the same fee of $40 for After Hours Reconnection as it does for During Business Hours. Through this study it was calculated that the After Hours Reconnection Surcharge costs $125, representing a $85 deficit per unit. The following graph shows how the Department's current fee and total cost compare to other local jurisdictions. Matrix Consulting Group Page 99 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CA�IFORNIA After Hours Reconnection Surcharge $160 $140 $120 N d �� LL y $80 ��Review Fee � $60 Average d a $40 $20 $- � c o � � c @�o � rn� �U a� Q � � � o o � � — OU �� a�i LL p� � u) -o m C� As the graph indicates, the City's current fee of $40 is significantly below the average of $112 charged by other surrounding jurisdictions. Additionally, the City's full cost of $125 is below the highest fee charged by Santa Ana at $149. Matrix Consulting Group Page 100 DRAFTCos#of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 18. COMPARATIVE MARKET SURVEY As part of this Cost of Services (User Fee) Study for the City of Orange, the Matrix Consulting Group conducted a comparative survey of fees. The City identified four jurisdictions to be included in the comparative survey: City of Brea, City of Fullerton, City of Garden Grove, and City of Santa Ana. While this report will provide the City with a reasonable estimate and understanding of the true costs of providing services, many jurisdictions also wish to consider the local "market rates" for services as a means for assessing what types of changes in fee levels their community can bear. However, a comparative survey does not provide adequate information regarding the relationship of a jurisdiction's cost to its fees. Three important factors to consider when comparing fees across multiple jurisdictions are: population, operating budget, and workforce size. The following tables provide this information regarding the jurisdictions included in the comparative survey. Table 39: Ranking of Jurisdictions by Population Jurisdiction 2016 Census � �meaan,�� <�,A,, � ti�„�� ti,u�, � �o�,�� ,�,,, ,�ti ., ,s,,,4 ,��,�,�,� Brea 43,606 Orange 140,504 Fullerton 140,721 Garden Grove 174,858 Santa Ana 334,217 Table 40: Ranking of Jurisdictions by Operating Budget Jurisdiction FY 17/18 Budge# Garden Grove ��$224,919 Brea $92,900,059 Fullerton $190,929,194 Orange $199,903,830 Santa Ana $520,930,459 Table 41: Ranking of Jurisdictions by Workforce Size Jurisdiction FY 16/17 FTE �Brea��„�>��„�,��,�,��a��,��,��„��,319�R Garden Grove 640 Fullerton 718.3 Orange 761.157 Santa Ana 1130 Matrix Consulting Group Page 101 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Based on the data shown in the above tables, the City of Orange ranks lower in terms of population size, but has a higher FTE count and Budget among the comparative agencies. While the above comparative information can provide some perspective when paralleling Orange's fees with other jurisdictions, another key factor to consider is when a comprehensive analysis was last undertaken. The following table outlines when the last fee analysis was conducted by each surveyed jurisdiction. Table 42: Last Comprehensive Fee Analysis ��Jurisdiction��,�� Response m��, �Brea �� More than 20 years Fullerton Not Applicable Orange 2008 Garden Grove 2017 for some departments Santa Ana 2017 Garden Grove and Santa Ana have both recently completed internal studies. The City of Brea has not used an outside consultant to assess their fees in over twenty years. The City of Fullerton has not had a fee study conducted as well. In comparison, prior to this study, the City of Orange had conducted its last external study in 2008, with some updates in 2010. Along with keeping these statistics in mind, the following issues should also be noted regarding the use of market surveys in the setting of fees for service: • Each jurisdiction and its fees are different, and many are not based on actual cost of providing services. • The same "fee" with the same name may include more or less steps or sub- activities. In addition, jurisdictions provide varying levels of service and have varying levels of costs associated with providing services such as staffing levels, salary levels, indirect overhead costs, etc. In addition to the issues noted above, market surveys can also run the risk of creating a confusing excess of data that will obscure rather than clarify policy issues. Because each jurisdiction is different, the Matrix Consulting Group recommends that the information contained in the market comparison of fees be used as a secondary decision-making tool, rather than a tool for establishing an acceptable price point for services. On average, the survey showed that the City's fees are in line with the jurisdictions surveyed, with some fees higher than other jurisdictions and other fees significantly lower. Some of the survey results have been included in this report, and complete survey results have been provided to staff under separate cover. Matrix Consulting Group Page 102 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA 19. COST RECOVERY The following sections provide guidance regarding how and where to increase fees, determining annual update factors, and developing cost recovery policies and procedures. 1 FEE ADJUSTMENTS This study has documented and outlined on a fee-by-fee basis where the City is under and over collecting for its fee-related services. City and Department management will now need to review the results of the study and adjust fees in accordance with Departmental and City philosophies and policies. The following dot points outline the major options the City has in adjusting its fees. • Over-Collection: Upon review of the fees that were shown to be over-collecting for costs of services provided, the City should reduce the current fee to be in line with the full cost of providing the service. • Full Cost Recovery: For fees that show an under-collection for costs of services provided, the City may decide to increase the fee to full cost recovery immediately. • Phased Increase: For fees with significantly low cost recovery levels, or which would have a significant impact on the community, the City could choose to increase fees gradually over a set period of time. The City will need to review the results of the fee study and associated cost recovery levels and determine how best to adjust fees. While decisions regarding fees that currently show an over-recovery are fairly straight forward, the following subsections, provide further detail on why and how the City should consider either implementing Full Cost Recovery or a Phased Increase approach to adjusting its fees. 1 Full Cost Recovery Based on the permit or review type, the City may wish to increase the fee to cover the full cost of providing services. Certain permits may be close to cost recovery already, and an increase to full cost may not be significant. Other permits may have a more significant increase associated with full cost recovery. Increasing fees associated with permits and services that are already close to full cost recovery can potentially bring a Department's overall cost recovery level higher. Often, Matrix Consulting Group Page 103 DRAFTCost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA these minimal increases can provide necessary revenue to counterbalance fees which are unable to be increased. The City should consider increasing fees for permits for which services are rarely engaged to full cost recovery. These services often require specific expertise and can involve more complex research and review due to their infrequent nature. As such, setting these fees at full cost recovery will ensure that when the permit or review is requested, the City is recovering the full cost of its services. 2 Phased Increases Depending on current cost recovery levels some current fees may need to be increased significantly in order to comply with established or proposed cost recovery policies. Due to the type of permit or review, or the amount by which a fee needs to be increased, it may be best for the City to use a phased approach to reaching their cost recovery goals. As an example, you may have a current fee of$200 with a full cost of$1,000, representing 20% cost recovery. If the current policy is 80% cost recovery, the current fee would need to increase by$600, bringing the fee to $800, in order to be in compliance. Assuming this particular service is something the City provides quite often, and affects various members of the community, an instant increase of $600 may not be feasible. Therefore, the City could take a phased approach, whereby it increases the fee annually over a set period until cost recovery is achieved. Raising fees over a set period of time not only allows the City to monitor and control the impact to applicants, but also ensure that applicants have time to adjust to significant increases. Continuing with the example laid out above, the City could increase the fee by $150 for the next four years, spreading out the increase. Depending on the desired overall increase, and the impact to applicants, the City could choose to vary the number of years by which it chooses to increase fees. However, the project team recommends that the City not phase increases for periods greater than five years, as that is the maximum window for which a comprehensive fee assessment should be completed. � 2 ANNUAL UPDATES ,� Conducting a comprehensive analysis of fee-related services and costs annually would be quite cumbersome and costly. The general rule of thumb for comprehensive fee analyses is between three and five years. This allows for jurisdictions to ensure they account for organizational changes such as staffing levels and merit increases, as well as process efficiencies, code or rule changes, or technology improvements. Developing annual update mechanisms allow jurisdictions to maintain current levels of cost recovery, while accounting for increases in staffing or expenditures related to permit services. The two most common types of update mechanisms are Consumer Price Index Matrix Consulting Group Page 104 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA (CPI) and Cost of Living Adjustment (COLA) factors. The following points provide further detail on each of these mechanisms. • COLA/Personnel Cost Factor: Jurisdictions often provide their staff with annual salary adjustments to account for increases in local cost of living. These increases are not tied to merit or seniority, but rather meant to offset rising costs associated with housing, gas, and other livability factors. Sometimes these factors vary depending on the bargaining group of a specific employee. Generally speaking these factors are around two or three percent annually. • CPI Factor: A common method of increasing fees or cost is to look at regional cost indicators, such as the Consumer Price Index. These factors are calculated by the Bureau of Labor Statistics, put out at various intervals within a year, and are specific to states and regions. The City should review its current options internally (COLA) as well as externally (CPI) to determine which option better reflects the goals of departments and the City. If choosing a CPI factor, the City should outline which particular CPI should be used, including specific region, and adoption date. If choosing an internal factor, again, the City should be sure to specify which factor if multiple exist. 3 POLICIES AND PROCEDURES This study has identified the permit areas where the City is under-collecting the cost associated with providing services. This known funding gap is therefore being subsidized by other City revenue sources. Based on the information provided in this report, at a global or per unit level, the City may not have any issues with using non-fee related revenue to account for the current deficit. Development of cost recovery policies and procedures will serve to ensure that current and future decision makers understand how and why fees were determined and set, as well as provide a road map for ensuring consistency when moving forward. The following subsections outline typical cost recovery levels and discuss the benefits associated with developing target cost recovery goals and procedures for achieving and increasing cost recovery. 1 Typical Cost Recovery The Matrix Consulting Group has extensive experience in analyzing local government operations across the United States and has calculated typical cost recovery levels. The table on the following page outlines these cost recovery levels by major department. Matrix Consulting Group Page 105 DRAFT Cost of Services(User Fee) Study CITY OF ORANGE, CALIFORNIA Table 43:Typical Cost Recovery Levels by Department Department��Typical Cost Recovery City Clerk,�� 20�-40% �� Building 80- 100% Planning 50-80% Fire 50-80% Finance 20-40% Police 20-40% Public Works 80- 100% Parks and Recreation 20-40% Information presented in the table above is based on the Matrix Consulting Group's experience in analyzing local government's operations across the United States and in California and reflects the typical cost recovery levels observed by local adopting authorities. The following graph depicts how Orange compares to industry cost recovery standards. Current Cost Recovery vs. Typical Cost Recovery 100% ______.— ______._._.-----------________------._.______ 80% ....---___------ -_ _..,.._ .._----�_�..�_.�---- o ._..---..__.__..__ 60% 6 0 5 % 5 % 57% 49% 40% oTypical Cost Recovery 31 /o 20% �Current 0°/a - -----, G�� a��A �� F�� a�Ge o��Ge o�y '�� G�� j Q\a� �\� Q \\� �G��a Q�� The graph above indicates that the City is currently above typical cost recovery for City Clerk, Police, and Recreation. It is within the cost recovery ranges for Planning, Fire, and Finance and it is below the typical cost recovery levels for Building and Public Works. Matrix Consulting Group Page 106 DRAFT Cost of Services(User Feej Study CITY OF ORANGE, CALIFORNIA 2 Development of Cost Recovery Policies and Procedures The City should review the current cost recovery levels and adopt a formal policy regarding cost recovery. This policy can be general in nature and can apply broadly to the City as a whole, or to each department and division specifically. A department specific cost recovery policy would allow the City to better control the cost recovery associated with the different types of services being provided and the benefit being received by the community. Matrix Consulting Group Page 107