HomeMy WebLinkAbout24-Council Office
CITY.OF SAN BERtARDINO - REQUEST ~R COUNCIL ACTION
From:
Dept:
Date:
Councilman Ralph Hernandez
Council Office
April 13, 1992
Subject: Appeal To Council Fee
Synopsis of Previous Council action:
Recommended motion:
To reconsider the $75.00 appeal to Council fee.
Signature
Contact person: Councilman Ralph Hernandez
Supporting data attached:
FUNDING REQUIREMENTS: Amount:
Phone:
Ward:
Sou ree:
Finance:
Council Notes:
Aaenda Item No ~ 1./
-
.
C 19y
o
o F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
CITY CLERK'S OFFICE
DATE: April 17, 1992
TO: Hon. Mayor and Members of the City Council
FROM: Rachel Krasney, City Clerk
SUBJECT: $75 appeal fee
COPIES:
Hon. James Penman, City Attorney; Shauna Clark, City
Administrator
---------------------------------------------------------------
Following up on this morning's agenda briefing, I would like to
provide the following background information concerning the $75
appeal fee which has been placed on the Council agenda by
Councilmember Hernandez (Item #24).
Up until September 1990, the Municipal Code did not provide for
an appeal fee for vehicle, weed and building/nuisance abatement
appeals made to the Mayor and Common Council. However, the
Municipal Code did provide for an appeal fee for Planning
Commission appeals.
In April 1990, former City Clerk Shauna Clark, submitted a
proposal to the Legislative Review Committee recommending that
the Mayor and Council approve the enactment of a $75.00 appeal
fee for all vehicle, weed and building abatement appeals made to
the Mayor and Common Council.
On April 19, 1990 the Legislative Review Committee did approve
the proposal. A hearing was held and on September 5, 1990,
Resolution No. 90-375, was approved establishing a fee for all
vehicle, weed and building/nuisance abatement appeals made to the
Mayor and Common Council. On September 17, 1990, Ordinance No.
MC-742 was approved amending Section 8.27.060, 8.33.060 and
8.36.120 of the San Bernardino Municipal Code Requiring a Fee for
Vehicle, Weed or Building/Nuisance Abatement Appeals made to the
Mayor and Common Council.
When the proposal to establish such a fee was first introduced,
the staff report stated that such a fee was being proposed
because of the time and preparation involved with scheduling and
hearing appeals. Appeals of vehicle, weed and building/nuisance
abatements are similar to planning appeals, therefore, the fee
was based on the planning appeal fee.
(?Y)
.!. W!
o
o
Hon. Mayor and Common Council
April 17, 1992
Page Two
At that time the planning appeals fee was $75; that fee is now
$110; however, the appeal fee of $75 remains the same for all
vehicle, weed and building/nuisance abatement appeals.
City Clerk's Office procedures involved with scheduling appeals
are:
. Receive, date stamp, and log in appeal letter
. Verify that the appeal contains all required information
. Deliver appeal letter to department(s) involved
. Research appeal and prepare council action correspondence,
staff report, and any other necessary documentation to
include in the agenda backup.
. Send documentation to City Administrator's Office for review
and scheduling of appeal
. Prepare Agenda
. Notify the appellant by phone of the date and time the item
will appear on the agenda
. Mayor and Common Council hear the appeal
. City Clerk's Office sends letter to appellant confirming
action taken on the item. (In some cases, the item is
continued and must be scheduled on the agenda a second time)
. Preparation of official minutes of the Council meeting
Based on the above processes, the value of time expended by not
only City Clerk's staff but by other departments in processing
each appeal certainly exceeds the $75 fee.
Since January 1991 to the present, this office has processed 4
vehicle/weed abatement appeals and 11 building abatement appeals,
for a total of 15 appeals in 16 months. If the appeal is found
to be valid, the appeal fee is reimbursed to the appellant.
I realize that the decision on whether or not to keep the $75
appeal fee rests with the Mayor and Council; however, I thought
the above information might be helpful to you. Additionally, I
would like to share with you copies of the attached article
entitled "Market-Based Pricing" which appeared in the April 1992
edition of Western City. The article discusses market-based
pricing and using that as a method by which government can re-
evaluate the way it prices products and services to more fully
reflect the true cost as well as the demand for services.
I believe the article addresses concerns all of us have and
offers suggestions on how cities can respond to citizen demands
for services.
~~~
Rachel Krasney
City Clerk
Attachment
. MAR K E .~. - B: A, SED.
WHERE
,
~
5 E LF · I N I ERE 5 I M.E E I 5
.
I'H E PUB Lie GOO D
How did Seattle reduce trash pickups
from an average of 3.5 cans per week
down to just one?
.
How did one city cut its false alarm runs
by 30 percent?
.
Why have 30 percent of one offices down-
. town workers quit driving regularly to
work and use alternative transportation?
.
. Should Visalia be happy that their citi-
zens pay about $6 million a year for fire
insurance and another $1.3 million for
their fire department while experiencing
only $300,000 in fire loss each year?
~
LEAGUE Or CALIFORNlA CmES
o
.
,,"
s
o
\.
u
# When a business provides a
service, success - both
in terms of making money
and the excitement of meeting
the needs of others - depends
on more customers using the
service. City officials often hear
their business leaders tell them,
"You should operate the city
like I run my business." Un-
fortunately, when cities have
more "customers" it generally
means that more of that service
must be provided for the same
amount of money. More library
users for example mean more
staff, books and equipment
have to be purchased. However,
there isn't a corresponding in-
crease in revenues to support
this increased need.
:V1ast cities unknowingly encourage citi-
zens to demand more services than the city
can provide. This results in unhappy citi-
zens and frustrated city officials. It gener-
ates heated interchanges. petitions, pro.
tests and sometimes it leads to a loss at re-
election time.
Cities aren't naturally self-destructive.
City officials are in office to meet the needs
of their citizens: Government is supposed
to respond to citizen demands with ser-
vices financed from general revenues. But
there are never enough revenues to meet
the requests from citizens.
One solution to this dilemma - market-
based pricinl( - is already being practiced
by numerous cities. counties. stales and the
federal government. For example. most
cities charge fees for selected services such
as building plan inspection and recreation
programs. but few have systematically
explored the power ot a simple shift in
thinking about the roie ot government.
Instead of assuming that all citizen
demands must be met and turning to fees
as the last resort cities can consciously use
-
Ii
I
o
N
p.":::'.':i ;;0:: _,";;r f:::!:!i:- ::"-:';~-~ tn '''nr~n/T'' tf",
demand joT their services. This strategy can
lead to satisfied citizens who understand
what they are getting for their money. satis.
lied city officials who are fulfilling their
responsibility to provide quality public ser.
vices. and a society whose difficult prob.
lems. such as traffic congestion and envi-
ronmental quality. are being' solved.
A Loo k Inll The Future
Each year. the League of California
Cities Committee on 21 researches a "21st
Century issue" and discusses its impact on
California cities in California. In 1991. the
Committee looked into market~based pric.
iog as a possible method by which govern-
ment could fundamentally re-evaluate the
way it prices products and services to more
fully reflect the true cost as well as the
demand for services. The Committee con-
cluded that the pricing' ot government ser-
vices and resources creates a powerful set
of incentives encourag'ing the "wrong"
things. In most cases. this oc<..--urs because
access to government services or re-
sources is underpriced.
"Market-based pricing" may be viewed
as just another bureaucratic title for figur-
ing out how government can charge more
for services. And it may look that way when
given a cursory look. However. members of
John]. Kirlin is Professor of Public
Administration at the Univmity of Southern
California. Sacramento Center. He served as
project consuLtant to the League's 1991
Committee on 21. which examined the sub-
ject of market-based pricing. Sheri Erlewine
is the Director of Communications for the
uague of California Cities.
This article is adapted from the Commiffee
on 21 Report. "Market-Based Pricing-
Combining Self-Interest and The Public
Good: A Win-Win Solution". The report
includes additional examples. more detailed
discussion of the concept. and a strategy for
implementing market-based pricing. Copies
of the report are available for $5 plus sales
tax from the League library: 1916J 444.
5513.00.311.
o
t1", Cnmmith-'/' nn '!1 ("now III hf~lif-'\'P tl1<1t
unless we change some of the rules by
which we play. we really have no hope to
properly manage our cities.
Pricing services provided by govern-
ment to recoup the actual cost of providing
not only the service. but also the cost to the
environment for its use. is not exactly new.
However. pricing for full social cost is not
widespread. The idea of market-based pric.
ing is beginning to find its way into the pub-
lic sector. even
while not titled
as such. What
exactly is the
cost of a dis-
posable diaper
that will take
up space in a
landfill? Should
the buyers of
disposable dia-
pers help to pay for the cost of disposing
of them? What are the costs of launderin~
cloth diapers and of emissions emitted
from delivery trucks? Should parents
who use cloth diapers pay the full costs
of disposing them? To the Committee
on 21. having both sets of parents con.
front the total social costs of their choices
seems like a reasonable approach to man.
aging resources.
When someone files a lawsuit in court.
has a false burglar alarm. checks out a
library book. or dials 9-1-1 for a fire truck.
there is usually no fee paid to fund those
services. Therefore. the user of the service
is unintentionally told to use as much of the
service as they want. There is no connec-
tion. without a fee for the use of the service.
between payin~ for a service and using that
service. as there is in the private sector.
The obvious response irom the voters in
the community is. "But that's what I'm pay-
ing taxes for." Unfortunately. funding most
services via taxes prevents citizens from
knowing the cost of any service. providing
Continued
o
. Instead of complaining about not
enough landfill space. the City of
SeaIIIe instituted a "pay as you throw"
method of trash billing. The more
cans put out for pick-up. the bigger
the trash bill Result: pick-ups went
from an average of 3.5 cans per
household down to one.
. To provide an incentive
for using of alternative
forms of transportation.
the League of California
Cities aDows its emp\oyees
in Sacramento to choose
between paid monthly
parking or an equal sum of
cash which can be used
fora bus pass, car pooling
costs, light rail, etc., all of
which cost less than the. monthly
parking fee.
Market-Based Pricing - To
make prices reflect the full
social cost of goods, from a
can of soda to a kilowatt of
electricity. ,
N.__e
1. Sharon Begley Wilh Mary Hager. MAdam Smith
Turns Green: using Market Forces To Clean Air and
Water." Newsweek. June 10. 1991. Page 60
WESTERN em-, APRIL 1992
. Several years ago. the city ot
VIS8tia dt:te/mined that resicieIIts paid
about $6 million a year in fire insur-
ance and about $1.3 million a year for
its fire department through taxes.
However, the community's .average
fire loss over the past ten~ had
-been.oiIly $3OO,OOOper-ye=Have
lnsuram:e <'()ftI)>"nies given:adequate
aeditto thefire prevention sysIem in
VISllliat
. A burgIar~ inslal1aliolIpermit
isrequired-in Los .AngeIeL!I'O'1'e-
coup losses from revmrlilqrinfalse
alanns, the Los Angeles Po1ice.€oJn.
mission bills permittees $651nrfalse
alarms in excess of four within a 12-
month period.
.The Thousand Oaks library
charges an _annual fee fodibnuy
cards to those non-residents wishing
to bomJwmalerials, aIblDd cbildren's
pi_awl!, and use othetJihrary1lel'
vices., NolH'eSidents:aa:ounUor 37
pen:ent of thelibrary's podluuage.
~
\)
,Harket - Based Pricing, Continued
incentives to overconsume the resources ot"
government. It may be time. as Moreno
Valley City Manager Norman R. King
points out. "to borrow the notion from
the private sector of mana,ginR' the demand
of a service or resource rather than the
supply, i.e.. charging people to use the free-
way at peak times versus building more
freeways." ,
Muaging 081Dlld
Supply management defines a problem
as "not enough of' and the solution as
"more of." Demand management offers a
different perspective on the same problem.
It is a perspective that recognizes there can
be too much demand for a service or
resource. For public administrators. the
solution is often to figure out how to manip-
o
ulate the demand downward so we don't
have the problem to bel'[in with. One
method of managing demand is via pricing.
SOffie public officials and citizens may
oppose mana~ing demand due to their
belief that public services should be avail.
able to all. But demand and access are
"managed". even in the absence of price.
Several-hour waits for public health ser.
vices means that only the poor and desper-
ate receive these services. Better schools in
affluent areas ensures that children of high
income families have better educators.
Managing demand recognizes that govern.
ment cannot spend to solve all problems
and satisfy all demands.
The need for additional land-fill space is a
problem ior many local government man-
agers. If the real problem is that there is
HOW TO IMPLEMENT MARKET-BASED PRICING
Making.. the ~ecision to embark on vices whose consumers can be readily
market-bMed pricing for cil3' services identified and therefore held accountable
can be ~.....dy cbaIlenging. While forthecostofcoDsump!ion."'Ifpossib1e,
there are 1!lDIIIlp1es of aImolIt l!W!I'Y consider reducing taxes when Dew or
possiblaapplication found some- increased fees are imposed.
where in the 1OIlIid, !bat is obo. amaD 4.... u_ M III F"'~' _'.;ft
oo1aceto,-"-.- '.-.'. ";'Ia inthe1llidllt.of . --... -,...,......
-, . the concepts.l>ehind 'market. pricing
..inandn' I..... "'IV W- aadpracdeee. . with. reporters. editorS and editorial
1be;_:~1lOD8icIend'~', '~leastwhen.they fullyunders-
I. .....,.....1......../141_ land the philosophy, they're likely to in-
tl../I........... . Considehhe elude many of the'common sense ap-
many possibilities for gaining public edu- proaches behind mar-
cation and .participation, from existing ket-based pricing in
boards or commissions or setting up a their coverage.
specia1 tasldoree.to look at possibi1ities'S~.""'LD.' '..
for implementing these Ideas to dis- t... ..... C....
cussing them 'at service clubs or during ...... Explain the
budget hearings. Ideally, market-based concepts - either how
'pricing emerges as one element of an they're used in the
overall strategic plaDfor creating a cil;}" or what state/fed-
desired fularefor your.city. Pricing, or eral policies could
. anyodiet'fIiDllIe-element, when placed .benefitto members
into conrext, becomes a ll'girim.t... iDle- of the Assembly, Stale
gra1 par$'oflh&-p!an. . Senate and Congress.
:,2..a-tf....1. a..ginning smaI1 "6....... WInoWIII
;:can.spell.~'Jnc._lal increases~~'.:"". The example of the
ofan existingfee or beginning a new Sl!!'- city'slmp1ementing a membership fee for
. vicecanbemethods to start small and use of its tennis courts.and ending up
8ChIeVe ~:thereby pavingthe way with-weJl.maintained courts, happier ten-
.' fnF.futunmJarket-basedprice! '.;..g nis players and no impact on the general
fund is a win-win situation. Upgrades in
~3.........._bIatI.., '-/.-. quality of service or tailoring a service for
... ..SimpIy increasing fees and char- individual users are good places to look
.ges.isnlJ:heonly.mannerof;m~t- .for.win-win opportunities. fonoarket-
ing:markl!t-basedJricing. Ageners1ru1e based pricing,
of thumb promoted by Moreno Valley
City ~.Norm King,however, is
"Don'tuse tlIlll!Spwhieldl8....no. behllV'
.iorai effllct;,....,..~you ClII1-....fees.
1bisme8llS:inJposing user fees forsee-
'_,'.L
10
';\<~~';i'; . ,;;...j!'~L~'
:';;:,'::;" .-:..:;-~>r;,:':2-!,'
o
too much waste. as suggested in the
demand management model. versus not
enough landfill space. then the solution is
pricing the use of landfilis in such a manner
that citizens make individual decisions to
reduce their waste. Seattle's experience
demonstrates the power of the pricing
method: a two-thirds reduction in the vol-
ume of waste when the city began charging
a per-can iee. a huge improvement.
Managing demand may be a contrary
concept for many public sector managers
who understand that in private enterprise.
demand is good - it means success.
However. increased demand for the ser-
vices of government generally means that
more of the service must be provided from
roughly the same amount of revenue.
Unless supported by fees. increased ser-
vices in one area can oiten be funded only
by cuts elsewhere or eroding quality.
Libraries are a good example. As librarie~
generate more use. more revenues from a
city.s ,R'eneral fund are needed to keep up
with the demand. This in turn means that
some other general fund service is cut to
provide the funds. Citizen are often heard
to say. "private industry cuts back all the
time. so should government." This is true,
private industry cuts back when a product
fails: however. when government cuts back.
it's often because demand for a service has
outpaced funding.
This is not to say that the demand
for libraries should
be suppressed. How-
ever, it may be im-
possible to fund all
requests for increas-
ed services from tax
revenues. and it is
unwise in any case.
Alternatively. the
city can provide a
base level of service
funded by the gen-
eral fund and then
charge to fund addi-
tional programs or service levels.
"The irony is that as capitalists. we
believe that the laws of supply and demand
work well in the private sector - but we
disbelieve their validity in the public sector.
This is in spite of the fact that properly
implemented pricing systems will promote
the conservation of many government
resources. Again. user tees are not just a
way to raise money. They are also a way to
"In private enterprise, demand is
good - it means success. However,
increased demand [or the services
of government generally means that
more of the service must be provid-
ed [or roughly the same amount of
revenue. "
N__ Ki..g, city
MIIIHI!J.., M...... VaUey
L _ R. King. "MaaIeiDg DemIIId For GoY-
emmental Services." M."",.", ForTOIJJDPT'01I7:
.-.a...<Aod LoazI_ _ Cily
~ Fouodation. PIse 143-153.
2. ~onnan R KinR. "Managing The Demand For Gov-
ernment Services,'. Managing For Tomorrow: Global
Change And Local Futures. International City Manage-
ment Foundation. PalZes 143-15:-:
improve the efficiency of allocating
resources. thus affirming the rationalizing
function of price."
'Vhile the goal of advocates of privatiza-
tion - through contracting with private
[inns or simply to stup providing a servicl'
- is usually minimizing governmental
expenditures. for advocates of market-based
pricing. the goal is maximizing societal ben-
efit. Only by providing full information on
the consequences oi our actions-best
done through market-based pricing-can
\\'f' turn individuals' :-e]f-interest toward
maximizing our common benefit.
Allltude AId Behavlup Cbllge
As has been seen. the concepts behind
pricing government are larger than raising
enough revenue to pay for the services in
place now. By adopting incentive-based
pricing strategies. citizens are able to make
choices about how they use services and
products such as freeways. parking spaces.
health care. police services. libraries. city
airports. and thousands of others which are
used every day. If the proper incentive is
provided with pricing. the quality of life
could dramatically improve for everyone.
Today. citizens otten complain that "gov-
ernment spends too much." From a mar.
ket-based pricing perspective. however. the
issue is not government decision-making.
but the thousands of small decisions each
citizen makes that causes government to
get bigger. This strategy offers hope of a
more positive and fruitful exchange about
the size and activities oi government.
To accomplish a move toward market-
based pricing. however. there must be a
fundamental change in the way govern-
ment is viewed. This concept involves
changing rules and processes so that the
actions. choices and behaviors of individu-
als result in what is good collectively for
society. When the C .S. Forest Service col-
lects fees for a campground. that money
goes to the federal government's general
fund. On the other hand. if the Forest
Service sells trees. they get to keep a per-
centage of the gross sales of the value of
the timber sold. This results in a clear poli-
cy statement that says: cut trees~
In its annual report. "The 1990-91
Budget: Perspectives and Issues". the
California Legislative Analyst's Office
devoted a 17-page section to "Air Quality
Improvement: An .-\lternative Strategy."'
:I. Ibid.
-t. Sharon Be.R"ley with \larv Haj:rer. MAdam Smith
Turns Green: Usinll ~Iarket Forces To Clean Air and
Water:. l-iewsweek. June 10. 1991. Pa,lte 6<.1
o
o
EKAMPtES
. Although fixed fees are easier to
work with, the Claremont Comrmmny
Development Department utilizes
hourly rates for development reviews
because they feel hourly rates are
most equitable: simple projects cost
less, complex ones cost more. The
hourly rates also encourage patrons
to submit applications that are c0m-
plete, clear, accurate. in conformance.
and quick to review. thus requiring
less smff time.
. In March, 1989 the City of River-
side hired a private consultant to per-
form revenue and cost analyses and
to develop a cost dis-
tribution and control
system for all city
services. As a result.
the city was able to:
(1) determine the
costs of providing
specific city services;
(2) identify the ben-
eficiaries of those
services; and (3) es-
tablish a policy of re-
covering the full cost
of providing short-
tenn special services.
Empowered with this
information, the city
implemented dozens
of fees including a
storm drain additive
fee used for the im-
provement and con-
struction of storm
drains; a grading
plan review fee used
to cover the cost of
plan processing and
site inspection: and a
sewer service fee
which goes toward
the maintenance of
sewer lines.
The analysis concludes that incentive-based
regulation is preierable to command and
control regulation as a strategy. In fact.
the report recommends an amendment
to the California Clean Air Act "to explicitlv
authorize' the 11~f' oi incentivl'-ba~ed rel!1.lla-
tory policies." among others. A recent
j\iewsweek article on using market forces
to clean air and water went so far as to state.
"Command and control did make the
nation's air and water cleaner. but it also
made enemies in board rooms and living
rooms. Business lobbies hard against new
regulations. and last fall almost every envi-
ronmental referendum went down to defeat
as voters equated .'{reen laws with a grab
for the green in their wallets. Worse. tra-
ditional pollution control has begun to
cost more and more
even as it achieves
leRs and less.":
So. if people act in
their own self inter.
est. and only a fe\\'
products and ser-
vices are priced pro-
perl\'. there is no
reform. All items
and services need
to be fully priced to
provide information
upon which individ-
uals can act. Go-
vernment usually
tries to meet what-
ever demand exists
ior a service or
net'd. Market-based
pricing calls for gov-
ernmenl to fully
price commodities
such as water. free-
waY$. etc.. with the
likely consequence
of reduced demand.
~-lost citizens. for
example. think they
are paying for the
cost oi water when.
in actuality. most
are only paying 30 to 50 percent of the actu.
al cosl of delivering water. One community
recently experienced a 45 percent reduc-
tion in water use in a matter of weeks with
J. significant price increase of water rates to
renect actual costs.
Thereiore. changing - or adjusting -
behavior. attitudes and conventional wis-
dom wiii be needed lirsl oi public uffidab.
then citizens. in order to bring about this
new way of thinking.
ADVANTAGES, CHALLENGES
What Aft" U-_I_JII
Of Mcuto:et-..... PrIcing?
- A Cleaner Environment
_ Better Government Services
o Better Citizens Who Can Decide
Detennine Their Actions Based
On The Consequences Of Their
Choices
olt Makes Common Sense
o We Quit Subsidizing Others'
Use Of Public Services
o It's Proven That It Works
The Challenge.
o Resistance To Change
oThe Language Is Foreign
o People Don't Want To Pay More
-Tax Policies Discourage Many
Market-Pricing Strategies
o Individual Cities Or Employers
Can't Totally Implement The
Concepts
oTakes Leadership and Courage
To Suggest These Concepts
Publicly
. The California Legislature has
moved toward adding a fee to prod-
ucts that become household haz-
ardous waste, with revenue returned
to local governments to fund house-
hold hazardous waste collection pr<r
grams; or enacting an "advance dis-
posal fee" for materials that are even-
tually disposed, with part of the
revenue available to local government
to fund waste diversion programs.
.
WESTERN CITY. APRIL 1992
II