That the City Council APPROVE AND ADOPT RESOLUTION NO. CC 2025-__ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, ORANGE COUNTY, CALIFORNIA AMENDING THE CITY OF LA HABRA MASTER SCHEDULE OF FEES PERTAINING TO FEES FOR GENERAL SERVICES, ADMINISTRATIVE SERVICES, COMMUNITY DEVELOPMENT SERVICES, BUILDING SERVICES, FIRE SERVICES, POLICE SERVICES, AMBULANCE SERVICES, PUBLIC WORKS SERVICES, UTILITY SERVICES, AND PENALTIES FOR MUNICIPAL CODE AND VEHICLE CODE PARKING VIOLATIONS.

Section 4.08.010 of the La Habra Municipal Code requires the City to adjust various fees and charges it assesses for services by the increase or decrease in the Bureau of Labor Statistics Consumer Price Index for all Urban Consumers. The City utilizes changes in the Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim “all items” as the benchmark for these annual adjustments. The CPI change for this index in 2024 was 3.30 percent higher than 2023; therefore, it is recommended that eligible user fees contained in the Master Schedule of Fees be increased by 3.30 percent, rounded to the nearest whole dollar. 

Some fees contained in the Master Schedule of Fees may not be eligible for adjustment by the Consumer Price Index.  These include fees related to Enterprise Funds (water, sewer, refuse), franchises (such as cable, pipelines, etc.), or fees for which the State sets the rate.  These fees, while listed in the Master Schedule of Fees, remain at the levels, rates and formulas previously authorized by Council or other governing law.

User fees listed in the Master Schedule of Fees were most recently set in 2015-16, after the completion of a comprehensive user fee study to determine the actual cost of providing the services that the fees paid for. Under state law, fees may only be set at an amount not to exceed the actual cost of providing the service for which the fee is being assessed.  The cost of providing the service is based on factors such as personnel costs, materials, personnel time, and overhead.

The proposed Master Schedule of Fees includes the new proposed Minor Conditional Use Permit (MCUP) fee. The Community and Economic Development Department proposes this fee in order to create a more “business-friendly” environment and help reduce costs for certain types of businesses to become established in the City. The fee to process a MCUP is subject to Government Code Section 66014, which prohibits planning and permit processing fees from exceeding the reasonable cost of providing the service or impact. The proposed MCUP fee is $386. The details of the procedures and fee for the MCUP will be presented to City Council in a separate Public Hearing item for consideration and approval.

If approved by City Council, the increase in revenue as a result of adjusting eligible fees will result in additional resources for the City’s General Fund; however, new revenues will be used to directly offset the cost to provide those services. Fee adjustments will become effective on July 1, 2025, with the exception of Community Development and certain Public Works related fees which, consistent with State law, will become effective 60 days after passage of the resolution.