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CC - Item 5A - Fireworks Stand Permit Fee/Deposit AdjustmentROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: APRIL 24, 2012 SUBJECT: FIREWORKS STAND PERMIT FEE /DEPOSIT ADJUSTMENT SUMMARY The City provides various "individualized" services (i.e. inspections, permits, variances, etc.) that are not of general benefit. Historically, many of these services have been provided at a City cost greater than the price being charged for them thus resulting in subsidies of the remaining costs of service from the general taxpayers. The permit fees charged by the City to fireworks stand vendors is an example of recovering "individualized" subsidized service costs from those receiving the benefit of the services. A survey of neighboring cities has revealed that four out of six cities surveyed charge more for fireworks permits than what is being proposed as the new permit fee; the average cost among the cities surveyed is $327. In the interest of minimizing the subsidy of individualized services born by taxpayers, staff is recommending an increase in the fee for fireworks stand permits to $250 and a refundable deposit of $300. Staff Recommendation Staff recommends that the City Council approve Resolution No. 2012 -23 "Fireworks Stand Permit Fee /Depoisit Adjustment" (Attachment A). ANALYSIS The use of personal fireworks in the City represents an increased safety hazard requiring extra time and expense of Sheriff's Department staff and City Code Enforcement Officers to assure safe and proper use of fireworks. Additionally, debris left behind in the parks and streets creates the need for extensive cleanup by Public Works crews at additional cost to the City. Raising the fees for fireworks stands permits places the financial burden associated with the privilege of using personal fireworks directly on those who most benefit from them rather than the general taxpayers. ITEMNUMBER: -5 P1 City Council Meeting April 24, 2012 Paae 2 of 2 Staff has surveyed six surrounding cities and found that the average cost for a fireworks stand permit is $327. The following table illustrates the survey results: Fireworks Stand Fees Survey 04 -04 -12 City Permit Alhambra $325 Baldwin Park $500 El Monte $472 Monterey Park $400 South El Monte $125 Temple City $141 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: Steve Brisco Director of Finance ATTACHMENT A FIREWORKS STAND PERMIT FEE /DEPOSIT ADJUSTMENT RESOLUTION 2012 -23 WHEREAS, the Municipal Code of the City of Rosemead provides that certain filing fees, permit fees, inspection fees, deposits, and conditions of service may from time to time be established by the City Council, and WHEREAS, the City Council of the City of Rosemead has determined that the cost of providing certain services is not of general benefit but of benefit to the individual and, therefore, certain filing fees, permit fees, inspection fees and deposits should be required to pay for materials and special services performed by the City staff, and WHEREAS, after the passage of Propositions 4 and 218, local governments were made to charge for the costs of services to those who benefited, and WHEREAS, based upon fee justification data on file with the City Finance Director, the City Council finds that the fees included in the Resolutions represent a portion of the actual costs of the services provided or facilities funded and, therefore, there is a rational relationship between the fees charged and the services and facilities funded, and WHEREAS, the City Council has found that since the fees represent a portion of the actual costs of the service or facilities provided, there is a reasonable relationship between the amount of the fee charged and the costs of the.senrices provided to the person paying the fee, and WHEREAS, the City Council may adjust fees for certain services from time to time and incorporate all adjusted and /or new fees for services provided into one comprehensive schedule, and WHEREAS, the City Council has found it necessary to adjust fees for services, however, the City Manager has the authority to establish staff billing rates and equipment charges by Administrative Policy on an as needed basis, and WHEREAS, the City Council adopted the various resolutions establishing fees at various meetings. NOW, THEREFORE, the City Council of the City of Rosemead has resolved as follows: SECTION 1. That the general regulations and project deposit guidelines are established in Resolution 2011 -19 are amended as follows: Page 1 of 2 ATTACHMENT A Firework Stand: Permit Deposit (refundable) $250 $300 PASSED, AND ADOPTED, by the City Council of the City of Rosemead, County of Los Angeles of the State of California on April 24, 2012. ATTEST: Gloria Molleda, City Clerk APPROVE AS TO FORM: Rachel Richman, City Attorney Sandra Armenta, Mayor Page 2 of 2