PURPOSE

The purpose of this staff report is to request the City Council support and adopt the amendment to the Agreement Between the Consolidated Fire Protection District of Los Angeles County and the City of Burbank for Administration of the Unified Hazardous Waste and Materials Management Regulatory Program and amend the applicable section of the Fiscal Year 06-07 Burbank Citywide Fee Schedule to reflect the changes made pursuant to this amended agreement.

BACKGROUND

On December 10, 1996, the Burbank City Council passed a resolution approving an Agreement and Memorandum of Understanding (MOU) with the County of Los Angeles.  This agreement and MOU spelled the specific details as how these two governmental bodies would work together to administer the Unified Hazardous Waste and Materials Management Regulatory Program that was incorporated into law under SB 1082, now codified in Health & Safety Code Section 25404 et al.  On December 17, 1996, final signatures were obtained and the Burbank City Council entered into an agreement and approved a Memorandum of Understanding between the Consolidated Fire Protection District of Los Angeles County and the City of Burbank for the Administration of the Unified Hazardous Waste and Materials Management Regulatory Program. 

Under the provisions of that program, the County of Los Angeles, in cooperation with the City of Burbank, would institute a single fee system.  Under this system the County of Los Angeles would collect all related recurring fees and submit the collectibles back to the City of Burbank as specified under this agreement.  At the inception of the program all parties believed the provisions were practical and would meet each party�s needs.  Experience has taught us that some of those assumptions, although reasonable, were indeed not practical.  Hence, some changes were needed to correct any deficiencies discovered over the eight years of experience.  One such change included increasing the late payment penalty.  Back in 1996, a late payment penalty of 25% was established with the belief that this would pay for the cost of late payment and collections.  Under the provisions established by the legislature, the program agency is permitted to collect fees to cover the cost of program administration.  The County experience revealed that the current 25% late payment penalty was not covering the cost.   Therefore, the Board of Supervisors approved a change in the single fee system to permit the Consolidated Fire Protection District to collect a 40% penalty for late payment.  This action, since it is part of the single fee system needs to be approved by the City of Burbank as well. 

Since the County of Los Angeles changed the fees they charge for late payment penalty, they must follow through by amending the Agreement.  Some other modifications to Section V, Single Fee System, were made by deleting the current language and inserting new text.  Some of these changes are cosmetic and others incorporate some practical realities learned over the past eight years of program implementation.  A specific example is the time in which payment is received by the City from the County.  In the old agreement a 45 day period was allotted to receive monies collected by Burbank businesses.  That has been changed to 60 days, which seems to be closer to the reality of what actual takes place currently.  Some other language that required cities to notify the County of fee schedule changes has been changed to be more flexible for both parties. 

ANALYSIS

The amended agreement is required because L.A. County changed the late payment penalty fee.  This act requires the City and the County of Los Angeles to amend the agreement they entered into back in 1996.  The County of Los Angeles modified Section V of the agreement to more accurately reflect the actual day to day work that has become the normal business relationship between the two agencies.  The increase in the late payment penalty is necessitated by the need to off set expenses incurred in collecting these fees for late and non paying customers.  Since the inception of he contract, Burbank Fire�s experience with the County of Los Angeles Fire Protection District with regard to fee collection has been positive.  Our working relationship has helped the City to consistently collect 95% or more of the amount billed for this program. 

The amended agreement will require the City of Burbank to amend its fee schedule to reflect the changes and ensure consistency within the Single Fee System and all elements of the Unified Hazardous Waste and Materials Management Regulatory Program.  Therefore, Article V, Section 4 (c)(3) and Section 6(A)(9) needs to be incorporated to reflect the 40% late payment penalty charge that will be in effect under this amended agreement. The required changes to the Fiscal Year 06-07 Burbank Citywide Fee Schedule have also been incorporated into the proposed resolution for Council approval.

FISCAL IMPACT

The proposed resolution is not expected to have a significant fiscal impact to the City of Burbank.  Under the terms of the agreement the County of Los Angeles Consolidated Fire Protection District collects all fees including the late payment penalty.  The County of Los Angeles then pays the City of Burbank those fees within the time specified in the agreement.  The late payment penalty will increase from 25% to 40%.  This means the revenue the City collects from businesses that fail to pay on time will increase.  The number of businesses that pay their bills late is limited, thus the increase in revenue anticipated from an increased late payment fees will also be limited and is not considered significant.  This increase is needed to offset the cost of collections that result from late payment.

RECOMMENDATION

It is the recommendation of Staff that the City Council adopt the Amendment to the agreement between the Consolidated Fire Protection District of Los Angeles County and the City of Burbank for the administration of the Unified Hazardous Waste and Hazardous Materials Regulatory Program.  Staff also recommends that Council for the City of Burbank approve the amended changes to Article V, Section 4,(C)(3), and Section 6,(A)(9), �Delinquent Payment of Fee�, to the City of Burbank Fee Schedule 2006-2007 to reflect the change in the agreement and to ensure consistency under the Single Fee System. 

EXHIBITS

Exhibit A:     Amendment to the agreement between the Consolidated Fire Protection District of Los Angeles County and the City of Burbank for the administration of the Unified Hazardous Waste and Hazardous Materials Regulatory Program.

Exhibit B:     Proposed modifications to Article V, Section 4 of the City of Burbank Adopted Citywide Fee Schedule.

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