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Item #3 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF RuLa ,st , 2001 ATO: Honorable Mayor and City Council FROM: City Attorney SUBJECT: Permit Application Fees DATE: July 5, 2001 BACKGROUND: The City has the authority to impose fees, charges and rates under the police power granted by Article XI, Section 7 of the California Constitution. In order for the City to legally impose a fee, the amount must not exceed the estimated reasonable cost of providing the service for which the fee is charged. In addition to this requirement, the City must follow specific procedures outlined in the California Government Code. The Colton Police Department has reviewed the staff time needed for processing permit applications for dance permits, pawnbroker permits and massage permits. Based on its review, the Colton Police Department has estimated that 5.5 hours of staff time are required for processing a permit application. The specific actions required for processing a permit application include the initial interview (1 hour), fingerprinting and/or photography (.5 hours), background check (.5 hours), site visit (2 hours), application review (1 hour), and issuance of permit (.5 hour). These time periods are reasonable estimates for providing these services. The Colton Police Department also estimates that the average hourly cost for staff to provide these services is $30 per hour. For 5.5 hours of staff time per application, the total estimated cost for processing an application is $165. This amount, as required by law, represents a reasonable relationship between the fees to be collected and the costs incurred by the City for processing permit applications. The data compiled by the Colton Police Department to calculate the estimated hours and cost for processing permit applications is attached to this report as Exhibit "A" and copies have been made available for public review, as required by law. In order to establish the calculated fee, the City Attorney's office has prepared both a proposed ordinance and resolution. The proposed ordinance amends the specified sections of the Colton Municipal Code to allow permit application fees to be established and set by resolution. The proposed resolution then sets the amount of the fee to be charged for processing permit applications. RVPUB\NGS\615148 -1-