City Council

(21) 26-0467 PUBLIC WORKS COMMITTEE REPORT and BUDGET AND FINANCE COMMITTEE REPORT relative to proposed adjustments to the Bureau of Street Services (BSS) Investigation and Enforcement Division permit and application fees. A. PUBLIC WORKS COMMITTEE REPORT Recommendations for Council action: 1. REQUEST the City Attorney to prepare and present the necessary ordinances to amend applicable sections of the Los Angeles Municipal Code to reflect the recommendations in the memo as found in the Board of Public Works (BPW) report, dated March 25, 2026, attached to the Council file, including Sections 62.45, 62.141,62.146, 41.20, 62.80, 62.201 and any other relevant provisions, to effectuate the proposed fee adjustments and establishment of new fees, including an annual adjustment for inflation using the Consumer Price Index (CPI) for Urban Consumers published by the Bureau of Labor Statistics for the Los Angeles area. 2. INSTRUCT the BSS, in coordination with the City Administrative Officer (CAO), to periodically reevaluate Investigation and Enforcement fees and report with recommendations for fee adjustments at least once every five years. 3. INSTRUCT the CAO to report with the assessment of BSS’s recommendations to increase the permit fees and establish new permit and application fees. B. BUDGET AND FINANCE COMMITTEE REPORT Recommendations for Council action: 1. ADOPT the proposed adjustments to existing BSS Investigation and Enforcement Division permit fees, and ESTABLISH new permit and application fees, as recommended in the BPW report dated March 25, 2026, attached to the Council file. 2. REQUEST the City Attorney to prepare and present the necessary ordinances to amend applicable sections of the Los Angeles Municipal Code to reflect the recommendations in said BPW report and CAO report dated August 12, 2026, attached to the Council file, including Sections 62.45, 62.141,62.146, 41.20, 62.80, 62.201 and any other relevant provisions, to effectuate the proposed fee adjustments and establishment of new fees, including an annual adjustment for inflation using the CPI for Urban Consumers published by the Bureau of Labor Statistics for the Los Angeles area. 3. AUTHORIZE the BSS to make technical, administrative, and procedural changes as necessary to implement the Mayor and City Council’s intent. Fiscal Impact Statement: The BPW reports that approval of the recommendations in the BPW report is consistent with the City’s financial policies, as the proposed permit fees are structured to recover the full cost of providing regulatory, inspection, and enforcement services associated with use of the public right-of-way. The revised fees apply primarily to commercially driven activities and are designed to ensure that all eligible administrative and operational costs are fully recovered. Based on historical permit activity, full cost recovery for Building Materials, Overloads, Special Events, Haul Routes and Water Discharge permit, which have together accounted for over 95 percent of Fiscal Year 2025 Investigation and Enforcement Division permit revenue, is projected to increase annual permit revenues from approximately $2.3 million to approximately $5.0 million, or an estimated $2.8 million contribution to the General Fund. Absent adoption of the proposed fee adjustments, General Fund resources would continue to be required to subsidize the BSS's cost of administering these permits. The CAO reports that the proposed new fee structure fully covers the cost of the overall permitting process based on the time and effort required to process the permit. Absent adoption of the proposed fee adjustments, General Fund resources would continue to be required to subsidize the BSS’s cost of administering these permits. The BSS estimates an increase of $2.8 million in annual revenue which will be received as revenue by the General Fund. The 2026-27 Budget assumes $2.8 million in General Fund revenues from these fee increases. Actual receipts in 2026-27 will fall short of this amount as the fee will not be in effect for the full fiscal year. Financial Policies Statement: The CAO reports that the recommendations in the report comply with City's Financial Policies in that the fees proposed in the CAO report are permissible under State law, support services where a group of beneficiaries who can pay the fee is identifiable, and meet but do not exceed the reasonable cost of providing the service.