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Council Meeting November 11, 1997
Santa Monica, California
NOV 1 1 1997
To
Mayor and City CounCIl
From
City Staff
Subject
Recommendation to Adopt Resolution Waiving Soldier Beam, Tie Back
and Soil Nail Permit Fees for Construction by Non-Profit EntIties of 100%
Deed-Restncted Affordable Housing Units
Introduction
ThIS report recommends CounCil adoptIon of a resolution waiving soldier beam, tie
back and sOil nail permit fees when used for the construction of 100% deed-restricted
affordable housing units by non-profit developers
Backqround
Soldier beams are underground beams Installed along the perimeter of a project site
dUring construction to support subterranean excavations and overhead structures, tie
backs and sOil nails are underground steel rods or other devices which are Inserted
Into the nelghbonng sOli around the penmeter of a project site dunng constructIon to
support subterranean excavation and overhead structures TYPically, soldier beams, tie
backs and soil nails are left In place once the excavation and subterranean
construction IS complete Currently, when any developer In Santa MOnica wishes to
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make use of soldier beams, tie backs or sOIl nails which will encroach Into the public
nght-of-way they must apply for a permit wIth the CIvil Engineering DIVISion of the
Environmental and PubliC Works Management Department The current charge for
each soldier beam, tIe back or 5011 nail IS $631 11 The current fee was set by Council
In 1994 and represents two components the average actual costs of reviewing and
Issuing the permit and monltonng the work In the public nght-of-way, and an amount
which reflects the potential future costs to the City when the encroaching Installations
are encountered dUring utlllty or other excavation actIVIties When the fee was fast
revised In 1994, It was calculated that approximately one-third was related to the actual
Issuance costs to the City and approximately two-thirds was related to potential future
costs to the CIty At the tIme that the fee evaluatIOn was conducted In 1993-1994, It was
estimated that only 20 such permits would be requested per year
DISCUSSion
It has recently come to the attention of City staff that the permit fees for soldIer beams,
tie backs and SOil nails may be prohibitively expensive for affordable housing projects
which must make extensive use of these devices dunng their excavatIon and
construction The permit fee was Intended to ensure that present and future costs to the
Citizens of Santa Monica are fully compensated by developers It was not anticipated
that the permit fee would make It more difficult for affordable housing projects which
benefit the overall community to be bUilt It IS therefore proposed that the permit fee for
non-profit developers who are constructing 100% deed-restncted affordable housing be
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waived The requirements for permit application, project review and Englneenng
DIvIsion approval of the project plans pnor to construction would remain unchanged
This fee waiver will not be granted, however, for sOil naIls and tie backs unless the City
IS In no way restricted from future removal of the sOil nails and/or tie backs from the
public nght of way If such removal IS necessitated by a public project ThIs will ensure
that the City does not grant a perpetual encroachment Into the publIc nght which
restricts the ability of the City to undertake future projects without appropnate fInancial
compensation
Fiscal/Budget Impact
Adoption of the attached resolutIon WJlI result In a reductIon In General Fund revenues
from the permit fees from new non-profit affordable housing projects which propose to
use these construction techniques It IS not possible to estimate with any degree of
accuracy what thiS potential revenue loss will be over time, but since the overall volume
of affordable housing projects In the City IS not large compared to other types of
projects It IS not expected that the magnitude of permit fee waivers will be Significant
Any future costs related to utility or other excavation actiVitIes whIch might be
undertaken by the City In the public nght-of-way that encounter these subsurface
obstructions will be absorbed by the City as well
Recommendation
It IS recommended that CounCil adopt the attached resolution waiving soldier beam, soil
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nail, and tIe back permit fees for 100% deed-restncted affordable housing projects
developed by non-profit entities
Prepared by
Craig Perkins, Director of Environmental and Public Works
Management
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EPWM CP nallsreso
Council Meeting of November 11, 1997
Santa Monica, Callforma
RESOLUTION NO 9215
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
WAIVING SOLDIER BEAM, SOIL NAIL AND TIE BACK PERMIT FEES FOR 100%
DEED RESTRICTED NON-PROFIT AFFORDABLE HOUSING PROJECTS
WHEREAS, the City of Santa Monica has long supported efforts to expand the
Inventory of affordable housing projects In the City, and
WHEREAS, It has been determined that In some cases the fees charged by the City
for soldier beam, tie back and sOil nail permIts may Impose a great financial burden on
the constructIon of new affordable housing projects, and
WHEREAS, It has been determined by the City that the potentIal loss of permit
revenue to the City from the waIver of such fees would not be slgmflcant,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS
SECTION 1 Soldier beam permit fees for 100% deed restricted non-profit affordable
housing projects are hereby waived
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SECTION 2 Soil nail and tie back fees for 100% deed restncted non-profit affordable
housing projects are hereby waived whenever there are no permanent restnctions on
future removal of the sOil nails and/or tie backs from the public right-of-way
APPROVED AS TO FORM
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MARSHA JONES MOUTRIE
City Attorney
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Adopted and approved tlus 11 th of November. 1997
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: el: O'Connor, Mayor
I. Mana M Stewart, City Clerk of the CIty of Santa Moruca, do hereby certify that the
foregomg ResolutIOn 9215 (CCS) was duly adopted at ameeung of the Cny CouncIl held on the
11 th of November. 1997 by the followmg vote
Ayes
CouncIlmembers
Ebner, Feinstem. Genser. Greenberg. Holbrook. O'Connor.
Rosenstem
Noes
Councilmembers
None
Abstmn
CouncIlmembers
None
Absent
Councilmembers
None
ATTEST
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Mana M Stewart, CIty Clerk