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SR-6M (16) RmD1t q~.(5 (oM EPWM CP nails 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 1 (pM Nav 1 1 1997 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 2 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 3 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 4 ! , 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 1 ~ ~ 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 n~a.uj;w,~- MARSHA JONES MOUTRIE City Attorney ; 2 , , . Adopted and approved tlus 11 th of November. 1997 ~' oatv : 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 ~~,~k \ Mana M Stewart, CIty Clerk