SR-10-23-2012-8CCity Council Meeting: October 23, 2012
Agenda Item: 8_C
To: Mayor and City Council
From: David Martin, Director of Planning and Community Development
Gigi Decavalles- Hughes, Director of Finance
Subject: Resolution Revising and Setting Various Development - Related Fees in the
Planning and Community Development Department
Recommended Action
Staff recommends that the City Council:
1) Approve the attached Resolution to amend the current fee schedule for various
development and building related services in the Planning and Community
Development Department (PCD).
2) Appropriate the budget increases as outlined in the Financial Impacts and Budget
Actions section of the report.
Executive Summary
This report presents information and requests adoption of a new fee to recover
approximately 50% of the costs associated with the preparation of the State - required
General Plan update; a new fee to recover the costs for review of a shared parking permit
application; a new fee to cover costs associated with mailing environmental notices; a
new fee to recover costs for in -house preparation of Initial Studies, and a new Green
Building Compliance fee. Also recommended are fee increases for preparing Categorical
Exemption, and Negative Declaration /Mitigated Negative Declaration reports,
Environmental Impact Report (EIR) review for reports where consultant costs are over
$175,000 and a fee increase for traffic studies requiring use of the Traffic Demand
Forecast Model. The proposed new fees would generate an estimated $637,689
annually.
Background
State law requires that local agencies use reasonable estimates of their costs when
creating or changing user fees. In Spring 2010, the City hired Revenue and Cost
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Specialists, LLC, to conduct a City -wide fee study which included a review of various
development - related fees in the Planning and Community Development Department.
On June 15. 2010, the City adopted new fees reflecting the results of the consultant's
study. However, since Council adoption, several new planning and building related
processes and services have been established, requiring a new study and review of the
fees to support these expanded services. Revenue and Costs Specialists, LLC, was
hired to review existing and proposed new planning and building related fees. Since the
Land Use and Circulation Element (LUCE) adoption in July, 2010, modifications to the
City's permit process have occurred in order to respond to community expectation for
participation in the development process. Further, the City has worked to improve both
the quality and efficiency of the environmental review process. These enhanced services
come with internal costs, and a goal of the fee study has been to recoup these costs and
ensure that they are covered by developer paid application fees. A fee analysis was
completed, which reviewed the time it takes staff to complete the work required on a
particular permit and /or service. Fees are recommended based upon an hourly rate,
which includes direct and indirect costs. Revenue projections are based on historical
data and assume a constant level of development activity. Actual revenues will vary as
development fluctuates.
In light of the dissolution of the Redevelopment Agency in January 2012, staff has been
looking at cost recovery options to protect the General Fund and to avoid possible layoffs.
Fee increases recommended by this staff report would result in the retention of three
PCD employees who provide services for which the fees are charged.
Discussion
Based on the analysis provided by Revenue and Costs Specialists, LLC, staff
recommends increasing fees for the following permits or services:
• Costs associated with the preparation of the General Plan Update.
Government Code section 66014(b) authorizes local agency planning and building
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fees to include "the costs reasonably necessary to prepare and revise the plans
and policies that a local agency is required to adopt before it can make any
necessary findings and determinations." Several other jurisdictions in the State of
California collect a development- related fee to help fund the maintenance of their
General Plan. Staff recommends a 6.5% increase on development - related fees in
the Planning and Community Development Department to recover a portion
(approximately 50 %) of the costs associated with the production of the State -
required General Plan update. These plan preparation fees would be added to
those threshold permits that rely on the LUCE to determine whether the use or
entitlement is permitted and would not be added to minor Planning approvals. This
new fee will be added to existing development - related fees and spread across 20
years, which is the planning cycle for the LUCE. Staff estimates that additional
revenue for the General Plan update would be approximately $380,000 annually,
for the next 20 years.
• Environmental Review Services. In order to create efficiencies, improve quality,
and be cost sensitive to applicants in the preparation and review of environmental
documents for projects located in redevelopment areas, the City hired an RDA -
funded, Environmental Planner in FY 2010/11. Internal preparation of Class 32
categorical exemptions, negative declarations, and mitigated negative
declarations, has resulted in a decreased applicant cost for document preparation
and has streamlined review. Since actual review and document preparation time
was unknown, the fees adopted in 2008 were estimates of hours and costs. Since
filling the Environmental Planner position, the City has a more reliable
understanding of hours required for the different environmental assessments.
Staff, therefore, asked the fee consultant to evaluate the current environmental fee
structure in light of this information to ensure that the full costs associated with
these documents are recovered from the applicant. Based on the consultants'
review of staff time spent preparing and /or reviewing the various environmental
documents, staff recommends the following changes:
0 2.9% increase in application fees for Class32 /Categorical Exemption
reports.
0 13.4% application fee increase for preparation of Negative Declaration and
Mitigated Negative Declarations.
o In -house preparation of Initial Studies. Staff proposes to provide this
service in -house at a cost of $7,240 per Initial Study. Currently, Initial
Studies are prepared by an outside consultant who is selected and
managed by the City and funded by the applicant.
o Environmental Impact Report review. Staff recommends a 5% increase for
projects where the consultant cost for preparation of the environmental
analysis exceeds $175,000.
o Traffic Study Review where a Travel Demand Forecast Model run is
required. Currently, the City charges 11 % of the Traffic Study fee to review
a traffic study. When a run of the Travel Demand Forecast Model is
needed, the fee increases from 11 % to 18 %.
o EIR Noticing — a new fee of $2,150 to recover the costs of materials for the
numerous mailings required by the California Environmental Quality Act
(CEQA) for environmental noticing.
It is estimated that additional revenue for the new and /or increased environmental
fees would be approximately $89,000 per year.
• Shared Parking Permit. A new provision was added in the Interim Zoning
Ordinance to allow shared parking in the Downtown area only. This is an
administrative application which requires extensive review. A new fee of $2,010 is
recommended to recover staff costs associated with review of shared parking
permit applications. It is estimated that additional revenue for this new fee would
be approximately $4,020 per year.
• Green Building Compliance Review — This is a new fee to fully recover staff
costs for review of green building plan checks. As of January 1, 2011, the City
was mandated by the State to enforce the California Green Building Standards
Code. Since jurisdictions are entitled to recover fees for enforcement of energy
regulations, Building and Safety staff reviewed the amount of time it takes to verify
green building features in plan check. The study concluded that the cost of the
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time it takes staff for this review equates to approximately 10% of the building plan
check fee. The City of Los Angeles also charges a fee for green building
verification based on 10% of the building plan check fee. It is estimated that
additional revenue for this new fee would be $160,000 annually.
A comparison of current and proposed fees can be found in Attachment B
Public Outreach
The public notice for this hearing was published in accordance with Government Code
section 6062a with the first at least 10 days prior to the hearing on October 12, 2012, and
the second publication on October 18, 2012, in the Santa Monica Daily Press, and the
Study was made available in the Office of the City Clerk.
Next Steps
The fees mentioned in this staff report shall be effective no sooner than 60 days following
adoption of the new fee or increase to an existing fee.
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Financial Impacts & Budget Actions
The proposed rate changes in these development - related fees will increase annual
revenues by an estimated total of $637,689. Revenues for FY 2012 -13 are projected to
increase by $318,847, since new fees will be in place for half of the fiscal year. Revenue
increases for FY 2012 -13 are requested in the following accounts:
01266.401250: $12,266
01266.401470: $ 1,439
01266.401560: $75,160
01267.407240: $ 3,065
01267.408010: $ 500
01267.408030: $ 167
01321.400370: $71,500
01321.400501: $74,750
01321.407940: $80,000
TOTAL: $318,847
Prepared by: Lynn Gonzales, Principal PCD Analyst
Approved:
[Yavid Martin, Director
Planning & Community Development
Department
Approved:
zdi'a —
G' i Decava les -Hug
Finance Director
Forwarded to Council:
Rod Gould
City Manager
Attachments: A) Resolution with Fee Tables
B) Fee Increase Comparison Chart
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ATTACHMENT "A"
RESOLUTION AND FEE TABLES
ATTACHMENT "B"
FEE COMPARISON CHART
Attachment B PLANNING AND COMMUNITY DEVELOPMENT FEE INCREASE COMPARISON
Permit Type
Current Fee
Proposed Fee
CITY PLANNING:
Adjustment
$2,620.03
$2,790.33
Admin Approval
$5,052.55
$5,380.96
Alcohol Determination
$1,102.71
$1,174.39
Alcohol Exemption
$1,654.06
$1,761.57
Appeals
$406.74
$433.18
ARB
Bldg. Color /Materials
$1,543.79
$1,644.14
Signs or Landscaping
$992.44
$1,056.95
Staff Approval
$275.68
$293.60
Certificate of Compliance
$1,578.94
$1,681.57
CUP
$12,070.14
$12,854.70
Development Agreement - Per Hour Charge
$250.31
$266.58
Charged against initial deposit of:
$10,000.00
$15,000.00
Design Compatibility Permit
$11,077.70
$11,797.75
Development Review
$14,275.55
$15,203.46
Fence /Hedge Mod
Administrative
$243.90
$259.75
Discretionary
$236.48
$251.85
Final Map
$1,142.26
$1,216.51
Final Inspection
Administrative and ARB
$496.22
$528.47
Discretionary Permits
$992.44
$1,056.94
Sign Permit
$132.32
$140.92
Sign Permit (STP)
$66.16
$70.46
General Plan Amendment
$11,503.39
$12,251.11
Lot Line Adjustment
$771.90
$822.07
Minor Outdoor Dining
$248.30
$264.44
Multiple Applications
$1,543.79
$1,644.14
Occupancy Permit
$1,813.95
$1,931.86
Performance Standard Permit
$1,543.79
$1,644.14
Permit Extension
$275.68
$293.60
Plan Check
per plan (first three reviews)
$894.30
$952.42
per hour after first three
$220.54
$234.87
per hour - revisions, restamping plans, and permit renewals
$220.54
$234.87
per hour - plan checks not otherwise classified
$220.54
$234.87
Over the Counter
$110.27
$117.43
Project in Coastal Zone
$275.68
$293.60
Reduced Parking Permit
$3,402.95
$3,624.14
Shared Parking Permit
(New Fee)
$2,010.00
Sign Adjustment
$992.44
$1,056.95
Temporary Use Permit
$1,007.87
$1,073.38
Tentative Map
$3,583.61
$3,816.54
Text Amendment
$10,841.77
$11,546.49
Use Permit
Application
$4,571.72
$4,868.88
Permit
Current Fee
Fee
Antenna
$3,831.91
$4,080.98
Variance
$3,433.78
$3,656.98
Waiver Parcel Map
$2,040.01
$2,172.61
Yard Modification
$3,308.12
$3,523.15
Zoning Compliance Letter
$906.43
$965.35
Environmental:
Class 32 Categorical Exemption
$13,873.17
$14,279.00
Negative Declaration /Mitigated Negative Declaration
$21,911.90
$24,849.00
Noticing
(New Fee)
$2,150
Initial Study
(New Fee)
$7,240.00
Environmental Impact Report
25% of consultant
25% of consultant
Parking and Onsite Circulation Design
contract up to
contract up to
0 -2 Parking Spaces
$175,000
$175,000; 30% of
3 -20 Parking Spaces
$698.01
consultant
21 -40 Parking Spaces
$1,067.42
contract over
41 -100 Parking Spaces
$1,396.03
$175,000
Traffic Study Review 11 % of Traffic Study 11 % of Traffic
Fee Study Fee, 18% of
Traffic Study Fee
if Model run is
required
STRATEGIC AND TRANSPORTATION PLANNING
Flat Fee:
Flat Fee:
Over the Counter Plan Check
Standard (2 reviews Maximum)
$218.34
$232.53
Each review after 2
$81.60
$86.90
Standard and Complex Plan Check
$151.07
$160.89
Parking and Onsite Circulation Design
0 -2 Parking Spaces
$452.11
$481.50
3 -20 Parking Spaces
$698.01
$743.38
21 -40 Parking Spaces
$1,067.42
$1,136.80
41 -100 Parking Spaces
$1,396.03
$1,486.77
Each Additional 100 Parking Spaces
$369.41
$393.42
Miscellaneous - each hour /fraction thereof
Plan Checks - Not otherwise classified
$218.34
$232.53
Plan Revisions
$218.34
$232.53
Permit Renewals
$218.34
$232.53
Excess Plan Check - more than 2 resubmittals
$218.34
$232.53
BUILDING AND SAFETY
Plan Check:
Flat Fee:
Flat Fee:
A. Architectural and Structural Plan Review
1. Preliminary Review
First Two Hours
$463.14
$493.24
Each Additional Hour
$151.07
$160.89
2. Over The Counter
Standard -up to two reviews
$347.35
$369.93
Excessive Plan Check- each review over two
$151.07
$160.89
3. Formal Plan Review
Permit Type Current Fee Proposed Fee Current Proposed
Flat Fee: Flat Fee: $ /sq.ft. $ /sq.ft
a. New Buildings and Related Accessory Structures
One and Two Family Dwellings -main & accessory buildings
Excessive Plan Check -each review over three
Apartments, Condominiums and Hotels and attached parking
Excessive Plan Check -each review over three
Additional 5% for 4 stories or more
Commercial /Industrial- complete building and attached parking
1"10,000 square feet
All square feet over 10,000
Excessive Plan Check- each review over three
Additional 5% for 4 stories or more
Commercial and Industrial -shell only and attached parking
1" 10,000 square feet
All square feet over 10,000
Excessive Plan Check- each review over three
Additional 5% for 4 stories or more
Commercial Garage Structures.-stand alone structures
Excessive Plan Check -each review over three
Additional 5% for 4 stories or more
b. Alterations and Additions
Residential Remodel and Additions -main & accessory bldgs
Excessive Plan Check -each review over three
Tenant Improvements
0- 10,000 square feet
All square feet over 10,000
Excessive Plan Check -each review over three
Interior Demolition
0- 10,000 square feet
All square feet over 10,000
Inspection Fees:
A. Combination Building Permits
1. One and Two Family Dwellings
2. Apartments, Condominiums, Hotels and Assoc. Parking
Additional 5% for 4 stories or more
3. Commercial and Industrial - complete building
1st 10,000 square feet
All square feet over 10,000
Additional 5% for 4 stories or more
4. Commercial and Industrial - shell only
1st 10,000 square feet
All square feet over 10,000
Additional 5% for 4 stories or more
5. Commercial Garge Structures - stand alone structures
Additional 5% for 4 stories or more
6. Residential Remodel and Additionas
7. Tenant Improvements
0- 10,000 square feet
All square feet over 10,000
8. Interior Demolition
$421.23 $448.61 $0.9360 $0.9968
$211.72 $225.48
421.23 $448.61 $0.8037 $0.8559
$211.72 $225.48
$421.23 $448.61 $1.06 $1.13
$0.3019 $0.3215
$211.72 $225.48
$421.23 $448.61 $0.6794 $0.7236
$211.72 $225.48
$421.23 $448.61 $0.6794 $0.7236
$211.72 $225.48
$421.23 $448.61 $1.13 $1.20
$266.86 $284.21
$421.23 $448.61 $0.4529 $0.4823
$0.3775 $0.4020
$266.86 $284.21
$421.23 $448.61 $0.0755 $0.0804
$0.0604 $0.0643
$120.20
$128.01
$1.23
$1.31
$120.20
$128.01
$1.01
$1.08
$120.20
$128.01
$1.23
$1.31
$0.6063
$0.6457
$120.20
$128.01
$0.7716
$0.8217
$120.20
$128.01
$0.7716
$0.8217
$120.20
$128.01
$1.19
$1.27
$120.20 $128.01 $0.3490 $0.3716
$0.2756 $0.2935
Permit
0- 10,000 square feet
All square feet over 10,000
Green Building Code Compliance
Current Fee
Fee Current
Flat Fee: Flat Fee: $ /sq.ft. $ /sq.ft
$120.20 $128.01 $0.0606 $0.0645
$0.0460 $0.0489
10% of Bldg. Plan
(New Fee) Check Fee
Reference Resolution
No. 10715 (CCS).