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SR-06-24-2014-7C - 211-019City Council Meeting: June 24, 2014 Agenda Item: —C, To: Mayor and City Council From: David Martin, Director of Planning and Community Development Subject: Introduction and First Reading of an Ordinance Amending Santa Monica Municipal Code Section 8.60.060 Recommended Action Staff recommends that the City Council introduce for first reading an ordinance amending Santa Monica Municipal Code (SMMC) Section 8.60.060 to eliminate plan check and permit fee waivers for seismic retrofitting of unreinforced masonry bearing wall buildings. Executive Summary Staff recommends that Council rescind the current fee waiver for seismic retrofit plan check and building permit fees. At the May 27, 2014 Council meeting, staff informed the Council that continued practice of this fee waiver could have significant impact to the General Fund, especially with the development of the City's Seismic Retrofit Program. The fees that are waived vary depending on various project factors such as the square footage of the building, the project valuation and the scope of the seismic retrofit. This fee waiver has not been effective at incentivizing private owners to retrofit their potentially hazardous buildings. Background On June 21, 1994, after the Northridge Earthquake, Council adopted emergency Ordinance Number 1748 (CCS) to facilitate the repair and retrofit of potentially hazardous structures. This ordinance addressed the many buildings that were damaged in the January 17, 1994 Northridge Earthquake. Passage of this ordinance also included a waiver of fees for the plan check and building permit to incentivize earthquake repairs and the seismic retrofit of buildings. The Ordinance also established timeframes in which potentially hazardous buildings were required to be retrofitted. it The technical requirements of seismic retrofit standards were amended by Ordinance Number 1945 (CCS) on June 8. 1999 where the fee waiver continued. Consistent with the initial passage of the fee waiver, it was expected that continuation of the waiver of fees would encourage building owners to complete the retrofit of their buildings. Staff recently assessed and determined that many buildings in Santa Monica remain unretrofitted calling into question the effectiveness of the fee waiver. Discussion The Department of Planning and Community Development is working on the City's Seismic Retrofit Program to create an inventory of potentially hazardous buildings in the City. Staff anticipates returning to Council late fall 2014 with proposed revisions to the seismic retrofit requirements and direction for notification to building owners. As the number of buildings that may require retrofit appears to be substantial, without the elimination of the fee waiver, the General Fund could be negatively impacted. Although identified as a "fee waiver', the waiver is actually a shifting of costs. Staff time expended in the review of plans for the retrofit of a privately -owned building, and subsequent staff time attributed to inspection of the seismic retrofit work, costs the City in salary, benefits and overhead of staff members, which are paid for by the General Fund. While staff expends time providing these services to private owners, the benefited private owners do not reimburse the General Fund with commensurate permit fees, due to the current practice of waived fees. This subsidy of private owners with public tax dollars has not shown to be effective at incentivizing private retrofitting of potentially hazardous buildings. Staff is recommending that Council eliminate the current fee waiver for seismic retrofit plan check and building permits effective with the 2014 -15 Fiscal Year. Should the fee waiver be eliminated, existing fees will be applied to plan check and building permit related seismic retrofit work. RAI Financial Impacts & Budget Actions The proposed recommendation to eliminate the fee waiver would generate revenue to the General Fund. However, as the timeframe for allowing buildings to be retrofitted will extend over several years, it is uncertain when the City will receive this revenue. The fees generated from seismic retrofit should offset the additional staff time required for the program, resulting in cost neutrality. Prepared by: Ron Takiguchi, Building Officer Approved: David Martin, Director Planning and Community Development Forwarded to Council: V . Rod Gould City Manager Attachment A: Ordinance Amending Section 8.60.060 to Eliminate Plan Check and Permit Fee Waivers for Potentially Hazardous Buildings 3 City Council Meeting 6 -24 -2014 ORDINANCE NUMBER (CCS) (City Council Series) Santa Monica, California AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTION 8.60.060 OF THE SANTA MONICA MUNICIPAL CODE TO ELIMINATE PERMIT FEE WAIVERS FOR SEISMIC RETROFITTING OF UNREINFORCED MASONRY BEARING WALL BUILDINGS WHEREAS, the City consists of just eight square miles of coastal land which is home to 90,000 residents, the job site of 300,000 workers, and a destination for as many as 500,000 visitors on weekends and holidays; and WHEREAS, there is general scientific consensus that California will continue to experience moderate to severe earthquakes in the foreseeable future; and WHEREAS, The Safety Element of the General Plan shows high risk of seismic activity in the City due to the close proximity of the Santa Monica - Malibu Coast fault, the Newport- Inglewood fault and the San Andreas Fault; and WHEREAS, retrofitting of older buildings, especially Unreinforced Masonry Bearing Wall Buildings, enhances their survivability in a seismic event and has the potential to save thousands of lives; and WHEREAS, seismic retrofitting of individual buildings provide specific economic and other benefits to the building owners; and WHEREAS, diverting public funds to pay permit fees for private seismic retrofit projects is inconsistent with the City's general policy that public funds be expended to provide general public benefit. 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Section 8.60.060 of the Santa Monica Municipal Code is hereby amended to read as follows: 8.60.060 Timetable for compliance. The time limits set forth below shall begin to run from September 29, 1992, or from initial determination, whichever is later. The owner of any occupied or vacant building within the scope of this Chapter shall comply with the requirements of this Chapter by filing for a permit, submitting plans to the Building Officer, commencing construction and completing construction within the time limits specified below: Such plans shall be prepared by a State of California licensed architect or registered civil or structural engineer. After plans are filed and approved by the Building Officer, the owner shall obtain a building permit and then commence and complete the required construction within the time limits set forth below. That PGFtiGR " of * "e plan n-heck and. bi-61ding peFFnit fees that aFe alIGGable te struGtural alteration Af the building that is ReGessary fGF GGFAP!maRGG with the previsiens ef this Chapter shall he waived-by the Building Off'Ger An owner electing to install wall anchors pursuant to the provisions of this Chapter is also required to structurally alter the building to make it fully comply with all other provisions of this Chapter within the time limits set forth in Table 8.60 -A below. Table 8.60 -A 2 SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any 3 File for Permit and Commence Complete Submit Plans to Construction Construction Required Action Building Building Officer Within Within by Owner Type Within A. Install wall Type I, 11, III, 180 days 270 days 1 year anchors IV B. If wall anchors Type 1 635 days (1 year 9 2 years 4 years are installed, then months) make structural alterations Type II 635 days (1 year 9 2 years 4 years months) Type III 2,825 days (7 years 8 years 10 years 9 months) Type IV 2,825 days (7 years 8 years 10 years 9 months) C. If wall anchors Type 1 270 days 1 year 2 years are not installed, then make structural alterations Type 11 270 days 1 year 2 years Type 111 1,000 days (2 years 3 years 4 years 9 months) Type IV 1,365 days (3 years 4 years 5 years 9 months) SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any 3 court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every Section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause this ordinance, or a summary thereof to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: JONES MOUTRIE City L,