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SR 08-25-2015 11A City Council Report City Council Regular Meeting: August 25, 2015 Agenda Item: 11.A 1 of 2 To: Mayor and City Council From: David Martin, Director, Planning and Community Development , Planning and Community Development Subject: Resolution Establishing a Revised Fee Schedule for Certain Landmark Permit Application User Fees and Services in the Planning and Community Development Department Recommended Action Staff recommends that the City Council adopt the attached Resolution to establish a new fee schedule for Landmark-related permit application user fees and services in the Planning and Community Development Department (PCD). Executive Summary This report presents information and requests adoption of a new fee schedule for fees related to Historic District Designation, Landmark Designation, and Structure of Merit user fees and services. The new fee schedule rolls back the rates to the prior adopted rate. Background On May 12, 2015 Council adopted a new fee schedule for development and construction-related permit application user fees and services in the Planning and Community Development Department in association with the 2015 Draft Zoning Ordinance. The adopted fees were based on a comprehensive review of user fees and charges prepared by the consultant firm, MGT of America. On June 23, 2015, Council unanimously voted to rollback certain Landmark-related fees to the previous levels (prior to May 12, 2015). Discussion The new fees approved by Council on May 12, 2015 were intended to recover City costs and were not structured to generate additional revenue in excess of the cost to provide services. It is City policy to achieve full cost recovery for development, 2 of 2 planning, and construction-related services, with some exceptions. However, three Landmark-related fees were raised significantly due to the amount of staff time required to process each permit type and were intended to recuperate full cost recovery: Historic District Designation (fee raised from $1,186 to $15,745); Landmark Designation (fee raised from $816 to $4,854); and Structure of Merit (fee raised from $876 to $3,388). I t was Council’s belief that full cost recovery of these fees might in some cases deter nominations for Landmark Designation, Historic District Designation, and/or Structures of Merit. Council voted on June 23, 2015 to roll back the newly adopted fees to p rior levels. The new fees did not become effective until July 24, 2015, the effective date of the new Zoning Ordinance. Therefore, it was necessary to wait until after this date to return with a fee resolution. The attached Resolution reflects the fee levels prior to May 12, 2015 for Historic District Designation, Landmark Designation, and Structure of Merit. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Since there was not a revenue increase projected when the fee structure went to Council on May 12, 2015, rolling back the fees to the previous levels will not result in a revenue decrease. Prepared By: Lynn Wolken-Gonzales, Principal PCD Analyst Approved Forwarded to Council Attachments: A. Resolution