HomeMy WebLinkAboutItem 1b: Resolution 6778 Establishing and/or Adjusting Various Fees for Development Services (6,
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°4 �A,ty ate STAFF REPORT
Development Services Department
DATE: June 21, 2011
TO: Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Directorl -K
SUBJECT: RESOLUTION NO. 6778 ESTABLISHING AND /OR ADJUSTING
VARIOUS FEES FOR DEVELOPMENT SERVICES
Recommendation: Adopt
SUMMARY
Each year through the budget process, consideration is given to modifying existing fees
or establishing new fees for the services provided by the Development Services
Department. The last fee increase for the Department was approved by the City
Council on August 18, 2009. Resolution No. 6778 establishes several new fees to
effectuate recommendations of the Arcadia General Plan Update and also adjusts
existing fees that were recommended to be increased as part of the approval of the
2011 -2012 Fiscal Year operating budget.
BACKGROUND
At the June 7, 2011 meeting, the City Council adopted an operating budget for the
2011 -2012 Fiscal Year. The budget included information on recommended increases in
building permit fees and business license fees for the coming Fiscal Year. In addition, in
November of 2010, the Council adopted a significant update to the Arcadia General
Plan, which included some fee recommendations. Resolution No. 6778 is a fee
resolution establishing and /or adjusting each of these new fees for the Development
Services Department.
In establishing user fees for municipal services, activities or products, the municipality is
recognizing a need to recover operating costs associated with the provision of services.
Utilizing a cost recovery approach to establish the fee amount ensures the fees charged
bear a relationship to the cost of providing the service. By passing on the cost of
specific services to the consumer, only those individuals or groups that utilize the
service or incur the fee pay for the cost of providing it, rather than the taxpayers in
general. Each of the fees proposed to be adjusted or added through Resolution No.
6778 is an effort to recover the cost of the service and /or material provided.
DISCUSSION
The Development Services Department is recommending increases in fees for Building
Permits and Business Licenses for the 2011 -2012 Fiscal Year. With regard to building
permit fees, the State mandated adoption of the new 2011 California Building Code on
January 1, 2011. This series of code requirements includes the new "Green Building
Code" for the State, which is a series of more stringent requirements for environmental
review of projects and construction. These requirements include energy standards,
building materials review, water retention requirements, and other regulations with a
goal of more sustainable construction. This leads to additional work from plan checkers,
the Building Official, and in -field Building Inspectors to ensure these requirements are
met. The recommendation is for a 5% across - the -board increase in the cost of building
permits, plan checks, demolition permits, grading permits, and mechanical, plumbing
and electric permits. Building permit fees were last raised in 2009. The proposed
increase is in -line with what other cities charge and is appropriate given the changes in
service provision needed. If approved, this increase would be in place as of July 1,
2011.
The last increase proposed for Business License fees occurred in 2009. Prior to that,
these fees had not been increased in over 8 years. The City had been operating under
the assumption that annual cost of living increases were not applicable to Business
License fees. A 2009 legal opinion reversed this however, and these fees were found
to be subject to increases for cost of living. The City estimated in 2009 that business
license fees could be raised up to 23% over the rates at that time to make up for the
many years with no increases. However, the City has only proposed a 3% increase for
2011 -2012 to go along with the 6% increase approved in 2009. This represents a total
of 9% in increases over the past 10 years; well below the 23% that could be added. The
3% increase proposed is viewed as simply a cost of living increase. Per Section 6220.1
of the Municipal Code, the City Council is authorized to adjust Business License fees
annually if they so choose. This process does not require a public hearing, but the
recommended increase has been included in this Resolution to inform the public of the
change. If approved by Council, the increase would not be imposed until January 1,
2012 per Code.
The City Council approved a significant update to the Arcadia General Plan in
November of 2010. There are several minor fee additions /adjustments that were
recommended through the adoption of the new General Plan. The adjusted fees include
increases in the cost of paper copies of the General Plan, General Plan Land Use Map,
Zoning Map, and Zoning Code. These fees are set to simply recover the cost of printing
the documents for customers. The new General Plan and associated maps are
produced by using color -coded mapping and Geographic Information Systems (GIS)
technologies and cost substantially more to reproduce that the old black and white
paper maps. It should be mentioned that all the applicable plans and maps are available
online or by CD for download or personal printing.
Resolution No. 6778
June 21, 2011 — Page 2
The new fee to be added is the Certificate of Demolition Fee. This process (and
associated fees) is required through the State Housing and Community Development
Department (HCD) to ensure that a minimal historic review is completed on buildings
prior to demolition. Essentially, the process requires that buildings more than 50 years
old must be subject to a review prior to the issuance of a demolition permit. The review
must document whether the building or structure qualifies as a historic building under
State or National guidelines. If not, demolition can proceed. If a building does qualify for
some reason, the building may be subject to photo- documentation or additional history-
preserving mitigation prior to approval of demolition. The cost for the administrative
approval is recommended at $195. If a case is referred to the Planning Commission, the
cost is $345. Appeals of decisions on a Certificate of Demolition will be set at the
standard appeal rate for all land use actions ($540).
Additional information on each of the proposed fees is included in a description and
justification table provided as Exhibit A to the Resolution.
FISCAL IMPACT
The expected fiscal impact for the 2011 -2012 Fiscal Year for all of these fees together is
an estimated revenue increase of $109,290. The 5% increase in building - related
permits is expected to generate an additional $79,750 over the year. The 3% increase
in Business License fees is estimated to generate an additional $16,830 for the period
of January 1, 2012 through June 30, 2012. Approximately 58 Certificates of Demolition
are expected, which will generate $11,460 along with an additional $750 in
environmental fees. The increase in the fees for maps and the associated General Plan
and Zoning materials will generate approximately $500 of additional revenue. These fee
increases are already included in the 2011 -2012 revenue projections of the approved
Operating Budget.
RECOMMENDATION
Adopt Resolution No. 6778 establishing and /or adjusting various fees for Development
Services.
APPROVED:
Donald Penman, City Manager
Attachment 1: Resolution No. 6778
Resolution No. 6778
June 21, 2011 — Page 3
RESOLUTION NO. 6778
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, ESTABLISHING AND /OR ADJUSTING
VARIOUS DEVELOPMENT SERVICES DEPARTMENT FEES
THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DOES
HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. Based on the cost allocation study performed by the Development
Services Department, the fees set forth in this Resolution are necessary for the
purposes set forth in this Resolution. Said fees do not exceed the estimated costs for
providing the applicable service or programs; the fees set forth in this Resolution bear a
reasonable relationship to the cost of the respective service or program involved; the
fees bear a fair and reasonable relationship to the benefit the payer obtains or the
burden caused to the City in providing the service or programs; and the fees are not
being imposed for general revenue purposes, but instead for full or partial recovery of
the cost of providing said services and programs. Said fees are to cover the costs of
various services and programs set forth in the Fee Schedule, attached hereto as Exhibit
SECTION 2. The City Council hereby adopts the Fee Schedule, attached hereto
as Exhibit "A ".
SECTION 3. Any fees adopted prior to this Resolution which are inconsistent
herewith are hereby repealed effective upon the date the fees set forth in the attached
Exhibit "A" take effect.
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SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this day of , 2011.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
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Stephen P. Deitsch
City Attorney
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