Building and Planning Fee Study Overview. March 19, 2019
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1 Building and Planning Fee Study Overview March 19, 2019
2 Operational fees (fee-for-service) reviewed including: Hourly rate Fee structure, e.g., average hours spent processing applications/plan check Fees Reviewed Fees not reviewed include: City impact fees, e.g., Park Impact Fee, Housing Impact Fee Fees from other jurisdictions, e.g., SAFCA, school fees
3 Fee Study Update Objective To provide a streamlined operational fee structure that is: Clear in the link between services Community Development provides and the cost of those services. Predictable, consistent, and reasonable on behalf of the customer based on a clear methodology. Able to sustain a professional, trained, and responsive staff through the ebb and flow of development activity.
4 Project Approach Review Documents/ Financials/ Permit Data Update Operational Fees Review Scenarios Peer Agency Review Update Hourly Rate Model Share Updates
5 The fully burdened hourly rate model has three major components: Hourly Rate Model 1. Average billable salary 2. Estimated benefits cost 3. Estimated indirect costs Overview of Fully-Burdened Hourly Rate Model Methodology Average Billable Salary Benefits Estimate Indirect Cost Estimate Fully- Burdened Hourly Rate
6 No new fees. Results Updating 2013 fee structure to include full cost recovery citywide overhead. Building Division hourly rate from $152 to $164. Planning Division hourly rate from a range of $ to simplify it to one hourly rate of $168. Streamlining fees by eliminating 37 fees of 182 fees reviewed Integration of cannabis into the regular Conditional Use Permit process; more accurate fee determined Zoning Administrator - $13,815 to $4,032 Commission Level - $19,415 to $10,248 Site Plan and Design Review (10,000-19,999 sq. ft.) - $3,500 to $3,780 Variance (Commission Level) - $5,632 to $7,812
7 Transitioning several Planning Division deposit-based fees to flat fees. Environmental Review Negative Declaration - $2,500 deposit to $3,400 flat fee, plus consultant costs Results Keeping minor building permits below cost to encourage compliance and promote health and safety. Bath Remodels - Non-Structural - $263 to $250 Encouraging public participation by keeping appeal fees below actual cost recovery. Appeals - Request for Reconsideration of Staff Action - $298 remains 3 rd Party Appeal (Commission) - $298 to $750 Applicant Appeal (Council) - $4,000 to full cost recovery Reduction of 5% for building permit fees for projects with a valuation over $10 million.
8 Scenario #1 - Residential Mixed Use Project Ten lots, 200 residential units, four stories, with 10,000 sq. ft. of neighborhood serving retail. Assume Mitigated Negative Declaration (MND), tentative map, and various planning entitlements. R-2 & M groups, VA construction type; $23.1M valuation Scenario #1 - Planning Entitlements OLD NEW Site Plan Design Review (SPDR), >100,000 sq. ft. (flat) $10,000 $16,296 Hearing Fee (flat) $1,808 $3,360 Tentative Map (5-50 parcels) $2,500 $2,500 MND (currently deposit, change to flat) $2,500 $3,400 TOTAL $16,808 $25,556 $ CHANGE $ 8,748
9 Scenario #1 - Residential Mixed Use Project Ten lots, 200 residential units, four stories, with 10,000 sq. ft. of neighborhood serving retail. R-2 & M groups, VA construction type; $23.1M valuation Scenario #1 - Building OLD (per lot) NEW (per lot) Plan Review Fee - Building Division $13,138 $13,138 Building Permit - Building Inspection - Residential >$100,000 $16,077 $16,077 TOTAL $29,215 $29,215 $ CHANGE -
10 Scenario #2 - Planning Scenario #2 - Cannabis 128,000 sq. ft. of cannabis cultivation. Conditional Use Permit (CUP) for cannabis production (cultivation), SPDR for new building. Assuming MND and a site greater than 5.0 acres. Provided as both a Zoning Agreement (ZA) (> 125,000 sqft) and Planning and Design Commission (PDC) (<125,000 sq. ft. or within 600 feet of a park) scenario. F-1 group, VA construction type; $9.3M valuation. Entitlements ZA - Director Level PDC - Commission Level OLD NEW OLD NEW SPDR, >100,000 sqft (flat) $10,000 $16,296 $10,000 $16,296 Hearing Fee (flat) $1,130 $1,680 $1,808 $3,360 CUP for Cannabis Production $13,815 $4,032 $19,415 $10,248 MND (currently deposit, change to flat) $2,500 $3,400 $2,500 $3,400 TOTAL $27,445 $25,408 $33,723 $33,304 $ CHANGE $ (2,037) $ (419)
11 Scenario #2 - Cannabis 128,000 sq. ft. of cannabis cultivation. F-1 group, VA construction type; $9.3M valuation. Scenario #2 - Building OLD NEW Plan Review Fee - Building Division $43,430 $43,430 Building Permit - Building Inspection - Commercial (over $3M valuation per lot) $53,099 $53,099 TOTAL $96,529 $96,529 $ CHANGE -
12 Scenario #5 - Planning Scenario #5 - Single Family Home - New Construction Type OLD NEW SPDR, Single Unit & Duplex Dwelling $350 $840 Environmental Exemption $113 $168 TOTAL $463 $1,008 $ CHANGE $ 545
13 Scenario #6 - Residential Mixed Use Project Type OLD NEW Scenario #6 - Planning SPDR <10,000 sq. ft. $2,700 $3,276 Hearing Fee (flat) $1,130 $1,680 Tentative Map (1-4 parcels) $2,000 $3,906 Environmental Exemption $113 $168 TOTAL $5,943 $9,030 $ CHANGE $ 3,087
14 Scenario #7 - Appeals Type Scenario #7 - Appeals Appeal to Construction Code Advisory Appeal Board 1 Appeals - Commission Decision to Council by 3rd Party Appeals - Commission Decision to Council by Applicant Appeals - Director-level Decision to Commission by Applicant TOTAL $ CHANGE OLD NEW $250 $328 $298 $750 $4,000 $7,980 $4,000 $4,000 $8,548 $13,058 $ 4,510 1 Fee is based on the Building hourly rate, estimated two hours.
15 Next Steps April 3 p.m. FY2019/20 Fees and Charges Report to Budget and Audit Committee May 2 p.m. FY2019/20 Fees and Charges Report to City Council
16 Thank you! Stacia Cosgrove or Kim Swaback
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