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HomeMy WebLinkAboutItem 04 - Authorization to Continue the Collection of Multi-Dwelling Property Fire and Life Safety Inspection Fees Department Name: Fire Cost Center: 8503 For Agenda of: June 2, 2020 Placement: Consent Estimated Time: N/A FROM: Keith Aggson, Fire Chief Prepared By: Rodger Maggio, Fire Marshal/Chief Building Official SUBJECT: AUTHORIZATION TO CONTINUE THE COLLECTION OF MULTI- DWELLING PROPERTY FIRE AND LIFE SAFETY INSPECTION FEES RECOMMENDATION Adopt a Resolution (Attachment A) enabling the continued collection of multi -dwelling property fire and life safety inspection fees via the secured property tax roll administ ered by the County. DISCUSSION In May 2005, the Council approved a cost recovery program for State-mandated fire and life safety inspections for multi-dwelling properties with three or more units. In June 2017, the Council approved a change on how fees for apartment buildings, hotel/motels, and sorority/ fraternity inspections are calculated. This change is reflected in Exhibit A to the Resolution. The result was an increase from approximately $194,000 per year in total revenue to approximately $260,000 at the time of change in the fee schedule. Since the adoption of the new fee schedule, revenue under this program has increased to $308,000 for fiscal year 2020-21 due to the increase in the number of units for each category and the annual CPI adjustment to the fee. Staff is not recommending any further changes in the current fees for 2020-21. However, the County requires an annual resolution adopted by the Council authorizing the continued collection of these fees on the property tax roll. Staff is recommending that the fee collection continue to be done through the secured property tax roll in 2020-21 and is requesting that Council adopt the required resolution to authorize that collection. Policy Context California Health & Safety Code Section 13146.2(b) authorizes cities to charge property owners in recovering the reasonable costs of providing these annual inspections. As part of this program, on June 7, 2005, the Council adopted Ordinance No. 1472 authorizing the collection of annual fees for these inspections through the secured County property tax roll as the most cost- efficient method for fee collection (City Municipal Code Section 3.50.01(c)). Public Engagement The recommended action is not a community project, or service. This resolution does not warrant any specific public engagement efforts. Item 4 Packet Page 23 ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2020-21 Funding Identified: N/A The Finance Department will work with the County of San Luis Obispo to place the fees on the annual tax rolls. Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total In fiscal year 2019-20, the City is scheduled to collect $307,000. As of May 6, 2020 the City had collected $275,031 and may see delays in receiving the remaining $32,000 due to County of San Luis Obispo waiving late fees for late property tax payments from COVID-19. Projected revenue for fiscal year 2020-21 is $308,000. ALTERNATIVE Do not adopt the Resolution and go to a less cost-effective billing system by the Finance. This is not recommended as the City continues to navigate the fiscal impacts of COVID-19. Attachments: a - Draft Resolution Item 4 Packet Page 24 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE SAN LUIS OBISPO COUNTY AUDITOR TO COLLECT FEES FOR 2020-21 FIRE AND LIFE SAFETY INSPECTIONS OF MULTI-DWELLING PROPERTIES CONTAINING THREE OR MORE DWELLING UNITS ON THE SECURED PROPERTY TAX ROLL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54988, ET SEQ. WHEREAS, the City of San Luis Obispo is required by California Health & Safety Code Section 17921 annually to inspect multi-dwelling properties containing three or more dwelling units, including apartments, certain residential condominiums, hotels, motels, lodging houses and congregate residences; and WHEREAS, California Health & Safety Code Section 13146.2 authorizes cities to charge property owners in recovering the reasonable costs of providing these annual inspections; and WHEREAS, in accordance with this policy, the Council adopted Resolution Nos. 9799 (2006 Series) and 10790 (2017 Series) updating the master fee schedule, as specifically set forth in “Exhibit A” hereto, and authorizing the collection of these fees on the secured property tax roll; and WHEREAS, the Council desires to continue collection of these fees on the secured property tax roll for 2020-21. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Item 4 Packet Page 25 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1. Pursuant to California Health & Safety Code Section 13146.2(b) and Municipal Code Section 3.50, the Council hereby authorizes and directs that Fire and Life Safety Inspection fees shall be collected on the secured property tax roll by the San Luis Obispo County Auditor-Controller for fiscal year 2020-21. A listing of fees by assessor’s parcel number shall be provided to the County Auditor-Controller for collection on the 2020-21 secured property tax roll in accordance with their schedule and data format requirements, pursuant to California Government Code 54988, et seq. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington City Clerk Item 4 Packet Page 26 Resolution No. _____ (2020 Series) Page 3 R ______ EXHIBIT A Multi-Dwelling Fire and Life Safety Inspection Fee Schedule Administrative Fee Processing per facility $86.63 Each Additional Owner $10.28 Apartment Houses Up to 10 Units $346.52 11- 20 Units $519.78 21- 50 Units $693.04 51- 100 Units $866.30 101- 200 Units $1386.08 Every additional 100 Units over 200 $346.52 Condominiums Up to 10 Units $346.52 11- 20 Units $519.78 21- 50 Units $693.04 51- 500 Units $1039.56 Fees are waived for units that are built, owned and managed by the San Luis Obispo Housing Authority, other governmental agencies or not-for-profit housing organizations. Hotels, Motels, Lodging Houses, Bed & Breakfast Facilities, Youth Hostel Facilities, Senior Facilities, Sororities, Fraternities and Other Congregate Residences 1 - 20 units $346.52 per year per facility 21 - 50 units $519.78 per year per facility 51-100 units $866.30 per year per facility 101-200 units $1386.08 per year per facility Sorority, Fraternity, Congregate house $693.04 These fees are applicable to all multi-dwelling units in the City based on the following definitions as set forth in the 2016 California Building Code, Chapter 2: Definitions and Abbreviations, Section 202 and Chapter 3, Section 310. Apartment house is any building, or portion thereof, which contains three or more dwelling units, including R-2 residential condominiums. Item 4 Packet Page 27 Resolution No. _____ (2020 Series) Page 4 R ______ Congregate residences are any building or portion thereof that contains facilities for living, sleeping and sanitation, as required by this code, and may include facilities for eating and cooking, for occupancy by other than a family. A congregate residence may be a shelter, convent, monastery, dormitory, fraternity or sorority house, but does not include jails, hospitals, nursing homes, hotels, or lodging houses. Dwelling unit is any building or portion thereof that contains living facilities, including provisions for sleeping, eating, cooking and sanitation, as required by this code, for not more than one family, or a congregate residence for ten or less persons. Hotel is any building containing six or more guest rooms intended or designed to be use, or which are used, rented or hired out to be occupied, or which are occupied for sleeping purposes by guests. Lodging house is any building or portion thereof containing not more than five guest rooms where rent is paid in money, goods, labor or otherwise. (A lodging house includes bed & breakfast facilities and hostels, but excludes single family dwellings). Motel shall mean the same as hotel as defined in this code. Item 4 Packet Page 28