HomeMy WebLinkAboutItem 5d. Authorization to Continue the Collection of Multi-Dwelling Fire Life Safety Fees Item 5d
Department: Fire
Cost Center: 8503
For Agenda of: 6/4/2024
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: Nicole Vert, Business Analyst
SUBJECT: AUTHORIZATION TO CONTINUE THE COLLECTION OF MULTI-
DWELLING PROPERTY FIRE AND LIFE SAFETY INSPECTION FEES
RECOMMENDATION
Adopt a Draft Resolution entitled, “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
2024-25 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
Section 54988, Et Seq.”
POLICY CONTEXT
California Health & Safety Code Section 13146.2(b) authorizes cities to charge property
owners to recover the reasonable costs of providing these Fire and Life Safety annual
inspections mandated in California with the establishment of Title 19. 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)).
DISCUSSION
Background
In May 2005, the City 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 in how fees for apartment buildings, hotels/motels,
and sorority/fraternity inspections are calculated. This change is reflected in Exhibit A to
the Resolution (Attachment A), listing the fiscal year 2023-24 fee amounts. The result in
2017 was an increase from approximately $194,000 per year in gross 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 $356,192 for fiscal
year 2023-24 due to the increase in the number of units for each category and the annual
Consumer Price Index (CPI) adjustment to the fee. The City is currently in the final stages
of a fee study and expects the listed fees to increase as a result.
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Item 5d
However, those increases are not expected to be realized until fiscal year 2025 -26 due
to the timing of the study and submission of the fees to the county. In anticipation of the
fee study, the current fee schedule will not have a CPI adjustment in fiscal year 2024-25
and will remain the same as fiscal year 2023-24, resulting in no change in revenue outside
of new inspections being added. The County requires an annual resolution adopted by
the Council authorizing the continued collection of those fees on the property tax roll. Staff
is recommending that the fee collection continue to be done through the secured property
tax roll in 2024-25 and is requesting that Council adopt the required resolution to authorize
that collection.
Previous Council or Advisory Body Action
On June 6, 2023, the City Council authorized the continued collection of multi-dwelling
property Fire and Life Safety Inspection Fees.
Public Engagement
This item is on the agenda for the June 4, 2024 City Council meeting and will follow all
required postings and notifications. The public will have the opportunity to provide
comment on this item at or before the meeting.
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: 2024-25
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund N/A $ $ $N/A
State
Federal
Fees
Other:
Total $N/A $ $ $N/A
In fiscal year 2024-25, the City is scheduled to collect $356,192 in multi-dwelling property
fire and life safety inspection fees. As of May 13, 2024 , the City had collected $282,477
for fiscal year 2023-24, with the remaining amount expected to be posted in the near
future as the deadline to pay property taxes was April 10, 2024, and tax payments are
now delinquent.
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Item 5d
Projected revenue for fiscal year 2024-25 will remain unchanged due to delaying the CPI
fee schedule adjustment until after the completion of the fee study which will happen after
the fees are sent to the county. The Finance Department will work with the County of San
Luis Obispo to place the fees on the annual tax rolls.
ALTERNATIVES
Do not adopt the Resolution and go to a less cost-effective billing system by the
Finance Department. Finance would become responsible for billing, increasing both
workload and processing costs with individual mailings. Potential for non-payments would
increase and Finance would be tasked with following up with non -payments. This is not
recommended as it would be counter to fiscal sustainability.
ATTACHMENTS
A - Draft Resolution authorizing collection of Multi-Dwelling Property Fire and Life Safety
Inspection Fees
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R ______
RESOLUTION NO. _____ (2024 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 2024-25 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
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(b) authorizes cities
to charge property owners in recovering the reasonable costs of providing these annual
inspections; and
WHEREAS, in accordance with this statutory authorization, the Council adopted
Resolution Nos. 9799 (2006 Series) and 10790 (2017 Series) updating the
comprehensive 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 2024-25.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows/or that:
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 2024-25. A listing of fees by assessor’s
parcel number shall be provided to the County Auditor -Controller for collection on the
2024-25 secured property tax roll in accordance with their schedule and data format
requirements, pursuant to California Government Code 54988, et seq.
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Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 2. Resolution Number 11424 (2023 Series) is hereby repealed and
superseded to the extent inconsistent herewith.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 24.
___________________________
Mayor Erica A. Stewart
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
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Resolution No. _____ (2024 Series) Page 3
R ______
EXHIBIT A
Multi-Dwelling Fire and Life Safety Inspection Fee Schedule
Administrative Fee
Processing per facility $104.76
Each Additional Owner $12.43
Apartment Houses
Up to 10 Units $419.07
11- 20 Units $628.61
21- 50 Units $838.15
51- 100 Units $1,047.69
101- 200 Units $1,676.30
Every additional 100 $419.07
Units over 200
Condominiums
Up to 10 Units $419,07
11- 20 Units $628.61
21- 50 Units $838.15
51- 500 Units $1,257.22
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 $419.07 per year per facility
21 - 50 units $628.61 per year per facility
51-100 units $1,047.69 per year per facility
101-200 units $1,676.30 per year per facility
Sorority, Fraternity,
Congregate house $838.15
These fees are applicable to all multi-dwelling units in the City based on the following
definitions as set forth in the 2022 California Building Code, Chapter 2: Definitions and
Abbreviations, Section 202 and Chapter 3, Section 310.
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Resolution No. _____ (2024 Series) Page 4
R ______
Apartment house is any building, or portion thereof, which contains three or more
dwelling units, including R-2 residential condominiums.
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 r equired 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.
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