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HomeMy WebLinkAboutItem 5c Authorization to Continue Collection of Multi Dwelling Property Fire and Life Safety Inspection Fees Item 5c Department: Fire Cost Center: 8503 For Agenda of: 6/17/2025 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 2025-26 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.” POLICY CONTEXT California Health & Safety Code Section 13146.2(b) authorizes cities to charge property owners to recover the reasonable costs of providing mandated Fire and Life Safety annual inspections for multi-dwelling properties with three or more units. 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)). A listing of fees by Assessor’s Parcel Number will be submitted to the County Auditor- Controller for collection on the 2025 -26 secured property tax roll in accordance with the County’s schedule and data format requirements, pursuant to California Government Code 54988, et seq. The County requires an annual resolution adopted by the Council authorizing the continued collection of those fees on the property tax roll. 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 2024 the City conducted a fee study and changed how fees for apartment buildings, hotels/motels, and sorority/fraternity inspections are calculated, removing the costs of suppression staff, resulting in a reduction in most fees. The reduction varies by fee with Page 13 of 994 Item 5c the average change being -11%. Staff estimates the resulting revenue reduction to be $41,800. FY2023-24 revenue from these inspections was $380,309. FY2025-26 revenue is estimated to be $338,509 after the fee adjustments. Staff is recommending that the fee collection continue to be done through the secured property tax roll in 2025-26 and is requesting that Council adopt the required resolution to authorize that collection. Previous Council or Advisory Body Action On June 4, 2024, the City Council authorized the continued collection of multi -dwelling property Fire and Life Safety Inspection Fees with the adoption of Resolution No. 11496 (2024 Series). On July 2, 2024, the City Council adopted revised Citywide user and regulatory fees with the adoption of Resolution No. 11507 (2024 Series). Public Engagement This item is on the agenda for the June 17, 2025 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: 2025-26 Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $N/A $ $ $ State Federal Fees Other: Total $ $ $ $N/A As of May 21, 2025, the City had collected $275,123.62 of the expected $380,000 for fiscal year 2024-25, with the remaining amount expected to be posted in the near future as the deadline to pay property taxes was April 10, 2025, and the County remits payment to the City in June. Any unpaid taxes are now delinquent. Page 14 of 994 Item 5c 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 would be counter to fiscal sustainability. ATTACHMENTS A - Draft Resolution authorizing collection of Multi-Dwelling Property Fire and Life Safety Inspection Fees Page 15 of 994 Page 16 of 994 R ______ RESOLUTION NO. _____ (2025 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 2025-26 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, the City of San Luis Obispo first authorized fee placement on the secured property tax roll with adoption of Ordinance No. 1472 on June 7, 2005. WHEREAS, Resolution No. 11496 (2024 Series) adopted on June 4, 2024 authorized the continued collection of multi-dwelling property Fire and Life Safety Inspection Fees. WHEREAS, the Council desires to continue collection of these fees on the secured property tax roll for 2025-26. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows 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 2025-26. A listing of fees by assessor’s parcel number shall be provided to the County Auditor -Controller for collection on the 2025-26 secured property tax roll in accordance with their schedule and data format requirements, pursuant to California Government Code 54988, et seq. SECTION 2. Resolution Number 11496 (2024 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: Page 17 of 994 Resolution No. _____ (2025 Series) Page 2 R ______ AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 25. ___________________________ 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 Page 18 of 994