HomeMy WebLinkAbout06/17/1997, 1A - DEVELOPMENT REVIEW USER FEE REPORT council
j agenda wpoRt
CITY OF SAN LUIS OBISPO
FROM: Arnold Jonas, Community Development Director
Prepared By: Ronald Whisenand, Development Review Manage
SUBJECT: Development Review User Fee Report
CAO RECOMMENDATION
Adopt a resolution setting fees for sidewalk sales permits, Christmas tree/pumpkin lot permits,
fence height exceptions, voluntary mergers, and agreements.
DISCUSSION
In preparation of the Community Development Department budget for fiscal years 1997-1999,
staff was asked to look at our development review fees as a possible source of additional City
revenues. In the exercise, staff looked at the additional revenues that would be generated if our
cost recovery program were adjusted up from the current 25% level, to a level that would result
in the City recovering 50%of our actual permit processing costs. Although no basic changes in
our current cost recovery policy were recommended in the Preliminary 1997-99 Financial Plan,
staffs analysis identified a few minor permit areas where no fees are charged that warranted
further consideration.
The last time that the department's planning fees were analyzed in grit detail, was with the David
M. Griffith& Associates (DMG) study that was presented to the Council on June 6, 1995. The
study looked at revenues, costs, level of cost recovery, and General Fund subsidies for
development review fees. Based on community concern, the Council determined that it was
appropriate to recover only 25 percent of the overall City processing costs (departmental staffing
costs, outside departmental support costs, and City overhead). Certain other fees, including
sidewalk sales permits, Christmas tree/pumpkin lot permits, fence height exceptions, voluntary
mergers, agreements, and appeals were purposely set at $0 (i.e. full General Fund subsidy).
It has been City policy since 1985 to not charge a fee when filing an appeal. An appeal fee has
been seen as a "bameee to reasonable access in trying to change administrative and advisory body
decisions. In conjunction with the preliminary 1997-99 Financial Plan, staff recommended setting
appeal fees at a modest level (7% cost recovery). At the May 19, 1997 budget workshop, the
Council discussed this proposal and voted to maintain the current cost recovery policy for appeal
fees, while remaining open to considering cost recovery for the other 'no-fee" services noted
above.
The Council approved cost recovery program for all other development review fees is established
at 25%. Because of their similarity to other applicant driven requests, staff recommends that the
Council Agenda Report - Development Review User Fee Report,
Page 2
Council establish a similar recovery policy for sidewalk sales permits, Christmas tree/pumpkin
lot permits, fence height exceptions, voluntary mergers, and agreements. The following table
identifies the cost to the City in providing these services and what the fee would be with a 25%
cost recovery program in place:
Permit Type Total Cost to City Fee at 25% Cost Recovery.
Sidewalk Sales Permits $182 $46
Christmas Tree/Pumpkin Lot Permits $83 $21
Fence Height Exceptions $338 $85
Voluntary Mergers $336 $84
Agreements $345 $86
The basis for these proposed fees came from the detailed cost of services study performed with
the DMG report of 1995 and have been adjusted by changes in the consumer price index to reflect
1997 costs.
FISCAL IMPACT
Based on an average year, applications for the above permits would generate approximately
$2,100 in additional revenues to the City. Although this amount is small compared to other
permit applications, it does result in less subsidy of the department's operations from the City's
General Fund, and establishes equity with similar services provided by the City.
ALTERNATIVES
Keep the current cost recovery for sidewalk sales permits, Christmas tree/pumpkin lot permits,
fence height exceptions, voluntary mergers, and agreements at 0%.
Attachments
Resolution setting fees
RESOLUTIONNO. (1997 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ADOPTING FEES FOR VARIOUS PLANNING SERVICES
WHEREAS, the City's municipal code authorizes establishing various fees for the delivery
of municipal services; and
WIffiREAS,the cost of providing a broad range of City services has been comprehensively
reviewed by David M. Griffith and Associates(DMG)in their report dated March 1995; and
WHEREAS, there are no fees charged for sidewalk and specialty sales lot permits, fence
height exceptions,voluntary mergers,and planning agreements; and
WHEREAS, it would be consistent with the user fee cost recovery policy to set fees for
these services at 25%of their cost; and
WHEREAS, the Council held a noticed public hearing concerning these proposed fees on
June 17, 1997;
NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that:
SECTION 1. Exhibit A attached hereto is hereby adopted effective September 1, 1997.
SECTION 2. Consistent with adopted cost recovery policies, all city fees will be reviewed
and updated on an ongoing basis. Accordingly, the fees set forth in Exhibit A will be adjusted
annually July 1 of each year by the annual percentage change in the U. S.Bureau of Labor Statistics
(or successor agency) consumer price index for all urban customers (CPI-U) all cities average for
the prior calendar year, and a comprehensive analysis of City fees similar to that prepared by DMG
in March of 1995 should be made at least every five years.
On motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this_day of. 1996.
ATTEST:
Bonnie Gawf, City Clerk Mayor Allen Settle
APPROVED:
*4Joe0C- Attorney
lQ��
EYMIT A
FEES FOR VARIOUS PLANNING SERVICES
EFFECTIVE SEPTEMBER 1, 1997
Sidewalk Sales Permits $46.00
Christmas Tree/Pumpkin Lot Permits $21.00
Fence Height Exceptions $85.00
Voluntary Mergers $84.00
Agreements $86.00