HomeMy WebLinkAbout05-21-2015 C7 JohnsonRECEIVED
MAY 21 2013
4q ,, council m moizAn CITY CLEF RK
May 21, 2013
TO: City Council
FROM: Derek Johnson, Community Development Director
VIA: Katie Lichtig, City Managerft
i
SUBJECT: Agenda Item C7 — Appropriation of Excess
Development Fees
AGENDA
CORRESPONDENCE
Dated Item #�L_
Unbudgeted Revenues from
This Council Correspondence file addresses a request for clarification regarding the proposed
appropriation of excess unbudgeted revenues of development fees.
Question 1: On the charts, does the 5.8 staffing level include those individuals who are
currently being compensated through developer payments (vis a vis Chevron)?
The 5.8 FTE shown on page C7 -6 presents the total number of Building and Safety Division staff
dedicated to the review of plans and inspection of construction projects. The 5.8 FTE listed are
funded by fees for service, meaning that building permit and plan check fees that are collected
and deposited in revenue accounts are intended to cover the City's costs to review plans and
inspect projects.
The amount of staff authorized in Development Review Division for the review of planning
applications is 4.0 FTE. The chart does not show temporary positions. The chart shown on Page
C7 -8 shows the amount of the planning applications and FTE over the past five years and
projected over the 2013 -2015 Financial Plan.
An additional 0.5 FTE temporary Planner Tech position was filled to cover counter activities to
account for the shift in authorized staff to provide special project management services to the
Chevron Tank Farm Project. The 0.5 FTE will only be available until the EIR is presented to
Council in fall 2013. The 0.5 FTE is only temporary and will not be available during the next
financial planning period when permit activity is likely to increase and at times exceed available
staff resources.
Question 2: To what extent has development in the newly annexed Orcutt area and the
upcoming projects re: Chevron, Margarita, Prado and the Airport Area were included in
your projections?
Planning and building plan activity is irregular and unpredictable. The conservative assumptions
that built the projections of building, planning, and fire permit activity as shown in the
attachments for item C -7 over the next two years were based on Beacon Economics' forecast.
This forecast called for total growth of 20 -30% in permit activity through 2017 -2018. It is
projected that there will be approximately 3.2% compound growth in permit activity over the
next two years, with activity ramping up in the last three years of the five year forecast. Growth
C -7 Council Correspondence- Appropriation of Excess Unbudgeted Permit Revenue Page 2
is already picking up with virtually all permitting and inspection activity at or near levels seen in
the 2008 -2009 Fiscal Year. The majority of significant development projects are occurring in
the City's specific plan areas which include properties in the Margarita, Orcutt and Airport
Areas.
Question 3: It appears that the Fire permit /plan reviews are in excess of planning
applications. Please explain.
There is a partial correlation between the number of planning applications and fire permit /plan
review. The volume of planning applications shown on Page C7 -8 presents all ministerial and
discretionary reviews over the past five years and projected for the two years covering the 2013-
2015 Financial Plan. Not all planning applications are reviewed by the Fire Department. The
Fire Department reviews some but not all planning and building permits. The projected planning
and fire application and review volumes are similar, but there is not an absolute correlation
between the two.
For example, a sign permit is reviewed by Development Review Planning Division (i.e.
planning) and by the Building and Safety Division, but will not be reviewed by the Fire
Department. Some tenant improvements require only building permits and review from the Fire
Department and will not require planning permits.
The difference in permit volumes' is 'not uncommon and reflects the complex planning and
building review process that is established by the International Building Code and locally
adopted land use policies and development standards.
Please contact Derek Johnson at 805- 781 -7187 should there be any questions.
Ocouncil agenda reports\2013\2013 -05 -21 \allocate development review revenue (padilla- johnson) \agenda correspondence -c -7 docx