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Home My WebLink About26 - Establishment of Fees for Coastal Development Permit Applications�EWPR CITY OF T - z NEWPORT BEACH <,FoR�P City Council Staff Report November 22, 2016 Agenda Item No. 26 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Kimberly Brandt, Community Development Director - 949-644-3232, kbrandt@newportbeachca.gov PREPARED BY: Patrick J. Alford, Planning Program Manager - PHONE: 949-644-3235, PAlford@newportbeachca.gov TITLE: Establishment of Fees for Coastal Development Permit Applications ABSTRACT: The City Council will consider the adoption of fees for coastal development permit applications in anticipation that the City will soon obtain the authority to issue coastal development permits and coastal development permit waivers. RECOMMENDATION: a) Conduct a public hearing; b) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and c) Adopt Resolution No. 2016-125, A Resolution of the City Council of the City of Newport Beach, California, Establishing a Coastal Development Permit Fee and a Coastal Development Permit Waiver Fee Pursuant to Newport Beach Municipal Code Section 21.50.040. FUNDING REQUIREMENTS: The proposed fees will cover the anticipated cost of service. DISCUSSION: The Coastal Act requires a coastal development permit for any development in the coastal zone, unless the development is exempt or excluded from coastal development permitting requirements. 26-1 Establishment of Fees for Coastal Development Permit Applications November 22, 2016 Page 2 On November 8, 2016, the City Council approved the City's first Local Coastal Program (LCP) Implementation Plan. The City Council's action will be submitted to the California Coastal Commission (Coastal Commission) for final effective certification. After effective certification, the City would have the authority to issue coastal development permits (CDPs) and CDP waivers. The Zoning Administrator would have review authority for all CDPs, unless the project also requires another discretionary approval (e.g., conditional use permit, variance, etc.), in which case, the Planning Commission would have review authority. Zoning Administrator decisions on CDPs can also be appealed to or called for review by the Planning Commission. Any CDP associated with General Plan, Zoning Code and/or LCP amendment, the City Council will have review authority. CDP decisions may also be appealed or called for review to the City Council. The Community Development Director will have the authority to waive CDP requirements for any development that is de minimis (i.e., development that involves no potential for any adverse effect on coastal resources and is consistent with the LCP). The LCP administration costs will be recovered through permit fees. Two fees are proposed, one for coastal development permits and one for the waiver for de minimis development. Since the City does not have a CDP permit history to establish a flat fee for CDPs, staff proposes establishing a deposit account requirement in the amount of $2,500 and then track staff time and charge against it at a rate of $198 per hour. After one year, there should be enough information to come back to City Council with a flat fee for CDPs. A flat fee in the amount of $910 is proposed for CDP waivers. City CDP application fees will be significantly lower than those charged by the Coastal Commission. CDP application fees for single family dwellings range from $3,000 to $7,500, plus additional fees for grading, lot line adjustments, and subdivisions. CDP application fees for nonresidential projects are based on either the gross square footage or the development cost, whichever is greater. These fees range from $5,000 to as high as $250,000, plus additional fees for grading, lot line adjustments, and subdivisions. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 26-2 Establishment of Fees for Coastal Development Permit Applications November 22, 2016 Page 3 NOTICING: The agenda item has been noticed according to Government Code Section 66018(a) (two publications with at least five days intervening between the two dates), Government Code Section 66016(a) (notice mailed at least 14 days prior to the meeting to any interested party who files a written request) (mailed notice to Building Industry Association of Southern California, AT&T, and Southern California Gas Company on November 8, 2016), and the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A - Draft Resolution 26-3 ATTACHMENT A RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ESTABLISHING A COASTAL DEVELOPMENT PERMIT FEE AND A COASTAL DEVELOPMENT PERMIT WAIVER FEE PURSUANT TO NEWPORT BEACH MUNICIPAL CODE SECTION 21.50.040 WHEREAS, Ordinance No. 2016-19 added Title 21 to the Newport Beach Municipal Code (NBMC) and approved the Local Coastal Program Implementation Plan (Implementation Plan), as modified by the California Coastal Commission; WHEREAS, NBMC Section 21.50.040 allows the City Council to establish a schedule of fees for the processing of applications required by the Implementation Plan; WHEREAS, in 2010, the City of Newport Beach (City) retained MGT of America, Inc. (MGT) to prepare the cost allocation plan and cost -of -services studies for City services; pursuant to its agreement, MGT prepared the Community Development cost - of -services study including the Coastal Development Permit and the Coastal Development Permit Waiver; WHEREAS, the fees for service are no more than the cost to the City to provide such services; WHEREAS, NBMC Section 3.36.030 provides that the cost recovery percentage for most user services shall be one hundred percent (100%); WHEREAS, MGT studied the costs associated with the Coastal Development Permit as well as the Coastal Development Permit Waiver and found the City's cost of service is $198.98 per hour and $910.04 per waiver, respectively; and WHEREAS, the City Council desires to incorporate the Coastal Development Permit Fee and the Coastal Development Permit Waiver Fee, as recommended by MGT, into the City's fee schedule. NOW, THERFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council finds that the Coastal Development Permit Fee and the Coastal Development Permit Waiver Fee recommended by MGT reimburses the City for its actual and reasonable costs incurred in connection with administering these services. The Coastal Development Permit fee is hereby added to the City's fee schedule and is rounded down to the nearest dollar, at the rate of One Hundred Ninety - Eight Dollars ($198.00) per hour. The Coastal Development Permit Waiver fee is hereby 26-4 added to the City's fee schedule and is rounded down to the nearest dollar, at a rate of Nine Hundred and Ten Dollars ($910.00) per waiver. Section 2: The fees shall take effect sixty (60) calendar days after the adoption of this resolution. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 4: The City Council finds the adoption of this resolution and the associated fees is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: The Mayor shall sign and the City Clerk shall certify the vote adopting the passage of this resolution. ADOPTED this 22nd day of November, 2016. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY A Y'S OFFICE Aaron C. Harp City Attorney 26-5