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Home My WebLink About16 - Temporary Waiver of City Fees Related to Single-FamilyCITY OF NEWPORT BEACH City Council Staff Report March 11, 2014 Agenda Item No. 16. TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Kimberly Brandt, Community Development Director — (949) 644 -3226, kbrandt @newportbeachca.gov PREPARED BY: Kimberly Brandt, Director PHONE: (949) 644 -3226 TITLE: Temporary Waiver of Building Plan Check, Building Construction Permit Fees and Other Related City Fees For Existing Single- Family Homes and Duplex Homes (PA2014 -027) ABSTRACT: A resolution to temporarily waive building plan check, building construction permit fees, and other related City fees related to the alteration and /or remodel of existing single - family homes and existing duplex homes for up to one million dollars in improvements per home. RECOMMENDATION: a) Find that the 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 CEQA; and b) Adopt Resolution No. 2014 -25, A Resolution of the City Council of the City of Newport Beach Establishing "The Newport Dividend" by Temporarily Waiving Building Plan Check, Building Construction Permit Fees and Other Related City Fees to Promote Home Improvement and Beautification Projects. FUNDING REQUIREMENTS: With an average value of $42,000 for a simple residential remodel, a property owner would save approximately $1,200 in plan check and building permit fees. If an encroachment permit is needed then the savings will be an additional $500. The estimated total savings in City fees passed on to Newport Beach property owners is $1,750,000. The savings include typical fees charged by both by the Community Development Department and Public Works 260 Department. With the adoption of the draft resolution (Attachment CC 1), the estimated reduction of revenue received during the remainder of the 2013 -2014 fiscal year is $591,000. For the 2014 -2015 fiscal year the estimated reduction in revenue is $1,183,000 for a total revenue reduction of $1,774,000. DISCUSSION: With the goal of supporting home improvement activities, Mayor Rush Hill has proposed "The Newport Dividend" (Dividend) program which temporarily waives all City fees related to obtaining a permit for qualifying residential development activity. The fees waived would include: plan check reviews (including building, planning, public works, and fire prevention), building permits, and encroachment permits. The Dividend program would apply to the alteration and /or remodel of existing single - family homes and existing duplex homes for up to One Million Dollars ($1,000,000) in improvements per home. The reduction in revenue to the City translates into a direct savings to property owners. The types of projects that are eligible for the Dividend program include but are not limited to: remodels, re- roofs, fences, retaining walls, pools, patio covers, water heater replacements, lighting and plumbing fixture replacements, solar panels, air conditioning, and window replacements. It is recognized that the overall community benefits when a single - family or a duplex home is remodeled in respect to its appearance, functionality, and value. Any improvement to a property translates into a corresponding increase in property tax which continues through the life of the home. As drafted, the Dividend program is not applicable to residential projects that consist of the complete demolition and reconstruction of one to two units. Should the City Council adopt the draft resolution, the Dividend program would go into effect immediately, and persons who are submitting a qualifying project for plan check or requesting a building permit will be eligible for a fee waiver through December 12, 2014. Staff will also provide public notification of the Dividend program through the City's select alert emails, City website, and press releases. 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. NOTICING: 261 The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Name. Description: ❑ CC 1.odf CC -1 Draft Resolution 262 ATTACHMENT A RESOLUTION NO. 2014- 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA ESTABLISHING "THE NEWPORT DIVIDEND" BY TEMPORARILY WAIVING BUILDING PLAN CHECK, BUILDING CONSTRUCTION PERMIT FEES AND OTHER RELATED CITY FEES TO PROMOTE HOME IMPROVEMENT AND BEAUTIFICATION PROJECTS (PA2014 -027) WHEREAS, Chapter 3.36 of the Newport Beach Municipal Code and the City of Newport Beach's ( "City ") Master Fee Schedule establish the fees for permits, inspections, and other activities related to building and construction activities; WHEREAS, the City Council recognizes that the community as a whole benefits when a single - family home and /or duplex home is upgraded and /or maintained in its appearance, functionality, and value; WHEREAS, the City Council desires to establish and promote "The Newport Dividend" by temporarily waiving building plan check and building construction permit fees associated with the alteration and /or remodel of existing single - family homes and existing duplex homes; WHEREAS, "The Newport Dividend" encourages and supports home repairs, remodeling, and beautification projects within the City; and WHEREAS, the City Council hereby finds that it is in the best interest of the City to invest in its residents and community through the establishment of "The Newport Dividend." NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council waives building plan check fees, building construction permit fees and other related City fees required for plan check, permits, inspections, re- inspections and other related activities, for the alteration and /or remodel of existing single - family homes and existing duplex homes for up to One Million Dollars ($1,000,000) in improvements per home. "The Newport Dividend" shall commence on the effective date of this resolution and continue through December 12, 2014, at which time it shall automatically sunset without further action by the City Council. Any permits submitted to the City prior to the effective date of this resolution are expressly excluded from "The Newport Dividend." Section 2: Eligible projects include, but are not limited to, alterations, remodels, additions, patio covers, water heaters, pools, HVAC units, solar panels, 263 plumbing fixtures, roofing, and windows. Permits for new single - family homes and /or duplex construction are excluded from 'The Newport Dividend." Section 3: The City Council find the adoption of this resolution and the establishment of "The Newport Dividend" 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 4: Except as expressly set forth herein, nothing contained in this resolution shall be deemed to waive any fees otherwise required by any other provision of law (including but not limited to fees for City zoning entitlements, environmental clearance, and /or fees collected by the City on behalf of any other public agency or entity), nor otherwise waive compliance with any other applicable provisions of the Newport Beach Municipal Code or any other City ordinance, policy or regulation. Section 5: The recitals provided in this resolution are true and correct and are hereby incorporated into the substantive portion of this resolution. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 11th day of March, 2014. r,�Wr� -Jn Leilani I. Brown City Clerk Rush N. Hill, II Mayor 2_ 264