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HomeMy WebLinkAbout03 - Planning Department Fee Schedule UpdateCITY OF NEWPORT BEACH PLANNING DEPARTMENT D 3300 NEWPORT BOULEVARD a. NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644 -3229 PROJECT: SUMMARY: SUGGESTED ACTIONS: Background Meeting Date: Agenda Item: Staff Person: REPORT TO THE CITY COUNCIL Planning Department Fee Schedule Update October 22, 2002 James Campbell (949) 644 -3210 Updated Fee Schedule for the Planning Department including an Amendment to Section 3.36 of the Municipal Code regarding the percentage of cost recovery October 22, 2002 Introduce Ordinance No. entitled, "An Ordinance of the City Council of the City of Newport Beach, California, Amending Exhibit "A" of Chapter 3.36 the Newport Beach Municipal Code Pertaining to the Percentage of Cost Recovery for Planning Department Fees." November 7, 2002 Adopt the ordinance; and 2. Adopt Resolution No. entitled, "A Resolution of the City Council of the City of Newport Beach Updating the Schedule of Fees of the Planning Department." The issue of cost recovery for Planning Department services was first raised during the budget discussions for this fiscal year. Staff estimated that lost revenue for user services was in excess of $180,000 per year, and the City Council supported a review of the fee schedule. In 1996, the City of Newport Beach retained KPMG Peat Marwick LLP (KPMG) to conduct a study of the cost of all city services The KPMG study determined the actual cost of providing each of those services including direct labor costs, administration or "overhead" costs and the cost of materials and supplies. In 1997, the Council adopted Ordinance 97 -8 establishing Chapter 3.36 (Cost Recovery for User Services) of the Municipal Code. The Ordinance codified the Council's decisions at that time regarding the percentage of cost to be recovered from direct user fees for the services studied. At that time, the Council also established a Fee Schedule for City services, which included Planning Department fees. The Fee Schedule has been amended annually since 1997 to reflect changes in costs. Discussion The Planning Department began examining the cost of providing services and the fee schedule several months ago as it was believed that the fee collected for several applications is not covering the actual time spent. Additionally, the current list of applications and activities listed in Chapter 3.36, as well as the current fee schedule, does not include several applications and activities to allow the City to off -set costs. Ordinance Amendment As noted, Chapter 3.36 establishes the percentage of cost recovery for direct fees charged for services. Most percentages for the Planning Department are at 100 %, but some fees are 80 %, and 50% and one is 0 %. Staff believes that the Site Plan Review percentage was set at 80% as the application is generally associated with another application. Appeals were set at 50% so that the fee would not be a significant burden to a resident who might be potentially impacted by development of a property nearby. Finally, staff believes that amateur radio antenna and satellite dish permits were set at 0% to encourage people to obtain a permit rather than install the structure without a permit. When there is less than 100% cost recovery, the general public is essentially subsidizing the cost of an activity that benefits the owner of the property being developed. Staff suggests that the percentage for all types of applications be increased to 100% except for appeals, which staff believes should remain at 50 %. Additionally, several new applications and services have been established since the last time this ordinance was updated and should be added. Incorporating the revised list of applications and corresponding percentages is the subject of the suggested ordinance amendment to Chapter 3.36, and the revised list is attached as Exhibit "A" to the Ordinance (Exhibit No. 4). Revised Fee Schedule To achieve the cost recovery specified in the ordinance, staff proposes to establish a two -tiered fee schedule. The first group is based upon the use of a flat fee schedule where the applicant will pay a set fee for a specific service. The second group will use a deposit fee schedule where all applicant will pay a deposit. Staff will then charge its actual time to the account. If a case is more complex, thereby requiring increased staff time, an additional deposit may be necessary. At the conclusion of a project, any remaining balance will be returned to the applicant. Staff has been tracking actual time spent on development review cases, and placed those applications and services where staff time is not highly variable in the flat fee category. These applications are routine staff approvals and applications before the Modifications Committee. Those applications where actual time varied considerably were placed in the deposit fee category. These items are applications requiring Planning Commission and City Council review. In support of this fee system, staff has calculated the hourly rate for typical department operations and it is $97.00 per hour. The largest portion of the overall rate is attributable to labor. A Planning Department Fee Schedule October 22, 2002 Page 2 of .S weighted average of staff salaries for those staff participating in the development review process was derived. The weights assigned to each salary are based upon the estimated amount of time spent on development review by the staff member or department. Added to this weighted average, to get the overall hourly rate, is an amount for clerical support, code enforcement and operating expenses of the Planning Department. The hourly rate computation is detailed in Exhibit No. 1. This hourly rate does not include all possible costs, which include staff involvement from other departments who have limited or sporadic participation in the development review. The hourly rate also does not include indirect costs not incurred in the departmental budget such as building costs, electricity, etc. Indirect costs are not quantified by department or on an hourly basis, and are therefore not included in the calculation. The revised flat fee schedule, using $97.00 per hour and actual time spent on recent cases is attached as Exhibit No. 2. All figures have been rounded to the nearest $5. With the deposit system, staff directly involved in the development review will "bill' their time at the overall hourly rate to the project account. Staff has identified a deposit for each application or service, which is based upon the previous fee schedule. However, staff has reduced the variability of the deposits in order to simplify the process. The proposed deposit fee schedule is attached as Exhibit No. 3. The deposit system will require those staff members involved in the development review process to accurately track time spent on each case. The individual account established for each application can be used for all accounting and tracking of expenses, including consultants for environmental review or other special studies. The deposit system will increase fees for most projects as it is staffs belief that the current fee schedule is well below actual costs. The system will prove beneficial to a few future applicants where staff time falls below current fees as unspent monies can be refunded. The practice of using a deposit fee system is used by other jurisdictions as a way of recovering costs for applications with highly variable costs. Orange and Santa Barbara Counties and the City of Irvine, to name a few jurisdictions, have used this strategy for many years. New Fees Nine new fees are necessary to cover administrative costs for existing application processes or typical services. The new fees are as follows: 1. Lot Line Adjustment 5. Heritage Sign Review 2. Certificate of Compliance 6. Creative/Comprehensive Sign Permit 3. Lot Merger 7. Telecom Permits 4. Development Plan 8. Compliance Letters/Records Research. The Lot line adjustment has been a process within Title 19 for many years; however a fee has never been established. The Certificate of Compliance and a Lot Merger were established by the recently Planning Department Fee Schedule October 22, 2002 Page 3 of 5 updated Subdivision Ordinance. The processing of these items is within the jurisdiction of the Modifications Committee and is generally similar in nature to Modification Permits, although staff does not expect to spend as much time on these applications as is typical of Modification Permits. Therefore, staff suggests a lower fee than a Modification Permit. The Development Plan application and the Heritage Sign Review process were established by the change to the Mariner's Mile Specific Plan adopted in October 2000. No applications have been processed, so it is difficult to estimate potential staff time, and hence a fee. The Development Plan process is very similar to a Planning Director's Use Permit. Therefore, staff recommends an identical flat fee. The Heritage Sign Review process is similar to a Modification Permit. However, staff doesn't expect to be required to spend the same amount of time. The Creative Sign Permit and the Comprehensive Sign Permit were enacted by the Balboa Sign Overlay. No applications have been processed, so no empirical data is available to set a fee. Looking at the scope of the review process, staff believes it will be similar to a Modification Permit in terms of expected staff time; therefore staff suggests a similar fee to the Modification Permit. Telecom Permits have recently been established by the City Council with the adding of Chapter 15.70 (Wireless Telecommunications Facilities). There are two categories of Telecom permits. The first type is issued by the Planning Director when a proposed facility is consistent with all standards. The second type requires City Council review when an applicant seeks to exceed applicable height limits. Staff has estimated the average time necessary based upon the Planning Department's past experience with wireless telecommunications facilities siting and permitting. Staff suggests that both of these categories of Telecom Permits be in the flat fee schedule. The cost for preparing zoning compliance letters and performing minor records research has never been recovered. Typically, one hour is spent on simple compliance letters, and staff suggests that the City recover this cost. If any of the new fees proposed prove to be significantly inaccurate based upon ongoing tracking of time by the staff members involved fee adjustments will be brought back to the City Council at a later date. Staff believes that the proposed changes to the fee schedule are in keeping with the methodology of the KPMG study as it is based upon staff costs and average time spent. With this update, we have used more empirical data on time spent on various applications. The deposit fee system improvers upon the KPMG cost recovery methodology when costs vary considerably due to application complexity as actual time is accounted for. Public Notice Staff published a notice of this matter in the Daily Pilot 10 days in advance and mailed a copy to the Building Industry Association (BIA). Planning Department Fee Schedule October 22, 2002 Page 4 of 5 Recommendation Staff recommends that the City Council introduce the attached draft ordinance, and adopt the attached resolution amending the Planning Department fee schedule at the second reading of the ordinance. Staff recommends that the new fee schedule become effective February 1, 2003, which is more than the 60 day minimum waiting period required by law. Submitted by: PATRICIA L. TEMPLE Planning Director Exhibits Prepared by: JAMES W. CAMPBELL Senior Planner -10 1 1. Hourly Rate calculation 2. Proposed flat fee schedule 3. Proposed deposit fee schedule 4. Draft Ordinance amending Chapter 3.36 of the Municipal Code 5. Draft Resolution adopting the new Planning Department fee schedule Planning Department Fee Schedule October 22, 2002 Page 5 of 5 Hourly Cost for Planning Department Services Loaded Hourly Weighting 10/11/2002 Item Cost factor Planner $ 40.78 1.65 $ 67.29 Director $ 63.87 1.20 $ 76.64 Assistant CM $ 77.54 1.06 $ 82.19 Assist. City Attorney $ 69.10 1.06 $ 73.25 PW $ 55.83 1.08 $ 60.30 Building $ 57.59 1.06 $ 61.05 Weighted average 7.11 $ 59.17 Clerical Support $ 24.50 Code Enforcement $ 9.01 Operating costs $ 3.97 Total hourly rate $ 97.00 rounded Loaded Yearly Weighting Weighted Clerical support Cost factor Yearly cost Admin. Assist. $ 69,059 90% $ 62,154 Dept. Assist. $ 44,204 90% $ 39,784 Subtotal $ 113,264 $ 101,938 2 FT staff hours 4,160 hours Hourly rate $ 24.50 Loaded Yearly Weighting Weighted Code Enforcement Cost factor Yearly cost Supervisor $ 86,917 25% $ 21,729 Officer $ 63,092 25% $ 15,773 Subtotal $ 37,502 2 FT staff hours 4,160 hours Hourly rate $ 9.01 Exhibit No. 1 I Flat Fees APPLICATION CURRENT FEE HOURS PROPOSED FEE* ACCESSORY OUTDOOR DINING $ 238 6 $ 580 AMATEUR RADIO & SATELLITE DISH ANTENNA PERMITS $ - 2 $ 195 APPEALS TO: Planning Commission $ 776 18 $ 875 City Council $ 312 9 $ 435 APPROVAL IN CONCEPT PERMIT $ 59 4 $ 390 CERTIFICATE OF COMPLIANCE N/A 6 $ 580 CHRISTMAS TREE LOTS/PUMPKIN LOTS $ 65 2 $ 195 CREATIVE/COMPRM- ENSIVE SIGN PERMIT N/A 11 $ 1,065 COMPLIANCE LETTERS/MINOR RECORDS RESEARCH N/A 1 $ 95 CONDOMINIUM CONVERSION PERMIT $ 238 6 $ 580 DEVELOPMENT PLAN N/A 11 $ 1,065 DIRECTOR/STAFFAPPROVAL $ 119 4 $ 390 HERITAGE SIGN REVIEW N/A 6 $ 580 IN -LIEU PARKING $150 per space N/A $150 per space LOT LINE ADJUSTMENT $ 474 6 $ 580 LOT MERGER N/A 6 $ 580 MODIFICATION PERMIT $ 474 11 $ 1,065 PARCEL MAP $ 239 8 $ 775 TELECOM PERMIT - Director N/A 4 $ 390 TELECOM PERMIT - Council N/A 11 $ 1,065 TEMPORARY USES $ 238 8 $ 775 USE PERMIT - Planning Director $ 238 11 $ 1.065 ZONING PLAN CHECK - Counter Check S 14.30 0.5 $ 50 Shading denotes new fee Hourly rate: $ 97.00 * Fees rounded up to nearest $5 Draft Exhibit 2 10/11/20 02 Deposit Fees APPLICATION CURRENT FEE PROPOSED DEPOSIT AMENDMENTS: Zone Code $ 1,652 $ 2,200 Planned Community Text $ 4,088 $ 5,000 Planned Community Use Permit $ 4,088 $ 5,000 Planned Residential Development Use Permit $ 4,579 $ 5,000 COASTAL RESIDENTIAL DEVELOPMENT PERMITS CRDP processing $ 786 $ 1,000 Concurrent processing with other application $ 446 $ 500 Feasibility study fee 5% of feasibility $ - Yearly CRDP Administration $ 713 $ 250 DEVELOPMENT AGREEMENT 100% loaded $ 5,000 ENVIRONMENTAL DOCUMENTS 50% of loaded hourly $ 750 Initial Studies, Negative Declarations & Environmental Impact Reports (with consultant assistance) GENERAL PLAN AMENDMENTS: Minor $ 2,035 $ 2,200 Major $ 11,701 $ 5,000 OFF -SITE PARKING AGREEMENT $ 1,135 $ 2,200 PLANNED COMMUNITY DEVELOPMENT PLAN $ 11,701 $ 5,000 SIGN EXCEPTION PERMIT $ 1,656 $ 2,200 SITE PLAN REVIEW $ 2,205 $ 2,200 SUBDIVISIONS: Tentative Tract Map $74 per lot - minimum $1,814 $ 2,200 Vesting Tentative Map $939 + $74 per lot minimum $1,814 $ 2,200 TRAFFIC STUDY 10% of $ 500 USE PERMITS: Planning Commission $ 2,098 $ 2,200 Planned Residential Development $ 11,057 $ 5,000 VARIANCE $ 2,234 $ 2,200 ZONING PLAN CHECK Detailed Plan Check 100% of loaded 100% of loaded hourly hourly Note: Actual charges will be billed at the hourly rate of $97.00 per hour Exhibit No. 3 Draft 10/11;2002 ry ORDINANCE NO. AN ORDINANCE OF THE CI'I'Y COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING EXHIBIT "A" OF CHAPTER 3.36 PERTAINING TO THE PERCENTAGE OF COST RECOVERY OF PLANNING DEPARTMENT SERVICES THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY ORDAIN AS FOLLOWS: Section 1: A portion of Exhibit "A" of Chapter 3.36 of the Municipal Code under the heading of "Planning" is hereby amended as depicted in Exhibit "A" of this Ordinance. Other portions of Exhibit "A" of Chapter 3.36 shall remain unchanged and in full force and effect. Section 2: The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. This Ordinance shall be published once in the official newspaper of the City, and the same shall become effective thirty (30) days after the date of its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the _ day of 2002, and adopted on the _ day of 2002, by the following vote, to wit: ATTEST: CITY CLERK AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT COUNCIL MEMBERS MAYOR Exhibit No. 4 0 Chapter 3.36 Exhibit "A" (Planning Portion) Planning Accessory Outdoor Dining 100% Am. Radio Antenna/Sat. Dish Permits 100% Appeals to City Council 50% Appeals to Planning Commission 50% Approval in Concept 100% Certificate of Compliance 100% Christmas Tree Lots 100% Coastal Residential Development Permit 100% Compliance Letters/Records Research 100% Condo Conversion 100% Counter Plan Check 100% Development Agreement 100% Development Plan 100% Environmental Documents 100% General Plan Amendment, Ma'or 100% General Plan Amendment, Minor 100% Lot Line Ad'ustment 100% Lot Merger 100% Modification Permit 100% Off site Parkin 100% Plan Check 100% Planned Community Amendment 100% Planned Community Application 100% Planning Director /Staff Approval 100% PRD UP Amendment 100% PRD Use Permit 100% Sign Permit/Review - Heritage, Creative/Comprehensive 100% Sign Exceptions 100% Site Plan Review 100% Subdivision Maps 100% Temporary Uses 100% Traffic Stud 100% Use Permit 100% Variance 100% Zonin /Planned Communi Amendment 100% In RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH UPDATING THE SCHEDULE OF FEES OF THE PLANNING DEPARTMENT The City Council of the City of Newport Beach finds that A. The Planning Department estimated the revenue collected for user services for planning activities and applications fell well below the labor cost of providing said user services, therefore, revenues were well below cost recovery percentages established in Chapter 3.36; and B. The cost of planning services is approximately $97.00 per hour. This rate is based upon a weighted average of staff associated with the development review process including other support functions and other direct costs. This hourly rate does not include all costs incurred by the city associated with providing planning services as indirect costs are not included; and C. The Planning Department has conducted a study of the actual time spent upon planning applications and other planning activities that are established by the Municipal Code and requested by the general public; and D. Where there is no great degree of variability in the costs incurred by the city for providing planning services, a flat fee schedule shall be used, which is based upon the average of actual time spent upon applications and the hourly cost of providing planning services ($99.00/hour); and E. Where there is a large degree of variability in costs incurred by the city for providing planning services due to the varying degree of complexity of requests, a deposit fee system shall be used that will more accurately recover costs of individual applications. This deposit fee system shall utilize the hourly cost of providing planning services ($99.00/hour) and the staff involved in the development review process will "bill' an applicant the actual time spent; and F. the proposed fee schedule changes are in accordance with Chapter 3.36 (Cost Recovery for User Services) as fees will not exceed authorized percentages for cost recovery and none will exceed 100% of the costs incurred by the City; and G. It is the desire of the City Council to maintain the Planning Department Fee Schedule in order that it accurately reflect the current services provided by the department and the fees established for user services should reflect the approximate costs of providing the services; and H. The information and data utilized in support of the attached fee schedule has been made available to the public in accordance with Section 66016-66018 of the Government Code. Exhibit No. 5 NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The schedule of fees for services attached to this Resolution as EXHIBIT "A" is hereby established. Section 2: The portion of the master schedule of fees that pertains to the Planning; Department within Resolution No. 2002 -50 is hereby rescinded. Section 3: The schedule of fees shall take effect February 1, 2003. Passed and adopted by the City Council of Newport Beach at a regular meeting held on the day of 2002 by the following vote to wit: AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT, COUNCIL MEMBERS ATTEST: CITY CLERK IN Exhibit A Flat Fees APPLICATION or ACTIVITY FEE ACCESSORY OUTDOOR DINING $ 580 AMATEUR RADIO & SATELLITE DISH ANTENNA PERMUS $ 195 APPEALS TO: Planning Commission $ 875 City Council $ 435 APPROVAL IN CONCEPT PERM $ 390 CERTIFICATE OF COMPLIANCE $ 580 CHRISTMAS TREE LOTS/PUMPKIN LOTS $ 195 CREATIVE /COMPREHENSIVE SIGN PERMIT $ 1,065 COMPLIANCE LETTERS/MINOR RECORDS RESEARCH $ 95 CONDOMINIUM CONVERSION PERMIT $ 580 DEVELOPMENT PLAN $ 1,065 DIRECTOR/STAFF APPROVAL $ 390 HERITAGE SIGN REVIEW $ 580 IN-LIEU PARKING $ 150 per space LOT LINE ADJUSTMENT $ 580 LOT MERGER $ 580 MODIFICATION PERMIT $ 1,065 PARCEL MAP $ 775 TELECOM PERMIT - Director $ 390 TELECOM PERMIT - Council $ 1,065 TEMPORARY USES $ 775 USE PERMIT - Planning Director $ 1,065 ZONING PLAN CHECK - Counter Check $ 50 a, Deposit Fees APPLICATION or ACTIVITY DEPOSIT AMENDMENTS: Zone Code $ 2,200 Planned Community Text $ 5,000 Planned Community Use Permit $ 5,000 Planned Residential Development Use Permit $ 5,000 COASTAL RESIDENTIAL DEVELOPMENT PERMITS CRDP p cessing $ 1,000 Concurrent processing with other application $ 500 Feasibility study fee $ - Yearly CRDP Administration $ 250 DEVELOPMENT AGREEMENT $ 5,000 ENVIRONMENTAL DOCUMENTS $ 750 Initial Studies, Negative Declarations & Environmental Impact Reports (with consultant assistance) GENERAL PLAN AMENDMENTS: Minor $ 2,200 Major $ 5,000 OFF -SITE PARKING AGREEMENT $ 2,200 PLANNED COMMUNITY DEVELOPMENT PLAN $ 5,000 SIGN EXCEPTION PERMIT $ 2,200 SITE PLAN REVIEW $ 2,200 SUBDIVISIONS: Tentative Tract Ma $ 2,200 Vesting Tentative Ma $ 2,200 TRAFFIC STUDY $ 500 USE PERMITS: Planning Commission $ 2,200 Planned Residential Development $ 5,000 VARIANCE $ 2,200 ZONING PLAN CHECK Detailed Plan Check 100% of loaded hourly