HomeMy WebLinkAbout15 - Master Fee Schedule and Change in Subsidies - Correspondence Received After Agenda Printed
September 22. 2015
Item No. 15
Building Industry Association of Southern California, Inc. BIH
ORANGE COUNTY CHAPTER
September 22, 2015
Mayor Edward Selich
Honorable City Councilmembers
City of Newport Beach PRESIDENT
JOAN MARCUS-COLVIN
100 Civic Center Dr. THE NEW HOME COMPANY
Newport Beach, CA 92660 VICE PRESIDENT
JIM YATES
RANCHO MISSION VIEJO
Re: Master Fee Schedule Update
TREASURER
PHIL BODEM
Dear Mayor Selich and Honorable Councilmembers: TAYLOR MORRISON
SECRETARY
KE
On behalf of our membership, I would like to express our comments regarding MI KB HOME GARTI-A"
the proposed Master Fee Schedule update.
IMMEDIATE PAST PRESIDENT
DONNA KELLY
LENNAR
The Building Industry Association of Southern California, Orange County
Chapter (BIA/OC is a non-profit trade association of over 1,100 companies TRADE CONTRACTOR V.P.
p ` ) p p ALAN BOUDREAU
employing over 100,000 people affiliated with the home building industry. The BOUDREAU PIPELINE CORPORATION
Orange County Chapter represents the largest member base within BIA ASSOCIATE VICE PRESIDENT
K HIMMLSTEI
Southern California. Our mission is to champion housing as the foundation of N MEYER&DELLIONNLLP
vibrant and sustainable communities.
MEMBER-AT-LARGE
MIKE MCMILLEN
TRI POINTE HOMES
According to a recent report, Orange County's median home price is at a record
high$713,000. This is largely due to 1) lack of adequate housing stock, 2) a jobs "SCOETB ARKEY T.LARGE
to housing imbalance, and 3) lack of available land coupled with excessive STARKEY COMMUNICATIONS
regulation on the housing industry. Additionally, a recent Pt. Loma Study of CHIEF EXECUTIVE OFFICER
San Diego County indicates that up to 40% of a home's total price can be MICHAEL BALSAMO
directly linked to local public policy decisions and regulatory delay. We would
anticipate that there are likely some corollaries for public agencies in Orange
County. Increasing fees will only contribute to rising home prices and rental
rates. We encourage all public agencies including the City of Newport Beach to
work for the most time efficient review process possible and to minimize
administrative overhead costs.
Based on the information provided by the City, staff is recommending a 53.02%
increase in the hourly staff rate. The level of increase as indicated in the staff
report is significant and would index Newport Beach as having one of the 24 Executive Park, Suite 100
highest hourly rates in the County at up to$228 per hour. The departmental Irvine, California 92614
and city wide overhead components of the rate equate to approximately$120 949.553,9500
above the salary and benefits factor.
If the City Council is inclined to raise the fees to the extent proposed by staff,we
would request that the increase be phased in as recommended in the staff
report. Implementing the increase on a gradual basis softens project financial
impacts over a reasonable period of time and allows the development
community to plan and adjust. We appreciate the professional dialogue we
have had with City staff on this issue and we sincerely appreciate the City's
proposed phase in compromise.
Thank you for your thoughtful consideration.
Respectfully,
Michael Balsamo
Chief Executive Officer