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HomeMy WebLinkAboutAGENDA REPORT 1989 0705 CC REG ITEM 09AELOISE BROWN Mayor BERNARDO M. PEREZ Mayor Pro Tom CLINT HARPER, Ph. D. Councimember PAUL LAWRASON Councilmember SCOTT MONTGOMERY Cowdimember RICHARD T. HARE City Treasurer TO: FROM: DATE: MOORPARK ITEM cos. �o �5 M E M 0 R A N D U M STEVEN KUENY City Manager CHERYL J. KANE City Attorrey PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police The Honorable City Council V Patrick J. Richards, Director of Community Development April 12, 1989 (CC meeting of 4/20/89) SUBJECT: REVISIONS TO LAND USE APPLICATION FEES AND PLANNING RATES Background On April 5, 1989, staff reported to Council on the need for an increase in land use application fees. This report stated that amending the fee schedule is needed for the City to recover costs for these services. Staff recommended amendments to Resolution 84-130, pertaining to real time cost accounting for planning staff time, and Resolution 83-30 which pertains to developer fees for land use applications. The report points out that fees have not been adjusted for five years, and that costs have increased dramatically during that time. Staff is returning to Council for a public hearing in order to determine action on the proposed revisions to the fee schedule and the hourly rate for planning staff. Discussion of Actual Cost Billing Rates Staff has analyzed the relevant costs and the actual hours spent on processing permits, and has determined a real time billing rate of $75.00 per hour for staff time. This rate has been calculated by analyzing each position involved in the process, and direct and indirect costs. Three components apply to the hourly rate for planning staff and have been calculated as follows, (refer to attachment "C" for a detailed analysis of the three components): 1) Direct Costs Direct costs have been calculated by assessing the four (4) positions , (Director of Community Development, two Senior Planners, and the Associate Planner), which currently accrue hours billable to the permit process. The cost for these positions have been calculated by adding the 799 Moorpark Avenue Moorpark, Califomia 93021 -(805) 529-6864 FEESA/CHRONI PJR:OST:DR:FM::CM:DR:crl April 14, 1989 page 2 salaries and a factor of 35% of salaries for benefits. 2) Department Overhead. Department overhead was based on four factors. First, the personnel cost has been adjusted by subtracting salaries and benefits for the four positions previously mentioned. Secondly, maintenance and operations is calculated by subtracting for professional services, (these services include planning studies, and non -permit related planning activities like the housing element and the downtown study). Thirdly, capital outlay is calculated as a 4% factor of the department total personnel and maintenance and operations costs based upon 88/89 fiscal year figures. Lastly, fixed overhead is based on rental value of the office space by taking a percentage of the new City Hall utilized by the planning staff, (50% of 5,000 square feet, multiplied by 50 cents per month for each square foot). 3) City Overhead This cost is calculated in similar fashion to the City Manager's 1984 report. Adjustments have been made to the 1989 figures as follows: a reduction in City Manager, City Clerk, and Finance Department overhead; an increase in City Attorney time; inclusion of Planning Commission and City Council time; and an adjustment to the City Engineer allocation. Staff followed the 1984 analysis as closely as possible taking into account the significant differences between the 1984/85 and the 1988/89 budgets. Applicable Hours Calculation Applicable hours are calculated for four planning staff positions which are directly involved in the permit process. These hours are the source of billable time that the permit fees are based on. Taking the total hours available in a year, (2080), and subtracting for vacation, holidays, sick leave and breaks, the calculation for billable hours is determined to be 1,752 per employee. Multiplying this figure by four employees, staff concludes that 7,008 hours per year are available for billing to permit processing, advance planning and miscellaneous activities, (see attachment "C"). Fee Schedule Revisions The fee schedule is determined by the cost per hour of staff time, and the average amount of staff time necessary to process various permit applications. Currently, the hours spent on applications frequently exceed the 150% billing cap. This factor indicates that the current fees need to be adjusted upward and staff recommends that the base fee deposit be the current limit, (i.e. 150% of the current fee). It is FFrwrNRnNT P.m. ntT•nR•FM••rm-nR•rrl April 14, 1989 page 3 further recommended that the fee be further increased by the percentage increase of the hourly rate as calculated in this report. The percentage increase is 66%, ($45.00/hour to $75.00/hour). These revisions have been illustrated in attachment "B". In the April 5 staff report to Council, it was recommended that the 150% billing cap for services be removed from all permit fees. Removing the cap not only allows the City to recover all costs for the service, but it also encourages developers to work more expeditiously through the permit process. At the April 5 meeting, the Building Industry Association representative voiced his objection to the across the board removal of a maximum processing fee for each entitlement. If the Council wishes to have a cap, one alternative to staff's proposal is to increase the cap to 100% of the proposed initial deposit amount rather than removing it, and allow the Council to determine,(on a case by case basis), if the cap should be adjusted to a higher amount based upon the facts of each case. City staff is developing an accounting system that will notify planners when the applicant is nearing the 70% of the applicable limit. Open communication between planners and the applicant can help both parties to work more efficiently on these processes. As a reminder, the City Engineer is allowed to bill up to 25% of the fee deposit for their services. The fee schedule should be adjusted on an annual basis. Currently there is no quick way to determine these figures. The City of Thousand Oaks has recently hired a consultant to analyze the City's fee schedule. When the analysis is over, they will have a foundation from which to refer to for the calculation of fees on an annual basis. Staff is proposing that investing in this service will beneficial to the City in recovering the costs of permit processing for many years. This will provide staff with a base formula for calculating revised fee schedules on an annual basis. _ Summary The analysis of the actual time billing rate results in an hourly rate of $75.00 for staff time. This figure is based on an analysis of direct and indirect costs incurred by the City in processing land use applications. Additional items included in the recommendation are related to information in the April 5 staff report pertaining to: zone change processing fees; zoning maps; removing the 150% cap chargeable to applicants for staff time spent on permits; and adjusting the 10% contract service administrative fee to 15%. Staff has revised this recommendation to include a fee increase that more appropriately recovers the City's cost and recommends no billing cap but offers an alternative of 100% of initial deposit with council authority to increase above this amount on a case by case basis. Lastly, staff recommends consideration of a consultant that will provide a base formula for annual revisions to the land use application fees. This report represents Moorpark's first comprehensive revision to the permit fee process. The comprehensive revisions to Resolution 83-30 and FFFCA/rRRmNT p.iQ-n9T•nP-FM••rm-np•rr1 April 14, 1989 page 4 Resolution 84-130 will allow the City to better recover costs pertaining to land use application fees now and in subsequent years. Recommendation Adopt revisions to city resolutions pertaining to land use application fees allowing the City to recover costs for processing related permits as follows: 1. To adjust the real time cost accounting rate in Section 1 of Resolution 84-130 from $45.00 to $75.00 per hour; 2. Adjust Section 2 of Resolution 84-130 for Contract Planning from 10% to 15%; 3. Adjust Land Use application processing fees in Resolution 83-30 by increasing all fees to the 150% level of the current amount for initial deposit and adding a 66% increase to reflect the increase in hourly rates; 4. Add a fee for real time cost accounting for zone clearance processing services as number 10.A of Resolution 83-30; 5. Add a fee for actual costs chargeable for zoning maps as No. 21 of Resolution 83-30; 6. Direct staff to pursue proposals for a cost accounting study as part of the 1989/90 work program; 7. Direct staff to return in July 1990, and annually henceforth with revised fees and hourly rates; 8. Direct staff to modify the City Engineer contract to reflect the increased rates as approved; 9. Other changes as determined by the City Council. Attachments: A - Proposed Revisions to Resolution 83-30 B - Resolution 84-130 C - Staff Analysis M=PARK. QKUMANIA City council _MMN� ACTiON� �inirnrn,� 8 ATTACHMENT "A" Proposed Revisions to Resolution 83-30 CITY COUNCIL, CITY OF MOORPARK, STATE OF CALIFORNIA RESOLUTION No. 83-30 RESOLUTION ESTABLISHING SCIEDULE OF LAND DEVELOPMENT PRELIMINARY PROCESSING FEE DEPOSITS EFFECTIVE SEPTEMBER 7, 1983 IT IS HEREBY RESOLVED THAT LAND DEVELOPMENT PROCESSING CHARGES UNDER THE AUTHORITY OF VENTURA COUNTY ORDINANCE CODE SECTIONS 8163-4.2 and 8220, AS ADOPTED BY THE CITY OF MOORPARK ON JULY 29 19832 - FEES SHALL BE IN ACCORDANCE WITH THE FOLLOWING REAL TIME BILLING PROGRAM:^ CITY OF MOORPARK LAND DEVELOPMENT PROCESSING DEPOSIT SCNEDULE PERM 7 TYPE FEE DEPOSIT Revised Fees 1. PLANNED DEVELOPMENT a. Mobilehome Park $1,000.00 (base) + $5.00 per pad $ 2,500 + 12.50 b. Commercial $19100.00 $ 29750 C. Residential**- $1,000.00 (base) + $5.00 per $ 23500 + 12.50 dwelling unit 2. DEVELOPMENT PLAN $I,2Oo.00 $ 3,000 3. CONDITIONAL USE AND OPEN SPACE USE PERMIT -a. Residential and accessory $ 800.00 $ 2,000 Uses thereto b. Agricultural and accessory $19100.00 $ 2,750 uses thereto Commercial/Industrial/ $1,400.00 $ 3,500 .c. Institutional uses d. Oil Drilling and Production $12900.00 $ 49750 I", ILRUC muting program wui require Lae aeposit or Lot appuca feels) s in this resolution. Final cost of processing !aApplTration will be campute actual time expended (based a hourly rates established to recover a butt s� exceed the deposit fee by more than fifty (50) percent, as r otherwise indicated herein. If final cost is less than epmsi[ fee ed, the unused portion of the deposit fee anal efunded to the applicant- cost is more than the de ee received, the balance shall be payable by C icant, but Co exceed fifty (50) percent of the deposit fee. If a Residential Planned Development application is filed concurrently with a Tentative Tract Hap, the deposit fee for the Residential Planned Development permit shall be reduced by 502- c. Quarries and dining^ f. Baste Disposal/Treatment= 4. ZONE CHANGE 5. TENTATIVE SUBDIVISION MAPS a. Tentative Tract Map b. Tentative Parcel dap, Parcel Map Waiver or Conditional Certificate of Compliance C. Time extension of approved tentative tract map d. Time extension of approved tentative parcel map e. Parcel map reversion to acreage f. Lot line adjustments 6. VARIANCE 7. MAJOR MODIFICATION _ 8. MINOR MODIFICATION 9. ADMINISTRATIVE CLEARANCE $3,000.00 deposit $3,000.00 deposit $1,250.00 41,800.00 (base) + $35.00 per lot or unit $1,400.00 (base) + $50.00 per lot or unit 50% of Current deposit fee 50% of Current deposit fee $ 300.00 (non-refundable) $ 750_00 (non-refundable) $ 950.00 80% of current deposit fee 20% of current deposit fee or $200.00 whichever is greater $ 200_00 (non-refundable) 10. ZONE CLEARANCE $ 20.00 + $2.00 per additional lot/unit (non-refundable) 10.A. Zone Clearance Processing $ No Previous Fee Final cost of processing uZ TT upon actual Time expen3eff YGased upon the hourly rates established to cover all costs)_ If final cost is less than the deposit fee received, the unused portion of the deposit fee shall be refunded to the applicant. If final cost is more than the deposit fee -received, the balance shall be payable by the applicant. ^' On any Zone Change application filed concurrently with a Tentative Tract Nap and/or Residential Planned Development permit, the deposit fee for the zone change shall be reduced by 50%. R $ 7,500 $ 7,500 $ 3,125 $ 49500 + 87.50 $ 31500 + 125.01 $ 750 $ 625 $ 2,125 $ 500 $ 500 $ 50 + 5.00 $ 75/hr.* R Current Fees Revised Fees 11. APPEALS 25% of current deposit fee or $ 750 $300.00 whichever is greater 12. REVOCATION 50% of current deposit fee 13. VIOLATION PENALTY= 100% of current deposit fee, not to exceed $500.00 (non- $19250 refundable) 14. ENVIRONMENTAL IMPACT REPORTS a. Environmental Impact Report** $2,000.00 deposit $59000 b. Environmental Impact Report $1,000.00 deposit $29500 Addendum`-'-` C. Special Consultants Total prepayment of consultant's estimated cost, or acceptable bond. 15. LAND CONSERVATION ACT CONTRACT - A RICULTURAL PRESERVES a. Applications $ 800.00 $29000 b. Cancellation $ 800.00 $29000 C. Portion Non -Renewal $ 800.00 $29000 16. SIGN PERMIT $ 20.00 (non-refundable) $ 50 17. LANDSCAPE PLAN REVIEW f 200.00 deposit $ 500 AND INSPECTION=* 18. GENERAL PLAN AHENDMENTS¢ $1,000.00 (base) + $29500 + 12.50 $5_OO.per acre 19. PLANNED COMMUNITY $1,000.00 (base) + $29500 + 25.00 $10.00 per acre 20. XEROX COPIES 8}" x 11" and 8y' x 14" $0.50 for 1st page + 0.25 per each additional page 11" x 17" $1.00 for 1st page + 0.75 per each additional page up to nine pages + $0.50 per each additional page thereafter 21. Zoning Maps New Item $ Actual Cost $, In addition to permit deposxt fee. Final cost of processing will be computed upon actual time expended (based upon the hourly rates established to cover all costs)_ If final cost is less than the deposit fee received, the unused portion of the deposit fee shall be refunded to the applicant. If final cost is more than the deposit fee received, the balance shall be payable by the applicant. THE FOREGOING RESOLUTION was duly and regularly adopted by Elie City Council of the City of Hoorpark, California on Ehe7t11 day of September, 1983. V WW _dWrim. wr.. Please Note: All references to specific Planning Fees in the Text of the Zoning Ordinance was deleted by. amendment, pursuant to Ordinance 3034 adopted by the Board of Supervisors on June 24, 1975. !� ^ 3( Attachment B RESOLUTION NO. 84- i3 A RESOLUTION OF THE CITY OF MOORPARK, CALIFORNIA, FIXING REAL TIME COST ACCOUNTING FEES FOR PLANNING STAFF. WHEREAS, the City of Moorpark provides planning services; and WHEREAS, the cost of this service will be off -set by fees which accompany land use entitlement requests; and WHEREAS, City planning staff costs are charged against fees, based on real time cost accounting; NOW, THERFORE, THE CITY COUNCIL OF THE CITY. OF MOORPARK, CALIFORNIA, DOES RESOLVE AS FOLLOWS: SECTION 1. That the City Planning staff shall bill actual time spent on land use applications at a real time cost accounting rate of $45.00 per hour. SECTION 2. Contract Planning staff shall be billed at cost, plus ten per cent (10%). -. SECTION 3. Pursuant to Government Code Section 54992(a), if the fees in Section,No. 1-above. create revenues in excessof actual - 'costs, thoserevenuesshall be used to reduce the hourly rate in subsequent years. SECTION 4. .That this resolution shall be effective and operative as of duly 1, 1984. - SECTION 5.. That Resolution No. 83-31, entitled: A RESOLUTION OF THE CITY OF MOORPARK FIXING REAL TIME COST ACCOUNTING. FEES REGARDING LAND USE APPLICATIONS, ` adopted September 7, 1983, be and the same is hereby repealed. PASSED AND ADOPTED this 5th day of September, 1984. Mayo the f Moorpark, Califo •nia ATTEST: City Clerk (SEAL) ,c /Z) STATE OF CALIFORNIA COUNTY OF VENTURA SS. CITY OF MOORPARK 1, nnara ❑. nANKiig , City Clerk of the City of Moorpark, California, do hereby certify that the foregoing Resolution No. a 4-1 an was adopted by the City Council of the pity of Moorpark at a regular meeting thereof held on the 5th day of September , 19 84 and that the same was adopted by the following vote, to wit: AYES: CouncilmenberS Harper, Straughan, Beaulieu, ( Prieto and Mayor Yancy-Sutton; NOES: None; ABSENT: None. WITNESS my hand and the official seal of said City this Sth day of September , 19 84 REVISIONS TO RESOLUTION 84-130, PERTAINING 1U THE ACTUAL COST OF STAFF TIME FOR THE PROCESSING OF APPLICATIONS FOR LAND USE RELATED PERMITS Calculation of Hours Directly Related to Pe mit Processing Total Hours Available per Year 2080 Less Vacation at 10 days/yr. X 8 bra. each <80> Less Holidays at 11 days/yr. X 8 hrs. each <88> Less Sick Days at 6 days/yr. X 8 hrs. each <48> Less Breaks at 235* days/yr. X one half hour each <112> Sub -total 1752 TOTAL (multiply by four employees) 7008 Hours * 2080 hours less vacation, holidays, sick days then divide by 8 hours per day equals 235 days. Coats Applicable to Permit Processing A) Direct Costa Position Salary Benefits T2tals Associate Planner 37,092 12,982 509074 Senior Planner 40,896 14,314 559210 Senior Planner 40,896 14,314 559210 Director of C.D. 55,188 18,266 70,454 TOTAL DIRECT COSTS $2302948 B) Department Overhead Item City Coat Deductions Applied Amount Personnel 384,924 2802013* 1049911 Malnt. S Oper. 195,240 138,000 57,240 Capital Exp. 3819713 3669444 159269 Fixed Overhead 30,000 15,000 15,000 TOTAL DEPARTMENT OVERHEAD $1929420 * Personnel deductions calculated by subtracting the am of: 90% of the Code Enforcement position; 5% of the Administrative Secretary position applicable to Cade Enforcement activities; and the direct costa calculated above. II :.� u,. ...� �_..... /Z C) General Overhead Item Actual Deduction Net % Appl. Total Costs Costs Costs C.Council 13,000 0 13,000 25 3,250 C.Mgr. 95,931 0 95,931 20 19,186 C.Clerk 92,214 8,000 84,214 15 12,632 C.Atty. 66,100 0 669100 33 21,813 C.Treas. 900 0 900 15 135 Fin.Off. 82,019 0 829019 15 12,303 Adm.Ser. 29,415 0 29,415 15 4,412 CEng. 381,550 341.050 40,500 75 30,375 TOTAL GENERAL OVERHEAD $1049106 COST SUMMARY A) Direct Costs ........................ 230,952 B) Department Overhead ................. 1929420 C) General Overhead .................... 104,106 GRAND TOTAL............................$527,478 Divide by Total Hours 7,008 TOTAL COST PER HOUR.....................$75.27 Rounded to the nearest dollar $75.00