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HomeMy WebLinkAboutAGENDA REPORT 1990 1219 CC REG ITEM 08OMOORPARK ITEM • PAUL W. LAWRASON JR. Mayor BERNARDO M.PEREZ Mayor Pro Tern SCOTT MONTGOMERY Councilmember JOHN E. WOZNIAK Councilmember LILLIAN KELLERMAN City Clerk TO: FROM: DATE: SUBJECT: ^ORPARK, CAUFCRN!A POP" City Counc! Meefing ° of O ! 199 ACTION: 10% O9 9 rE, M E M O R A N D U M The Honorable City Council STEVEN KUENY City Manager CHERYLJ.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development JOHN F. KNIPE City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer Donald P. Reynolds, Jr., Management Analyst December 13, 1990 Consider Setting Public Hearing Date for Revisions to City Planning Fee Resolutions The following report will provide the Council with a preliminary estimate of the proposed revisions for Resolution 89-605, which provides the City with the authority to collect fees for planning services, (or land use development permits). If the Council concurs with the methodology described in this report, staff has proposed that pursuant to Government Code 54992, the matter be scheduled for consideration January 9, 1991, so that the related fee resolution can be updated in order to allow the City to recover its costs for this service. Background On April 5, 1989, staff reported to the Council that the City was not recovering 100% of the cost of processing land use development permits. This was because the previous rate of $45/hr had not been revised since 1984. On May 15, 1989, staff presented an analysis of related costs which resulted in the City's interim adoption of an $85/hr fee. During the period between Council meetings, staff was directed to meet with concerned parties and discuss the City's methodology in its analysis of City planning costs. As a result of this meeting, staff returned to the Council with a compromise between the City and the Building Industry Association; a fee of $65/hr. The Council accepted this fee, contingent upon staff procuring a professional consulting firm to develop a methodology to set the fee. The City's firm would also analyze the related costs and recommend a fee to recover 100% of the City's expense, based on cost recovery principles. 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 FEE1 December 13, 1990 Page 2 On April 22, 1990, the Council appropriated funds for this purpose. Discussion The City procured a reputable consulting firm to analyze the City's planning functions, indirect Department costs, and City overhead. The consultant initiated its endeavor in early May of 1990. The report approaches the analysis by dividing different aspects of the City's cost into four categories; direct Department costs, indirect Department costs, general City overhead, and a use allowance. Each category was carefully developed, applying deductions when appropriate in order to avoid double counting or the counting of non -applicable items. The sum of the four categories is divided by the total hours directly related to permit processing by the Department, to arrive at a cost per hour. Based on the consultant's work, the 1989/90 fee should have been $69 per hour, and staff has been working with this methodology in order to make adjustments for fiscal year 1990/91. Many changes are reflected in the 1990/91 budget, which has increased the consultant's 1989/90 fee recommendation by approximately 13%. Department staff increased by one 1.6 positions, with an upgrade of one position. The Assistant Planner position has been added to the direct costs of the Department whereas in 1989/90, the Planning Technician ('89/90 title) position was part of the indirect costs. The Code Enforcement Technician, and increase of the secretary position (from 40% in 1989/90 to 100% in 1990/91) costs have been reflected in changes to the indirect Department overhead. City benefits increased, slightly increasing all aspects of the calculations. City overhead has increased because of recent capital improvements and related maintenance and insurance provisions. The cumulative result of these changes is an estimated fee for fiscal year 1990/91 of $78/hr. The City's effort to apply a methodology that is common and acceptable to all concerned parties, and allows the City to potentially recover 100% of its current cost for this fiscal year, is very close to completion. The new methodology will allow the fees to be routinely adjusted at the beginning of each fiscal year. The completed report will be available December 19, 1990, and be made available to the public and special interest groups. The Building Industry Association and Chamber of Commerce will be provided copies. Staffs intention is to make the new planning rates effective January 1, 1991. Fee 1 December 12, 1990 Page 3 Recommendation That the City Council authorize staff to schedule to a public meeting pursuant to Government Code 54992, for January 9, 1991, in order to consider revising the current rates for planning fees.