PREPARED BY: JILL A. MERCURIO DATE OF MEETING: 12/17/18
SUBJECT:
TITLE
PUBLIC HEARING AND RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO ADOPTING AN AMENDED FEE SCHEDULE FOR PUBLIC WORKS RELATED FEES FOR SERVICE
Label
CITY MANAGER RECOMMENDATION
Recommendation
Conduct public hearing; adopt Resolution
Body
Compliance statements
FY 2018-21 Council Priority Workplan
Budget Spending Controls is an adopted policy item under the adopted FY 2018-21 Council Priority Workplan, effective November 1, 2017.
CEQA Compliance Statement
This creation of a funding mechanism is not a project as defined by CEQA.
BACKGROUND
On May 2, 2016, an updated Master Fee Schedule was approved by City Council and adopted per Resolution 2016-166.
At that time, a number of City plan review and inspection services were separated between Public Works/Engineering and Community & Economic Development. Since then, the two departments have restructured so the department responsible for providing these services is more logical and transparent.
When a project proposes to make site improvements, such as on- and off-site paving, lighting, drainage systems, landscaping, grading, etc. (work not related to a building,) the applicant prepares and presents plans to the City. The City reviews the project plans to ensure that all guidelines, project conditions, requirements, and regulations are being met. Once the City staff has reviewed and approved the plans, City staff is responsible for inspecting the improvements to ensure they are being constructed per the approved plans. A number of construction activities that occur on private property that had been assigned to Community & Economic Development are now being handled by Public Works/Engineering, but there are no Public Works fees defined to cover the staff costs for these activities.
While Public Works currently reviews site improvements within the public right-of-way (off-site improvements), it is industry standard to have Public Works/Engineering staff provide plan review and inspection for all “site improvements” - both onsite and off-site construction activities not related to building code requirements. Accordingly, Public Works is clarifying its role in this process by recommending the title of the fee categories change as follows:
Public Right of Way Site Improvement Plan Checks
Public Right of Way Site Improvement Inspections
The new fee titles and related fees primarily impact more complex projects, including utility work and more extensive residential and commercial construction (Tier 4 in the fee schedule). References to work only within the right-of-way have been stricken where appropriate, as shown in the attached Amended Fee Schedule.
The change in fee titles and responsible department will not result in any increases in fees for the plan review and inspection of Site Improvements. These fees are based on a percentage of the valuation of the work being reviewed and inspected.
As site grading will be included in the Site Improvement definition, Community & Economic Development will no longer be charging the fees for grading listed in Sections I and IV of the City’s fee schedule.
Additionally, there are a number of Public Works fees for work that is not permitted, or performed without inspections, identified in the fee schedule as “Penalty Fees” which apply in the following situations:
• Work that has been issued a permit and has been completed, but inspection was not requested or performed - the City may charge twice the permit fee.
• Work that has been issued a permit, inspection scheduled, but not is not ready for inspection when the inspector arrives - the city may charge one hour of staff time.
• Work that has not been issued a permit and has been completed - the city may charge three times the permit fee.
However, staff missed the following situation:
• Work that has not been issued a permit, and work has commenced, but not yet completed.
It is recommended that the City add this fee and be permitted to charge twice the permit fee.
The City can adopt these kinds of fees for encroachment permits, plan review and for processing development applications, etc. under the City’s police power. These kinds of fees fall within the exemptions of Proposition 26 and are not considered taxes, as long as the fees do not exceed the reasonable cost of providing the service. Fines and penalties imposed for a violation of law are also exempt from Proposition 26.
Notice of this public hearing was provided in accordance with the Government Code, including publication twice in the newspaper. A copy of the publication notice is attached. After opening the public hearing and considering any oral or written comments, the City Council should consider the resolution and attachment with the revised fees.
FISCAL IMPACT
There may be increased expenses, and correlating revenues, from the clarified fee structure to ensure 1) that the requirements and conditions of each project are appropriately implemented, and 2) continued safety to the public through trained oversight (plan review and inspection) of all site work and improvements within the City.