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08-18-2020 - AGENDA ITEM 10 CONSIDERATION OF AMENDED FEES FOR GRADING PLAN REVIEW AND GRADING PERMIT FEES - PUBLIC HEARING12/1/2020 Print Staff Report AGENDA ITEM NO. 10 DATE: August 18, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF AMENDED FEES FOR GRADING PLAN REVIEW AND GRADING PERMIT FEES - PUBLIC HEARING RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Conduct a Public Hearing regarding the adoption of updated fine and fee schedule; and 2. Adopt the following resolution: RESOLUTION NO.2020-89 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING EXISTING FEE AND PENALTY SCHEDULE ADOPTED BY RESOLUTION 2019-92 BACKGROUND: On December 17, 2019, City Council adopted Resolution 2019-92 establishing fees and fines charged for the services provided by the City. Item G, as approved, included only the grading plan review for subdivisions. The City adopted Los Angeles County's fees for the same and similar services. Los Angeles County Land Division grading plan review fees are for the review of grading plans for subdivisions. The inspection fees (permit fees) for such projects are the same fees applicable to non -subdivision projects. The amendment to the existing fee schedule aims to adopt the Los Angeles County Building Code Table 1-B grading plan review for the projects that are not part of a subdivision and the same Table 1-B also establishes the inspection fees (permit fees) for grading permits. Resolution No. 2020-89 is amending the current engineering fees, Item G, to include grading plan review for small projects that fees are considerably lower than the fees required to review subdivisions. The permit fees are established to inspect the grading projects based on the cubic yardage of the earth volume handled and are the same for both subdivision projects and the others. DISCUSSION: The City's last adopted Fee Schedule is on December 17, 2019. The fees that were modified included the Building, Engineering, and Code Enforcement Divisions fees. The said fees were for the Building and Engineering Divisions to adopt the County schedule of fees. https://destinyhosted.com/print_ag_memo.Gfm?seq=908&rev_num=0&mode=6demal&reloaded=true&id=93782 1/2 f 2/l/2020 Print Staff Report At this time, City staff is recommending the engineering fees, Item G- Grading Fees, be revised per the County schedule of fees of Land Division for Subdivisions for the grading plan review of Subdivision projects. Staff further is recommending the engineering fees Item G- Grading Fees flrther be revised to include grading plan review for projects other than Subdivision, and include inspection fees (permit fees) per the schedule of fees per Resolution 2019-92. The amended fees will result in a Single Family Dwelling grading plan check with Earth Volume about 1000 CY to be $2,401.91 for two reviews (typically can be completed in two reviews) versus the land development fees for the same amount of cubic yard is $8,509 for five reviews (typically land development of subdivisions may take about five reviews). Proposed fees are set at rates which ensure the fees charged by the City (a) provide for reasonable cost recovery in providing services, (b) do not exceed the cost of providing the service, and (c) are charged to the specific individuals or groups benefiting from the service. The proposed amendment benefits homeowners and builders of smaller project and still allows the City to fully recover its costs. The proposed fees will ensure both cost recovery and appropriate staffing levels so that reviews and inspections are completed in a timely manner. Increased funding would allow the ability to increase staffing through the consultants for inspections or other services. It is staffs experience that builders and property owners want consistency and predictability in the process, which these fees will provide for. The revised fees are denoted by an arrow in Exhibit A of Attachment No. 1. LEGAL REVIEW: The City Attorney's Office has reviewed the proposed resolution and approved it as to form. OPTIONS: Options available to the City Council include: 1. Approve staff's recommendation; or 2. Make changes to proposed fees; or 3. Provide alternative direction. Prepared by: Michael Ackerman, PE, City Engineer Fiscal Impact FISCAL IMPACT: The fiscal impact will be negligible and the City will still be covering its cost of providing the grading and plan check services. Attachments Attachment No.I -Resolution No. 2020-89 CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL Respond to the Global COVID-19 Pandemic GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.Gfm?seq=908&rev_num=0&mode=6demal&reloaded=true&id=93782 2/2 RESOLUTION NO.2020-89 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING EXISTING FEE AND PENALTY SCHEDULE ADOPTED BY RESOLUTION 2019-92 WHEREAS, the City Council of the City of West Covina adopted Resolution 2019-92 on the 17' day of December 2019 establishing fees and fines charged for the services provide by the City; and WHEREAS, the Grading Permit Fees are for the inspection of the work authorized for such permits; and WHEREAS, the City desires to adopt the Los Angeles County Grading Plan Review and Permit Fees for Land Development of Subdivision; and WHEREAS, City desires to amend the Engineering Fees Item G) Grading of the adopted Resolution 2019-92 on the 17'b day of December 2019 to include separate fees for grading for land development of Subdivisions and for grading other than Subdivision; and WHEREAS, the City desires to adopt the Los Angeles County Grading Plan Review and Permit Fees per the Building Code of the Los Angeles County for project other than land Development of Subdivision. WHEREAS, the fees adopted per Resolution 2019-92 include Building Code fees adopted with a set ratio at 1.65 times of the Los Angeles County fees, City desires to adopt the Los Angeles County Grading Plan Review and Permit Fees per the Building Code of the Los Angeles County with the same set ratio. WHEREAS, all other engineering fees adopted by the City Council of the City of West Covina adopted Resolution 2019-92 on the 17s' day of December 2019 establishing fees and fines charged for the services provide by the City remain unchanged otherwise changed with this resolution; and WHEREAS, pursuant to the provisions of the California Constitution and the laws of the State of California, the City is authorized to adopt and implement rates, fees, and charges for municipal services; provided, however, that such rates, fees, and/or charges do not exceed the estimated reasonable cost of providing such services; and WHEREAS, California Government Code section 66016 requires notice to be given and data be made available at specified times prior to the adoption of new rates, fees, and charges, or prior to adoption of increases in existing rates, fees, and charges; and WHEREAS, California Government Code section 66018 requires notice to be published in accordance with California Government Code section 6062a and data be made available concerning rates, fees, and charges prior to conducting a public hearing with respect to the adoption of new rates, fees, and charges, or the adoption of increases in rates, fees, and charges for which no other procedure is provided by law; and WHEREAS, pursuant to California Government Code sections 66016 and 66018, the City Council has held at least one public hearing, as part of a regularly scheduled meeting, at which oral and written presentations could be made with respect to the rates, fees and charges contemplated by this resolution; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. RECITALS. The City Council hereby finds and determines that the above recitals are true and correct. SECTION 2. REASONABLE COST FINDING. The City Council hereby finds and determines that based upon the data, information, analysis, and oral and written documentation presented to the City Council concerning the rates, fees, and charges described in Exhibit "A," attached hereto and incorporated herein by this reference, the rates, fees, and charges set forth in Exhibit "A" do not exceed the established reasonable cost of providing the service for which the rates, fees, or charges are levied. SECTION 3. FEE SCHEDULE ADOPTION. The rates, fees, and charges set forth in Exhibit "A" are hereby adopted and approved as the rates, fees, and charges for the services identified for each such rate, fee, and/or charge. Such rates, fees, and charges shall be collected by the City's Finance Department when services are provided by the City or its designated contractors. SECTION 4. FINES. The fines and penalties set forth in Exhibit "A" for violations of the West Covina Municipal Code are hereby adopted. SECTION 5. SEPARATE FEE FOR EACH PURPOSE. All fees set by this resolution are for each identified process. Where fees are indicated on a per unit of measurement basis, the fee is for each identified unit or portion thereof within the indicated ranges of such units. SECTION 6. ADDITIONAL FEES. Additional fees shall be required for each additional process or service that is requested or required, including when the requestor's delay increases costs, or if the original fee charged was too low in error. SECTION 7. REFUNDS. Unless otherwise provided in the West Covina Municipal Code or state law, in the event the person requesting the service withdraws his/her/its application or otherwise terminates the request for service before completion of the provision of the service, or if an error is made in calculating the fee, the City shall determine if any refund is owing, based on whether all costs reasonably bome have been incurred or committed, as well as the cost of refunding the fee. An amount not spent or committed shall be refunded, minus the administrative cost of processing the refund. Any extra amount charged in error shall be refunded without deduction. Notwithstanding the foregoing, refund amounts of twenty dollars ($20.00) or less shall be refunded only upon written request of the fee payor. SECTION 8. ANNUAL ADJUSTMENT OF FEES. The fees, rates, and charges set forth in the Fee and Penalty Schedule may be adjusted on July 1 of each year by an escalation factor equal to changes in the Consumer Price Index for All Urban Consumers for the Los Angeles - Riverside -Orange County area ("CPI-U"), published by the U.S. Department of Labor, Bureau of Labor Statistics, which shall be calculated each May based on changes in the CPI-U from the previous May. Such annual adjustment may be approved by the City Manager and shall be incorporated into the Fee and Penalty Schedule. In no event shall an increase in any rate, fee, or charge exceed the reasonable cost of providing the service for which such rate, fee, or charge is identified. SECTION 9. INTERPRETATION OF RESOLUTION. Administrative interpretations of this resolution, including but not limited to provisions for waiver and appeal, shall be determined by the City Manager as set forth in West Covina Municipal Code section 2-407. SECTION 10. REPEALER. All provisions of previously adopted resolutions establishing, or that are otherwise inconsistent with, any of the rates, fees, charges, or fines set forth in Exhibit "A" are hereby repealed. SECTION 11. EFFECTIVE DATE. The development -related fees, as defined by the Mitigation Fee Act (California Government Code § 66000 et seq. ), set forth in Exhibit "A" adopted or increased by this resolution shall take effect on September 18, 2020. SECTION 12. CERTIFICATION. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions. APPROVED AND ADOPTED this 18th day of August 2020. Tony Wu Mayor APPROVED AS TO FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-89 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 18th day of August, 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick, CMC Assistant City Clerk EXHIBIT A -GRADING FEES G. 1) Grading Plan Review for Subdivisions and Parcel Maps Volume (CY = cubic yards) Base Fee (Plus %of Volume) % Volume 1-10,000 CY $8,509.00 0 10,001 - 100,000 CY $8,509.00 16.72% of excess over 10,000 100,001- 500,000 CY $23,557.00 4.74% of excess over 100,000 500,001 - 1,000,000 CY $42,517.00 3.50% of excess over 500,000 1,000,001 CY and above $60,017.00 1.50% of excess over 1,000,000 G. 2) Grading Permit Inspection for Subdivisions and Parcel Maps Value of Grading Project Base Fee (Plus %of Value) % of Value $1- $1,625 $399.00 0 $1,626 - $20,000 $399.00 24.06% of excess over $1,625 $20,001- $100,000 $4,821.00 13.56% of excess over $20,000 $100,001- $500,000 $15,669.00 7.16% of excess over $100,000 $500,001 and above $44,309.00 3.77% of excess over $500,000 G. 3) Grading Plan Review for all other Projects Volume (CY = cubic yards) Base Fee (Plus Additional Fee) Fee Per Additional CY 1-1,000 CY $731.28 for first 100 CY $75.05 per additional 100 CY 1,001-10,000 CY $2,220.74 for first 1,000 CY $153.95 per additional 1,000 CY 10,001 - 100,000 CY $3,606.41 for first 10,000 CY $90.92 per additional 1,000 CY 100,001 CY and above $11,804.60 for the first 100,000 CY $251.30 per additional 10,000 CY G. 4) Grading Permit Inspection Fees for all other Projects Volume (CY = cubic yards) Base Fee (Plus Additional Fee) Fee Per Additional CY 1-100 CY $458.54 0 101-1,000 CY $458.54 for first 100 CY $110.05 per additional 100 CY 1,001-10,000 CY $1,856.75 for first 1,000 CY $130.35 per additional 1,000 CY 10,001 - 100,000 CY $3,028.74 for first 10,000 CY $83.16 per additional 1,000 CY 100,001 CY and above $10,523.21 for first 100,000 CY $207.41 per additional 10,000 CY