HomeMy WebLinkAbout1983-05-03; City Council; 7343-1; Improvement Plan Review Fee changesGIT JF CARLSBAD — AGEND, 3ILL
AR« 7343-1
MTG. 5-3-83
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TITLE:
REVISION TO CITY CODE TO
INCREASE THE IMPROVEMENT PLAN
REVIEW FEE
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RECOMMENDED ACTION:
Adopt Ordinance No. 9681 increasing the improvement plan review fee.
ITEM EXPLANATION:
At its meeting of April 12, 1983, the City Council introduced Ordinance No.
9681; however, a public hearing must be held prior to adopting the ordinance..
The current fee is 1% of the value of the improvements. Improvements include
all street work (paving, sidewalk, street lights, etc.), storm drain systems and
water and sewer systems. The proposed fee is on a sliding scale as follows:
ESTIMATED COST OF IMPROVEMENTS FEE
$ 0 to
20,000 to
50,000 to
100,000 to
250,000 to
500,000 to
$ 20,000
50,000
100,000
250,000
500,000
1,000,000
Over $1,000,000
3.
2.
2.
1.
1.
1.
0%
5%
0%
75%
5%
25%
($
(
(
(
(
(
1,
2,
4,
7,
200
600
250
000
375
500
minimum)
minimum)
minimum)
minimum)
minimum)
minimum)
1.0% ( 12,500 minimum)
Improvement
Cost
$ 356,000
$2,614,000
Existing
Fee
$ 3,560
$26,140
Proposed
Fee
$ 5,340
$26,140
Two examples of actual projects processed last year will indicate how fees will
change:
Project
Oak Communications
Carlsbad Research Center
The first project consisted of street widening along the frontage. The proposed
fee increase would be $1,780. The second project is a 100 acre portion of an
industrial park. There would be no fee increase for this project.
There are two reasons to increase the fees. First there are certain fixed
amounts of work that do not depend on the size of the project such as logging
the project, pickup and delivery of plans, preparing bonds and agreements,
comparing the improvement plans with the final map. Secondly, the consultant
planchecker, recognizing these fixed handling costs, requires a proportionally
higher fee for small projects.
FISCAL IMPACT:
All the costs involved will be borne by the developer. The fee increase gives
the City the flexibility to use a consultant planchecker or do the work in-
house with the assurance that there will be no cost to the City and a quick
plan check time for the developer.
EXHIBIT:
1. Memo to City Manager from City Engineer: Cost Analysis
2. Ordinance No.9681 approving an increase in the improvement plan review fee.
APRIL 29, 1983
TO: CITY MANAGER
FROM: City Engineer
IMPROVED PLAN REVIEW FEE - COST ANALYSIS
During the period July 1, 1982 to March 1, 1983, the City collected $29,000
in improvement plan check fees. Based upon a fee of 1% of estimated con-
struction cost, this represented $2.9 million in constructed value at an
average of about $300,000 per project.
The cost to the City in terms of direct labor is about $30,000 based upon
an estimate of sixty manhours per week over a period of about 32 weeks.
The actual value of this time would be more than $30,000 taking into account
general City overhead required to support this activity and the lost time of
staff standby time. Therefore, the fees collected were not equal to the cost
of the services.
It is now proposed to use contract labor to provide this service, thereby
allowing the staff members previously used to be assigned other work so as to
avoid increasing the size of staff. Whether or not contract labor would be
used to do this work, it should be noted the fee structure was inadequate to
pay the cost of the services rendered and should therefore be adjusted.
The City requested proposals for plan checking services from eight firms and
received five proposals. Willdan Associates and Berryman & Stephenson, Inc.
were rated best based on qualifications and Willdan was selected, in part,
because Berryman & Stephenson's proposal fee was high. Both companies pro-
posed a fee based on a percentage of improvement construction cost as follows.
Estimate of Cost Willdan Fee B&S Fee
$ 0 - $ 20,000 2.25% 2.80%
20,000 - 50,000 1.88% 2.10%
50,000 - 100,000 1.50% 2.10%
100,000 - 250,000 1.31% 1.60%
250,000 - 500,000 1.13% 1.60%
500,000 - 1,000,000 .94% 1.60%
over - 1,000,000 .75% .80%
Two basic methods of computing the fee were considered: One, as a percentage
of the value of the improvements or, two as an hourly rate times the number of
hours worked by the consultant to check the plans. The hourly rate system
required detailed recordkeeping of all hours spent and would not provide
incentive on the part of the consultant to complete the checking quickly. Also,
the actual cost could not be determined in advance which would deter the
developer in effectively budgeting his project.
Page -2-
IMPROVED PLAN REVIEW FEE - COST ANALYSIS
APRIL 29, 1983
The percentage fee method is based upon reasonable estimates of the actual
construction cost, and provides a uniform basis to collect the fees and pay
the consultant.
An example of the impact of the fee increase using a $300,000 project is
provided as follows:
a. Previous fee schedule - $300,000 x 1% = $3,000.00
b. Proposed fee schedule - $300,000 x 1.5% = $4,500.00
The consultant would be paid $3375.00 for the service and the City would
retain $1125.00 to offset expenses of processing the plans for checking and
the followup required in dealing with the developer.
This is considered to be an economical procedure without undue stress on
the use of general funds to support this activity.
ROY LMCffCKtEY, JR.
RLK:mmt
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ORDINANCE NO. 9681
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING TITLE. 20, CHAPTER 20.08
OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF
SECTION 20.08.050 TO REVISE THE IMPROVEMENT PLAN
REVIEW FEE
The City Council of the City of Carlsbad, California,
does ordain as follows: '
SECTION 1: That Title 20, Chapter 20.08 of the Carlsbad
Municipal code is amended by the amendment 'of Section 20.08.050
to read as follows:
"20.08.050 Improvement plan review and construction
inspection fees.All construction and installation of
improvements shall be subject to plan review and inspection by
the City Engineer or other appropriate department, and the
subdivider shall arrange for inspection prior to starting
construction or installation of the improvements. The costs to
the City in examining improvement plans, inspecting improvements
and monuments shall be paid by the subdivider. An improvement
plan review fee based on the approved engineer's estimate of the
total improvement costs, shall be paid to the engineering
department upon submittal of improvement plans for review as
follows:
ESTIMATED COST OF IMPROVEMENTS FEE
0 to ?20,000
20,000 to 50,000
50,000 to 100,000
100,000 to 250,000
250,000 to 500,000
500,000 to 1,000,000
Over 1 ,000,000
3.0% ($200 minimum)
2.5% (600 minimum)
2.0% (1,250 minimum)
1.75% (2,000 minimum)
1.5% (4,375 minimum)
1.25% (7,500 minimum)
1.0% (12,500 minimum)
An improvement construction inspection fee of two percent of the
approved engineer's estimate of the total improvement costs shall
be paid prior to approval of the final map or the commencement of
construction of the improvements, whichever occurs first."
EFFECTIVE DATE: This ordinance shall be effective
thirty days after its adoption, and the City Clerk shall certify
to the adoption of this ordinance and cause it to be published
at least once in the Carlsbad Journal fifteen days after its
adoption.
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held the 12th day of April 1983.
PASSED AND ADOPTED at a regular meeting of said
City Council held the 3rd day of May , 1983, by
the following vote, to wit:
AYES: Council Msiribers Casler, Lewis, Kulchin, Chick and Prescott
NOE'S: None
ABSENT: None
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MARY H. CALLER, Mayor
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ATTEST:
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__ ALETHA L. RAUTENKRANZ, City Clerk
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