HomeMy WebLinkAboutCC AG PKT 2013-11-12 #FDATE: November 12, 2013
FROM: Jim Basham, Director of Community Development
SUBJECT: BUILDING DIVISION FEE STUDY
The purpose of this report is to provide the City Council with a status on the Building
Division Fees as compared with other neighboring cities. In addition, staff is seeking
direction from City Council regarding any specific issues that should be addressed
which may not be included in the current methodology utilized used by this study.
rhe study concludes that the City of Seal Beach is ranked on average fourth lowest
amongst nine (9) cities surveyed in total building and plan check fees,
DATA COLLECTION
For the purpose of data collection, jurisdictions in close proximity and/or similar
characteristics with that of the City of Seal Beach were selected. Thus far, the fee
structure and schedules have been collected from nine jurisdictions including
Huntington Beach, Cypress, Cerritos, Hermosa Beach, Lakewood, Long Beach, Los
Alamitos, Palos Verdes Estates, and the County of Los Angeles.
While the primary focus was the collection of fee information directly related to the
building permitting project fees, the data provided by jurisdictions included a number
of other miscellaneous fees that can and will be compared, such as general plan
update and record imaging fees.
DATA ASSEMBLY
The data collected thus far has been tabulated in a manner that allows the best direct
comparisons of the individual fees as well as total project fees. The individual fee
schedules for the jurisdictions are not exactly identical and thus some level of
judgment is necessary to ensure reasonable conclusions can be assimilated. The
major fee calculations for items such as building permits and plan review fees are
done rather consistently although several of the jurisdictions divide their plan review
fees into a base fee plus add-on fees for additional parts such as energy,
accessibility and green code compliance reviews. These are often not obvious in
their fee schedules and make the task of data assembly more cumbersome and time
consuming. Once the data has been entered into the tabulations, bar charts showing
a visual representation can be produced which provides a better overall picture of
Agenda Itern— F
where the City of Seal Beach's various fees rank among the other jurisdictions. An
sample chart is included as Attachment A.
Ig v 4 R I J, I I k, T-,I ZfA g I k, 1111 IILLel'
All jurisdictions use the same basic method for computing Building fees. For
example, the determining of fees for a new building starts with the calculation of a
building construction valuation. All jurisdictions use tables containing construction
costs per square foot based on the particular use of the building and the materials
used in the construction. For example, a general office building constructed of wood
frame would cost less to build than the same general office building constn-jcted of
reinforced concrete. Similarly, the cost to construct a retail sales building would be
expected to cost more than a building used as a warehouse. While the basic method
for computing the construction valuation is the same, it is obvious from the data
collected that the construction cost per square foot tables do vary between
jurisdictions.
Once a building construction valuation has been determined, the next step is a
computation of a building permit fee based on the valuation thus determined. While
there is some variation in the building permit fee assigned to a particular construction
valuation, the method of computation of the building permit is essentially the same
amongst all jurisdictions. The building permit fee is thus driven by two factors, the
construction valuation and the building permit fee amount assigned to a particular
valuation.
Understanding how the building permit fees are typically calculated help to explain
why building permit fees might vary from time to time purely based on the fact that
the construction valuation tables used by jurisdictions are or are not kept current.
While this was not the case in the jurisdictions surveyed as part of 'this project, data
available from other sources show that construction valuation tables for some
jurisdictions have not been updated for five to ten years. Thus, comparisons done in
different years may result in showing that a particular jurisdiction is the most
expensive in one year and lower than the others in another year. The purpose of
going through this rather detailed explanation is to illustrate how conclusions from the
data need to be carefully determined so as to not take specific actions which seem
reasonable now but questionable later.
SUMMARY
Based on the analysis of the data gathered thus far, with the exception of a few items
as pointed out above, the City of Seal Beach fee schedule for the Building Division
falls within the range of what would be classified as the average of the jurisdictions
reviewed. The study is to be completed and recommendations for change to the City
of Seal Beach Master Fee Schedule advanced to the City Council in the next thirty
days.
Staff would appreciate receiving any comments relative to issues regarding the
existing Building Division Fee Schedule.
RECOMMENDATION:
That City Council receive and file the study. In addition, if City Council decides
that fees should be reduced then instruct staff to return with a staff report and
resolution recommending reduction in certain fees.
MITTED BY: ^ NOTED AND APPROVED:
all I
1 V
m Basham ill . Ingram, City Jaager
irector of Community Development
Attachments:
A. Bar Chart of Cities Surveyed
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