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HomeMy WebLinkAboutAgenda Report - April 4, 2007 E-07AQMDA ITEM E41 CITY OF LODI COUNCIL COMMUNICATION TM AGENW% TITLE: Adopt Resolution Authorizing the City Manager to Enter Reimbursomnt AgreeWents for Staff and Contract Costs Incurred in Processing Development Applications and Approved Developments. MEETING DATE: April 4, 2007 City Council Meeting RECOINM ACTION: Adopt Resolution authorizing the City Manager to enter into Reimbursement Agreements with Developers seeking staff and contract resources to process development applications and developments. BACKGROUND IIFORMAIRON: Through Resolution 2006-78, a copy of which is attached to this staff report, Council established the policy that Developers should pay the full cost of in-house and outside engineering and planning services incurred in the processing of development applications and implementation of approved developments. In furtherance of that policy Staff has, for more intensive developments that require a commitment of time and expenses beyond that recovered through standard fees, brought forth Reimbursement Agreements for Council approval (reference Agreements with Frontiers Community Builders and San Joaquin Valey Land Compeny). Staff anOcipates the need for such reimbursement agreements on a more frequent basis as it captures more of the costs associated with processing applications. Accordingly, much as is the case with Improvement Agreements, staff recommends that Council authorize the City Manager to enter into a template form of reimbursement agreement with certain minimum terms and authorize the City Manager to set others within his or her discretion. The basic terms would follow the same format as the Blue Shield and Westside Annexation Agreements: An agreement to reimburse for all in-house and outside staff costs, a deposit with an evergreen account to bill those costs against and an acknowledgement that the agreement grants no guarantees regarding project approval. The amount of the deposit and evergreen amount would be subject to the City Managers discretion based on the expected cost of the services. Accordingly, staff requests that Council authorize the City Manager to enter into reimbursement agreements with the following minimum terms: 1.) Devebper will reimburse City for all in-house staff time, contract services, purchased supplies and equipment necessary to perform the engineering, legal, environmental and planning servioes necessary for Developer's project. 2.) Developer shall depgsit an amount to be determined by the City Manager equating to staffs estimate of the above costs prior to staff beginning work on Developer's project. In the event APPROVED: / Blair King, anager costs exceed the estimate, Developer will reimburse the City for the overage. The deposit will be required to be kept evergreen, meaning once the deposit falls below a set amount, the Developer must replenish the deiposit. If the Developer fails to do so, City may cease work. 3.) Developer must acknowledge that the Agreement grants them no right or expectation for project epproval and no right to control in-house or contract staff or demand that the project be processed on a particular time schedule. 4.) Developer must agree that it will not be entitled to damages for a delay in the schedule. 5.) Developer will agree to indemnify, defend and hold harmless the City of Lodi in any litigation arising out of or related to the project, including environmental claims, personal injury, inverse condemnation claims, and claims related to the Lodi Electric Utility taking over territory previously in the service area of another Electric Utility. FISCAL IMPACT: None. FUNDIM AVAILABLE: Developer funded account. Approved: _�.� us RESOLUTION NO. 2006-78 A RESOLUTION OF THE LODI CITY COUNCIL AMENDING PUBLIC W KS DEPARTMENT ENGINEERING FEES FOR VARIOUS DEVELOPWNT SERVICES; AMENDING COMMUNITY IMPROVEMENT FEES FOR ADMINISTRATIVE PROCEDURES; AND AMENDING PLANNING FEES FOR PRE -DEVELOPMENT REVIEW AND HOURLY CHARGES WHEREAS, the Lodi Municipal Code requires the City Council, by Resolution, to set fees for various services providod by the City of Lodi to recover those costs associated with providing specific services and programs; and Public WgrkA: WHEREAS, it is common practice for the Community Development Department to request review, comments, conditions, and approval by Public Works Department staff as part of its roview process for various development services, such as the review of annexation applications, development ,plans, tentative parcel and subdivision maps, and site plan and architectural applications; and WHEREAS, historically, the Public Works Department Engineering Division staff costs related to these activities were considered to be covered by the fees collected by the Community Development Department. With the adoption of the restructured Community Development Department fee schedule in May 2005 and the establishment of a Special Revenue Fund for Community Development Department services, this is no longer the case; and WHEREAS, in an effort to recover Public Works Department staff costs related to these discretionary services and reduce the burden on the General Fund, staff is recommending the amendment of seven Engineering fees to be collected by the Public Works Department. They are: 1) Annexation, 2) Development Plan, 3) Tentative Subdivision Map, 4) Tentative Parcel Map/Non- Residential Condominium Conversion, 5) Site Plan and Architectural Review, 6) Building Permit -- Commercialllndustrial, and 7) Building Permit — Residential; and WHEREAS, in order to set tees appropriately, staff performed an analysis of personnel time and associated costs typically required to perform each task. Those costs include the cost of Public Works staff (salary plus benefits) plus the "fully loaded" costs for Citywide overhead (vehicle maintenance, building maintenance, telephone, etc.) and internal services (f=inance, City Attorney, etc.). The proposed fees are shown on Exhibit A; and WHEREAS, the fees represent the level of effort and associated costs for an average development project. The applicability of the standard fee shall be determined by the Public Works Director or his designee with projects exceeding an average level of staff work being charged on a time and cost basis. The proposed hourly rate by staff position is shown on Exhibit B. The hourly rata is also based on salary plus benefits and the "fully loaded" costs for City-wide overhead; and WHEREAS, the fee schedule for existing Engineering fees, except plan check and inspection, includes a provision for an annual adjustment on July 1 based on the Consumer Price Index (Western Region, Urban, unadjusted) for the {previous calendar year. Because the new Engineering fees are based upon actual time and cost, staff will continue to monitor all Engineering services and request Council to update there from time to time to reflect changes in salary, benefits and overhead costs; and WHEREAS, it is recommended that the new fees take effect on June 15, 2006. It is further recommended that arty applications subject to review by the Public Works Department that are submitted after the effective date shall be subject to the new fees; and Gores DayelgWaMt: WHEREAS, on April 19, 2006, the City Council adopted an ordinance amending code enforcement procedures and establishing administrative citations and administrative enforcement hearings; and WHEREAS, tha ordinance establishes administrative citation fines but does not address all administrative fees. Such fees are established by resolution. Attached as Exhibit C is the proposed updated Community Improvement Fee Schedule to include new procedures established by the new ocde enforcement ordinance; and WHEREAS, in May 2005, the City Council approved a new fee schedule for Planning fess that was based prima►illy on an average of Planning fees charged in surrounding cities. While this new fee schedule did increase Planning fees, it does not achieve full cost recovery, except for only in the simplest of eircurnstances; and WHEREAS, st*ff recommends amending the fee schedule as shown in Exhibit D with the natation `plus hourly' to reflect actual staff time spent working on the request. Staff w4l collect the set fee for the Planning permit at time of application and then track staff time spent processing the permit. At conclusion of the permit processing (i.e., Planning Commission or City Council approval), staff will reconcile staff time spent processing the permit plus other required administrative charges (legal notice publishing costs, mail hearing notice costs, etc.) with the fee collected at application submittal. If not substantially equal, staff will then collect the balance due from the applicant as part of the issuance of the Planning permit; and WHEREAS, staff proposes two new procedures with the fee being added to the Planning Fee Schedule (Exhibit D). One of these procedures is a Pre-development Review; the second new fee is for a non-rea(dertiial condominium conversion; and WHEREAS, since staff time would be tracked and charged to the project, it is necessary to adopt the staff hourly rate by position. The proposed hourly rate reflects total salary plus benefits and does include overhead for materials, vehicle use, building maintenance, and utilities. Exhibit E establishes these hourly rates for Community Improvement and Planning. These rates will need to be updated by Resolution from time to time to reflect changes in salary, benefits, and overhead costs. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby implement the fee schedules attached hereto, marked Exhibit A, B, C, D, and E and made a part of this Resolution; and BE IT FURTHER RESOLVED that the Engineering fees will also be subject to an annual adjustment on July 1 based on the Consumer Price Index (Western Region, Urban, unadjusted) for the previous calendar year; and BE IT FURTHER RESOLVED that any applications subject to review by the Public Works or Community Development Departments that are submitted after the effective date of this Resolution shall be subject to tate new fees; and RESOLVED FURTHER that all resolutions or parts of resolutions in conflict herewith are repealed insofar as such conflict may exist; and 1) RESOLVED FURTHER that this resolution shall be ir3 force and take effect on June 15, 2006. Dated: May 3, 2006 I hereby certify that Resolution No. 2006-78 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 3, 2006, by the following vote: AYES: COUNCIL MEMBERS -- Beckman, Hansen, Johnson, Mounce, and Mayor Hitchcock NOES: COUNCIL MEMBERS None ABSENT: COUNCIL. MEMBERS — None ABSTAIN: COUNCIL MEMBERS — Nona SUSAN J. BLACKSTON City Clerk 2006-78 3 Engineering Fee Proposed Fee St1 Annexation �f37 $830 Development Plan �Z' `' $1050 Pius $151ioi over 5 lots Tentative Subdivision Map (2) (3; $1050 1-5 tots plus $t5llot over 5 lots Tentative Parcel Map & Non -Residential Condominium Conversion $840 Site Plan $420 Building Permit - CommmerciaVindustrial/Mutti-Family $600 Building Permit - Single -Family Residential $110 These fees shat be adjusted annuaiy by the inft*m rate based on the prior cal ndai year as determined by the Consumer Price Index Mestem Region, urban, unadjusted), The rate of inflation (or de8atian) is applied to the fees to determine the fees for the subsequent year. Saki fee adjusM*r fs, if arty, wt be made aubmafically eflfecbve July t of each year. {z� Based on single-famiy residential developments having 75 Iota or less. Single fwTWy residential projects haft more than 75 lots will be charged on a time and cost basis. cs1 Commerdalhndustriaf projects larger than 2 acres will be charged an a tlrris and cost basis. J.it l!_S�R1 �cveioPmest uses ee Update 2006 Sx B_CAN • Pubiid Works Glrector $11 OAHr • City f ineer $001fir • Smit Civil Errgin�»r $80/Hr • Seniot irate Engineer $6011* • Asso4ate Civil Engineer $75/Hr • Sonia# Enginee drag Technician w/Hr • Aesis*nt Engineer TBD # filled • JunioO.EngFineer TBD if filled • EnginWrig Technician TSD g filled (T) These hOU* rat$S are fully burdened, which includes satlary, aN ba"fits, gond oviedmwl. EEE SCHEDULE EXH MITI .I V City di,Cn9muuity Ovveivantent Deoa{; MSUI-,CoWaonity Im raven ent Division C r[%nt ProMsed initial Field Inspection Fee 0 $50 initial Complianae Inspection 0 $50 Both of the aforrrt "anof fea would be waived t f voluntary compliance is obmined within given deadline. Code Compliance Permit Fee $100fhr $100/hr Reinspection Fess nim $50 Initial Non-Cornpiiance Fee $100 Wo Subsequent Non-�Compltaoce Fees $340 $300 Initial Appeal Fee $300 $100 Second Appeal lee n/a $300 EXHIBIT D AMEP&I MESM& FEE DCHEDULE qwCay of LODI, ComMuNrr), Dr.,,vF;l,oPMf`NT DEPARTMENT, 221 W. PfNfl, S'I-., LODI, CA 95240 Pi-foNf.: !2N)333-6711FAX.' (209)333-6842 AnNamsTRATTve DmATJON ...... ...... __ ... ..... ...................... + XATION ...... .... .... .. . ....... .. ..... ....... ............. $4,000 + I OURLY A?rie'ALs. .. _. . ... . ..... . ..... .. . ........... ...... .... $300 l-)LpVSI,0PMrN'F F',AN Rtvu7,'w ............. ............................. .......... .... _ ....... $2,500 + HOURLY 1",Nv[Ro,,4mr:.m,Ai, IMPACT' REPORT ....... ......... .................................................. HOURLY 6E�NFRAI, PLJNN AMZNQMENT ....... .... ...... _ .... ................. ...... __ ................. $3,000 + HOURLY "CAME OCCUPATION. .'.. " ...... .......... .......... . .. .... ........... ............ $10() LANDSCAPE REVIEW.. ......... .......................... .. ....................... ....... $175 + HOLiRLY - NTFRT.fVNMEN7 IVE E- PERMIT .. .... ... ........ .. .... ...... .............. ... $200 LOT LINE AfouWMENT ...... _ .. .... .......................................................... $650+ HOURLY MI7GA'nON MONITORINCI ....... ........... .............................. ..................... ........ $HOURLY NFOATIVE, DEC1,ARKT'T0N ....... . .......... ..... .... ­­­ .... ­ ....... ........... . ........... . $9()0 + HOURLY TENTATI VE PARCFI, MAP ....... ........... ...... ____ ............................ $2$500 + liouRLy !SON -R1 S]DENTM. CONDOMINIUM CONVERSIONS . ........ .. ...... _ .................... $2,000 + 14otiRLY PYrtLIMINARY FM'IRONMENTAL AssESSMEN'J'__ .............. ...... ...................... $250 + HOUnY P% ]�ZON r . ........ ........ ..... . ........ ... ...... $2,ow t H oURLY RAN AND ARCHITECTURAL REviEw (SPARC) ....... .......... ............... $1,875 + HouRLy TENTATIVE SUBDIVISION MAP......_ .. .......... ..... ... ................................ $4,600 +HOURLY IJ 9L Ppi'RMIT ...... ... ............ ..... ........ ....... .... .... ................ .... $2,000 + HOUR1,Y V4RJANCF .... . ..... ­.. .-..__-ll .............. ............. ............ $1,000 + HOuRix P!RF-DF-VF-t,OPMENTRFVIE,W........................................................................... $250 DOCUMFNT TMAOING................................... ........ ............ __ .... .. $50/APPLICATION ,qTAFF CONSUILTATION (INCLUDING LZTTEJRS) ................ .............. ...... ................ HouRLY MEI: 11PP]_.ICA_11_0_N` PEES LISTED ABOVE ARIT, RE FUNDABLE UNDER THE FOLLOWING CIRCUMSTANCES: WITHIN 30 -DAYS OF APPLICATION - 7';% REFUND. AMR PRO JEC7ACCEPTANCE AND CfRCULATION FOR REVIEW -50% REFUND. • Aji-rER FORMULATION OF STAFF RECOMMENDATION TO PLANNING COMMISSION AND/OR CITY COUNCIL, OR 90 -DAYS, WHICHEVER COMES FIRST-- NO REFUND. ,- ''AFF S . LFF REQUrSTS FOR INFORMATION, CORRRUMONS, OR AMENDMENTS MUST BE SUBMITTED WITRIN.30- D,tYS. iFA I"TZ(J.TRCT IS INACTIVF PL'YoND 30 -DAYS, THE APPLICAT303N WILL BE RETURNED AND A REFUND 4. 7(1-00 ["Xjizlit F Ple;MLng l'tw - ImopoM. 1 lirlwAv Effective 7/112005 EXHT4 B r_ tsVJAYAV 4 v....0 corn�nity Imprnvenwat Manager S70/Hr • com niter improvement Of kers $45/gr • Adm1histrativc Cleric S3©/Hr Comm#unity Development Director $1 OO/Hr Plang Manaytr $SwHr • Senic1 Planner $65/Hr • Assoc ate Planner $55Mr • Asia nt Planner $50/Hr (if fined) • Junio Pfanner $45/Hr (if filled) • Contrkt Planner $801Hr+/- (TBD) • Admi0istrative Secretary $40ft RESOLUTION NO. 2007-65 A RESOLUTION OF THE LODI CITY COUNCIL AUtHORIZIIG THE CITY MANAGER TO ENTER INTO PEIMBURSEMENT AGREEMENTS ON BEHALF OF THE CITY OF LODI -----------------------__�_�_�_�� WHEREAS, at its meeting held May 3, 2006, the Lodi City Council adopted Resolution No. 2006-18, establishing the policy that developers should pay the full cost of in-house and outside engineering and planning services incurred in the processing of development applications and implementation of approved developments; and WHEREAS, in furtherance of that policy, staff has, for more intensive developments that require a commitment of time and expenses beyond that recovered through standard fees, brought forth reimbursement agreements for Council approval; and WHEREAS, staff anticipates the need for such reimbursement agreements on a more frequent basis as it captures more of the costs associated with processing applications; and WHEREAS, accordingly, much as is the case with improvement agreements, staff recommends that Council authorize the City Manager to eater into a template form Of reimbursement a4reement with certain minimum terms and authorize the City Manager to set others within his or her discretion; and WHEREAS, the basic terms of an agreement would be to reimburse for all in- house and outside stuff costs, a deposit with an evergreen account to bill those costs against, and an acknowledgement that the agreement grants no guarantees regarding project approval. Th® amount of the deposit and evergreen amount would be subject to the City Manager's discretion based on the expected cost of the services; and WHEREAS, staff requests that Council authorize the City Manager to enter into reimbursement agreetnents with the following minimum terms: t.) Developer wil reimburse City for all in-house staff time, contract services, and purchased supplies and equipment necessary to perform the engineering, legal, environmental, and planning services necessary for developer's project. 2.) Developer shall deposit an amount to be determined by the City Manager equating to staff's estimate of the above costs prior to staff beginning work on developer's project. In the event costs exceed the estimate, developer will reimburse the City for the overage. The deposit will be required to be kept evergreen; meaning once the deposit falls below a set amount, the developer must replenish the deposit. If the developer fai(s to do so, City may cease work. 3.) Developer must acknowledge that the agreement grants them no right or expectation for project approval and no right to control in-house staff or demand that the project be processed on a particular time schedule. 4.) Developer must agree that it will not be entitled to damages for a delay in the schedule. 5.) Developer will agree to indemnify, defend, and hold harmiess the City of Lodi in any litigation arising out of or related to the project, including environffwml claims, personal injury, inverse condemnation claims, and claims related to the Lodi Electric Utility taking over territory previously in the service area of another Electric Utility. NOW, THERB:ORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to enter into reimbursement agreements with the minimum terms as outlined above. Dated: April 4, 2007 I hereby certify that Resolution No. 2007-55 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 4, 2007, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Katzakian, Mounce, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None RA I JOHL City Clerk 2007-55