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09. Fee Adjustment City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 Telephone: (408) 777-3220 Fax: (408) 777-3366 CITY OF CUPEIUINO DEPARTMENT OF ADMINISTRATIVE SERVICES SUMMARY Agenda Item No. q Meeting Date: August 15, 2006 SUBJECT AND ISSUE Adopt a Resolution regarding a fee adjustment for the Building Plan Check fee for fiscal year 2006-07. BACKGROUND All user fees are reviewed each year in conjunction with the preparation of the budget. Our goal is to ensure that, to the extent possible, fees cover the cost of providing services, or are competitive to market. Council adopted fee increases at their April 4, 2006 meeting. It has been brought to our attention that the Plan Check fee for structural and nonstructural applications in our current fee schedule is incorrect. When the consultants performed an analysis of actual costs, this charge was to be set at 133.45% of the building permit fee. Unfortunately, the amount was reflected in the fee schedule at 1.3345%. To charge the amount approved by the Council and to apply this fee equitably, the fee has been changed in our software system to the lower amount. Weare requesting that City Council adjust this amount to reflect actual cost recovery of the service provided. The fee will be effective 60 days from today and our systems will be updated at that time. RECOMMENDATION Staff recommends Council adopt a Resolution regarding a fee adjustment for the Building Plan Check fee for fiscal year 2006-07. Submitted by: Approved for submission: ~o.~ Carol A. Atwood Director of Administrative Services ~app City Manager G/financelbudgetlfee schedule amendment staff report 8-15 .doc 1-( Printed on Recycled Paper RESOLUTION NO: 06-142 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING RESOLUTION NO. 06-065 TO REFERENCE THE CORRECT FEE FOR PLAN CHECKING OF STRUCTURAL AND NON-STRUCTURAL BUILDING PERMITS WHEREAS, the State of California requires fees charged for service rendered not to exceed the cost of delivering said services; and WHEREAS, a public hearing has been held to review user fees; and WHEREAS, the City Council of the City of Cupertino has established guidelines for setting user fees; and WHEREAS, on April 4, 2006, City Council adopted Resolution No. 06-065 establishing user fees; NOW, THEREFORE, BE IT RESOLVED that: 1. Resolution No. 06-065, Schedule D, is hereby amended to include the correct plan checking fee of 133.45% of the building permit fee for each plan submitted. 2. This amended fee shall be effective October 16, 2006. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 15th day of August 2006, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: City Clerk Mayor, City of Cupertino C 1 1 - pi-. CITY OF CUPERTINO Resolution 06-065/April4, 2006 and 06-082/May 2, 2006/06-142/August 15,2006 Fees Effective July 1, 2006 Schedule D - Building Permit Permit Valuation $1 - $3,000 $83.16 $3,001 - 25,000 $93.96 for the first $3,000 plus $10.80 for each additional $1,000 or fraction thereof, to and including $25,000. $25,001 - 50,000 $324.00 for the first $25,000 plus $8.64 for each additional $1,000 or fraction thereof, to and including $50,000. $50,001 - 100,000 $540.00 for the first $50,000 plus $6.48 for each additional $1,000 or fraction thereof, to and including $100,000. $100,001 - 500,000 $851.04 for the first $100,000 plus $4.32 for each additional $1,000 or fraction thereof, to and including $500,000. $500,001 - 1,000,000 $2,817.72 for the first $500,000 plus $3.24 for each additional $1,000 or fraction thereof, to and including $1,000,000. $1,000,001 - $4,795.20 for the first $1,000,000 and up plus $2.16 for each additional $1,000 or fraction thereof. PLAN CHECKING Structural and Non-Structural 133.45% of building permit fee for each plan submitted. Each additional identical repeat plan for multi-unit residential developments will be assessed at $34.86 each unit. Energy 48% of building permit fee for each plan submitted. Each additional identical repeat plan for multi-unit residential developments will be assessed at $34.86 each unit. Repeat plan checks that exceed 2 reviews will be charged an hourly rate at $87.14 per hour. 15 9-]