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Title:
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Adoption of a Resolution Establishing an Annual Fire Inspection Fee for All Multi-Unit Apartment Buildings of Three or More Units; and Discussion and Direction Regarding the Incorporation of Multi-Unit Condominium Complexes of Three Units or Greater into the Cost Recovery Fee Process.
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City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt a resolution establishing an annual fire
inspection fee to include all multi-unit apartment buildings of three or more units. In
addition, staff seeks City Council direction regarding the incorporation of multi-unit
condominium complexes of three units or greater into the cost recovery fee process.
BACKGROUND:
Fire inspection fees were first introduced in 1988 as a ‘cost recovery’ form of
revenue, to reimburse the City for costs incurred while performing annual fire
inspections to businesses operating within Culver City. Multi-unit apartments, while
part of the inspection process, were generally not required to pay the annual
inspection fee.
In 2006, the Fire Department began a multi-phased revision of the inspection
program.
? The first phase was the implementation of a ‘counter review’ from Planning,
Building & Safety, and the Fire Department. Counter approval for every new
‘brick & mortar’ business improved the efficiency and effectiveness of the
inspection program. The Fire Department estimates counter reviews will add
240 new businesses into the program in 2007, equating to $23,000.00 in ‘new
business’ fire inspection revenue.
Meeting Date: 11/26/07 Item Number: A-7
AGENDA ITEM: Adoption of a Resolution Establishing an Annual Fire Inspection
Fee for All Multi-Unit Apartment Buildings of Three or More Units; and Discussion
and Direction Regarding the Incorporation of Multi-Unit Condominium
Complexes of Three Units or Greater into the Cost Recovery Fee Process.
Contact Person/Dept.:
Richard Gallagher, Fire Department
Phone Number:
(310) 253-5926
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (11/21/07); Culver City Chamber of
Commerce (11/21/07);
Department Approval:
Jeff Eastman (11/15/07)
City Attorney Approval:
Carol Schwab (by H. Iker) (11/20/07)
Fiscal Impact Review:
Marlee Chang (11/21/07)
City Manager Approval:
Jerry B. Fulwood (11/21/2007 City of Culver City, California
City Council Agenda Item Report
? The second phase combined the annual fire inspection fee with the business
tax renewal process; again, improving the programs efficiency and
effectiveness. Fire inspection collection rates now exceed 90%.
Beginning in 2007, the company inspection process was standardized, greatly
improving the coordination between the Fire Department and business licensing. As
a result, the Department’s company inspection program ‘found’ almost 400
businesses not in the inspection program; adding $35,000 to the annual inspection
program’s revenue. The City Treasurer reports 43 of these businesses were also
operating without a current business tax certificate. The City Treasurer estimates an
increase of $14,650 in previously uncollected taxes, fees and penalties for the first 8
months of 2007.
DISCUSSION:
Multi-unit apartments are considered a business, require a business tax certificate,
pay a business tax based on their gross receipts, and are required to pay for any
investigation or inspection fee unless specifically exempted (C.C.M.C. Title
11.01.010) and, as such, should be treated equally and included in the ‘cost
recovery’ of the business inspection program.
California Health and Safety Code Sections 13146.2 and 17921(b) mandate an
annual inspection of these multi-unit occupancies. While the Code does not provide
the authority to enter individual apartments, beginning in 2008, a self-inspection
checklist will be provided to each individual unit and an exterior inspection of the
property will be conducted by the Fire Department.
Therefore, the Fire Department is requesting the City Council adopt a resolution
establishing an annual fire inspection fee for all multi-unit apartment buildings of
three or more units, thereby incorporating these businesses into the ‘cost recovery’
fee process beginning in 2008. To-date these ‘businesses’ have not been included
in the ‘cost recovery’ portion of our annual inspection program.
The Fire Department is also requesting Council’s input/direction toward applying a
similar fee schedule for multi unit-condominium complexes of three units or greater.
The California Health and Safety Code does not differentiate between multi-unit
apartments and multi-unit condominium complexes and requires an annual
inspection of each complex.
City of Culver City, California
City Council Agenda Item Report
It is estimated there are 76 multi-unit condominium complexes with 4,427 individual
units. Using these estimates and a similar fee structure, incorporating condominium
complexes in the ‘cost recovery’ of the business inspection program could generate
an additional $21,373.62 in annual inspection fees. The internal process could be
developed to include multi-unit condominium complexes into the annual billing cycle.
FISCAL ANALYSIS:
It is estimated there are 598 multi-unit apartments with 4,712 individual units (see
Attachment 2). Based on this estimate, the Fire Department anticipates an increase
in Fire Inspection fee revenue of approximately $66,250 in 2007/08.
An additional position may be needed to meet the increased volume of inspections
required by this program in the future.
ATTACHMENTS:
1. Proposed Resolution
2. Proposed Rate - Apartments
3. Proposed Rate - Condominiums
MOTION:
That the City Council:
1. Adopt a Resolution Establishing an Annual Fire Inspection Fee Program to
include all multi-unit apartment buildings of three or more units; and
2. Direct the Fire Department regarding the development of the internal structure
needed to implement an annual fire inspection fee for all multi-unit
condominium complexes of three or more units.