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CC - Adoption of a Resolution Amending the Building Safety Division Plan Check Fees.
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Meeting Date: July 23, 2018
Contact Person/Dept: Craig Johnson / Building Safety
Phone Number: (310) 253-5802
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/18/18);
Department Approval: Sol Blumenfeld, Community Development Director (07/12/2018)
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RECOMMENDATION
Staff recommends the City Council adopt a Resolution amending the Building Safety Division plan check fees to differentiate between plan checks completed by City staff and plan checks outsourced to a consultant.
BACKGROUND
Culver City Building Safety Division plan check fees are currently set forth in Exhibit D to Resolution 2013-R034 (Attachment 1). The current plan check fees are set at 75% of the permit fees for building, electrical, mechanical, and plumbing permits. This percentage of permit fees for plan check fees was established at a time when all plan checks were completed by City staff.
Due to the high volume of construction activity in Culver City, it became necessary to outsource an increasing number of plan checks in order to allow projects to move forward in a timely manner. The outsourcing of plan checks also allows a more nimble response to fluctuations in workload.
The existing City building fee schedule, under “Other Inspection Fees”, requires that permittees pay the direct cost of outside consultant services for inspections, plan checks, and plan reviews. However, the City has not established a plan check fee that differentiates between those completed by City staff versus those that are outsourced. As a result, the City currently charges plan check fees of 75% of the permit fees for both in-house and outsourced plan reviews, with the applicant also responsible for the direct consultant costs as well.
Staff recommends a differentiated fee structure for plan check reviews. Plan checks completed by City staff will continue to pay the existing 75% of the permit fees. For outsourced plan checks, the permittee will still be responsible for the direct cost of the outside consultant services, plus an administrative fee that is 25% of the permit fees.
Outsourced plan checks involve administrative work by City staff, such as: preparing the project application; setting up the application in the City’s permit system; coordinating the plan review process with the consultant, applicant and various city departments; transmittal of plans to the consultant; receipt of corrected plans and return of the corrected plans to the applicant. (Portions of this process may be repeated several times during the course of the plan review).
The 25% administrative fee is consistent with the Planning Fees for Environmental Impact Reports, Preparation of Special/Technical Studies and the Fee for Service Contract Planner, all of which require the applicant to pay the full cost of the consultant plus 25% for contract administration and document review.
FISCAL ANALYSIS
The new fee structure for outsourced plan check reviews will result in somewhat lower revenues for those projects. However, the differentiation for the plan check fees completed by City staff versus those outsourced is a more equitable and justifiable structure than what is currently being implemented.
ATTACHMENTS
1. Exhibit D from 2013-2014 Fee Resolution (Building Safety Division Plan Check Fees)
2. Proposed Resolution
MOTION
That the City Council:
Adopt a Resolution amending the Building Safety Division plan check fees.