TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing and adopt resolution amending the Master Fee and Charges Schedule by updating Strong Motion Instrumentation and Seismic Hazard Mapping Fees. (Citywide)
DISCUSSION
As required by California Public Resources Code Section 2705, the City of Long Beach collects a Strong Motion and Seismic Hazard Mapping fee. The fee is collected from applicants during building permit issuance. The amount collected is based on the type and value of construction at rates established by State law. Ninety-five percent of the collected fee amount is remitted to the California State Department of Conservation (State Department) on a quarterly basis. The City is allowed to retain the remaining five percent to cover associated administrative costs.
The State Department recently notified cities and counties of approved legislation, SB 861, which increased this fee effective July 1, 2014. The table below provides a description of the fee change.
Building Type |
Current Fee |
New Fee |
1-3 Story Residential Buildings |
$0.10 per $1,000 Building Valuation or fraction thereof with a minimum of $0.50 |
$0.13 per $1,000 Building Valuation or fraction thereof with a minimum of $0.50 |
Commercial and Over 3-Story Residential Buildings |
$0.21 per $1,000 Building Valuation or fraction thereof with a minimum of $0.50 |
$0.28 per $1,000 Building Valuation or fraction thereof with a minimum of $0.50 |
This matter was reviewed by Deputy City Attorney Kendra L. Carney on July 24, 2014, and by Budget Management Officer Victoria Bell on July 23, 2014.
TIMING CONSIDERATIONS
SB 861 increased the fee effective July 1, 2014. Because the fee is determined by approved State legislation that is already in effect, the fee change for Strong Motion and Seismic Hazard Mapping is being requested as a stand-alone fee change to the Master Fee and Charges Schedule on August 12, 2014 and will, therefore, not be included as a change when the FY 15 proposed fee changes are presented for City Council consideration as part of the FY 15 Budget adoption process.
FISCAL IMPACT
The City will continue to remit 95 percent of the fee revenue to the State as required. The remaining five percent currently results in approximately $2,500 in annual revenue for the City. The fee increase should result in approximately $750 of additional revenue in the Development Services Fund (EF 337) in the Department of Development Services (DV). There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AMENDING THE MASTER FEE AND CHARGES SCHEDULE FOR INCREASING THE STRONG-MOTION INSTRUMENTATION AND SEISMIC HAZARD MAPPING FEES PURSUANT TO SENATE BILL 861
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER