TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution amending the Master Fee and Charges Schedule. (Citywide)
DISCUSSION
As requested by the City Council on September 20, 2011 (Agenda Item NB-36), City Council approval is requested for the List of Proposed Fee Adjustments for November 1, 2011 - Development Services Conditional Use Permit and Administrative Use Permit Fees (Attachment A), which describes proposed changes to the City's Master Fee and Charges Schedule. On September 6, 2011, the City Council approved an amended Master Fee and Charges Schedule that included proposed fee adjustments for Fiscal Year 2012 (FY 12). Subsequently, the Development Services Department completed a requested analysis of Conditional Use and Administrative Use Permit Fees and submitted to the City Council a memorandum addressing this issue.
Conditional Use Permit Fees and Administrative Use Permits
The City maintains both Conditional Use Permits (CUP) and Administrative Use Permits (AUP) to provide oversight and regulation for land uses that have the potential to negatively affect their communities. In May 2011, the City Council directed the Department of Development Services to review the application fees associated with CUPs and AUPs to determine if the existing fees are appropriate in today's economic climate. As a result of that review, Department staff recommends that restructuring CUP fees and decreasing AUP fee amounts may increase the likelihood of attracting new businesses and creating new jobs for the City.
Used to provide a higher level of regulation, the CUP is a discretionary permit whereby the City's Planning Commission hears all CUP requests and can impose conditions of approval tailored to ensure that the business is a "good neighbor." All CUP requests are appealable to the City Council. In Long Beach, CUPs are required for businesses such as recycling centers, car washes, bars and auto repair shops.
Department staff reviewed the uses that require CUPs and determined that a tiered fee schedule that takes into consideration the intensity of the proposed use would be more equitable. As a result, staff recommends that the CUP fees be modified to include two tiers: minor and major. The current CUP fee is $9,386.68 ($8,588 + 9.3 percent surcharge). The recommended cost for a Minor Conditional Use Permit is $5,465 ($5,000 + 9.3 percent surcharge) while the recommended fee for a Major Conditional Use Permit is $8,744 ($8,000 + 9.3 percent surcharge).
In addition to the CUP, the City maintains a lower discretionary use permit called the AUP. The AUP is reserved for land uses that have a lower potential for creating negative impacts but still require some additional oversight and individual examination. In comparison to the CUP, the reduced complexity of AUP-level projects results in a less formal and more expedient hearing process. The Zoning Administrator hears all AUP requests, and decisions are appealable to the Planning Commission. While uncommon, the Zoning Administrator may refer more complex AUP requests to the Planning Commission for the initial hearing. Examples of businesses requiring an AUP are bed-and-breakfast inns, used merchandise stores and food/vending carts.
Staff is recommending that the current AUP fee of $5,616.93 ($5,139 + 9.3 percent surcharge) be reduced to $4,372 ($4,000 + 9.3 percent surcharge).
This matter was reviewed by Assistant City Attorney Michael J. Mais on October 14, 2011 and Budget Management Officer Victoria Bell on October 12, 2011.
TIMING CONSIDERATIONS
In order for the fee adjustments to be implemented, the attached Resolution must be adopted by the City Council. Therefore, City Council action is requested on November 1, 2011 to allow for the implementation of the requested changes to assist in attracting new businesses.
FISCAL IMPACT
The Development Services Fund (EF 337) is intended to provide the Development Services Department (DV) with operating budget revenues to provide development services to the community. The Fund is supported by its revenues from fees and charges related to the provision of these services.
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 SPECIFIED CITY SERVICES FOR THE CITY OF LONG BEACH
Respectfully Submitted,
JOHN GROSS
Director of Financial Management
APPROVED:
PATRICK H. WEST
CITY MANAGER