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HomeMy WebLinkAbout23 CONSTRUCTION & BUSINESS LICENSE FEE WAIVER POLICYAGENDA REPORT MEETING DATE: JULY 19, 2011 TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT Agenda Item 23 Reviewed: City Manager Finance Director ~~~~. SUBJECT: CONSTRUCTION AND BUSINESS LICENSE FEE WAIVER POLICY SUMMARY On July 5, 2011, the City Council conducted a budget workshop and identified its desire to encourage residential and commercial development, and to complement revitalization activities by waiving fees/licenses during Fiscal Year 2011-2012 or up to $750,000. If adopted, Resolution No. 11-54 would establish a policy to implement the fee waiver. RECOMMENDATION That the City Council adopt Resolution No. 11-54 adopting a Construction and Business License Fee Waiver Policy. FISCAL IMPACT It is anticipated that the impact to the general fund will be $350,000 in business license revenue and $400,000 in plan check and permit revenue. DISCUSSION On July 5, 2011, the City Council conducted a budget workshop and identified its desire to encourage residential and commercial development, and to complement revitalization activities by waiving fees/licenses during Fiscal Year 2011-2012 or up to $750,000. The intent of the fee waiver is to attract new businesses, retain existing businesses, and to encourage improvement, thereby benefiting the entire community. The fee waiver would apply Citywide and include residential, non-residential, including public and private K-12 school uses; and all businesses requiring a business license in the City. The policy would apply to all building and site improvements and additions; and new/renewal of business licenses. Remedial construction activities to comply with Code Enforcement orders and vacant land would not be eligible. The policy would remain in effect for Fiscal Year 2011-2012 or up to $750,000 in fees waived. To be eligible for a fee waiver, a construction project must conform to the Tustin General Plan, applicable Redevelopment Plans, and the Tustin City Code. For projects that are not completed Construction/Business License Fee Waiver Policy July 19, 2011 Page 2 within one year of plan check submittal and/or permit issuance, the property/business owner/applicant shall fully refund the City for all costs incurred. Some fees may not be exempted under the program. Fees are not intended to be waived for other governmental agencies or extraordinary governmental expenses. Resolution No. 11-54 provided the relevant findings, and attached thereto, "Exhibit A" provides the Council's specific policy. Elizabeth A. Binsack Community Development Director Attachments: Resolution No. 11-54 ATTACHMENT A RESOLUTION NO. 11-54 RESOLUTION NO. 11-54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA ADOPTING A CONSTRUCTION AND BUSINESS LICENSE FEE WAIVER POLICY The City Council of the City of Tustin does hereby resolve as follows: WHEREAS, on July 5, 2011, the City Council conducted a budget workshop and identified its desire to encourage residential and commercial development and to complement the revitalization activities occurring within the City; and WHEREAS, the intent of the fee waiver is to attract new businesses, retain existing businesses, and to encourage improvement, thereby benefiting the entire community; and WHEREAS, the areas of benefit include residential, non-residential, including public and private K-12 school uses; and all businesses requiring a business license in the City; and WHEREAS, the policy applies to all building and site improvements and additions to existing development only; and new/renewal of business licenses. Remedial construction activities to comply with Code Enforcement orders and development on vacant lots are not eligible; and WHEREAS, the fee waiver shall remain in effect for Fiscal Year 2011-2012 or up to $750,000 in fees waived; and WHEREAS, to be eligible for a fee waiver, a construction project must conform to the Tustin General Plan, applicable Redevelopment Plans, and the Tustin City Code. Projects that are not completed within one year of plan check submittal and/or permit issuance, the property/business owner/applicant shall fully refund the City for all costs incurred; and WHEREAS, some fees may not be exempted under the program. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Tustin hereby adopts the Construction and Business License Fee Waiver Policy, as identified in Exhibit A attached hereto. PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting on the 19th day of July, 2011. City Council Resolution No. 11-54 Fee Waiver Policy Page 2 JERRY AMANTE MAYOR ATTEST: PAMELA STOKER CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 11-54 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Resolution No. 11-54 was duly and regularly introduced, passed, and adopted at a regular meeting of the Tustin City Council, held on the 19th of July, 2011. COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER CITY CLERK EXHIBIT A -RESOLUTION NO. 11-54 CITY COUNCIL POLICY CONSTRUCTION AND BUSINESS LICENSE FEES WAIVER JULY 2011 Purpose and Intent: The purpose of this policy is to encourage residential, commercial, and educational development and complement the revitalization activities occurring within the City. In establishing this policy, it is the Council's intent to attract new businesses, retain existing businesses, and to encourage improvement, thereby benefiting the entire community. Areas of Benefit: The areas of benefit include residential, non-residential, including public and private K-12 school uses; and all businesses requiring a business license in the City. Applicability: This policy shall apply to: • business licenses, new and renewal; and, Building and site improvements and additions to existing developments on1X. Remedial construction activities to comply with Code Enforcement orders shall not be eligible. Fee Waiver: Fees shall be waived for the following: • Business licenses, new and renewal. Building and Planning Plan checks and Building, Plumbing, Mechanical, Electrical, Grading, and other City-related permit fees for building improvements to existing developments only as determined by the valuation table contained in the Building Division Fee Schedule. Term of Fee Waiver: This Policy shall remain in effect for Fiscal Year 2011-2012 or up to $750,000 fees waived. Projects qualifying for the Energy Improvement Rebate Program are not subject t0 this llmlt. *Projects that are in plan check and near completion at the end of the fiscal year may receive the benefit of the fee waiver subject to the approval of the Community Development Director. Requirements: To be eligible for a fee waiver, a construction project must conform to the Tustin General Plan, applicable Redevelopment Plans, and the Tustin City Code. For projects that are not completed within one year of plan check submittal and/or permit issuance, the property/business owner/applicant shall fully refund the City for all costs incurred. Appeals shall not be waivedlrefunded. Non-exempt Fees: Fees are not intended to be waived for other governmental agencies or extraordinary governmental expenses. Fees are intended to be waived for standard plan check and inspections, typically including two premeetings and two inspections at each phase of construction. Requests or requirements for extraordinary City resources or for the city to engage in outside consultants are to be reimbursed at actual city costs. The following fees are not exempt from payment under this policy: new construction tax; transportation improvement fees; fees required by other governmental agencies; school impact fees; environmental recording, or Fish and Game fees required by the County of Orange; Orange County Fire Authority inspection and plan check fees; fees related to the preparation of Environmental Impact Reports or other environmental reports.