HomeMy WebLinkAboutRes 05-33A Water Heater Replacement Permit Fee AmendmentCITY OF PALM DESERT
DEVELOPMENT SERVICES
STAFF REPORT
REQUEST: Approval to Amend Resolution No. 04-84, as it Relates to the
Building and Safety Fee Schedule for Water Heater Replacement
Permits.
SUBMITTED BY: Martin Alvarez, Senior Management Analyst
DATE: June 9, 2005
CONTENTS: Resolution No. 05-33A
Recommendation:
Waive further reading and adopt:
1. Adopt Resolution No. 05-33A, amending the Building and Safety Fee
Schedule as it relates to Water Heater Replacement Permits.
2. Authorize the City Manager to issue refunds for overcharges relating to water
heater permits issued after September 6, 2004, as requested by applicants.
Executive Summary:
At the May 12, 2005, City Council meeting, staff was directed to look at ways to raise
public awareness that a permit is required to replace a water heater and develop a way
to encourage residents and contractors to secure a permit prior to installation of this
high risk appliance.
Staff has developed two options to achieve this goal:
1.) Reduce the Water Heater Permit Fee from $161.50 to $65.00, allowing the City
to recover the cost to inspect a water heater replacement and waiving the
processing fee of $63.60.
2.) Waive the Permit Fee for a water heater replacement for a one-year period and
begin a public awareness program using various medias available to the City.
Staff recommends that the City waive the permit fee for water heater replacements for a
one-year period. During this period, staff will begin a public awareness program that will
include educating the public and plumbing contractors on the importance of securing a
permit. Staff will publish articles in the Bright Side, the Desert Sun and City's web site.
Staff will also send a letter to local plumbing contractors reminding them that a permit is
required for all water heater installations, and failure to secure a permit may lead to
notification of the State Contractor's Board.
Resolution No. 05-33A
Staff Report
Revised Water Heater Fee
Page 2 of 4
June 9, 2005
Background:
On July 8, 2004, the City Council adopted Resolution 04-84, approving the
Development Services fees for services. Approval of these fees was based on a
comprehensive fee study conducted by Zucker Systems.
Staff has recently received several complaints concerning the new cost for a water
heater replacement permit. The prior cost to inspect a water heater replacement was
$5.00. This cost did not cover the actual time required to inspect a water heater. Based
on the adopted fee study, the estimated time to provide this type of inspection was 45
minutes. The inspector's hourly rate was determined to be $130.00, which includes
salary, vehicle, materials and overhead. Based on a 45-minute inspection, the new
permit fee for a water heater was established at $97.50. The cost to process and issue
a permit was established to be $63.60. The total cost to issue a permit and inspect a
water heater is $161.10.
Former Water Heater Permit Cost New Water Heater Permit Costs
$5.00 $161.10
Permit Issuance/Inspection
At the May 12, 2005, City Council meeting, staff presented a revised fee for water
heater permits. During the meeting it was noted that most residents are typically
unaware that a permit is required to replace a water heater and many are installed
without benefit of a permit. Staff was directed to return to the City Council with a
program that would address the issue of public awareness and the cost of a permit.
A permit to replace a water heater is required by state code in order to ensure the
public's heath and safety. The location, plumbing, and gas line modifications are
required to be inspected when a unit is replaced. Water heaters are known as a high -
risk appliance, which if not installed properly may cause serious property damage
and/or injuries. In most cases, permits are not secured by homeowners simply because
they are unaware of the requirements. Contractors on the other hand, are aware of this
requirement and the State Contractors Board can penalize them if they fail to comply.
At the City Council meeting, staff was directed to research options to inform residents
that a permit is required for water heaters, and an alternative to encourage residents
and contractors to secure a permit prior to installation.
Staff has contacted various local cities to identify their permit fees for a water heater
installation. Below is a summary of their water heater replacement fees:
G:IDevServicesWartin RtvarezlWord ResW05 SRWwaterheaterfeesU.doc
Resolution No. 05-33A
Staff Report
Revised Water Heater Fee
Page 3 of 4
June 9, 2005
Jurisdiction
La Quinta
Indio
Cathedral City
Coachella
Indian Wells
Palm Springs
Rancho Mirage
Desert Hot Springs
County of Riverside
Palm Desert
Water Heater Replacement Fee
Permit Issuance/Inspection
$22.50
$27.00
$33.50
$35.80
$48.00
$61.10
$90.00
$103.84
$138.72
$161.50
The average permit cost to replace a water heater among the ten local jurisdictions is
$56.00. The City of Palm Desert currently has the highest permit cost at $161.50 for a
water heater permit. Staff has developed two options for your consideration to address
this issue of public awareness and the City's permit cost:
Option 1: Lower the Water Heater Permit Fee to $65.00.
This option would bring our permit fee down from $161.50 to $65.00. This cost would
be in line with other local jurisdictions and would allow us to recover our inspection
costs.
Option 2: Waive the Water Heater Permit Fee for a One -Year Period
This option would allow the City to provide a no fee permit to replace a water heater.
This service would be extended to residents and contractors wishing to replace a water
heater.
Included in both options, we can begin a public awareness program to inform residents
and contractors of the water heater permit requirements. Staff will publish articles in the
Bright Side publication, the Desert Sun and City's web site. Staff will also send a letter
to local plumbing contractors reminding them that a permit is required for all water
heater installations. The article could also include the following information:
The reasons why water heater replacements require a permit and inspection.
The importance of having a qualified inspector review the installation of a water
heater; and.
The City Council's decision on the water heater replacement fees.
G1DevServicesWartin AlvarezlWord Fdes12005 SRlwaterheaterleesll.doc
Resolution No. 05-33A
Staff Report
Revised Water Heater Fee
Page 4 of 4
June 9, 2005
Recommendation:
Staff recommends that the City Council implement Option 2; waive the permit fee for
water heater replacements and direct staff to provide an informational article in the
Bright Side, Desert Sun and City's web site with an emphasis on the importance of
securing a building permit for a water heater replacement and the no fee permit cost.
If water heater permit fees are waived, residents may be entitled to a refund for the
overcharge. The City Council may authorize the City Manager to review and approve
refund requests as they are submitted.
In the future, staff will return with a comprehensive review of the Development Services
fees for service using the actual time tracking data we are continuing to collect.
Submitted By:
/lartin Alvarez
Senior Management Analyst
Approval:
Oty Manager
Finance Director
Department Head:
Homer Croy
ACM for Devel ent Services
GaOevServiceslMartinAlvarezVWord Res12005 SRlwaterheaterfeestt.doc
RESOLUTION NO. 05-33A
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AMENDING RESOLUTION 04-84, AS IT
RELATES TO THE BUILDING AND SAFETY FEE SCHEDULE FOR
WATER HEATER REPLACEMENT PERMIT FEES.
WHEREAS, the City Council of the City of Palm Desert, California, did on July 8,
2004, approve fees for inspection and plan review services within the Development
Services Departments as described on the Cost of Services Study, Volume I and II
conducted by Zucker Systems.
WHEREAS, there are a number of services provided by the City when
processing applications, reviewing plans and providing inspection services for the
development of property in the City that are of primary benefit to the applicant; and
WHEREAS, the cost of providing inspection services for water heater
replacements has recently been reevaluated. In order to encourage residents and
contractors to secure a building permit, the City has determined that is the public best
interest to waive the permit fee.
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF PALM DESERT
DOES HEREBY AMEND THE BUILDING AND SAFETY FEE SCHEDULE AS IT
REPAATES TO WATER HEATER REPLACEMENT PERMITS AS FOLLOWS:
35. Water Heater Replacement Permit
and Inspection Fee Waived for One -Year
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert
City Council, held on this day of June, 2005, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
BUFORD A. CRITES, Mayor
City of Palm Desert
ATTEST:
RACHELLE D. KLASSEN, City Clerk
City of Palm Desert, California