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HomeMy WebLinkAboutRes 05-33 Water Heater Replacement Permit Fee AmendmentResolution No. 05-33 REQUEST: CITY OF PALM DESERT DEVELOPMENT SERVICES STAFF REPORT 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: May 12, 2005 CONTENTS: Resolution No. 05-33 Recommendation: Waive further reading and adopt: 1. Adopt Resolution No. 05-33, amending the Building and Safety Fee Schedule for Water Heater Replacements from $97.50 to $65.00. 2. Authorize the City Manager to issue refunds for overcharges relating to water heater replacement permits issued after September 6, 2004. Discussion: On July 8, 2004, the City Council adopted Resolution 04-84, approving the Development Services fees for service. 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. The former 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 permit fee for a water heater was established at $97.50. Over the last nine months, staff has collected data from all Development Services departments relating to actual time required to perform inspections and plan reviews. To address the recent complaints regarding the cost of water heaters permits, staff has analyzed our recent data and determined that the average time required to inspect a Staff Report Revised Water Heater Fee Page 2 of 2 May 12, 2005 Resolution No. 05-33. water heater replacement is 30 minutes. Based on the hourly rate of $130 for an inspector, the average time to inspect a water heater can be reduced to $65.00. Existing Water Heater Permit Cost Proposed Water Heater Permit Costs Time: 45 Minutes / $97.50 Time: 30 Minutes / $65.00 1 If the new water heater fee is approved, residents may be entitled to a refund for the overcharge. The City Council may authorize the City Manager to review and approve these refund requests. 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: Martin Alvarez Senior Management Analyst Approval: AC City Manager gent Services Finance Director G.1DevServiceslMartin AlvarezIWord Files12005 SR\waterheaterfees.doc RESOLUTION NO. 05-33 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 these services should be borne primarily by the applicant receiving benefit from such services and so as to insure the timely and effective delivery of services. The City can account for the actual costs of these services WHEREAS, the cost of providing inspection services for water heater replacement has recently been reevaluated. The actual cost such inspection is lower than identified originally in the 2004 Cost of Services Study. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY AMEND THE BUILDING AND SAFETY FEE SCHEDULE AS IT REPLATES TO WATER HEATER REPLACEMENT PERMITS AS FOLLOWS: 35. Water Heater Replacement Inspection Flat Fee $65.00 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of May, 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