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Home My WebLink AboutRes No. 08-105 - Collection of Fees Required by SB 1473 CITY OF PALM DESERT BUILDING & SAFETY DEPARTMENT STAFF REPORT TO: Honorable Mayor and City Council REQUEST: APPROVE RESOLUTION N0.08-105 AUTHORIZING THE FINANCE DEPARTMENT TO ESTABLISH AN ACCOUNT FOR THE COLLECTION OF FEES REQUIRED BY SB 1473 SUBMITTED BY: Russell A. Grance, Director of Building and Safety DATE: December 11, 2008 CONTENTS: Resolution�R-�n�and Copy of SB 1473 Recommendation: Waive further reading and adopt. Background: On September 30th of this year Governor Schwarzenegger signed SB 1473 into law. It will take effect on January 1, 2009. Among other things, the bill provides for the creation of the Building Standards Administration Special Revolving Fund, which is established in the State Treasury. Moneys deposited in this fund will come from a surcharge on both residential and nonresidential building permits. The bill requires that each city, county, and city and county collect a fee from an applicant for a building permit, assessed at the rate of four dollars ($4) per one hundred thousand dollars ($100,000) in valuation, with appropriate fractions thereof, but not less than one dollar ($1). "Appropriate fractions thereof" is interpreted to be $1 per every twenty-five thousand ($25,000) in valuation per table illustrated below. Fees will be submitted quarterly to the California Building Standards Commission (CBSC), as follows: G:\BuildingSfty\SuzanneCicchini\WordFiles\StaffReports\SB 1473Report121108.doc Staff Report Senate Bill 1473 December 11, 2008 Page 2 Permit Valuation Fee $1 —25,000 �� $25,001 —50,000 �2 $50,001 —75,000 �3 $75,001 — 100,000 �4 Eve $25,000 or fraction thereof above $100,000 Add $1 In addition, SB 1473 provides that the city, county, or city and county may retain up to ten (10) percent of the fees collected for related administrative costs and for code enforcement education. The bill requires that the local jurisdiction transmit the remainder to CBSC for deposit in the Building Standards Administration Special Revolving Fund. Once appropriated, moneys deposited in this fund will be available to CBSC, the Department of Housing and Community Development, and the Office of the State Fire Marshal for expenditure in carrying out the provisions of the State Building Standards Law and provisions of State Housing Law that relate to building standards. Emphasis is to be placed on the development, adoption, publication, updating, and educational efforts associated with green building standards. ' � ; � :=. I I4�= Submitted By: ,I� � i i !�' Revie e and c r: , � � I ; �� Russell A. Grance ��' � i � Homer Croy Direc tor o f Bui l din & Sa fe t !O � � � ! ; �r� A s s i s t a n t C i ,�l a n a g e r 9 Y `�i, � � � � , ; i' I� Development Services , �� c i i� � 1 ,-� ,��ti � �' i i � C,? Approval: ,m � � � � ` ; � � Ap al: :� �� " .�, � �. � � �, i � Carlos Ort � Ir,, aul Gibson City Manager � ' � � j;� Finance Director a �.� .o H �., c � � . � � ,. t� a � ca �s�o � ` •. ry ,-� U g '.�>�'` �c�� W � O W . �-i �• �o ,,� at: T:-� -'-? 'J�+ (Y. � £-F �i� �i� �� E� �-�1 +.�'i E+ Pa �e3 ik� !�� t�� t.� �ri HRa � �; C� �'t �3F3] N ` ��v�/ t.--1 4t { 1� !'� �`� ^ IG-a ��11 (•;y ,:�ry �1 ✓ �.,.•' G:\Build ingSfty\SuzanneCicchini\WordFiles\StaffReports\SB1473Report121108.doc Senate Bill No. 1473 CHAPTER 719 An act to add Sections 18930.5, 18931.6, 18931.7, and 18938.3 to the Health and Safety Code,relating to building standards. [Approved by Governor September 30,2008.Filed with Secretary of State September 30,2008.] LEGISLATIVE COUNSEL'S DIGEST SB 1473,Calderon.Building standards. (1) The California Building Standards Law provides for the adoption of building standards by state agencies by requiring all state agencies that adopt or propose adoption of any building standard to submit the building standard to the California Building Standards Commission for approval or adoption. This bill would require the commission to adopt,approve,codify,update, and publish green building standards for any occupancy for which no state agency has the authority or expertise to propose those standards. The bill would require each city, county, ar city and county to collect a fee from any applicant for a building permit,assessed at the rate of$4 per $100,000 in valuation, as determined by the local building official, with appropriate fractions thereof,but not less than$1.The bill would authorize the city,county,or city and county to retain not more than 10%of the fees collected for related administrative costs and for code enforcement education, including certifications in the voluntary construction inspector certification program. The bill would require the city, county, or city and county to transmit the remainder to the commission for deposit in the Building Standards Administration Special Revolving Fund which the bill would establish in the State Treasury. The bill would establish a state-mandated local program by imposing additional duties on local government. The bill would require that all funds received by the commission under the California Building Standards Law be deposited in the fund and be available,upon appropriation,to the commission for expenditure in carrying out these provisions of existing law and certain other provisions of existing law that relate to building standards, with emphasis placed on the development, adoption, publication, updating, and educational efforts associated with green building standards. The bill would authorize the commission and the Department of Housing and Community Development to use,as the basis for the California Building Standards Code, certain model codes adopted by the commission as the basis for the 2007 triennial edition of the California Building Standards Code. 94 Ch.719 —2— (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. (a) It is the intent of the Legislature that this act shall not affect the ability of a city, county, or city and county to adopt changes, modifications,amendments,additions,or deletions to the California Building Standards Code,including,but not limited to,green building standards. (b) It is the intent of the Legislature that the Building Standards Commission and the Department of Housing and Community Development shall submit a joint expenditure plan for the use of funds allocated under this act. (c) It is the intent of the Legislature that any educational programs funded under this act be coordinated to the maximum extent possible with similar efforts so as to expand the reach and effectiveness of each program. SEC.2. Section 18930.5 is added to the Health and Safety Code,to read: 18930.5. If no state agency has the authority or expertise to propose green building standards applicable to a particular occupancy, the commission shall adopt,approve,codify,update,and publish green building standards for those occupancies. SEC.3. Section 18931.6 is added to the Health and Safety Code,to read: 18931.6. (a) Each city, county, or city and county shall collect a fee from any applicant for a building pertnit,assessed at the rate of four dollars ($4)per one hundred thousand dollars($100,000)in valuation,as determined by the local building official,with appropriate fractions thereof,but not less than one dollar($1). (b) The city, county, or city and county may retain not more than 10 percent of the fees collected under this section for related administrative costs and for code enforcement education, including, but not limited to, certifications in the voluntary construction inspector certification program, and shall transmit the remainder to the commission for deposit in the Building Standards Administration Special Revolving Fund established under Section 19831.7. (c) The commission may reduce the rate of the fee upon determining that a lesser amount is sufficient to maintain the programs established under this part. SEC.4. Section 18931.7 is added to the Health and Safety Code,to read: 18931.7. (a) All funds received by the commission under this part shall be deposited in the Building Standards Administration Special Revolving Fund,which is hereby established in the State Treasury. (b) Moneys deposited in the fund shall be available,upon appropriation, to the commission the department,and the Office of the State Fire Marshal 94 —3— Ch.719 for expenditure in carrying out the provisions of this part,and the provisions of Part 1.5 (commencing with Section 17910) that relate to building standards, as defined in Section 18909, with emphasis placed on the development, adoption, publication, updating, and educational efforts associated with green building standards. SEC.5. Section 18938.3 is added to the Health and Safety Code,to read: 189383. With respect to the model codes that are designated in Sections 17922 and 18938 to serve as the basis for the California Building Standards Code but are no longer published, the building standards adopted and approved by the commission shall be those contained in the most recent editions of the model codes adopted or approved by the commission to serve as the basis for the 2007 triennial edition of the California Building Standards Code. Those model codes designated in Sections 17922 and 18938 that continue to be published and updated shall continue to serve as the basis for the California Building Standards Code.With respect to Section 17922, other model codes may be considered for use, proposal, approval, or adoption,or any combination thereof,provided they do not duplicate building standards, as proposed by the Department of Housing and Community Development and adopted by the commission, the subject matter of the model codes which serve as the basis for the 2007 triennial edition of the California Building Standards Code. SEC.6. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges,fees,or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. O 94 RESOLUTION NO. o8-io5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS IT RELATES TO THE COLLECTION OF FEES AS REQUIRED BY SB 1473 FOR THE DEVELOPMENT, ADOPTION, PUBLICATION, UPDATING, AND EDUCATIONAL EFFORTS ASSOCIATED WITH GREEN BUILDING STANDARDS. WHEREAS, the City Council of the City of Palm Desert, California, did on December 11, 2008, approve authorizing the Finance Department to establish an account for the collection of fees as required by SB 1473. WHEREAS, SB 1473 requires that each city, county, and city and county collect a fee from an applicant for a building permit, assessed at the rate of four dollars ($4) per one hundred thousand dollars ($100,000) in valuation, with appropriate fractions thereof, but not less than one dollar ($1). "Appropriate fractions thereof' is interpreted to be $1 per every twenty-five thousand ($25,000) in valuation. WHEREAS, SB 1473 provides that a city, county, or city and county may retain up to ten (10) percent of the fees collected for related administrative costs and for code enforcement, education related to green building standards. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY AUTHORIZE THE FINANCE DEPARTMENT TO ESTABLISH AN ACCOUNT FOR THE COLLECTION OF FEES AS REQUIRED BY SB 1473. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City of Palm Desert City Council, held on this day of December 11, 2008, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JEAN BENSON, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Dec. 10. 200$ 2: 56PM BIA DESERT CHAPTER (7b0) 77�-3372 No, 784$ P, 2 De.cember 10,2008 City of�'�lm llesert �' � I�ussell A. Grance,CBO birector of Building and Safety 73-510 �'red�V'aring Dese�t Chapter Palm Desert,CA 92260-257$ Kuil(1i11r Indur:try:lx�)cifl�inn �eAl'�. �J'TAI1G�� uf S��ulll�,rn�:t1IiG)rilirl 7y-:17U��1!'111�fL`ICI I�ti111; Thank you for informing the $uilding Industry' Association Desert Chapter that the �""�� I aJm I)c,�ort,C;a.lifurnie�92211 City of Pa1m r]esert has proposed a resolution for the collection of fees in �h�},;3G(�,Z4?fi accordance ta recently adopted State Y.,egislation, SB 1473. In brie��ie BIA Desert f�.x 7t>0.7??.�3�472 ChapCer supports this action as it enables the Building Standards Gammissian ta `�'"'p'��"�"r'c�}iuE�Lr.�.i:i�tY1 F:�9Eiii:f3fA q De:�r�C:hu�ter,c�m continue providing educatian to lacal agencies throughaut the State of Californi�for `green building' alternatives in canstruction. BTA Desert Chapter fallo�ing the California Building Tndustry Association sponsarship of SB 1473 (Calderon), has been collaborating with "four state agencies, (]�epartment of Housing and Communitiy' De�elopment (I�CD), Buiiding 5tandards Commission ($SC), Y7ivision of the State Architect and the Office af Stat�wide �ealth Planning Sz ]7eveloprnent (aST�PD) to developing the first set of green building staz�dards far the State af California. Tt is anticipated that these building standards will be adopted b�' the Building Standards Commission during the third quarter of this year. Upon adaption �nd publication of the green building standards, these state agencies will commence worlc on the secoz�d iteration of these standards. The BSC, T-�CI7, the State Architect, and the OSHFD are presentl� developing the first set of green building standazds for California. It is anticipatied that these i�uildirig standards w`ill be adopted by the BSC by the end of 200$. Man�' o�tihe prpposed standards, especi�ll� r�ith respect to non-residential construction, are voluntary, However, according to t�e BSC, a more stringent set of standards will likely be a,dapted in 2010." (As presented to the Assembl� Conunitte� on $usiness and Professions—J'une 17,2408} 'Vl�'e appreciate the City of Palm Desert's interest in green oonstruction and the continued effarts for canservation. BIA Desert Chapter and CBIA are cammitted to canservation of aur Sta,te's precious resources and persist to embarl� on ner�v strategies for effecti�e and eff�icient means and legisiation to do so. �tespectfully, �.'_; ° .y� ,� ; -� ;-� � � _� � . � ':-� � � r� - W Fred Bell �� E�ecuti�ve Officer � - - }�.�v � c� .�� :tn:1flili2Ue nf i.he\�tiunsl:1s;oriii(iu�i uf I I�imr ISuf4dr�r�:nirr3 lhc•ladik�rri�at liuildi�i�Int'lurLr��Ayyauiuli�,in