HomeMy WebLinkAboutResolution 2011-17 - Implement the "Mills Act Program"CITY OF PALM DESERT
BUILDING & SAFETY DEPARTMENT
STAFF REPORT
REQUEST: APPROVE RESOLUTION NO.2011_17 ESTABLISHING FEES TO
IMPLEMENT THE MILLS ACT PROGRAM
SUBMITTED BY: Russell A. Grance, Director of Building and Safety
DATE: March 10, 2011
CONTENTS:
1. Resolution No. 2011-17
2. Table 7 of Cost of Service/Fee Analysis dated December 2010
3. Amended Building and Safety Fee Schedule (Items 63 & 64)
4. Mills Act Program Manual
Recommendation:
Waive further reading and adopt Resolution No. 2011-17 , approving the
proposed fees to implement the Mills Act program.
Background:
On January 13, 2011, the City Council approved Resolution No. 2011-1, "Mills Act
Program". The purpose of the Mills Act is to provide a significant economic incentive for
owners to participate in the rehabilitation, restoration, preservation and maintenance of
their historic property.
Discussion:
State law requires that fees for services shall not exceed the estimated reasonable
costs of providing the service for which the fee is charged. It is also recognized that the
method of estimating cost be reasonable. Currently the City of Palm Desert's fee
schedule does not address either the Mills Act "Application" fee or "Contract
Initiation" fee as outlined in the Mills Act Program Manual.
Staff Report
Mills Act Fee Proposal
March 10, 2011
Page 2 of 2
Therefore staff is recommending that the Mills Act "Application" non-refundable fee be
set at $318.00, which equates to a two-hour minimum at the hourly rate for the Cultural
Resources Administrator (Director of Building and Safety, billable hourly rate of
$159.00). This fee will cover staffs time to review the application and work with the
applicant to ensure completeness and process the application through the Cultural
Resources Preservation Committee, and City Council for final approval. Since the Mills
Act property requires a contract that will ultimately be forwarded to the County for
processing.
The "Contract Initiation" fee is proposed to be a deposit type fee of $1000.00. The
applicant shall deposit an estimated amount and enter into an agreement to fully
reimburse the City for processing costs. The costs of an individual case may be more
than the initial deposit amount. In that instance, the applicant shall be required to
replenish these deposits periodically and that any excess deposit monies are refunded
to the applicant only after the service is complete and the cost is fully determined. This
deposit will cover staffs time (City Attorney) to review and process the contract through
Riverside County Assessor and Riverside County Recorder office. It is anticipated that
the average Mills Act contract will utilize less than $1,000.00 for processing.
Fiscal Analysis:
If the City Council approves the proposed fee the Department of Building and Safety
can recover actual cost to implement and carry out the Mills Act Program. Every two
years data can be updated and fee schedules can be modified according to the cost of
services.
Submitted By:
Russell A. Grance, Director of Building &
Appr I:
Paul S. Gibson, Director of Finance
City Manager
CITY COUNCILACT,
APPROVED ✓✓ DENIED _
RiVn _ OTHER��
Original on File with Ciiyklerk's Office
RESOLUTION NO.2011-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AMENDING THE DEVELOPMENT SERVICES
FEE SCHEDULE TO INCLUDE THE MILLS ACT PROGRAM FEES
WHEREAS, pursuant to Government Code section 66016 and 66017, the City of
Palm Desert proposes to adopt the amended fee schedule for the Development of
Building and Safety; and
WHEREAS, California Government Code Section 60016 requires notice to be
given and data made available at specified times prior to the adoption of increases in
existing service fees for use permits and building inspections sometime hereinafter at a
public meeting of this City Council; and
WHEREAS, the applicant benefiting from such services should primarily bear the
cost so that they can be delivered in a timely and effective manner; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
DOES HEREBY APPROVE THE AMENDED DEVELOPMENT REVIEW AND
INSPECTION SERVICE FEES AS FOLLOWS:
SECTION 1: The City Council has considered all the evidence submitted into the
administrative record, which includes the staff report dated March 10, 2011 and the
amended Building and Safety Fee Schedule.
SECTION 2: In view of all the evidence, and based on the findings and conclusions
contained herein, the City Council hereby resolves as follows:
1. That the amount of each fee established and adopted herein may be
modified and updated periodically, and annually by resolution of the City
Council pursuant to any applicable law, rule or regulation and/or to
conform to the findings prepared by or on behalf of the City.
SECTION 3: Where the City Manager determines that the public interest would be
served by such an agreement, the City Manager is authorized to negotiate and execute
agreements to defer, waive or reduce and Development Services Fees upon and
Applicant for a particular development project, but only if the City Manager determines
upon evidence presented by the Applicant, that the development project will provide a
general benefit to the health, safety, and welfare of the citizens of the City of Palm
Desert, and will not only be of special benefit to an Applicant. Such findings and the
resulting agreement (s) to defer waive or reduce and Development Service Fees shall
be subject to approval by the City Council.
RESOLUTION NO. 2011-17
SECTION 4: Effective Date.
In accordance with Government Code Section 66017, the modified fees set forth in this
Resolution shall take effect thirty days (30) after the adoption of this Resolution. The
City Council reserves the right to have such fees effective at the time or at such future
date as the City Council shall determine.
SECTION 5: Severability.
The City Council declares that, should any provision, section, paragraph, sentence or
word of this Resolution be rendered or declared invalid by any final court action in a
court of competent jurisdiction or by reason of any preemptive legislation, the remaining
provisions, sections, paragraphs, sentences or words of the Resolution as herby
adopted shall remain in full force and effect.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert,
California at its regular meeting held this day of , 2011, by the following vote,
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JEAN M. BENSON, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
CITY OF PALM DESERT
MILLS ACT PROGRAM
APPLICATION MANUAL
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760)346-0611
TABLE OF CONTENTS
APPLICATION INFORMATION
Introduction and Purpose 3
Property Qualifications 3
Terms of a Contract 3
Administration 4
Application and Selection Process 5
FORMS
Application Checklist 7
Application 8
10-Year Property Improvement Plan 9
Financial Analysis Worksheet 10
Financial Analysis Worksheet Instructions 11
APPENDICES
A. Sample Projects Qualified Under the Mills Act 13
B. Secretary of the Interior's Standards for Rehabilitation 14
C. Sample Mills Act Contract 15
D. Sample Site Plan 25
E. Site Inspection Form 26
F. State Mills Act Legislation 27
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MILLS ACT PROGRAM
INTRODUCTION AND PURPOSE
The City of Palm Desert Mills Act Program was established by Resolution No. in
2011. The Mills Act is state legislation, enacted in 1972, that grants participating local
governments the authority to enter into contracts with owners of qualified historic
properties who receive a reduction in local property taxes to help offset the costs to
restore, rehabilitate, repair and maintain their properties. Although it is applicable to
historic income producing properties, it is the single most important economic incentive
program available in California for owner occupied historic residential buildings,
particularly single-family homes. A Mills Act program is developed in accordance with
California Government Code, Article 12, Sections 50280-50290 and California Revenue
and Taxation Code, Article 1.0, Sections 439-439.4
This manual is designed to assist you in completing the Mills Act application and
provides a summary of the program requirements.
QUALIFYING HISTORIC PROPERTIES
To qualify for the Palm Desert Mills Act program a property must be one of the
following:
➢ Designated City Landmark
➢ Contributing feature of a designated City historic district
➢ Listed individually in the National Register of Historic Places
➢ Contributing feature of historic district listed in the National Register of Historic
Places
➢ National Historic Landmark
A property must be designated at the time an application is submitted. Questions
regarding the designation status of a property of the City's designation program can be
addressed to the Cultural Resources Administrator in the Department of Building and
Safety.
TERMS OF A MILLS ACT CONTRACT
Duration: A Mills Act contract is for a minimum term of ten years. It is automatically
renewed each year on its anniversary date and a new ten year term becomes effective.
Contracts are transferred to new owners when the property is sold.
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Termination: The property owner may terminate the contract by notifying the City at
least ninety (90) days prior to the annual renewal date. The City may terminate the
contract by notifying the owner at least sixty (60) days prior to the renewal date. The
owner may make a written protest about termination by the City. The contract remains
in effect for the balance of the term of the contract beyond the year of termination.
Alterations or Additions to a Property: Work performed on the property (interior,
exterior, and grounds) must meet all City requirements and comply with the "Secretary
of the Interior's Standards for Rehabilitation". A 10-Year Property Improvement Plan is
required as part of the application and will be re-evaluated by the City every five years
or as needed.
Annual Reports: Property owners are required to submit an annual report to the City
indicating work completed per the 10-Year Property Improvement Plan. The report is
due by December 31 of each year and should include copies of receipts and/or building
permits where applicable.
Inspection for Compliance: City staff conducts a pre -contract inspection of the
property to ensure compliance with the terms of the contract. Conditions not conforming
to the Secretary of the Interior's Standards for Rehabilitation may be required to be
brought into compliance before a contract is executed. City staff will conduct annual
property inspections following submittal of the annual report to ensure that proposed
work has been completed and meets all applicable City standards. Inspections may also
be required by the County Assessor, State office Historic Preservation and/or State
Board of Equalization. All inspections are by appointment with the property owner.
Breach of Contract: If the City determines that the property owner is in breach of
contract, the City may cancel the contract and the owner is liable for a cancellation fee
of 12.5% of the current value of the property as determined by the County Assessor.
ADMINISTRATION
City of Palm Desert: Mills Act applications and contracts are administered by the
Cultural Resources Administrator in the Department of Building and Safety. Upon
selection for the program, contracts are reviewed by the Cultural Resources
Preservation Committee and referred to the City Council for approval.
Riverside County: The County records executed Mills Act contract documents with the
County Recorder before December 31 of the applicable calendar year. After
recordation, the City transmits contract documents to the Riverside County Assessor
where the calculation for the exact property tax under the Mills Act is completed.
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The County Assessor calculates the tax saving using a stated -mandated reassessment
formula based on "capitalization of income" rather than simple "market value." Mills Act
participants may realize a property tax savings averaging about 50% each year
depending on property value, net operating income, and other variables. Recently
purchased historic properties are most likely to receive the highest reduction. The Mills
Act Program does not guarantee a reduction amount for any property.
Contracts that are recorded by December 31 are reassessed by June 30 of the
following year and the reduced tax will appear on the tax bill of October of that year.
State of California: Within six months of entering into a Mills Act contract, the property
owner must submit written notice to the State Office of Historic Preservation. This
notification states that the property owner has entered into a Mills Act contract. A copy
of the letter must be submitted to the City Cultural Resources Administrator.
APPLICATION AND SELECTION PROCESS
The City accepts up to seven (7) Mills Act contracts per year. Applications are accepted
year-round, but to be considered for the next fiscal year applications must be submitted
by July 30tn
Fees: A non-refundable application fee of $ is due with your application. If your
application is accepted, a non-refundable contract initiation fee of $ will be due.
Submittal Requirements: The application should include the following:
1. Application Checklist
2. Application Form
3. Copy of the grant deed, including a complete legal description
4. 10-Year Property Improvement Plan
5. Mills Act Financial Analysis Worksheet
6. Photographs — Photographs shall be black and white 35mm film including
negatives or compact disc (CD) of the building interior (all rooms) and exterior
(front, sides, rear as well as assessor buildings, and hardscape and landscape
features). Include as many views of architectural details as necessary to
document the character defining features of the building and site. Include one 8 x
10 printed image that best captures the property, (e.g. front fagade). Images shall
be printed onto archival paper in 3 x 5, 4 x 6 or multiple image letter sized sheet
format.
7. Site plan — The plan shall be drawn to scale and showing the location of all
buildings, structures and major site features on the property, street names, north
arrow, and dimensions.
8. Non-refundable application fee
5
The complete application should be submitted to:
Cultural Resources Administrator
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
City of Palm Desert Mills Act
Application Checklist
The following should be completed and submitted with your application packet. See the
Palm Desert Mills Act Application Manual for details on the submittal requirements.
❑ Application Form
❑ Copy of the grant deed, including complete legal description
❑ 10-Year Property Improvement Plan
❑ Financial Analysis Form
❑ Photographs
❑ Site Plan
❑ Non -Refundable Application Fee
The complete application should be submitted to:
Cultural Resources Administrator
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
N
City of Palm Desert
Department of Building and Safety
MILLS ACT HISTORIC PROPERTY CONTRACT APPLICATION
73-510 Fred Waring Drive • Palm Desert • California • 92260 - (760) 776-6420 • Fax (760) 776-6392
Property Owner Information:
Name:
Address:
City:
Phone: (HM)
Property Information:
State:
(WK)
Address of Property:
Assessor's Parcel No(s):
Legal Description (attach additional sheets if necessary):
Date of Purchase by Current owner:
Use of Property:
Eligibility for the Mills Act Program:
M.
Email:
A property must be designated and recorded with the Riverside County Recorder at the time an
application is submitted. Please check the designation(s) that apply to the property:
City Historic Landmark
Contributor to a City Historic District
National Register of Historic Places (individually listed)
National Register of Historic Places (contributor to a historic district)
National Historic Landmark
Name of Historic District (if applicable):
Date of Designation:
Property Owner Consent: I am (we are) the present owner(s) of the property described
above and hereby apply for consideration for a Mills Act Historic Property Contract
Signature of Property Owner Date
Signature of Property Owner Date
For Office Use:
Mills Act Application
10-Year Property Improvement Plan
For sample projects qualifying under the Mills Act see Appendix "A". Attach additional
sheets if necessary.
Year
Proposed Project
Estimated Cost
1
2
3
4
5
6
7
8
9
10
This schedule will be attached as an exhibit to the Historic Property Preservation
Agreement (Mills Act Contract). It may be revised or updated by mutual consent of the
property owner(s) and the Cultural Resources Administrator in the Department of
Building and Safety.
All projects that affect the exterior of the property are subject to review and approval by
the Cultural Resources Administrator and/or the Cultural Resources Preservation
Committee before work begins. Work must meet all City requirements and the Secretary
of the Interior's Standards for Rehabilitation (Appendix B).
Mills Act Financial Analysis Worksheet
(See Excel Spreadsheet)
10
How to Complete the Mills Act Financial Analysis
Income:.
Monthly Rental Income: When a property is owner -occupied, the determination of "income" is
based on what a property could reasonably be expected to yield, or an amount stipulated in the
contract as the minimum income to be used. The income projected for owner -occupied property
is based on comparable rents for similar property in the area, or, if insufficient rental information is
available, the income that it could reasonably be expected to produce under prudent
management. In the case of income producing property, the income amount is based on rent
actually received and on typical rentals received for similar property in similar use. Two
suggested methods for documenting comparable rents are through newspaper advertisements or
a real estate or management company comparables.
Annual Rental Income: Annual Rental Income is calculated by multiplying the monthly rental
income by twelve (12) months. Subtract a reasonable amount or percentage for vacancy and
collection. 3-5% is a reasonable percentage.
3-8. Add typical expenses such as insurance, utilities, maintenance and repairs, and management
fees to arrive at annual expenses. Exclude expenses include debt service, depletion charges, and
interest on funds invested in the property.
9. Subtract annual expenses (Line 8) from Income (Line 2)
V-1-1111 F11. - The capitalization rate for both owner -occupied and income -producing property
includes an interest component, a historical property risk component, an amortization component, and a
property tax component.
10. An interest component is determined by the State Board of Equalization and announced no
later than September 1 or the year preceding the assessment year. The Yield rate is equal to the
effective rate on conventional mortgages as determined by the Federal Home Loan Bank Board,
rounded to the nearest % percent.
11. The historic property risk component is 4% in the case of owner -occupied single -family -
dwellings. In all other cases, the property risk component is 2%.
12. The property tax component is defined as the "percentage of the estimated total tax rate
applicable to property for the assessment year times the assessment ratio." This component will
be 1 % (0.1 post -Prop 13 tax rate X 100% assessment ratio). Special district assessments are not
included in this component. The Riverside Tax Assessor's Office has the latest tax rate are
information at (951) 955-6250.
13. The amortization component is a percentage equal to the reciprocal of the remaining life of the
improvements. Although this calculation varies by individual structure, as an estimate, the typical
remaining life of a frame building would be 20 years; for masonry buildings, the remaining life
might be up to 50 years.
14. The capitalization rate is the sum of Line 10-12.
15. Calculate the Mills Act Assessment by dividing the net operating income by the capitalization rate.
16. Write in the current total taxes due. (The subsequent years are increased by 2%)
17. Calculate the tax under the Mills Act by multiplying the Mills Act Assessment (Line14) by
.01142593 and then in the direct assessments as shown on your tax bill. (The Mills Act does not
allow a reduction in direct assessment taxes)
18. Calculate the tax savings by subtracting the current tax under the Mills Act. (Line 18)
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APPENDICES
A. Sample Projects Qualified Under the Mills Act
B. Secretary of the Interior's Standards for Rehabilitation
C. Sample Mills Act Contract Agreement
D. Sample Site Plan
E. Site Inspection Form
F. State Mills Act Legislation
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APPENDIX A
Sample Projects Qualified Under the Mills Act Program
Access Modifications — Exterior
Access Modifications — Interior
Accessory Structure — Repair or Replace
Annual Maintenance and Repairs
Appliance Vent
Architectural — Remove Non -historic feature and
Restore to Original
Architectural Trim — Repair
Architectural Trim — Replace
Architectural Trim — Install New
Balcony/Decks — New Railings
Balcony/Decks — Repair or Replace
Basement — Access — Repair or Replace to Code
Basement — New or Rebuild
Cabinets — New Built-in Bathroom
Cabinets — New Built-in Kitchen
Cabinets — New Built-in Other
Caulking
Chimney — Inspect and Clean
Chimney — New
Chimney — Rebuild or Repair
Code Repair Item
Column — Replace or Rebuild
Corbels/Structural Brackets — Replace or Repair
Door — Hardware
Door — New Basement Hatch Cover and Base
Door — Repair or Replace
Drain for Deck — Install or Repair
Drainage Protection or Correction
Dry -Rot Remove, Repair, and/or Replace
Electrical — Rewire or Install New Outlets
Electrical — Complete Rewire and Service Upgrade
Electrical — Ground and Service Entry
Electrical — Install New Circuits
Electrical — Lighting Fixtures
Electrical — New Service Lines to Garage
Electrical — Security Lighting and Alarm
Electrical — New Outlets
Flashing
Floor Furnace — Remove or Restore
Flooring — Carpet
Flooring — Repair
Flooring - Repair Wood Floors
Flooring — Replacement
Foundation — Bolting and Seismic Work
Foundation — New
Foundation — Repair
Gable or Attic — Re -screening
Garage Door
Garage — Repair or Replace
Gutters and Downspouts
HVAC — Complete New System
HVAC — Maintenance or Repair
Insulation — Walls
Insulation — Attic
Interior Trim — Refinish
Kitchen — New Counters
Masonry — New
Masonry — Repair or Replace Tile Hearth
Masonry — Repairs
Masonry — Re -point Brick
Mechanical — Air Conditioning
Mechanical — Heating Unit
Mechanical — Ventilation and Duct Work
Painting — Exterior
Painting — Interior
Painting — Lead Based Paint Removal
Painting — Exterior Trim
Patio — Repair
Plastering — Remove, Replace, or Refinish
Plumbing — DWV (Drain, Waste, Vent)
Plumbing — Fixtures
Plumbing — Install New Supply Lines Plumbing —
Install Sump Pump & discharge drain
Plumbing — Minor Repairs
Plumbing — New Supply
Plumbing — Service Lines
Plumbing — Sewer
Porch — Ceiling Replacement
Porch — Repair or Replace
Porch Railing — Repair or Replace to Code
Porch — Resurface
Remove Substandard Construction
Repair Eaves and/or Overhangs
Repair Exterior Stucco
Replace Non -historic Feature
Roof— Minor Repair
Roof — Re -roof
Roof — Tear off and Install New
Security Lighting and Alarm System
Seismic Retrofitting
Siding — Remove Asbestos Siding and Restore
Siding — Repair or Replace
Skylights — Repair or Replace
Stair — Repair or Replace
Stone Work
Stoop — Repair or Replace
Structural — New Framing or Repairs
Structural Bracing
Structural Modifications
Structural Repairs — Roof and or Ceiling Joists
Termite Treatment
Termite Damage — Repair
Tile — Replace, Repair, Re -point
Utility Enclosure — New
Ventilation — Attic Fan
Waterproofing
Weatherproofing
Window — Screens or Hardware
Windows — Repair or Replacement
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APPENDIX B
The Secretary of the Interior's Standards for Rehabilitation
The Standards (Department of Interior regulations, 36 CFR 67) pertain to historic buildings of all
materials, construction types, sizes, and occupancy and encompass the exterior and the
interior, related landscape features and the building's site and environment as well as attached,
adjacent, or related new construction. The Standards are to be applied to specific rehabilitation
projects in a reasonable manner, taking into consideration economic and technical feasibility.
1. A property shall be used for its historic purpose or be placed in a new use that requires
minimal change to the defining characteristics of the building and its site and environment.
2. The historic character of a property shall be retained and preserved. The removal of historic
materials or alteration of features and spaces that characterize a property shall be avoided.
3. Each property shall be recognized as a physical record of its time, place, and use. Changes
that create a false sense of historical development, such as adding conjectural features or
architectural elements from other buildings, shall not be undertaken.
4. Most properties change over time; those changes that have acquired historic significance in
their own right shall be retained and preserved.
5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that
characterize a property shall be preserved.
6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of
deterioration requires replacement of a distinctive feature, the new feature shall match the old in
design, color, texture, and other visual qualities and, where possible, materials. Replacement of
missing features shall be substantiated by documentary, physical, or pictorial evidence.
7. Chemical or physical treatments, such as sandblasting, that cause damage to historic
materials shall not be used. The surface cleaning of structures, if appropriate, shall be
undertaken using the gentlest means possible.
8. Significant archeological resources affected by a project shall be protected and preserved. If
such resources must be disturbed, mitigation measures shall be undertaken.
9. New additions, exterior alterations, or related new construction shall not destroy historic
materials that characterize the property. The new work shall be differentiated from the old and
shall be compatible with the massing, size, scale, and architectural features to protect the
historic integrity of the property and its environment.
10. New additions and adjacent or related new construction shall be undertaken in such a
manner that if removed in the future, the essential form and integrity of the historic property and
its environment would be unimpaired.
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Recording Requested by:
When Recorded Mail to:
CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: Cultural Resources
Administrator
APPENDIX C
(Space above for Recorder's Office)
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT")
between
THE CITY OF PALM DESERT
a municipal corporation
and
Owner(s) of the property located at
APN
15
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT")
This agreement is made this
Desert, a municipal corporation ("City") and
RECITALS
by and between the City of Palm
("Owner").
1. California Government Code section 50280, et. seq. allow cities the
discretion to enter into contracts with the owners of qualified historic properties, as
that term is defined in Government Code section 50280.1, for the purpose of
providing for the use, maintenance, protection, and restoration of such historic
property so as to retain its characteristics as property of historic significance.
2. Owner holds fee title in and to that certain real property, together with associated
structures and improvements thereon, generally located at the street address
Palm Desert, California ("Historic Property"). A legal description of the
Historic Property is attached hereto as Exhibit "A," and incorporated herein by this
reference.
3. On
the Cultural Resources Preservation
Committee and/or the City Council designated the Historic Property as an historic resource
pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code.
4. City and Owner desire to enter into this Agreement for the purpose of protecting and
preserving the characteristics of historical significance of the Historic Property that help
provide the community with its own unique civic identity and character.
5. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled
to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions
of Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code, and any
corresponding adjustment in property taxes resulting therefrom.
TERMS NOW, THEREFORE, the City and Owner in consideration of mutual covenants and
conditions set forth herein, do hereby agree as follows:
16
1. Effective Date and Term of Agreement. This Agreement shall be effective and
commence on , 200_ ("Effective Date") and shall remain in
effect for a term of ten (10) years thereafter.
2. Yearly Renewal. Each year upon the anniversary of the Effective Date
("Renewal Date"), an additional one (1) year shall automatically be added to the
remaining term of the Agreement unless a notice of nonrenewal is delivered as provided
in Section 3 of this Agreement.
3. Nonrenewal. If either the Owner or City desires in any year not to renew this
Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in
advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal shall
be effective only if served by Owner upon City at least ninety (90) days prior to the
Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be
effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If
either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall
remain in effect for the balance of the term then remaining.
4. Owner Protest of City Nonrenewal. Within fifteen (15) days of Owner's receipt
of the Notice of Nonrenewal from City, Owner may file with City a written protest of the
Notice of Nonrenewal. Upon receipt of the written protect, the City Council shall set a
hearing prior to the expiration of the Renewal Date of this Agreement. Owner may
furnish the City Council with any information which Owner deems relevant and shall
furnish the City Council with any information it may require. The City Council may, at any
time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal.
5. Standards for Historical Property. During the term of this Agreement, the
Historic Property shall be subject to the following conditions, requirements, and
restrictions:
A. Owner shall preserve and maintain the characteristics of the cultural and
historical significance of the Historic Property. Attached hereto as Exhibit
"B," and incorporated herein by this reference, is a list of the minimum
standards and conditions for maintenance, use, protection, and
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preservation of the Historic Property, which shall apply to the Historic
Property and be complied with by Owner throughout the term of this
Agreement. In addition, Owner shall comply with the terms of the City's
Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal
Code), and shall obtain any applicable permits necessary to protect,
preserve, restore, and rehabilitate the Historic Property so as to maintain
its historical and cultural significance.
B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate
the Historic Property according to the rules and regulations of the Office of
Historic Preservation of the State Department of Parks and Recreation
and the City of Palm Desert. The condition of the exterior of the Historic
Property on the effective date of this Agreement is documented in
photographs attached as Exhibit "C" and incorporated herein by this
reference. At a minimum, Owner shall continually maintain the exterior of
the Historic Property in the same condition as documented in Exhibit "C."
C. Owner shall carry out specific restoration, repair, maintenance, and/or
rehabilitation projects on the Historic Property, as outlined in the attached
Exhibit "D," which is incorporated herein by this reference. All such
projects shall be undertaken and completed in accordance with the
Secretary of Interior Standards for Rehabilitation and the City of Palm
Desert design guidelines.
D. Owner shall not be permitted to block the view corridor with any new
structure, such as walls, fences or shrubbery, so as to prevent the viewing
of the Historic Property from the public right-of-way.
6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow
reasonable periodic examinations of the exterior of the Historic Property by
representatives of the County Assessor, the State Department of Parks and Recreation,
the State Board of Equalization and/or City, as may be necessary to determine Owner's
compliance with the terms and provisions of this Agreement.
7. Provision of Information of Compliance. Owner hereby agrees to furnish City
with any and all information requested by City, which City deems necessary or advisable
iu:
to determine eligibility of the Historic Property and compliance with the terms and
provisions of this Agreement.
8. Breach of Agreement; Remedies.
A. Notice of Breach, Opportunity to Cure. If Owner breaches any provision of
this Agreement, City may give written notice to Owner by registered or
certified mail detailing Owner's violations. If such violation is not corrected
to the reasonable satisfaction of City within thirty (30) days after the date
of notice of violation, or within such a reasonable time as may be required
to cure the violation (provided the acts to cure the violation are
commenced within thirty (30) days and thereafter diligently pursued to
completion), the City may, without further notice, declare Owner to be in
breach of this Agreement. Upon City's declaration of Owner's breach,
City may pursue any remedy available under local, state, or federal law,
including those specifically provided for in this section.
B. Remedy - Cancellation. City may cancel this Agreement if City
determines, following a duly noticed public hearing in accordance with
Government Code section 50286, that Owner breached any of the
conditions of the Agreement, Owner allowed the Historic Property to
deteriorate to the point that it no longer meets the standards for a qualified
historic property, or Owner failed to maintain and preserve the Historic
Property in accordance with the terms of this Agreement. If this
Agreement is cancelled, under this paragraph, Owner shall pay a
cancellation fee to the Office of the Auditor for the County of Riverside as
required by Government Code section 50286.
C. Alternative Remedies. As an alternative to cancellation of this Agreement
for Owner's breach of any condition, City may bring an action in court
necessary to enforce this Agreement including, but not limited to, an
action to enforce this Agreement by specific performance, injunction, or
receivership.
9. Destruction of Property; Eminent Domain; Cancellation. If the Historic
Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the
19
opinion of the City Building Official more than sixty percent (60%) of the original fabric of
the structure must be replaced, this Agreement shall be cancelled because the historic
value of the structure will have been destroyed. If the Historic Property is acquired in
whole or in part by eminent domain or other acquisition by any entity authorized to
exercise the power of eminent domain, and the acquisition is determined by the City
Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled.
No cancellation fee pursuant to Government Code section 50286 shall be imposed if the
Agreement is cancelled pursuant to this Section.
10. Waiver. City does not waive any claim of default by Owner if City does not
enforce or cancel this Agreement. All other remedies at law or in equity which are not
otherwise provided for in this Agreement or in City's regulations governing historic
properties are available to the City to pursue in the event that there is a reach of this
Agreement. No waiver by City of any breach or default under this Agreement shall be
deemed to be a waiver of any other subsequent breach thereof or default hereunder.
11. Binding Effect of Agreement. Owner hereby subjects the Historic Property to
the covenants, conditions, and restrictions set forth in this Agreement. City and Owner
hereby declare their specific intent that the covenants, conditions, and restrictions set
forth herein shall be deemed covenants running with the land and shall inure to and be
binding upon Owner's successors and assigns in title or interest to the Historic Property.
Each and every contract, deed or other instrument herein after executed, covering or
conveying the Historic Property, or any portion thereof, shall conclusively be held to
have been executed, delivered and accepted subject to the covenants, reservations and
restrictions are set forth in such contract, deed or other instrument.
12. Covenants Run with the Land. City and Owner hereby declare their
understanding and intent that the burden of the covenants, reservations and restrictions
set forth herein touch and concern the land in that it restricts development of the Historic
Property. City and Owner hereby further declare their understanding and intent that the
benefit of such covenants, reservations and restrictions touch and concern the land by
enhancing and maintaining the cultural and historical characteristics and significance of
the Historic Property for the benefit of the public and the Owner.
20
13. Notice. Any notice required to be given by the terms of this Agreement shall
be provided at the address of the respective parties as specified below or at any other
address as may be later specified by the parties hereto:
City: City of Palm Desert
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260
Owner:
14. Effect of Agreement. None of the terms, provisions or conditions of this
Agreement shall be deemed to create a partnership between the parties hereto and
any of their heirs, successors or assigns, nor shall such terms, provisions or
conditions cause the parties to be considered joint venturers or members of any joint
enterprise.
15. Indemnity of City. Owner shall defend, indemnify, and hold harmless City and
its elected officials, officers, agents and employees from any actual or alleged claims,
demands, causes of action, liability, loss, damage, or injury to property or persons,
including wrongful death, whether imposed by a court of law or by administrative action
of any federal, state or local governmental agency, arising out of or incident to (i) the
direct or indirect use operation, or maintenance of the Historic Property by Owner or any
contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other
person; (ii) Owner's activities in connection with the Historic Property; and (iii) any
restrictions on the use or development of the Historic Property, from application or
enforcement of Title 29 of the City's Municipal Code, or from the enforcement of this
Agreement. This indemnification includes, without limitation, the payment of all
penalties, fines, judgments, awards, decrees, attorneys' fees, and related costs or
expenses, and the reimbursement of City, its elected officials, employees, and/or agents
for all legal expenses and costs incurred by each of them.
Owner's obligation to indemnify shall survive the termination, cancellation, or expiration
of this Agreement and shall not be restricted to insurance proceeds, if any, received by
City, its elected officials, employees, or agents.
21
16. Bindinq Upon Successors. All of the agreements, rights, covenants,
reservations and restrictions contained in this Agreement shall be binding upon and
shall inure to the benefit of the parties herein, their heirs, successors, legal
representatives, assigns and all persons acquiring any part or portion of the Historic
Property, whether by operation of law or in any manner whatsoever.
17. Legal Costs. In the event legal proceedings are brought by any party or
parties to enforce or restrain a violation of any of the covenants, conditions or
restrictions contained herein, or to determine the rights and duties of any party
hereunder, the prevailing party in such proceeding may recover all reasonable
attorneys' fees to be fixed by the court, in addition to court costs and other relief ordered
by the court.
18. Severability. In the event that any of the provisions of this Agreement are held
to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent
preemptive legislation, the validity and enforceability of the remaining provisions, or
portions thereof, shall not be effected thereby.
19. Recordation. No later than twenty (20)days after the Effective Date, City shall
cause this Agreement to be recorded in the office of the County Recorder of the County
of Riverside. Owner shall provide written notice of the contract to the State Office of
Historic Preservation within six (6) months of entering into the contract.
20. Amendments. This Agreement may be amended, in whole or in part, only by
written recorded instrument executed by the parties hereto.
21. Governing Law and Venue. This Agreement shall be construed and governed
in accordance with the laws of the State of California. Any action at law or in equity
brought by either of the parties hereto for the purpose of enforcing a right or rights
provided for by this Agreement shall be tried in a court of competent jurisdiction in the
County of Riverside, State of California, and the parties hereby waive all provisions of
law providing for a change of venue in such proceedings to any other county.
22
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and
year first above written.
Dated:
Dated:
APPROVED AS TO FORM
City Attorney
CITY OF PALM DESERT
ATTESTED TO:
By
Owner
Owner
23
State of California }
SS
County of I
On , 20 , before me, a
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
24
APPENDIX E
MILLS ACT PROGRAM
CITY STAFF ANNUAL INSPECTION REPORT
Date of inspection:
Staff Name:
❑ Drive -by ❑ Site Visit
Was work completed in accordance with all City requirements? ❑ Yes ❑ No
Comments:
Signature:
26
APPENDIX F
GOVERNMENT CODE SECTION 50280-50290
50280. Upon the application of an owner or the agent of an owner of any qualified historical property, as
defined in Section 50280.1, the legislative body of a city, county, or city and county may contract with the
owner or agent to restrict the use of the property in a manner which the legislative body deems
reasonable to carry out the purposes of this article and of Article 1.9 (commencing with Section 439) of
Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code. The contract shall meet the
requirements of Sections 50281 and 50282.
50280.1. "Qualified historical property" for purposes of this article, means privately owned property which
is not exempt from property taxation and which meets either of the following:
(a) Listed in the National Register of Historic Places or located in a registered historic district,
as defined in Section 1.191-2(b) of Title 26 of the Code of Federal Regulations.
(b) Listed in any state, city, county, or city and county official register of historical or
architecturally significant sites, places, or landmarks.
50281. Any contract entered into under this article shall contain the following provisions:
(a)The term of the contract shall be for a minimum period of 10 years.
(b) Where applicable, the contract shall provide the following:
(1) For the preservation of the qualified historical property and, when necessary, to restore and
rehabilitate the property to conform to the rules and regulations of the Office of Historic
Preservation of the Department of Parks and Recreation, the United States Secretary of the
Interior's Standards for Rehabilitation, and the State Historical Building Code.
(2) For the periodic examinations of the interior and exterior of the premises by the assessor,
the Department of Parks and Recreation, and the State Board of Equalization as may be
necessary to determine the owner's compliance with the contract.
(3) For it to be binding upon, and inure to the benefit of, all successors in interest of the owner.
A successor in interest shall have the same rights and obligations under the contract as the
original owner who entered into the contract.
(c) The owner or agent of an owner shall provide written notice of the contract to the Office of
Historic Preservation within six months of entering into the contract.
50281.1. The legislative body entering into a contract described in this article may require that the
property owner, as a condition to entering into the contract, pay a fee not to exceed the reasonable cost
of administering this program.
50282. (a) Each contract shall provide that on the anniversary date of the contract or such other annual
date as is specified in the contract, a year shall be added automatically to the initial term of the contract
unless notice of nonrenewal is given as provided in this section. If the property owner or the legislative
body desires in any year not to renew the contract, that party shall serve written notice of nonrenewal of
the contract on the other party in advance of the annual renewal date of the contract. Unless the notice is
served by the owner at least 90 days prior to the renewal date or by the legislative body at least 60 days
prior to the renewal date, one year shall automatically be added to the term of the contract.
(b) Upon receipt by the owner of a notice from the legislative body of nonrenewal, the owner may make a
written protest of the notice of nonrenewal. The legislative body may, at any time prior to the renewal
date, withdraw the notice of nonrenewal.
(c) If the legislative body or the owner serves notice of intent in any year not to renew the contract, the
existing contract shall remain in effect for the balance of the period remaining since the original execution
or the last renewal of the contract, as the case may be.
(d) The owner shall furnish the legislative body with any information the legislative body shall require in
order to enable it to determine the eligibility of the property involved.
(e) No later than 20 days after a city or county enters into a contract with an owner pursuant to this article,
the clerk of the legislative body shall record with the county recorder a copy of the contract, which shall
27
describe the property subject thereto. From and after the time of the recordation, this contract shall impart
a notice thereof to all persons as is afforded by the recording laws of this state.
50284. The legislative body may cancel a contract if it determines that the owner has breached any of the
conditions of the contract provided for in this article or has allowed the property to deteriorate to the point
that it no longer meets the standards for a qualified historical property. The legislative body may also
cancel a contract if it determines that the owner has failed to restore or rehabilitate the property in the
manner specified in the contract.
50285. No contract shall be canceled under Section 50284 until after the legislative body has given notice
of, and has held, a public hearing on the matter. Notice of the hearing shall be mailed to the last known
address of each owner of property within the historic zone and shall be published pursuant to Section
6061.
50286. (a) If a contract is canceled under Section 50284, the owner shall pay a cancellation fee equal to
121/2 percent of the current fair market value of the property , as determined by the county assessor as
though the property were free of the contractual restriction.
(b) The cancellation fee shall be paid to the county auditor, at the time and in the manner that the county
auditor shall prescribe, and shall be allocated by the county auditor to each jurisdiction in the tax rate area
in which the property is located in the same manner as the auditor allocates the annual tax increment in
that tax rate area in that fiscal year.
(c) Notwithstanding any other provision of law, revenue received by a school district pursuant to this
section shall be considered property tax revenue for the purposes of Section 42238 of the Education
Code, and revenue received by a county superintendent of schools pursuant to this section shall be
considered property tax revenue for the purposes of Article 3 (commencing with Section 2550) of Chapter
12 of Part 2 of Division 1 of Title 1 of the Education Code.
50287. As an alternative to cancellation of the contract for breach of any condition, the county, city, or any
landowner may bring any action in court necessary to enforce a contract including, but not limited to, an
action to enforce the contract by specific performance or injunction.
50288. In the event that property subject to contract under this article is acquired in whole or in part by
eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain,
and the acquisition is determined by the legislative body to frustrate the purpose of the contract, such
contract shall be canceled and no fee shall be imposed under Section 50286. Such contract shall be
deemed null and void for all purposes of determining the value of the property so acquired.
50289. In the event that property restricted by a contract with a county under this article is annexed to a
city, the city shall succeed to all rights, duties, and powers of the county under such contract.
50290. Local agencies and owners of qualified historical properties may consult with the State Historical
Resources Commission for its advice and counsel on matters relevant to historical property contracts.
rw
California Revenue and Taxation Code, Article 1.9, Sections 439 - 439.4
439. Historical Property Restrictions; enforceably restricted property.
For the purposes of this article and within the meaning of Section 8 of Article XIII of the
Constitution, property is "enforceably restricted" if it is subject to an historical property
contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1
of Part 1 of Division 1 of Title 5 of the Government Code.
439.1. Historical Property; definitions.
For purposes of this article "restricted historical property" means qualified historical
property, as defined in Section 50280.1 of the Government Code, that is subject to a
historical property contract executed pursuant to Article 12 (commencing with Section
50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. For
purposes of this section, "qualified historical property" includes qualified historical
improvements and any land on which the qualified historical improvements are situated,
as specified in the historical property contract. If the historical property contract does not
specify the land that is to be included, "qualified historical property" includes only that
area of reasonable size that is used as a site for the historical improvements.
439.2. Historical Property; valuation.
When valuing enforceably restricted historical property, the county assessor shall not
consider sales data on similar property, whether or not enforceably restricted, and shall
value that restricted historical property by the capitalization of income method in the
following manner:
(a) The annual income to be capitalized shall be determined as follows:
(1) Where sufficient rental information is available, the income shall be the fair rent that
can be imputed to the restricted historical property being valued based upon rent
actually received for the property by the owner and upon typical rentals received in the
area for similar property in similar use where the owner pays the property tax. When the
restricted historical property being valued is actually encumbered by a lease, any cash
rent or its equivalent considered in determining the fair rent of the property shall be the
amount for which the property would be expected to rent were the rental payment to be
renegotiated in the light of current conditions, including applicable provisions under
which the property is enforceably restricted.
(2) Where sufficient rental information is not available, the income shall be that which
the restricted historical property being valued reasonably can be expected to yield under
prudent management and subject to applicable provisions under which the property is
enforceably restricted.
(3) If the parties to an instrument that enforceably restricts the property stipulate therein
an amount that constitutes the minimum annual income to be capitalized, then the
income to be capitalized shall not be less than the amount so stipulated. For purposes
of this section, income shall be determined in accordance with rules and regulations
issued by the board and with this section and shall be the difference between revenue
and expenditures. Revenue shall be the amount of money or money's worth, including
any cash rent or its equivalent, that the property can be expected to yield to an owner -
operator annually on the average from any use of the property permitted under the
terms by which the property is enforceably restricted. Expenditures shall be any outlay
or average annual allocation of money or money's worth that can be fairly charged
M
against the revenue expected to be received during the period used in computing the
revenue. Those expenditures to be charged against revenue shall be only those which
are ordinary and necessary in the production and maintenance of the revenue for that
period. Expenditures shall not include depletion charges, debt retirement, interest on
funds invested in the property, property taxes, corporation income taxes, or corporation
franchise taxes based on income.
(b) The capitalization rate to be used in valuing owner -occupied single family dwellings
pursuant to this article shall not be derived from sales data and shall be the sum of the
following components:
(1) An interest component to be determined by the board and announced no later than
September 1 of the year preceding the assessment year and that was the yield rate
equal to the effective rate on conventional mortgages as determined by the Federal
Housing Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 4 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated
total tax rate applicable to the property for the assessment year times the assessment
ratio.
(4) A component for amortization of the improvements that shall be a percentage
equivalent to the reciprocal of the remaining life.
(c) The capitalization rate to be used in valuing all other restricted historical property
pursuant to this article shall not be derived from sales data and shall be the sum of the
following components:
(1) An interest component to be determined by the board and announced no later than
September 1 of the year preceding the assessment year and that was the yield rate
equal to the effective rate on conventional mortgages as determined by the Federal
Housing Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 2 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated
total tax rate applicable to the property for the assessment year times the assessment
ratio.
(4) A component for amortization of the improvements that shall be a percentage
equivalent to the reciprocal of the remaining life.
(d) Unless a party to an instrument that creates an enforceable restriction expressly
prohibits the valuation, the valuation resulting from the capitalization of income method
described in this section shall not exceed the lesser of either the valuation that would
have resulted by calculation under Section 110, or the valuation that would have
resulted by calculation under Section 110.1, as though the property was not subject to
an enforceable restriction in the base year.
(e) The value of the restricted historical property shall be the quotient of the income
determined as provided in subdivision (a) divided by the capitalization rate determined
as provided in subdivision (b) or (c).
(f) The ratio prescribed in Section 401 shall be applied to the value of the property
determined in subdivision (d) to obtain its assessed value.
439.3. Historical Property; notice of nonrenewal.
Notwithstanding any provision of Section 439.2 to the contrary, if either the county or
city or the owner of restricted historical property subject to contract has served notice of
30
nonrenewal as provided in Section 50282 of the Government Code, the county
assessor shall value that restricted historical property as provided in this section.
(a) Following the hearing conducted pursuant to Section 50285 of the Government
Code, subdivision (b) shall apply until the termination of the period for which the
restricted historical property is enforceably restricted.
(b) The board or assessor in each year until the termination of the period for which the
property is enforceably restricted shall do all of the following:
(1) Determine the full cash value of the property pursuant to Section 110.1. If the
property is not subject to Section 110.1 when the restriction expires, the value shall be
determined pursuant to Section 110 as if the property were free of contractual
restriction. If the property will be subject to a use for which this chapter provides a
special restricted assessment, the value of the property shall be determined as if it were
subject to the new restriction.
(2) Determine the value of the property by the capitalization of income method as
provided in Section 439.2 and without regard to the fact that a notice of nonrenewal or
cancellation has occurred.
(3) Subtract the value determined in paragraph (2) of this subdivision by capitalization of
income from the full cash value determined in paragraph (1).
(4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (b)
of Section 439.2, discount the amount obtained in paragraph (3) for the number of years
remaining until the termination of the period for which the property is enforceably
restricted.
(5) Determine the value of the property by adding the value determined by the
capitalization of income method as provided in paragraph (2) and the value obtained in
paragraph (4).
(6) Apply the ratios prescribed in Section 401 to the value of the property determined in
paragraph (5) to obtain its assessed value.
439.4. Historical Property; recordation.
No property shall be valued pursuant to this article unless an enforceable restriction
meeting the requirements of Section 439 is signed, accepted and recorded on or before
the lien date for the fiscal year in which the valuation would apply.
31
CITY OF PALM DESERT
NOTICE OF PUBLIC HEARING
MILLS ACT PROGRAM FEES
NOTICE IS HEREBY GIVEN that a hearing will be held before the Palm Desert City
Council to consider the adoption of a Resolution, which amends Resolution No. 06-164,
Development Review and Inspection Service Fees, with respect to adding the Mills Act
Program application and contract initiation fees.
Copies of the draft Resolution are available for viewing in the office of the City Clerk,
City of Palm Desert, California.
Said hearing will be held at 4:00 p.m. on Thursday, March 10, 2011, in the
Palm Desert City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California,
at which time and place all interested persons are invited to attend and be heard.
Written consent concerning all items covered by this notice shall be accepted up to the
date and time of the hearing.
If you challenge the proposed action in Court, you may be limited to raising only those
issues you or someone else raised at the hearing described in this notice, or in written
compliance delivered to the City Council prior to the meeting.
DATE:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
(760) 346-0611
Table 7
Building and Safety Department Employee Costs and Hourly Billable Rates
PBYtIm
M nine
EgWvalmt
M"d
07-o85alary
&lFr1w
W.'&
Fllnyeapplled
todireat
Sm1.8i
sarpoca
&applle,
bamera
lvdanet
0 ernal
tons
W[wal
Mma$®mt
overhead
Totall re a
Erases
M.N.
Novrs
Wen
M.N.
Nmari
Rate Per
M.We
Untie
$39,940
%04
$96,529
$29423
0lrectorof Bulldin &Bate
0,05
116057
ts 803
l99)
$4,326
$1,471
$13,597
1706
86
159
Senor Plans Examiner
0.80
$139,760
$111,908
$31,952
69224
$23,538
W6,521
1591
12]3
186
Depur,lielldingoffidal
0.90
$161,172
$80,586
$19,970
$48,266
$14,711
BB8,5R2
I706
853
186
Buddin Ins nine, Mena r
0.50
$145.480
72740
19970
04
$43,265
$14,711
$151,190
3546
]]3
196
Senior Buildialt Inz error
1.00
$132,444
$132,444
$39,940
$504
$86529
$09,423
$288,939
1,546
1,546
$187
Senior Building Inspector
too
$131,676
$131.676
9940
W04
I SM.529
1 W9.423
W&C72
1.5461
3546
186
Building Ins ector ll
1.00
$122,76l
A940
VO4
W.529
$39A23
]915)
1.546
3546
$181
Buildin Ina ctor ll
1.00
120063
9940
04
529
9423
)6458
3546
3546
179
Bulldu Ivz error ll
1.00
120,438
9940
04
6529
9423
]6834
3546
3546
1)9
BuBdiv Ivs e=r ll
1.00
1138]8
9940
04
86529
9423
]02]4
1546
3546
1]5
BuBdiv Perm1I5 eda$sgl
1.00
123085
9940
86529
9423
]89))
t671
1671
16]
Buddly Permlt5 eda85t 11
1.00
i$122761
00446
9940
86529
9423
56338
16]1
16]3
153
BuBdiv Ivs ¢marl
1.00
103231
9940
04
86529
9423
59626
3546
1546
168
BuBdiv &Bale Technician
1.00
152
9940
86529
9423
45044
3546
1546
159
Admmkmtrve Seaeta
0.30
ll5W
988
1)306
885
48685
1644
329
148
0 neAssistavtii
0.80
66093
1952
6922{
3538190806
1649
1315
145
Tots
12.85
1
151171(1
513 25
6030
1311903
]8082
518950
Blended rate for Building Permit Speda0st 11= $160
Blended are for Build ln8 lvapeapnl&11, and Br. $179
Blended rate for Aden in Secremry&OBla Asst• $147
C. COST OF SERVICF,/FEE ANALYSIS
Data
The data for this study was developed as follows:
The Plans Examiner has been completing time logs for each plan review. The Inspectors
recorded time on their activity forms. This time, along with the review of other projects
by the Inspection Manager and Inspectors, was used to determine time used for each
type of construction.
Use of Consultants
The Building and Safety Department currently uses three plan check consultants to
handle large projects or others when the workload is excessive. Consultants for plan
check are paid a percentage of fees collected. The cost of consultants is included in the
calculation of the Billable Rate to achieve full cost recovery.
Base Models
City staff has been documenting time for plan check and inspections during the past
years. Plan Check has recorded each job on a continuing basis. Inspection has been
documenting selected job attempting to use different categories reflecting their fee
Palm Desert, Ca 10
APPENDIX D
I SAMPLE SITE PLM
i PRCPERTV
LINE
}: I
I
ti a Lr
PROPON
RM ADCITI6N
ToPEii
NC'
EXr HOUSE I
N
ING
I
W rFii rLh ri
+ � I EXISTING
a, GARAGE $
�� = ERI tTIN3��4'�S�tEC
�^ I f F ENCE
M, AM. �.- 1
!}510 MMn SMe:
'TG411D.1{6! r' { 1
• a
f. I
PARKWAY
STREET
Provide and observe the Ifollowin g:
1. Provide two (2) sets of plans (minimum) are required for all building pemtits.
2. Plans are to be drawn neatly and must be legible (no graph paper).
3. Minimum 8112" x 11" sheet sine. (Fill sheet with site plan, Do not use edge of paper for
property lines.
d. Provide project address, owners name. and phone nurnher.
5. Show al I streets, driveways, and alleys f'rf any).
6. Clearly show all proposed and existing construction with complete dimensions .
7. Indicate all easmentlocations (refer toyourT Title Reportforthis information.
8. 5horw North arrow.
Note. All dimensions shown on :his sample plan are for reference only. Your
site plan must show the actual dimensions for the lot located at the address.
25
BUILDING AND SAFETY
Fee Schedule
Resolution 06-164
ftem Flat Fee Fee Per Sq Ft
1. Perms Issuance $96.00
RESIDENTIAL SINGLE FAMILY DWELLINGS'
2. 1.2 600 sq ft Single Family Dwelling Custom or Tract Model
Plan Check, Architectural
$0.45
Plan Check, Structural
$020
Ins ion
$1.10
3. 1-2 500 eg ft Tract Production Model Revised
Plan Check, AmhOdural
$0.23
Plan Check, Sructural
$0.11
In ion
$1,10
4.1-2500 w ft Production Model Unchanged
Plan Check, Architectural
$0.20
inspection
$0.99
5. 2,501sq ft or Larger Cuslom or Tract Model Single Family Dwelling
Plan Check, Architectural
$0.35
Plan Check, Structural
$0.17
Inspection
$0.77
S. 2,501 eg ft or Larger Model Production Revised
Plan Check, Architectural
$0.23
Plan Check, Structural
$0.07
In
$0.76
7. 2501 sq ft or Lamer Single Family ProducUon Unchanged
Plan Check, Architectural
$0.20
Plan Check, Structural
$0.03
Inspection
$0.55
S. Residential Remodel
Plan Check, Architectural
$0.64
Ins n
$0.83
9. Residential Remodel over 500 s .ft.
Plan Check, Architectural
$0.57
Ins coon
$0.55
10. Residential Alteration per $3 000 value
Plan Check, Architectural $142.00
Ins $135.00
MULTIPLE FAMILY DWELLINGS
11. Up to 15000 sq ft Multiple Famly Dwelling
Plan Check, Architectural
$0.19
Plan Check, Structural
$0.09
Inspecton
$0.35
12. 15001 eg Rand Larger Mullt le Family Dwelling
Plan Check, Archtectual
$0.18
Plan Check, Structural
$0.09
Inspection
$0.29
2111/2011
ftxrl Flat Fee Fee Per Sq Ft
13. 1-30,000 ag ft Concrete lm roved
Plan Check, Archimctuml
50.23
Plan Check. Structural
$0.08
Ins mn
$0.25
14, 130 000 sq ft Concrete Shell Leas %151m roved Fee
15. 30001 sq ft and Larger Concrete Improved
Plan Check, Architectural
$0.20
Plan Check Stmctuml
$07
Ins n
$0.20
16. 30,001 sq ft and Larger Concrete Shell Leas %15 Ira roved Fce
17, 130000 sq ft Masonry Impmved
Plan Check, Amhitectuml
$024
Plan Check, Structure/
$0.12
Ins n
$027
18. 130 000 sq ft Mmonry Shell Less 15 % Ira roved Fce
19. 30001 ag ft and Larger Ma"nry Improved
Plan Check, Architectural
$022
Plan Check. Stmctuml
$0.09
Ins mn
$0.49
20. 30,001 sq ft and Larger Masonry Shell Less 16% Improved Fee
21. 130 000 sq ft Wood Frame Improved
Plan Check, Amhdectuml
$0.20
Plan Check Structural
$0.10
Ins n
$0.36
22. 130 000 sq ft Fmme Shell Less %15 Ira roved Fee
23. 3000150000 sq Rand Lamer Wood Fmme
Plan Check, Architectural
$021
Plan Check, Suuctum/
$0.09
Ins n
$0.29
24. 3000150000 R Wootl Frame Shell Less %15Im roved Fee
GARAGE STRUCTURES
25. 0500 000 eg ft and Larger
Plan Check Architectural
$0.05
Plan Check, Shuctuml
$0,03
Ins n $0.07
26. 5,000 sq ft Tenant Improvement
Plan Check, Amhdectuml
$0.17
Plan Check, Shuctuml
$0.06
Ins n
$0.29
27. 16000 m ft Tenant lm rovement
Plan Check Ambdectuml
$0.14
Plan Check, Structuml
$0.04
In n
$0.22
28. 15,001-25,000 ag ft Tenant Improvement
Plan Check. Amhkectuml
$0.13
Plan Check, Structural
$0.06
Ins ction
$0.21
29. 2500150000s Rand Lau er Tenant Improvement
Plan Check, Archdectural
$0.11
Plan Check, Shuctuml
$0.06
In n
$0.18
2111/2011
Item
Flat as Fee Per S Ft
30. Residential Re of
Ins tion
$138.00
31. CommerciaVlndustnal Re -root
Ins n
$276.00
32. Each Plumbing Fixture
Inspection
$138.00
33. Plumbing Re -pipe or Repair Residential
Ins tion
6/38.00
34. Plumbin Re- i e or Re air Commercial
Inspection
$138.00
35. Water Semite Replacement
Ins cfion
$138.00
36. Water Heater Each
Ins ion
Fee Waived
37. Gas Pipe Each 60 it or Fraction Thereof
=2ection
$138.00
MECHANICAL
38. Mechanical Appliances Each Residential
Ins on
$138.00
39. Mechanical Appliances Each Commercial/Industrial
Inspection
$276.00
40. Mechanical Ducts Each 50 It or Fraction Thereof
Inspection
$138.00
41. Mechanical Outlets or Inlets Each
Ins tion
$138.00
42. HVAC Replacements Residents]
Impecton
F" Waived
43. 14VAC Replacements CommerciNfindustrial
Inspection
Fee Waived
44. Installation of PV Solar System
Ins 'on
Fee Waived
46. Pool Heater Replacement NaWml Gas
Insrechon
Fee Waived
ELECTRICAL
46. Electrical Plug, Switch or Similar Outlet- Five Each or Fraction Thereof
Ins ion
$138.00
47. Electrical Appliance Each
Ins ec0on
$138.00
48. MotoralDevice
Ins ion
$138.00
49. Busway Each 50 ft or Fraction Thereof
In ion
$138.00
50. Conduit Each 60 ft or Fraction Thereof
Inspection
$138.00
51. Electric Service Up to 200 Amps
Ins 0on
$138.00
52. Electric Service 201M0 Amps
Ins ion
$207.00
63. Electric Service 401-600 Amps
Inspector,
$294.00
54. Electric Service Over 600 Amps
Inspection
$294.00
2/1112011
Rom
Flat Fee
Fee Per Sq Ft
55. Over Submittal and Two Corrections
Plan Check $283.00
56. Inspections After One Inspection
Inspection $138.00
67. Building Official Variance Consideration
Plan Check $435.00
58. Appeals Boats Applicadon
Plan Check $726.00
59. Parldno Lot ReatriIn
Plan Check
6425.00
Ins ction
$690.00
60. Minimum Fee
Plan Check
$142.00
Inspection
$138.00
fit. Block I Retaining Wall
Inspection $276.00
62. Swimming Pool
Inspection $276.00
63. Mills Acts
AppficaVon Fee $318.00
64. Mills Acts
Contract InVan'on Fee de Sit $1,000.00
Effective 2/14107 revised 8/27/2009 Resol Won 09-60
2111/2011