AGENDA ITEM SUMMARY
AGENDA ITEM NO. 7A
AGENCY: City Council
MEETING DATE: January 9, 2023
DEPARTMENT: Administration
PRESENTED BY: Matrix Consulting Group
EMAIL ADDRESS: [email protected]
TITLE:
Conduct Public Hearing, Receive Report, Receive Finance & Administration Committee Recommendation and Consider Adoption of City Council Resolution Approving the City’s General Plan Maintenance Fee
ISSUE/BACKGROUND:
On November 8, 2004, the City of Fort Bragg adopted a General Plan Maintenance Fee equal to 1.5% of the total construction permit valuation. However, during the 2019 midterm budget process, City staff was unable to determine the estimated reasonable cost for preparing/amending plans and policies associated with the General Plan Maintenance Fee.
In response, City Council directed staff to draft a resolution to temporarily waive this fee, and solicit proposals from qualified firms to conduct an analysis in order to determine the appropriate fee level for the City’s General Maintenance Fee.
ANALYSIS:
The purpose of the General Plan Maintenance Fee is to cover the costs reasonably necessary to prepare and revise the plans and policies that the City is required to adopt.
The City utilizes these funds for the development and environmental review of amendments to the Coastal General Plan, the Coastal Land Use and Development Code, the Inland General Plan, and the Inland Land Use and Development Code. This fee is authorized by Government Code Section 66014(b) and given the State’s increased housing regulations and climate adaptation/mitigation strategies, preserving funding sources for long range planning efforts is more critical than ever.
The City’s previous 1.5% General Plan Maintenance Fee was higher than what other jurisdictions charge and totaled a significant amount when compared with total building permit fees. Updating the City’s General Plan Maintenance Fee would bring the City of Fort Bragg into alignment with other jurisdictions and ensure the City’s ability to recover costs for long-range planning efforts.
The City released a Request for Proposals on November 24, 2021, and Matrix Consulting Group was selected as the responsive and qualified firm. Matrix was tasked to determine the reasonable costs associated with long-range planning efforts for the City of Fort Bragg.
Based upon General Plan components and in-house staffing costs, the Matrix Consulting team calculated the full cost of the General Plan Maintenance Fee as 0.53% of the Building Permit Valuation – nearly 1.00% lower than the current/suspended fee (Attachment 1 – General Plan Maintenance Fee Analysis).
On November 9, 2022 Matrix presented their methodology and results to the Finance & Administration Committee. Committee members considered the analysis and recommend
City Council approval of calculating the General Plan Maintenance Fee as 0.53% of building permit valuation.
RECOMMENDED ACTION:
Conduct Public Hearing, receive report, receive Finance and Administration Committee recommendation, review analysis conducted by Matrix Consulting Group and adopt resolution to approve General Plan Maintenance Fee.
ALTERNATIVE ACTION(S):
1. Request additional information.
2. Eliminate the fee and rely on General Fund tax revenue to fund the updates to the City’s Municipal Codes and major updates to its Coastal and Inland General Plans.
3. Provide alternative direction to staff.
FISCAL IMPACT:
The cost of professional services to conduct General Plan Maintenance Fee Analysis was not to exceed $12,000. The purpose of the General Plan Maintenance Fee is to offset the costs associated with the City’s long-range planning efforts. Actual costs can vary significantly from year to year based on staffing costs, organizational needs and capacity, economy, and/or success of securing grant awards.
GREENHOUSE GAS EMISSIONS IMPACT:
The review of this report has little impact on greenhouse gas emissions.
CONSISTENCY:
The requirements to increase planning and development fees are set forth in Government Code Section 66014. Those fees may not exceed the estimated reasonable cost of providing the service, unless approved by a popular vote of two-thirds by election. Reasonable cost of providing the service may be based on an estimate such as a budget or other calculation. A City must be able to set forth a reasonable method for determining whether a fee exceeds the estimated reasonable costs of providing the service.
IMPLEMENTATION/TIMEFRAMES:
New fees are not effective until at least 60 days after adoption of Resolution pursuant to California Government Code Section 66017(a). Should City Council approve the Resolution establishing General Plan Maintenance Fee on January, 9, 2023, the fee could be implemented on Monday, March 13, 2023.
ATTACHMENTS:
1. Resolution 2023 General Plan Maintenance Fee
2. General Plan Maintenance Fee Analysis (Exhibit “A” of Resolution)
3. Public Hearing Notice
NOTIFICATION:
1. “Notify Me” subscriber lists: Finance and Budgeting; Public Hearings