TITLE:
Conduct Public Hearing, and Consider Adoption of City Council Resolution Revising the City’s Fee Schedule to Recover the Cost of Contracted Building Permit Inspection Services ISSUE:
According to the City of Fort Bragg Strategic Plan 2024-2028, specifically Goal 1E, the City is committed to streamlining, educating, and expediting the permitting process through initiatives such as pre-application meetings, software upgrades, in-house plan checks, and inspections. Since 1994, the City has relied on the Building Inspection services provided by the Mendocino County Planning and Building Department (MCPBD). However, during recent housing workshops, community members emphasized the need for faster and more efficient permit plan check processes.
In response to this feedback and to improve service delivery, City staff explored alternative solutions and engaged local consultants specializing in these services. After thorough research and consideration of practices in other communities, staff received a proposal from 4-Leaf Inc., a firm with extensive experience in expediting building services. To address community concerns and enhance operational efficiency, staff recommends initiating a Pilot Project with 4-Leaf Inc. This initiative will provide a second option for building inspection services and offer the City an opportunity to assess the effectiveness of this approach.
ANALYSIS:
When an applicant wishes to obtain a building permit from the City of Fort Bragg, they currently apply for the permit, and city staff performs a planning and engineering plan check on the documents for code conformance. Building Permit Plan check fees (Attachment 2) are assessed by the City to cover the cost of services rendered. This process takes an average of two weeks. Once staff have confirmed code compliance, the permit application is then transferred to MCPBD. The permit is checked in by their counter staff and another separate set of fees (Attachment 3) are assessed separately by the County. The MCPBD fees are associated with the cost of the structural code compliance review and inspections performed by County staff. Structural plan checks at the county can often take 6-8 weeks (depending upon project complexity) and this amount of time is increased when correction notices are requested. Construction cannot commence until the County has issued a permit to an applicant.
During recent housing workshops, members of the community expressed interest in opportunities to expedite the permit plan check process. In response to these requests and to enhance the effectiveness and efficiency of service delivery, staff solicited local consultants who perform these services. Many jurisdictions throughout the State choose to contract out building plan check services including Pleasanton, Clear Lake, Redding, Larkspur, and Mountain View to name a few. Most jurisdictions that contract out building plan checks have an hourly rate for the different professionals in the firm, such as the Building Official, CASp Review, and Inspectors. Staff is recommending that the fee schedule be amended to include hourly rates for consultants to be used for inspection services that can be made available to the public in addition to MCPBD to provide additional servicing options and capacity. 4Leaf Inc. submitted a proposed Fee Schedule and Basis of Charges to perform building permit plan check services for the City of Fort Bragg. The proposed contract with 4Leaf would include most plan reviews to be completed within 10 business days or less and 5 business days or less for re-checks. 4 Leaf will also provide expedited reviews to be billed at 1.5x the plan review fee listed in the fee schedule (Attachment 2) and the return time for these is seven (7) days. The City will contract with 4Leaf on an On-Call basis for an amount not to exceed $25,000 as a pilot project. Either the proposed pilot will run for 6 months or until the contract amount is expended. Several factors will be observed during the pilot, including:
Comparison of cost to an applicant between 4Leaf and County fees.
Timeline for services rendered.
Adaptability to the use of Accela (once the software goes live in early 2025).
Quality of services rendered by Consultant.
Staff will bring results to the Council to discuss and determine the next steps upon completion of the Pilot study.
Legal Requirements
State law contains several provisions that affect a City's establishing and updating City fees. They can be summarized generally as follows:
A City may set fees to recover the full cost of providing services, but fees cannot be levied in excess of the cost of service or for general revenue purposes.
A Cost-of-Service Study may be used as the basis to calculate and set fees to recover the full cost of providing services and to make findings that the fees reflect a reasonable estimate of the cost of providing the applicable services.
As for the process of adopting fees, State law requires that changes to the City's fees be presented to the City Council at a Public Hearing in accordance with Government Code section 66016, which requires that there be two publications of the meeting notice in the local newspaper, advance notice is provided to any party that requests to be notified of any proposed fee adjustments, and that the full package of the proposal is made available to the Public no less than ten days prior to the Hearing.
In addition, approved changes may take effect no less than 60 days after approval.
RECOMMENDED ACTION:
Adoption of City Council Resolution Revising the City’s Fee Schedule to Include Consulting Services with 4Leaf Inc. to Provide Building Permit Inspection Services.
ALTERNATIVE ACTION(S):
Decline the proposed fee schedule update and pilot project plan.
Recommend another alternative or additional research be performed.
FISCAL IMPACT:
There is no anticipated fiscal impact to the City, as the On-Call Services contract will be a “pass-through” where members of the public utilizing the inspection services will pay the full cost. At this time, it is unknown whether the cost of the consultant (transferred to the customer) will be more or less than what is currently being collected by MCPBD.
ENVIRONMENTAL ANALYSIS:
This action is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Title 14, the California Code of Regulations("CEQA Guidelines"), Section 15273(a)(1) which provides an exception for modifications to fees to cover operating expenses for maintaining service within existing service areas.
CONSISTENCY:
Staff published notice of the public hearing on the fee revision (Attachment 4) on November 21, 2024, and November 28, 2024. The Notice was also distributed to those who requested it as required by law. Required information about the fee was made available to the public for inspection in the Office of the City Clerk beginning November 25, 2024, as required by law.
In accordance with the Fort Bragg General Plan Housing Element, this pilot study will provide us with the data necessary to determine if implementing Program H-1.9.1 will be a benefit to the community.
Program H-1.9.1: Building Permits. Consider hiring a contract building inspector to bring building inspection services into the City to improve timeliness and inspection certainty.
Responsibility: City Council, Community Development Department Financing: Building Permit Fees
Scheduling: 2020-25
Quantification: none
These fee updates are consistent with the established City Council policy requiring full cost recovery for services provided. All legal requirements discussed above have been adhered to.
According to the City of Fort Bragg Strategic Plan 2024-2028+ 1E Streamline, Educate, and expedite the permitting process including pre-application meetings, software upgrades, in-house plan checks, and inspections.
IMPLEMENTATION/TIMEFRAMES:
If the Council adopts the resolution, the associated fees will go into effect 60 days after adoption (February 7, 2025). However, since this is an optional service, persons wishing to proceed with the 4Leaf Inc. services could do so at their discretion once the City has commenced a contract with the consultant.
ATTACHMENTS:
Resolution
Exhibit A - Proposed Fees
County Permit Fee Schedule
Public Hearing Notice
NOTIFICATION:
4Leaf Inc.
AGENCY: City Council MEETING DATE: December 09, 2024DEPARTMENT: City Manager/Public WorksPRESENTED BY: Isaac Whippy/Chantell O’NealEMAIL ADDRESS: [email protected] / [email protected] AGENCY: City Council MEETING DATE: December 09, 2024DEPARTMENT: City Manager/Public WorksPRESENTED BY: Isaac Whippy/Chantell O’NealEMAIL ADDRESS: [email protected] / [email protected] AGENCY: City Council
MEETING DATE: December 09, 2024
DEPARTMENT: City Manager/Public Works
PRESENTED BY: Isaac Whippy/Chantell O’Neal
EMAIL ADDRESS: [email protected] / [email protected] AGENCY: City Council
MEETING DATE: December 09, 2024
DEPARTMENT: City Manager/Public Works
PRESENTED BY: Isaac Whippy/Chantell O’Neal
EMAIL ADDRESS: [email protected] / [email protected]
AGENDA ITEM SUMMARY