Item6_Building-Fee-Staff-Report — Grover Beach City Council, February 28, 2022

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 28, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Bruce Buckingham, Community Development Director Janet Reese, Associate Planner
SUBJECT: Master Fee Schedule Amendment to Update Building Permit Fees

RECOMMENDATION
Adopt the Resolution amending the Master Fee Schedule to update building permit fees.

BACKGROUND
Given the relatively limited volume of building permits issued annually, the City uses contract building services rather than in-house staff to provide all building related services including the review of building plans, building inspection services and technical expertise of a Building Official. The services provided by staff are limited to administrative functions such as routing of plans to consultants and other City departments for review, entering and issuing permits, fee calculations and managing inspections.

As part of the previous Master Fee Schedule update in 2021, staff informed the Council that the City’s building permit fees for plan review and inspection services had not been updated in 20 years and are not adequate to fully cover the cost of providing building services. The City pays the current building contract provider $65 per hour for inspection services but the market rate for these services is $100 per hour. As a result, the City’s contract provider has struggled to provide experienced building inspectors and has indicated they cannot continue to provide services indefinitely without adjusting fees to reflect current service costs. Further, the below-market rates based on current fees hinder the City’s ability to hire building consultants in the future.

In fall 2021, staff contracted with ClearSource Financial Consulting (ClearSource) to provide an analysis of the City’s current costs of providing building permit related services and proposed updated fee structure known as a User and Regulatory Fee Study (reference Attachment 2).

The proposed fee updates as part of this analysis are limited to building-related services with additional updates to the City’s Master Fee Schedule brought to the Council later this spring. It should be noted that this building fee update does not include revisions to development impact fees which are the most significant building related fees for construction of new buildings and will be updated separately in early 2023.

Staff is requesting the Council conduct a public hearing and adopt the Master Fee Schedule amendment to update building related processing fees based on the findings and recommendations contained in the Fee Study. A representative from ClearSource will present the findings of the Fee Study and recommended updates. If adopted, the new fees would take effect on May 1, 2022 to allow staff to begin a Request for Proposals process immediately for a contract building services provider with a new fee structure in place.

Agenda Item No. 6
Staff Report: Building Permit Fees Update Page 2
February 28, 2022
Overview of Building Fee Study
Processing and regulatory fees are set at the direction of the City Council and the Fee Study provides information for the Council on the establishment of fees and the cost of providing the fee updates to be considered. Historically the City has based building fees for new construction on the valuation of the proposed project as provided by the International Code Council (ICC) which is the global source of model codes and standards. However, the building valuation methodology does not necessarily reflect the current local market construction costs and can vary based on the type of construction and construction materials. As a result, the Fee Study calculated fees based on the actual time it takes for building plan review and building inspection for all potential types of projects. Staff believes this approach is more accurate in providing the actual reasonable cost of providing the services to the user and for the City to receive the commensurate cost recovery.

The Fee Study assessed the current revenues collected by the City and the current costs of providing those services. In summary, the City collects approximately $285,000 annually in fee revenues with fee-related expenditures of approximately $371,000. This results in an aggregate cost recovery level of 77% and a General Fund subsidy of approximately $86,000 (reference Attachment 2 Appendix A). This cost recovery level is below the City’s goal of ensuring full cost recovery for regulatory services and the subsidy represents funding that could be used for other City services and projects but instead pay for the cost of providing building permit services.

The Fee Study provides the reasonable estimate of hours spent for plan review and inspection based on the ICC occupancy classifications that are used in the California Building Codes which are adopted by all agencies throughout the State (reference Attachment 2 Appendix A). For example, R3 is the occupancy classification used by the ICC for single family residences despite the use of this term by the City for multi-family zoning. It should be noted that the “proposed fee” column in the Fee Study does not include staff administrative costs and other required costs standard in other jurisdictions such as:
• Permit processing fee of $77 for staff costs related to permit issuance, fee calculations, and inspection scheduling.
• General Plan maintenance fee of 5% to cover costs associated with periodically updating the City’s General Plan.
• Technology and records retention fee of 5% to cover costs associated with periodically updating the City’s building software program and scanning and retaining project plans as required by State law.
• Strong motion instrumentation (seismic related) and building standards fee (green building standards) as required by State law.
• Staff review of building plans by the Community Development and Public Works Departments, and the Five Cities Fire Authority based on the size and type of project.

As previously mentioned, the City has not conducted a fee study for building related services in 20 years which has resulted in the City not fully recovering costs for these services. Given this timeframe, the proposed fee updates would result in an increase to most fees though some fees would decrease. A fee comparison indicating the existing and proposed fees for simple permits and a few common permits for a remodel, addition, and new residence are shown in Attachment

3. For example, most of the relatively simple permits (e.g., reroof, water heater replacement) would increase between $40 and $60 primarily because the City had not charged an administrative fee associated with issuing the permit and related tasks. Other examples of permit fees shown in Attachment 3 include the following:

Staff Report: Building Permit Fees Update Page 3
February 28, 2022
• Bathroom remodel would decrease approximately 19% or about $200. • Bathroom and kitchen remodel would decrease approximately 7% or about $150. • New 2,000 square foot single family residences would increase approximately 7% or about $500.
• 500 square foot residential addition would increase 22% or about $600. • 400 square foot residential remodel/alteration would increase approximately 65% or about $1,200.

As illustrated in the above examples, the fee changes vary significantly ranging from a 19% decrease to a 65% increase although the dollar amount of most increases are significantly less than $1,200. Many of the fee changes are also due to using the cost of review time as the fee methodology rather than property valuation as previously done. Most permits issued annually are for simple residential and commercial permits with an average of about 30 permits for new residences and additions in the last two years. The Fee Study provides a few examples of fee comparisons with other local cities and the proposed fees would continue to be in the mid-range in comparison to other local cities (reference Attachment 2, pages 6-8).

Fee Calculation Background
The services for which a city imposes a processing or regulatory fee typically derive from an individual person or entity’s action, request, or behavior. Therefore, except in cases where there is an overriding public benefit generated by a city’s involvement in the individual action, a fee for service ensures that the individual bears most if not all of the cost incurred by the City to provide that service. When a fee targets “100% or full cost recovery,” the individual is bearing the entirety of the cost. When a fee targets less than full cost recovery, another City revenue source – in most cases, the General Fund – ends up subsidizing the individual activity.

Industry best practices and State law are consistent in that processing and regulatory fees should be set according to the estimated reasonable cost of service. These fees should also bear a fair and reasonable relationship to the payer’s burdens on, or benefits received from the activities and/or services provided by the city. Additionally, ongoing review and adjustment of fees provides multiple benefits, including:
• Meeting fee-payer service level expectations by collecting fees to fund the existing level of services provided.
• Avoiding fee spikes that are more likely to occur when municipalities leave fees unchanged for a multi-year period.
• Keeping fee revenue to pay for the cost of services in pace with inflation. • Increasing the availability of General Fund revenues to be used for services and activities available to all residents and businesses, such as public safety services. • Providing fee payers, staff, and the Council with a pattern of consistency that provides information for forecasting and decision-making purposes.

The proposed fees are intended to comply with applicable federal, state, and local laws. This compliance includes confirmation that the proposed fees and charges are not a tax as defined in Article 13C of the California Constitution and that the proposed fees are no more than necessary to the cover the reasonable costs of the City’s activities and services addressed in the fees.

Additionally, the manner in which the costs are allocated to a payor bear a fair and reasonable relationship to the payor’s burdens on, or benefits received from the activities and services provided by the City. Nearly every service for which a fee is imposed can be illustrated in the chart on the following page contrasting the components of the full cost of service, which is the maximum fee amount justified, against the local agency’s goals for cost recovery:

Staff Report: Building Permit Fees Update Page 4
February 28, 2022
Based on the consultant’s experience working with cities throughout California, it is reasonable for cities to enact full cost recovery targets (defined as 100% of the full cost of service) for development-related fees if the following conditions are met:
• Elements of the cost of service and assumptions are clearly communicated • City clearly communicates that only eligible costs are included in fees Both conditions would be met with these updated building-related fees. Lastly, the City’s Land Use Element contains a policy to incentivize energy efficiency and in 2013 the Council reduced residential permit fees by 30% for energy efficiency upgrades such as new heating systems and electric vehicle charging systems. The proposed fee updates would continue to include this incentive.

FISCAL IMPACT
Assuming historical use patterns, staff anticipates approximately $86,000 in additional General Fund revenues resulting from the proposed changes. Although the changes are anticipated to provide additional revenue, this revenue is not intended to be used to fund new services as rather it is intended to offset the costs of providing existing services that are recoverable from fees. In essence, this increase in revenues serves as a cost avoidance as these commensurate funds from the General Fund would not be needed to offset the cost of building permit services.

Annual Cost of
Service
Est. Annual
Fee Revenue
General Fund
Subsidy
Overall
Current Cost
Recovery
Annual Fee
Revenue
New Revenue
to General
Fund *
General Fund
Subsidy
Targeted Cost
Recovery *
Building (1) $371,425 $285,464 $85,961 77% $371,425 $85,961 $0 ~ 100%

DIRECT FEE-RELATED

SERVICES

PREVAILING FEES PROPOSED FEES
* Amounts shown are estimates. Actual amounts will vary based on applicant volume and project types. Most individual fees will target full cost recovery (100%), however, several minor fee categories target less than full cost recovery. Revenue impact is intended to represent a conservative estimate to allow for development and refinement of deposit tracking and billing systems.
(1) Estimated building revenues are estimated based on average annual revenues from fiscal year 2017-2018 through fiscal year 2019-20. City should monitor actual volumes and revenues to verify cost recovery levels.

Staff Report: Building Permit Fees Update Page 5
February 28, 2022

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt the resolution amending the Master Fee Schedule to update building permit fees; or

2. Do not adopt the resolution amending the Master Fee Schedule; or

3. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A legal ad was published in New Times and the User and Regulatory Fee Study was made available for public review on the City’s website 10 days in advance of the hearing in accordance with State law. A copy of the agenda was sent to the Home Builders Association of the Central Coast.

Attachments

1. Resolution
Exhibit A: Building Fees

2. User and Regulatory Fee Study

3. Sample Fee Comparison - Before and After
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA AMENDING THE CITY’S MASTER FEE SCHEDULE FOR

BUILDING RELATED SERVICES
WHEREAS, Processing and Regulatory Fees are established by the City Council; and WHEREAS, the City recently completed a study to identify the cost of providing building related services; and
WHEREAS, the Processing and Regulatory Fee Study examined fee-related services provided by the City, the costs reasonably borne by the City in providing those services, the beneficiaries of those services, and the revenues produced by those paying fees and charges for special services; and
WHEREAS, the City Council finds that providing these services is of special benefit to applicants both separate and apart from the general benefit to the public; and therefore, in the interests of fairness to the general public, the City desires to better recover the costs of providing these services from applicants who have sought or require the City's services by revising its schedule of fees; and
WHEREAS, the City Council hereby finds that the study provides adequate evidence to conclude that the revised fees do not exceed the cost to provide the services for which the fees are charged; and
WHEREAS, the fees and charges being increased in accordance with this resolution have been noticed in accordance with Government Code Sections 65104 and 66016; and WHEREAS, in adopting this Resolution, the City Council is taking action only on those fees for the services set forth in Exhibit “A”. The remaining fees that have not been modified from prior resolutions shall remain in full force and effect.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grover Beach as follows:

SECTION 1. INCORPORATION OF RECITALS
The City Council hereby finds the recitals set forth above are true and correct.

SECTION 2. ESTABLISHMENT AND UPDATE OF FEES, CHARGES, AND RATES The City Council hereby adopts the fees, charges, and rates as set forth in attached Exhibit "A" and incorporated by this reference.

Attachment 1
SECTION 3. EFFECTIVE DATE
Any new or adjusted fees adopted by this Resolution shall go into effect on May 1, 2022.

SECTION 4. CERTIFICATION
The City Clerk shall attest to and certify the vote adopting this resolution.

Upon motion by Council Member __________, seconded by Council Member __________, and on the following roll call vote, to wit:

AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN Council Members –
The foregoing RESOLUTION NO. 22-__ was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 28th day of February 2022.
**DRAFT**
______________________________

JEFF LEE, MAYOR
Attest:
________________________________
WENDI B. SIMS, CITY CLERK
City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Fee Charge Basis Note
1 HVAC - (per unit)
a) Change-Out $81 per permit [a]
b) New $175 per permit [a]
2 Electric Car Charging $141 per permit [a]
3 Graywater System
a) No Plan Check Required $81 per permit [a]
b) Plan Check Required $175 per permit [a]
4 Insulation/Energy Upgrade $81 per permit [a]
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less $175 per permit [a]
b) Above 15kW – per kW $15 per permit
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less $1,000 per permit
b) 50kW – 250kW – Base $1,000 per permit
c) 50kW – 250kW – per kW above 50kW $7 per permit
d) Above 250kW – base $2,400 per permit
e) Above 250kW – per kW $5 per permit
7 Service Panel Upgrade $77 per permit
8 Water Heater Change-Out (same location) $54 per permit [a] 9 Water Heater Change-Out (new location) $81 per permit 10 Line Repair - Sewer / Water / Gas $77 per permit
11 Line Repair / Re-pipe $115 per permit
12 Re-Roof
a) Up to 2,000 SF (roof area) $154 per permit
b) Each Add'l 1,000 SF or fraction thereof $77 per permit 13 Demolition $77 per permit
14 Temporary Power Pole $38 per permit [b]
A. Fees for Commonly Requested Building Permit Types. Fees shown in this section (Section A.) include all applicable inspection, and plan review fees). Additional fees apply for permit processing and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Sections F and G.

Activity Description
Exhibit A
City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Fee Charge Basis Note
A. Fees for Commonly Requested Building Permit Types. Fees shown in this section (Section A.) include all applicable inspection, and plan review fees). Additional fees apply for permit processing and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Sections F and G.

Activity Description
15 Swimming Pool/Spa
a) Swimming Pool / Spa $865 per permit
b) Detached Spa / Water Feature $250 per permit
c) Gunite Alteration $308 per permit
d) Equipment Change-out Only (e.g., pump) $154 per permit 16 Patio
a) Patio without M,E,P
i) Up to 200 SF $212 per permit
ii) Greater than 200 SF $298 per permit
b) Patio with M,E,P
i) Up to 200 SF $423 per permit
ii) Greater than 200 SF $500 per permit
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5 $260 per permit [c]
b) Each additional $63 per permit [c]
18 Signs
a) Wall Sign $87 per permit
b) Wall Sign Illuminated $115 per permit
c) Monument Sign $173 per permit
d) Monument Sign Illuminated $231 per permit
19 Storage Racks
a) Storage Racks - First 100 LF $346 per permit
b) Storage Racks - Each Additional 100 LF $16 per permit [a] Fees have been reduced by 30% for single family residential to encourage energy savings improvements. [b] Fee applies if temporary power pole permit is requested separate from main building permit. [c] Permits required for new or alteration of windows and sliding glass doors. No permit required for retrofit windows and sliding glass doors.

Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

R3 - Single-Family, Duplex,
Additional Dwelling Units
New Construction and
Room Additions
B. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

Residential New Construction and Room Additions
Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

R3 - Single-Family, Duplex,
Additional Dwelling Units
Residential Remodels with
Structural Improvements
Residential Remodels with Structural Improvements
B. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

R3 - Single-Family, Duplex,
Additional Dwelling Units
Garage/Room Conversions
and Residential Remodels
without Structural
Improvements
Garage/Room Conversions and Residential Remodels without Structural Improvements B. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Occupancy Classification
Threshold
SqFt
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
1 500 $2,304 $34.13 $2,772 $75.29 $5,076 $109.42
1,000 $2,688 $21.33 $3,080 $61.60 $5,768 $82.93
5,000 $3,840 $15.36 $6,160 $49.28 $10,000 $64.64
10,000 $4,608 $7.68 $8,624 $24.64 $13,232 $32.32
20,000 $5,376 $5.76 $11,088 $18.48 $16,464 $24.24
2 500 $1,152 $172.80 $2,079 $46.20 $3,231 $219.00
1,000 $2,016 $21.60 $2,310 $57.75 $4,326 $79.35
5,000 $2,880 $11.52 $4,620 $36.96 $7,500 $48.48
10,000 $3,456 $5.76 $6,468 $18.48 $9,924 $24.24
20,000 $4,032 $4.32 $8,316 $13.86 $12,348 $18.18
3 500 $1,536 $8.53 $3,080 $13.69 $4,616 $22.22
1,000 $1,728 $6.40 $3,388 $10.27 $5,116 $16.67
5,000 $1,920 $7.68 $3,696 $12.32 $5,616 $20.00
10,000 $2,304 $3.84 $4,312 $12.32 $6,616 $16.16
20,000 $2,688 $2.88 $5,544 $9.24 $8,232 $12.12
4 Electrical Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
5 Mechanical Plan Review
and Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
6 Plumbing Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
7 Production Phase Units /
Identical Buildings /
Duplicate Stock
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Storage
New Construction / SF
Addition
A, B, E, F, H, I, M, R1, R2,
R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Tenant Improvement
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Shell
C. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell C. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Occupancy Classification # of Units
Plan
Review
Base Fee
Fee Per
Add'l Unit
Permit
Inspection
Base Fee
Fee Per
Add'l Unit
Total
Base Fee
Fee Per
Add'l Unit Note
1 1 - 10 $2,304 $512 $7,392 $1,164 $9,696 $1,676
11 - 25 $6,912 $576 $17,864 $1,276 $24,776 $1,852
26 - 50 $14,976 $304 $35,728 $744 $50,704 $1,048
51+ Units
(each addl'l
unit)
$22,272 $228 $53,592 $558 $75,864 $786
2 Electrical Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
3 Mechanical Plan Review
and Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
4 Plumbing Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
6 Tenant Improvement or
Shell
See Commerical / NonResidential Fees See Commerical / NonResidential Fees See Commerical / NonResidential Fees * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R1, R2 Occupancy
Hotel/Motel/Apartment/O
ther
New Construction / SF
Addition
D. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time.

New Construction - R1 and R2 Occupancies
Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

Balcony / Carport / Patio /
Deck / Garage / Utility
Garage / Carport / Patio / Deck / Utility / Balcony
E. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Fee Note
1 Permit Processing Fee $77
2 General Plan Maintenance Fee (percent of permit fee) 5% [a] 3 Technology Fee / Records Retention Fee (percent of permit fee) 5% 4 Strong Motion Instrumentation (SMI) Fee Calculation
a) Residential $0.50 or valuation x .00013
b) Commercial $0.50 or valuation x .00028
5 Building Standards (SB 1473) Fee Calculation (Valuation) a) $1 - $25,000 $1
b) $25,001 - $50,000 $2
c) $50,001 - $75,000 $3
d) $75,001 - $100,000 $4
e) Each Add'l $25,000 or fraction thereof Add $1
6 Temporary Certificate of Occupancy $231
Copies, Re-Print, Change Of Contractor
7 Printing Scanned / Archived Drawings $10
8 Job Card / Permit Re-Print $38
Violation Fees
9 Work Done Without Permits 2x Permit Fee
Other Fees
10 Partial Inspection / Extra Inspection Fee (per inspection) $77 11 Re-inspection Fee (3rd Time or More) (each) $77 [b]
12 Missed inspection Fee $77
13 Fees for Services Not Listed in this Fee Schedule (per 1/2 hour) $77 [a] Fee only applies to permits for new construction and additions, including signs and swimming pools. [b] Reinspection fee applies after second re-inspection.

F. Other Fees
Activity Description
Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Proposed Fee Charge Basis Note
1 Public Works Building Plan Review
a) No Public Works Permit Issued $82
b) Minor Projects (1-4 lots or units) $326
c) Major Projects (4 or more lots or units) $489
d) Deposit Cases $1,000 Deposit
2 Planning Building Plan Review
a) Alterations $48
b) Additions - Residential $144
c) New Residential Unit / Detached ADU $288
i) Each Additional Unit $96
d) Commercial / Industrial $1,000 Deposit
3 Plan Check Fees
a) Alternate Materials and Materials Review (per hour) $192 b) Excess Plan Review Fee (4th and subsequent) (per hour) $192 G. Building Plan Review Fees - For Services Not Identified Elsewhere In This Schedule Activity Description
When applicable, plan check fees shall be paid at the time of application for a building permit.

The plan checking fee is in addition to the building permit fee Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

User and Regulatory Fee Study
(Development Services Fees)

CITY OF GROVER BEACH
FEBRUARY 2022
TERRY MADSEN | PRINCIPAL CONSULTANT
[email protected] | 831.288.0608
7960 B Soquel Drive, Suite 363 | Aptos, California 95003 www.clearsourcefinancial.com
Attachment 2

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH

CONTENTS

REPORTING
1 TRANSMITTAL

2 EXECUTIVE SUMMARY | Overall Findings

6 REGIONAL FEE COMPARISON

9 PROJECT ORIENTATION | Scope, Guidance, Methods

APPENDICES

A COST OF SERVICE ANALYSIS

B ILLUSTRATION OF PROPOSED FEE SCHEDULE

7960 B SOQUEL DRIVE, SUITE 363 | APTOS, CALIFORNIA 95003 831.288.0608 | WWW.CLEARSOURCEFINANCIAL.COM
February 2022

CITY OF GROVER BEACH
Attn: Bruce Buckingham, Community Development Director
154 South 8th Street
Grover Beach, California 93433
User and Regulatory Fee Study
Dear Bruce:

ClearSource Financial Consulting submits the following report describing the findings of our preparation of a User and Regulatory Fee Study for the City of Grover Beach.

Please refer to the Executive Summary for the key findings of the analysis and estimated impacts to City funds. The balance of the report and its appendices provide the necessary documentation to support those outcomes.

Thank you for the opportunity to serve the City on this topic. We are happy to continue discussion on this study as the need arises or consult with you on additional topics.

Sincerely,
TERRY MADSEN, PRESIDENT | CLEARSOURCE FINANCIAL CONSULTING PHONE NUMBER: 831.288.0608
EMAIL ADDRESS: [email protected]
CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 2

EXECUTIVE SUMMARY

STUDY OVERVIEW
The City of Grover Beach has completed a User and Regulatory Fee Study. California cities regularly conduct these studies to justify fee amounts imposed and to optimize the overall portfolio of revenues available to the municipality to fund its services.

Industry practice and fiscal conditions in the state have led most cities to link cost recovery for services of individual action, cause, or benefit to that same individual through user fee revenue, relieving the agency’s general revenues as much as possible for use toward services of broader community benefit.

USER AND REGULATORY FEES
Cities derive annual revenue from a number of sources. These include, but are not limited to, property taxes, sales taxes, license fees, franchise fees, fines, rents, and user and regulatory fees. User and regulatory fees are intended to cover all, or a portion of, the costs incurred by the City for providing fee-related services and activities that are not otherwise provided to those not paying the fee.

California law provides guidance regarding the amounts the City may charge for fee-related services and activities. Specifically, in order to avoid being considered taxes, the fees charged shall not exceed the estimated reasonable cost of providing the services, activities, or materials for which fees are charged.

At its conclusion, this study proposes for City Council review and consideration at public hearing a new Schedule of User Fees and Charges for application in Fiscal Year 2021-2022 and continued update in subsequent years.

COST RECOVERY POLICY AND PRACTICE
Recovering the costs of providing fee-related services directly influences the City’s fiscal health and increases the City’s ability to meet the service level expectations of fee payers.

The services for which the City imposes a user or regulatory fee typically derive from an individual person or entity’s action, request, or behavior. Therefore, except in cases where there is an overwhelming public benefit generated by the City’s involvement in the individual action, a fee for service ensures that the individual bears most, if not all, of the cost incurred by the City to provide that service. When a fee targets “100% or full cost recovery,” the individual is bearing the entirety of the cost. When a fee targets less than full cost recovery, another City revenue source – in most cases, the General Fund – subsidizes the individualized activity.

Generally, fees for service are targeted to full cost recovery, inclusive of operating, direct, indirect, and capital costs, except in cases where the City Council cites a public interest in lower fees. The City may also be influenced by market conditions, comparing to municipalities of similar size and service profile.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 3

EXECUTIVE SUMMARY

ILLUSTRATION OF COST RECOVERY SCENARIOS
EXHIBIT 1 | ILLUSTRATION OF COST RECOVERY SCENARIOS

COST RECOVERY

THRESHOLD

CHARACTERISTIC OF THE SERVICE / ACTION
“NONE”
No Recovery of
the Costs of
Service
• Acute interest in protecting:
- Public safety
- Integrity of City infrastructure, assets, and operations - Vulnerable populations
• Collection of fees is not feasible or cost-effective
“LOW”
Up to 50% of the
Full Cost of
Service
• The broader public benefits greatly from the individual service provided • Larger fee amounts may discourage compliance with City requirements • Market sensitivities may negatively impact demand for services deemed important to the character of the community
• City policy directs an influence on fee amounts for:
- Concern for low-income participation
- Concern for specific sectors, such as owner-occupied residences or small business
- Priority for resident participation, versus non-resident “MODERATE”
Greater than
50% of the Full
Cost of Service
• While the individual benefits greatly from service provided, public benefit or public interest in compliance/participation is present
• Factors described in lower thresholds retain some influence • Though service benefits the individual to a high degree, fee levels should be sensitive to the encouragement of current City initiatives “FULL”
100% of the Full
Cost of Service
• Service benefits the individual to a great degree
• Service is highly regulatory
• Fee amounts do not materially impact compliance or demand • Fee amounts for comparable service are in line with other regional communities
“PENALTY”
Greater than Full
Cost
• Must be a fine/penalty for non-compliance with City code CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 4

EXECUTIVE SUMMARY

FINDINGS AND PROPOSED ACTION
During the course of study, information and analysis was generated and is discussed substantively throughout this report and its technical appendices. However, summarized in the following table by broad fee category and highlighted in the subsequent findings statements, are outcomes and proposals of particular interest to City leaders and policymakers.

Primary Outcomes
Building Fees
 Current fees recover less than the City’s full cost of providing fee-related services. o The Division collects approximately $285,000 annually in fee revenues. Fee-related expenditures are approximately $371,000. This results in an aggregate cost recovery level of 77% and a General Fund subsidy of approximately $86,000.  Full cost recovery is targeted for most fees with the following exceptions:
o General Plan Maintenance Fee: Target 20% cost recovery o Technology Fee / Records Retention Fee (percent of permit fee): Target 56% of cost recovery
o Energy Saving / Conservation Upgrades: Target 70% cost recovery  The building fee schedule is proposed to be simplified to facilitate application of fees to projects and assist customers in estimating permit fees.
 Establish fixed fees for the City’s most common minor permits. This will allow applicants to estimate permit fees more easily and allow staff to administer the fee calculation and collection process more efficiently.
 Use fee methodology that results in lower fees for less complex projects and higher fees for more complex projects (i.e., establish a nexus between fees and typical service requirements).

Similar fees are collected by communities throughout the region and the State. The proposed fee amounts do not exceed the City’s cost of service and are in-range of amounts charged by other jurisdictions.

Annual Adjustment to Fees
In order to generally maintain pace with regional cost inflation, the City should adjust its fees on an annual basis. A commonly used, reasonable inflation index is the annual change in the all-urban Consumer Price Index (CPI) representative of the region.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 5

EXECUTIVE SUMMARY

IMPACT TO COST RECOVERY AND CITY FUNDS
The anticipated revenue impact of the proposed changes included in the fee schedule update is $86,000.

EXHIBIT 2| COST RECOVERY IMPACT OF PROPOSED FEE CHANGES Additional revenues expected from proposed changes to fees and charges are intended to offset the cost of providing existing services associated with those fee-related regulatory functions. Additional fee revenue is not intended to fund new services.

Fairly allocating costs to the services provided and recovering some, or all, of these costs from service recipients creates value and predictability for City customers and reimburses the City for services provided to a single party, as compared to the public at large. Collecting fees for services:
 Increases the availability of General Fund revenues to be used for services and activities available to all residents and businesses, such as public safety and public works services.  Helps meet fee-payer service level expectations by collecting fees to fund the existing level of services provided.

Annual Cost of
Service
Est. Annual Fee Revenue General Fund
Subsidy
Overall
Current Cost
Recovery
Annual Fee Revenue New Revenue to General
Fund *
General Fund
Subsidy
Targeted Cost
Recovery *
Building (1) $371,425 $285,464 $85,961 77% $371,425 $85,961 $0 ~ 100%

DIRECT FEE-RELATED

SERVICES

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 6

FEE COMPARISON
The adopted and proposed fees for several common services were compared to those imposed by other agencies. The comparison showed that, depending on the service examined, Grover Beach’s fees may fall within the lower, middle, or upper range of amounts collected. This is a common finding due to the many factors that influence fees for specific services (e.g., service delivery methods, community values, organizational structure, and cost recovery goals). Comparison agencies included the cities of Arroyo Grande, Atascadero, Lompoc, Morro Bay, Pismo Beach, and San Luis Obispo. The proposed fee amounts do not exceed the City’s cost of service and are in-range of amounts charged by other jurisdictions.

Comparison charts are provided on the following pages.
* Amounts shown include permit fee and permit issuance fee.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 7

FEE COMPARISON
* Amounts shown include permit fee and permit issuance fee. * Amounts shown include permit fee and permit issuance fee.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 8

FEE COMPARISON
* Amounts shown include plan check and inspection permit fee only.

SCOPE OF STUDY
The City of Grover Beach has completed a User and Regulatory Fee Study, which represents an external review of prevailing practices and development of a new Schedule of User Fees and Charges. ClearSource Financial Consulting has prepared this analysis during Fiscal Year 2021-2022 and will be available to answer questions as the City proceeds in implementing findings as it chooses.

Key tasks expected by the City from this study included the following:
 Review eligible fee-related services for the City’s Building Department to establish the reasonable relationship between current fees for service and the underlying costs of service.  Calculate the full cost of service, including estimated citywide overhead costs.  Recommend fees to be charged for each service.
 Recommend cost recovery strategies and best practices in setting fees, while considering the complexities and demands of responsible programs or departments.  Identify new fees and/or revenue sources for eligible services, where discovered and applicable.  Identify underlying billable rates for cost recovery opportunities and as the basis for user fees.  Maintain a thoroughly documented analysis to ensure compliance with Proposition 26, and other statutes, as applicable.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 9

PROJECT ORIENTATION

DIRECT SERVICES UNDER REVIEW
Fee Categories
City fees under review in this project focused on direct services eligible for user fee methodology, as listed in the City’s published fee schedules. Additionally, the project was tasked with identifying any relevant additions for services performed without a fee or for under-quantified or ineffectively structured fees.

Current services shown in the City’s various prevailing fee schedules and addressed in this study are summarized as follows:
 Building – Services include building permits for construction and sub-trades.

REASON FOR STUDY
Cities derive annual revenue from a number of sources. These include, but are not limited to, property taxes, sales taxes, franchise fees, fines, rents, and user and regulatory fees. User and regulatory fees are intended to cover all, or a portion of, the costs incurred by a city for providing fee-related services and activities that are not otherwise provided to those not paying the fee.

California cities regularly conduct fee studies to justify fee amounts imposed and to optimize the overall body of revenues available to the municipality to fund its services. Widespread industry practice and fiscal conditions in the state have led most cities to link cost recovery for services of individual action, cause, or benefit to that individual through user fee revenue, relieving the agency’s general revenues for services of broader community benefit.

PREVAILING GUIDANCE
The objectives of this study, the methodology used to complete the study, and the formulation of outcomes and recommendations for future consideration were significantly influenced by Article 13C of the California Constitution and Section 66014 of the California Government Code.

Article 13C states that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payer bear a fair or reasonable relationship to the payer’s burdens on, or benefits received from, the governmental activity. Additionally, Article 13C identifies the following as items that are not defined as taxes:
 A charge imposed for a specific benefit conferred or privilege granted directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.  A charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 10

PROJECT ORIENTATION
 A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.  A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.
 A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law.
 A charge imposed as a condition of property development.  Assessments and property-related fees imposed in accordance with the provisions of Article XIII D.

Section 66014(a) of the California Government Code includes the following, “Notwithstanding any other provision of law, when a local agency charges fees for zoning variances; zoning changes; use permits; building inspections; building permits; …the processing of maps under the provisions of the Subdivision Map Act…; or planning services…; those fees may not exceed the estimated reasonable cost of providing the service for which the fee is charged, unless a question regarding the amount of the fee charged in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue.

The outcomes and recommendations of the study are intended to comply with applicable federal, state, and local laws including providing confirmation that the proposed fees (“charges”) recommended as a result of this study are not taxes as defined in Article 13C of the California Constitution and that the proposed fees are no more than necessary to the cover the reasonable costs of the City’s activities and services addressed in the fees. Additionally, this report is intended to show that the manner in which the costs are allocated to a payer bear a fair and reasonable relationship to the payer’s burdens on, or benefits received from the activities and services provided by the City.

METHODOLOGY AND DATA SOURCES
This study calculated the estimated reasonable cost of providing various fee-related services across the City organization. Generally, the estimated reasonable cost of providing the fee-related services and activities examined in this study can be calculated as the product of the composite fully-burdened hourly labor rate of the division responsible for providing services and the estimated labor time required to process a typical request for service.

The composite fully-burdened hourly rates calculated in this study are based on the estimated annual hours spent providing fee related services, and estimated labor, services and supplies, and citywide overhead expenditures, sourced as follows:
 Estimated annual hours spent providing fee related services were developed based on interviews with City staff and are in-line with typical direct service ratios experienced by the consultant via studies of similar municipalities throughout California.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 11

PROJECT ORIENTATION
 Labor expenditures for in-house personnel were based on the City’s most recently adopted salary schedules.
 Contract service costs are based on historical spending for City contract service providers and current market rates for similar services provided within the region.  All other services and supplies expenditures were based on budgeted expenditures.  For purposes of estimating the full cost of service, a reasonable, conservative, allocation of central service costs to direct service departments was developed that yields Citywide indirect rates to inform this analysis.
 Estimated labor times were developed based on responses from the staff primarily responsible for the provision of services examined in the study. Commonly used industry data also aided in the development of time estimates and proposed fee structures.

Once cost of service levels are identified, the City may use this information to inform targeted cost recovery from fees. Fees set at the cost of service target full cost recovery. Fees set at any amount less than the cost of service target less than full cost recovery.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 12

PROJECT ORIENTATION
An illustration of the methods used in this analysis is shown below.

EXHIBIT 3 | STEPS IN ANALYZING COSTS OF SERVICE AND USER FEES CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 13

PROJECT ORIENTATION

CONSIDERATIONS FOR IMPLEMENTATION
If the City decides to adopt or otherwise utilize outcomes generated through this study, it should:
 Update Systems for Fee Outcomes – Ensure that City staff begin using updated fees and associated outcomes once the updated schedule of fees becomes effective. Values should be included in all official fee schedules used throughout the City (e.g., departmental pamphlets, counter schedules, and online information). Additionally, ensure collections processes are updated, which may include coding in billing systems and training for personnel who handle fees directly with the public.  Actively Monitor the Use of Fees – In order to recover accurate and eligible amounts expected, the City should be diligent about tracking time to projects and ensuring fees are applied in the correct amount and using the correct and intended basis.
 Monitor Feedback and Permit Statistics – Monitor permit and application volume and applicant feedback to determine if fee modifications are resulting in any unanticipated changes in project frequency and to increase the level of detail available for revenue forecasting.  Annually Review and Adjust Fee Values – In order to generally maintain pace with regional cost inflation and/or the City’s salary cost inflation, the City should adjust its fees on an annual basis. A commonly used, reasonable inflation index is the annual change in the all-urban Consumer Price Index (CPI) representative of the region.
 Periodically Perform Comprehensive Analysis – A comprehensive fee study should be conducted periodically (e.g., every three to five years) to ensure fee levels remain at or below legal limits and are consistent with evolving service practices and local conditions.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 14

APPENDIX A

COST OF SERVICE ANALYSIS
Cost of Service Analysis
Building and Construction Review Fees
City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - Building
Labor Expenditures
Description Total Notes
Salaries, Wages, and Benefits $ 118,990
Contract Services (Building Inspection and Plan Check) $ 175,000 Total $ 293,990
Recurring Non-Labor Expenditures
Description Total Adjustments Subtotal Notes
01-144-Building
Supplies - Operating $ 300 $ - $ 300
Dues and Subscriptions $ 200 $ - $ 200
Account 52010 $ - $ -
Copying - Allocated $ 200 $ - $ 200
Printing and Copying $ 1,200 $ - $ 1,200
Account 52101 $ - $ -
Telephone $ 500 $ - $ 500
Postage and Shipping $ 650 $ - $ 650
Small Tools and Equipment $ 100 $ - $ 100
Services - Building $ 175,000 $ (175,000) $ -
Services - Engineering $ 10,000 $ (10,000) $ -
Services - Development Applications $ - $ -
City Engineer - Cost Recovery $ - $ -
Services - Fire $ 10,000 $ (10,000) $ -
Contractual Obligations $ 30,000 $ (30,000) $ -
Subtotal $ 228,150 $ (225,000) $ 3,150
Allocation of Central Services
Description
Est C'wide
Indirect Rate
Mod.

Expenses
Allocated
Citywide
Overhead Notes
Allocation of Citywide Overhead 25% $ 297,140 $ 74,285 [a] City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - Building
Total Initial Allocation
Description Total Share
Labor Expenditures & Contract Svc Support $ 293,990 79% Recurring Non-Labor $ 3,150 1%
Allocation of Citywide Overhead $ 74,285 20%
Total $ 371,425 100%
Calculation of Fully-Burdened Hourly Rate
Description Allocation Labor Non-Labor
C'wide
Overhead Total
Targeted
Recovery from
Fees
Amount
Recoverable
from Fees
Indirect
General Administration and Management 15% $ 44,099 $ 473 $ 11,143 $ 55,714 100% $ 55,714 Certification and Training 1% $ 2,940 $ 32 $ 743 $ 3,714 100% $ 3,714 Code, Policies, and Procedures Update 2% $ 5,880 $ 63 $ 1,486 $ 7,429 100% $ 7,429 Public Info - Dev Related w/out active app 17% $ 49,978 $ 536 $ 12,628 $ 63,142 100% $ 63,142 Direct Hours
Building Prmt, Plan Rvw, Inspection 65% $ 191,094 $ 2,048 $ 48,285 $ 241,426 100% $ 241,426 Total 100% $ 293,990 $ 3,150 $ 74,285 $ 371,425 100% $ 371,425 Cost Recovery Analysis
Description
2017-18
ACTUAL
2018-19
ACTUAL
2019-20
ACTUAL
Multi-Year
Average Notes
Construction Permits $185,736 $260,317 $220,808 $222,287 Plan Check Fees - Building $36,627 $48,791 $104,115 $63,178 Building $222,363 $309,108 $324,923 $285,464
Description Total
Revenues $285,464
Expenses $371,425
Cost Recovery 77%
[a] Amount intended to represent a reasonable conservative estimate of Citywide overhead allocation.

City of Grover Beach
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Building
Labor Expenditures
Description Total Notes
Salaries, Wages, and Benefits $ 118,990
Contract Services (Building Inspection and Plan Check) $ 175,000 Total $ 293,990
Recurring Non-Labor Expenditures
Description Total Adjustments Subtotal Notes
01-144-Building
Supplies - Operating $ 300 $ - $ 300
Dues and Subscriptions $ 200 $ - $ 200
Account 52010 $ - $ -
Copying - Allocated $ 200 $ - $ 200
Printing and Copying $ 1,200 $ - $ 1,200
Account 52101 $ - $ -
Telephone $ 500 $ - $ 500
Postage and Shipping $ 650 $ - $ 650
Small Tools and Equipment $ 100 $ - $ 100
Services - Building $ 175,000 $ (175,000) $ -
Services - Engineering $ 10,000 $ (10,000) $ -
Services - Development Applications $ - $ -
City Engineer - Cost Recovery $ - $ -
Services - Fire $ 10,000 $ (10,000) $ -
Contractual Obligations $ 30,000 $ (30,000) $ -
Subtotal $ 228,150 $ (225,000) $ 3,150
Allocation of Central Services
Description
Est C'wide
Indirect Rate
Mod.

Expenses
Allocated
Citywide
Overhead Notes
Allocation of Citywide Overhead 25% $ 297,140 $ 74,285 [a] City of Grover Beach
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Building
Total Initial Allocation
Description Total
Allocation
Share
Labor Expenditures & Contract Svc Support $ 293,990 79% Recurring Non-Labor $ 3,150 1%
Citywide Overhead $ 74,285 20%
Total $ 371,425 100%
Calculation of Fully-Burdened Hourly Rate
Description Allocation Labor Non-Labor
C'wide
Overhead Total
Targeted
Recovery from
Fees
Amount
Recoverable
from Fees
Targeted
Hourly Rate
Indirect
General Administration and Management 15% $ 44,099 $ 473 $ 11,143 $ 55,714 100% $ 55,714 $ 25 Certification and Training 1% $ 2,940 $ 32 $ 743 $ 3,714 100% $ 3,714 $ 2 Code, Policies, and Procedures Update 2% $ 5,880 $ 63 $ 1,486 $ 7,429 100% $ 7,429 $ 3 Public Info - Dev Related w/out active app 17% $ 49,978 $ 536 $ 12,628 $ 63,142 100% $ 63,142 $ 28 Direct Hours
Building Prmt, Plan Rvw, Inspection 65% $ 191,094 $ 2,048 $ 48,285 $ 241,426 100% $ 241,426 $ 108 Total 100% $ 293,990 $ 3,150 $ 74,285 $ 371,425 100% $ 371,425 $ 167 Direct Hours 2,230
Estimate for Ongoing Contract Service Rates
Description Contract Rate
Contract Rate
as % of Total
Fee
FullyBurdened
Hourly Rate Notes
Permit and Inspection $100 65% $154 [b]
Plan Check $125 65% $192 [b]
Total Hours Estimate
Description FTE Total Hours
Less: Adjust
for Leave
Productive
Hours Notes
FTE 1.00 2,080 (240) 1,840
Contract Services (Equivalent FTE) 1,591 - 1,591
Total 1.00 3,431
Indirect 1,201
Direct 2,230
Total 3,431
City of Grover Beach
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Building
Allocation of Direct Hours
Description Share Total Hours Recovery Notes
Permit and Inspection 70% 1,561 $240,170
Plan Check 30% 669 $128,663
Total 100% 2,230 $368,833
[a] Amount intended to represent a reasonable conservative estimate of Citywide overhead allocation. [b] Contract rate based on consultant estimate of current typical service rates for contractual service agreements. Amount is consistent with 2021 agreement recently signed by City of Paso Robles.

City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - Technology Enhancement Fee
Estimated Expenditures
# Description Total
Amortization /
Update Frequency Annual Cost Notes
1 Initial Outlay for Enhanced Permit/Project Tracking $100,000 10 $ 10,000 [a] 2 Initial Upgrades to Hardware (e.g. monitor, computers) $25,000 5 $ 5,000 [a] 3 On-going Licensing & Consulting Support $5,000 1 $ 5,000 [a] 4 Total $130,000 $ 20,000
Estimated Base for Revenue
# Acct Desc Total
5 Building Permits $222,287
6 $ 222,287
Calculation of Fee at Full Cost Recovery
# Description Total
7 Annual Revenue Requirement $ 20,000
8 Estimated Annual Permit Fees $ 222,287
9 Technology Fee as a Percent of Permit Fee 9%
Cost Recovery Analysis
# Description Current Fee
Fee at Full Cost
Recovery Proposed Fee Notes
10 Technology Enhancement Fee 5% 9% 5%
Revenue Analysis
# Description Current Revenue
Revenue at Full
Cost Recovery
Revenue at
Targeted Fee
GF Subsidy at
Current Fee
GF Subsidy at
Proposed Fee
11 Technology Enhancement Fee $5,232 $20,000 $11,114 $14,768 $8,886 12 Cost Recovery % 56%
[a] Useful life and ongoing licensing costs, and annual revenues estimated by ClearSource. Amounts are intended to represent reasonable estimates.

City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - General Plan Maintenance Fee
Estimated Expenditures
# Description Total
Amortization /
Update Frequency Annual Cost Notes
1 General Plan Update - Consulting Costs $750,000 20 $ 37,500 [a] 1 General Plan Update - City Staff Costs $187,500 20 $ 9,375 [a] 2 Housing Element $20,000 4 $ 5,000 [a]
3 Zoning Code $5,000 1 $ 5,000 [a]
4 Total $962,500 $ 56,875
Estimated Base for Revenue
# Account Total
5 Building Permits $222,287
6 Total $ 222,287
Calculation of Fee at Full Cost Recovery
# Description Total
7 Annual Revenue Requirement $ 56,875
8 Estimated Annual Permit Fees $ 222,287
9 General Plan Maintenance Fee as a % of Permit Fee 26% Cost Recovery Analysis
# Description Current Fee
Fee at Full Cost
Recovery Proposed Fee
10 General Plan Maintenance Fee 5% 26% 5%
Revenue Analysis
# Description Current Revenue
Revenue at Full
Cost Recovery
Revenue at
Targeted Fee
GF Subsidy at
Current Fee
GF Subsidy at
Proposed Fee
11 General Plan Maintenance Fee $8,248 $56,875 $11,114 $48,627 $45,761 12 Cost Recovery % 20%
[a] Costs and useful life estimated by ClearSource. Amounts are intended to represent conservative, reasonable, estimates.

City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate $154 $154 $154 $192 $192 $192
Fee Description
City Permit
Inspection
Contract
Permit
Inspection
Total Permit
Inspection
City Plan
Review
Contract Plan
Review
Total Plan
Review Total
1 HVAC - (per unit)
a) Change-Out 0.75 0.75 0.00 0.75
b) New 1.00 1.00 0.50 0.50 1.50
2 Electric Car Charging 1.00 1.00 0.25 0.25 1.25
3 Graywater System
a) No Plan Check Required 0.75 0.75 0.00 0.75
b) Plan Check Required 1.00 1.00 0.50 0.50 1.50
4 Insulation/Energy Upgrade 0.75 0.75 0.00 0.75
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less 1.00 1.00 0.50 0.50 1.50
b) Above 15kW – per kW
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less
b) 50kW – 250kW – Base
c) 50kW – 250kW – per kW above 50kW
d) Above 250kW – base
e) Above 250kW – per kW
7 Service Panel Upgrade 0.50 0.50 0.00 0.50
8 Water Heater Change-Out (same location) 0.50 0.50 0.00 0.50 9 Water Heater Change-Out (new location) 0.75 0.75 0.00 0.75 10 Line Repair - Sewer / Water / Gas 0.50 0.50 0.00 0.50 11 Line Repair / Re-pipe 0.75 0.75 0.00 0.75
12 Re-Roof
a) Up to 2,000 SF (roof area) 1.00 1.00 0.00 1.00
b) Each Add'l 1,000 SF or fraction thereof 0.50 0.50 0.00 0.50 13 Demolition 0.50 0.50 0.00 0.50
14 Temporary Power Pole 0.25 0.25 0.00 0.25
City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
1 HVAC - (per unit)
a) Change-Out
b) New
2 Electric Car Charging
3 Graywater System
a) No Plan Check Required
b) Plan Check Required
4 Insulation/Energy Upgrade
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less
b) Above 15kW – per kW
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less
b) 50kW – 250kW – Base
c) 50kW – 250kW – per kW above 50kW
d) Above 250kW – base
e) Above 250kW – per kW
7 Service Panel Upgrade
8 Water Heater Change-Out (same location)
9 Water Heater Change-Out (new location)
10 Line Repair - Sewer / Water / Gas
11 Line Repair / Re-pipe
12 Re-Roof
a) Up to 2,000 SF (roof area)
b) Each Add'l 1,000 SF or fraction thereof
13 Demolition
14 Temporary Power Pole
Cost of Svc Current Fee*
Current Cost
Recovery
Proposed
Cost Recovery
Proposed
Fee* Note
$115 $92 80% 70% $81 [a]
$250 0% 70% $175 [a]
$202 $159 79% 70% $141 [a]
$115 $92 80% 70% $81 [a]
$250 $204 82% 70% $175 [a]
$115 $92 80% 70% $81 [a]
$250 $204 82% 70% $175 [a]
$15
$500 deposit $1,000
$500 deposit $1,000
$7
$500 deposit $2,400
$5
$77 $118 153% 100% $77
$77 $90 117% 70% $54 [a]
$115 $118 102% 70% $81 [a]
$77 $118 153% 100% $77
$115 varies 100% $115
$154 $189 82% 100% $154
$77 100% $77
$77 $157 204% 100% $77
$38 $118 307% 100% $38 [b]
City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate $154 $154 $154 $192 $192 $192
Fee Description
City Permit
Inspection
Contract
Permit
Inspection
Total Permit
Inspection
City Plan
Review
Contract Plan
Review
Total Plan
Review Total
15 Swimming Pool/Spa
a) Swimming Pool / Spa 2.50 2.50 2.50 2.50 5.00
b) Detached Spa / Water Feature 1.00 1.00 0.50 0.50 1.50 c) Gunite Alteration 2.00 2.00 0.00 2.00
d) Equipment Change-out Only (e.g., pump) 1.00 1.00 0.00 1.00 16 Patio
a) Patio without M,E,P
i) Up to 200 SF 0.75 0.75 0.50 0.50 1.25
ii) Greater than 200 SF 1.00 1.00 0.75 0.75 1.75
b) Patio with M,E,P
i) Up to 200 SF 1.50 1.50 1.00 1.00 2.50
ii) Greater than 200 SF 2.00 2.00 1.00 1.00 3.00
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5 0.75 0.75 0.75 0.75 1.50
b) Each additional 0.25 0.25 0.13 0.13 0.38
18 Signs
a) Wall Sign 0.25 0.25 0.25 0.25 0.50
b) Wall Sign Illuminated 0.33 0.33 0.33 0.33 0.67
c) Monument Sign 0.50 0.50 0.50 0.50 1.00
d) Monument Sign Illuminated 0.67 0.67 0.67 0.67 1.34
19 Storage Racks
a) Storage Racks - First 100 LF 1.00 1.00 1.00 1.00 2.00 b) Storage Racks - Each Additional 100 LF 0.00 0.08 0.08 0.08 [a] Fees have been reduced by 30% for single family residential to encourage energy savings improvements. [b] Fee applies if temporary power pole permit is requested separate from main building permit. [c] Permits required for new or alteration of windows and sliding glass doors. No permit required for retrofit windows and sliding glass doors. * Fees for Commonly Requested Building Permit Types. Fees shown in this section (Section A.) include all applicable inspection, and plan review fees). Additional fees apply for permit processing and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Examples of additional fees are shown in Sections G and H of the fee schedule.

City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
15 Swimming Pool/Spa
a) Swimming Pool / Spa
b) Detached Spa / Water Feature
c) Gunite Alteration
d) Equipment Change-out Only (e.g., pump)
16 Patio
a) Patio without M,E,P
i) Up to 200 SF
ii) Greater than 200 SF
b) Patio with M,E,P
i) Up to 200 SF
ii) Greater than 200 SF
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5
b) Each additional
18 Signs
a) Wall Sign
b) Wall Sign Illuminated
c) Monument Sign
d) Monument Sign Illuminated
19 Storage Racks
a) Storage Racks - First 100 LF
b) Storage Racks - Each Additional 100 LF
Cost of Svc Current Fee*
Current Cost
Recovery
Proposed
Cost Recovery
Proposed
Fee* Note
$865 100% $865
$250 100% $250
$308 100% $308
$154 100% $154
$212 varies 100% $212
$298 varies 100% $298
$423 varies 100% $423
$500 varies 100% $500
$260 100% $260 [c]
$63 100% $63 [c]
$87 $102 100% $87
$115 $122 106% 100% $115
$173 varies 100% $173
$231 varies 100% $231
$346 100% $346
$16 100% $16
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential New Construction and Room Additions
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 3.00 7.00 $192 $154 $576 $1,078 varies varies varies varies 200 3.00 8.00 $192 $154 $576 $1,232 varies varies varies varies 300 3.00 8.50 $192 $154 $576 $1,309 varies varies varies varies 400 3.50 9.00 $192 $154 $672 $1,386 varies varies varies varies 500 4.00 9.50 $192 $154 $768 $1,463 varies varies varies varies 1,000 5.00 12.00 $192 $154 $960 $1,848 varies varies varies varies 1,500 6.00 14.00 $192 $154 $1,152 $2,156 varies varies varies varies 2,000 8.00 16.00 $192 $154 $1,536 $2,464 varies varies varies varies 2,500 10.00 20.00 $192 $154 $1,920 $3,080 varies varies varies varies 3,000 12.00 24.00 $192 $154 $2,304 $3,696 varies varies varies varies 4,000 14.00 28.00 $192 $154 $2,688 $4,312 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
3 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
4 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
varies varies varies varies
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R3 - Single-Family, Duplex,
Additional Dwelling Units
New Construction and
Room Additions
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential New Construction and Room Additions
Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
1,500
2,000
2,500
3,000
4,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
R3 - Single-Family, Duplex,
Additional Dwelling Units
New Construction and
Room Additions
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$576 $1,078 $1,654 $0
$576 $1,232 $1,808 $0
$576 $1,309 $1,885 $0
$672 $1,386 $2,058 $0
$768 $38 $1,463 $77 $2,231 $115
$960 $38 $1,848 $62 $2,808 $100
$1,152 $77 $2,156 $62 $3,308 $138
$1,536 $77 $2,464 $123 $4,000 $200
$1,920 $77 $3,080 $123 $5,000 $200
$2,304 $38 $3,696 $62 $6,000 $100
$2,688 $29 $4,312 $46 $7,000 $75
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential Remodels with Structural Improvements
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 2.00 4.50 $192 $154 $384 $693 varies varies varies varies 200 2.25 5.75 $192 $154 $432 $886 varies varies varies varies 300 2.50 6.75 $192 $154 $480 $1,040 varies varies varies varies 400 2.75 7.50 $192 $154 $528 $1,155 varies varies varies varies 500 3.25 8.25 $192 $154 $624 $1,271 varies varies varies varies 1,000 3.75 10.00 $192 $154 $720 $1,540 varies varies varies varies 1,500 4.50 10.50 $192 $154 $864 $1,617 varies varies varies varies 2,000 6.00 12.00 $192 $154 $1,152 $1,848 varies varies varies varies 2,500 7.50 15.00 $192 $154 $1,440 $2,310 varies varies varies varies 3,000 9.00 18.00 $192 $154 $1,728 $2,772 varies varies varies varies 4,000 10.50 21.00 $192 $154 $2,016 $3,234 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
3 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
4 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
varies varies varies varies
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R3 - Single-Family, Duplex,
Additional Dwelling Units
Residential Remodels with
Structural Improvements
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential Remodels with Structural Improvements
Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
1,500
2,000
2,500
3,000
4,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
R3 - Single-Family, Duplex,
Additional Dwelling Units
Residential Remodels with
Structural Improvements
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$384 $693 $1,077 $0
$432 $886 $1,318 $0
$480 $1,040 $1,520 $0
$528 $1,155 $1,683 $0
$624 $19 $1,271 $54 $1,895 $73
$720 $29 $1,540 $15 $2,260 $44
$864 $58 $1,617 $46 $2,481 $104
$1,152 $58 $1,848 $92 $3,000 $150
$1,440 $58 $2,310 $92 $3,750 $150
$1,728 $29 $2,772 $46 $4,500 $75
$2,016 $22 $3,234 $35 $5,250 $56
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage/Room Conversions and Residential Remodels without Structural Improvements Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 1.00 2.00 $192 $154 $192 $308 varies varies varies varies 200 1.50 3.50 $192 $154 $288 $539 varies varies varies varies 300 1.75 5.00 $192 $154 $336 $770 varies varies varies varies 400 2.00 6.00 $192 $154 $384 $924 varies varies varies varies 500 2.25 7.00 $192 $154 $432 $1,078 varies varies varies varies 1,000 2.50 8.00 $192 $154 $480 $1,232 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
3 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
4 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
* Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R3 - Single-Family, Duplex,
Additional Dwelling Units
Garage/Room Conversions
and Residential Remodels
without Structural
Improvements
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage/Room Conversions and Residential Remodels without Structural Improvements Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
R3 - Single-Family, Duplex,
Additional Dwelling Units
Garage/Room Conversions
and Residential Remodels
without Structural
Improvements
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$192 $308 $500 $0
$288 $539 $827 $0
$336 $770 $1,106 $0
$384 $924 $1,308 $0
$432 $10 $1,078 $31 $1,510 $40
$480 $7 $1,232 $23 $1,712 $30
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 500 12.00 18.00 $192 $154 $2,304 $2,772 varies varies varies varies 1,000 14.00 20.00 $192 $154 $2,688 $3,080 varies varies varies varies 5,000 20.00 40.00 $192 $154 $3,840 $6,160 varies varies varies varies 10,000 24.00 56.00 $192 $154 $4,608 $8,624 varies varies varies varies 20,000 28.00 72.00 $192 $154 $5,376 $11,088 varies varies varies varies 2 500 6.00 13.50 $192 $154 $1,152 $2,079 varies varies varies varies 1,000 10.50 15.00 $192 $154 $2,016 $2,310 varies varies varies varies 5,000 15.00 30.00 $192 $154 $2,880 $4,620 varies varies varies varies 10,000 18.00 42.00 $192 $154 $3,456 $6,468 varies varies varies varies 20,000 21.00 54.00 $192 $154 $4,032 $8,316 varies varies varies varies 3 500 8.00 20.00 $192 $154 $1,536 $3,080 varies varies varies varies 1,000 9.00 22.00 $192 $154 $1,728 $3,388 varies varies varies varies 5,000 10.00 24.00 $192 $154 $1,920 $3,696 varies varies varies varies 10,000 12.00 28.00 $192 $154 $2,304 $4,312 varies varies varies varies 20,000 14.00 36.00 $192 $154 $2,688 $5,544 varies varies varies varies 4 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Storage
New Construction / SF
Addition
A, B, E, F, H, I, M, R1, R2,
R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Tenant Improvement
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Shell
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate
Occupancy Classification
Threshold
SqFt
1 500
1,000
5,000
10,000
20,000
2 500
1,000
5,000
10,000
20,000
3 500
1,000
5,000
10,000
20,000
4 Electrical Plan Review and
Permittting, if Required
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Storage
New Construction / SF
Addition
A, B, E, F, H, I, M, R1, R2,
R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Tenant Improvement
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Shell
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$2,304 $34.13 $2,772 $75.29 $5,076 $109.42
$2,688 $21.33 $3,080 $61.60 $5,768 $82.93
$3,840 $15.36 $6,160 $49.28 $10,000 $64.64
$4,608 $7.68 $8,624 $24.64 $13,232 $32.32
$5,376 $5.76 $11,088 $18.48 $16,464 $24.24
$1,152 $172.80 $2,079 $46.20 $3,231 $219.00
$2,016 $21.60 $2,310 $57.75 $4,326 $79.35
$2,880 $11.52 $4,620 $36.96 $7,500 $48.48
$3,456 $5.76 $6,468 $18.48 $9,924 $24.24
$4,032 $4.32 $8,316 $13.86 $12,348 $18.18
$1,536 $8.53 $3,080 $13.69 $4,616 $22.22
$1,728 $6.40 $3,388 $10.27 $5,116 $16.67
$1,920 $7.68 $3,696 $12.32 $5,616 $20.00
$2,304 $3.84 $4,312 $12.32 $6,616 $16.16
$2,688 $2.88 $5,544 $9.24 $8,232 $12.12
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
5 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
6 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
7 Production Phase Units /
Identical Buildings /
Duplicate Stock
varies varies varies varies
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees. 11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate
Occupancy Classification
Threshold
SqFt
5 Mechanical Plan Review
and Permittting, if Required
6 Plumbing Plan Review and
Permittting, if Required
7 Production Phase Units /
Identical Buildings /
Duplicate Stock
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
New Construction - R1 and R2 Occupancies
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification # of Units
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 1 - 10 12.00 48.00 $192 $154 $2,304 $7,392 varies varies varies varies 11 - 25 36.00 116.00 $192 $154 $6,912 $17,864 varies varies varies varies 26 - 50 78.00 232.00 $192 $154 $14,976 $35,728 varies varies varies varies 51+ Units
(each addl'l
unit)
116.00 348.00 $192 $154 $22,272 $53,592 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
6 Tenant Improvement or
Shell
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R1, R2 Occupancy
Hotel/Motel/Apartment/
Other
New Construction / SF
Addition
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
New Construction - R1 and R2 Occupancies
Time Estimate
Occupancy Classification # of Units
1 1 - 10
11 - 25
26 - 50
51+ Units
(each addl'l
unit)
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
6 Tenant Improvement or
Shell
R1, R2 Occupancy
Hotel/Motel/Apartment/
Other
New Construction / SF
Addition
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l Unit
Permit
Inspection
Base Fee
Fee Per
Add'l Unit
Total
Base Fee
Fee Per
Add'l Unit Note
$2,304 $512 $7,392 $1,164 $9,696 $1,676
$6,912 $576 $17,864 $1,276 $24,776 $1,852
$14,976 $304 $35,728 $744 $50,704 $1,048
$22,272 $228 $53,592 $558 $75,864 $786
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
See Commerical / NonResidential Fees See Commerical / NonResidential Fees See Commerical / NonResidential Fees City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage / Carport / Patio / Deck / Utility / Balcony
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 1.00 1.50 $192 $154 $192 $231 varies varies varies varies 200 1.25 1.75 $192 $154 $240 $270 varies varies varies varies 300 1.50 2.00 $192 $154 $288 $308 varies varies varies varies 400 1.75 2.50 $192 $154 $336 $385 varies varies varies varies 500 2.00 3.00 $192 $154 $384 $462 varies varies varies varies 1,000 2.25 5.50 $192 $154 $432 $847 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
* Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

Garage / Carport / Patio /
Deck / Utility / Balcony
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage / Carport / Patio / Deck / Utility / Balcony
Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
Garage / Carport / Patio /
Deck / Utility / Balcony
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$192 $231 $423 $0
$240 $270 $510 $0
$288 $308 $596 $0
$336 $385 $721 $0
$384 $10 $462 $77 $846 $87
$432 $2 $847 $19 $1,279 $22
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
Est. City
Staff Labor
Hrs
FullyBurdened
Hourly
Est. Cost
of Service Proposed Fee
Proposed
Cost
Recovery Notes
1 Permit Processing Fee 0.50 x $154 = $77 $77 100%
2 General Plan Maintenance Fee (percent of permit fee) 26% 5% 20% [a] 3 Technology Fee / Records Retention Fee (percent of permit fee) 9% 5% 56% 4 Strong Motion Instrumentation (SMI) Fee Calculation
a) Residential $0.50 or valuation
x .00013
b) Commercial $0.50 or valuation
x .00028
5 Building Standards (SB 1473) Fee Calculation (Valuation) a) $1 - $25,000 $1
b) $25,001 - $50,000 $2
c) $50,001 - $75,000 $3
d) $75,001 - $100,000 $4
e) Each Add'l $25,000 or fraction thereof Add $1
6 Temporary Certificate of Occupancy 1.50 x $154 = $231 $231 100% Copies, Re-Print, Change Of Contractor
7 Printing Scanned / Archived Drawings 0.07 x $154 = $10 $10 100% 8 Job Card / Permit Re-Print 0.25 x $154 = $38 $38 100% Violation Fees
9 Work Done Without Permits 2x Permit Fee
Other Fees
10 Partial Inspection / Extra Inspection Fee (per inspection) 0.50 x $154 = $77 $77 100% 11 Re-inspection Fee (3rd Time or More) (each) 0.50 x $154 = $77 $77 100% [b] 12 Missed inspection Fee 0.50 x $154 = $77 $77 100%
13 Fees for Services Not Listed in this Fee Schedule (per 1/2 hour) 0.50 x $154 = $77 $77 100% [a] Fee only applies to permits for new construction and additions, including signs and swimming pools. [b] Reinspection fee applies after second re-inspection.

City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
Est. City Staff
Labor Hrs
FullyBurdened
Hourly
Est. Cost
of Service Proposed Fee
Proposed
Cost
Recovery Notes
1 Public Works Building Plan Review
a) No Public Works Permit Issued 0.50 x $163 $82 $82 100% b) Minor Projects (1-4 lots or units) 2.00 x $163 $326 $326 100% c) Major Projects (4 or more lots or units) 3.00 x $163 $489 $489 100% d) Deposit Cases varies x $163 = varies $1,000 Deposit 100% 2 Planning Building Plan Review
a) Alterations 0.25 x $192 $48 $48 100%
b) Additions - Residential 0.75 x $192 $144 $144 100%
c) New Residential Unit / Detached ADU 1.50 x $192 $288 $288 100% i) Each Additional Unit 0.50 x $192 $96 $96 100%
d) Commercial / Industrial varies x $192 = varies $1,000 Deposit 100% 3 Plan Check Fees
a) Alternate Materials and Materials Review (per hour) 1.00 x $192 = $192 $192 100% b) Excess Plan Review Fee (4th and subsequent) (per hour) 1.00 x $192 = $192 $192 100% [a] Includes up to three plan checks. The City will bill hourly for additional plan review required.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 15

APPENDIX B

ILLUSTRATION OF PROPOSED FEE SCHEDULE
City of Grover Beach

Activity Description
City of Grover Beach

City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project Comparison of Fees in Section A of Fee Schedule
1 HVAC - (per unit)
a) Change-Out $92 $158 $66 72%
b) New varies $252 n/a
2 Electric Car Charging $159 $218 $59 37%
3 Graywater System
a) No Plan Check Required $92 $158 $66 72%
b) Plan Check Required $204 $252 $48 24%
4 Insulation/Energy Upgrade $92 $158 $66 72%
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less $204 $252 $48 24%
c) Above 15kW – per kW $15 n/a
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less $500 deposit $1,000 n/a
b) 50kW – 250kW – Base $500 deposit $1,000 n/a
c) 50kW – 250kW – per kW above 50kW $7 n/a
d) Above 250kW – base $500 deposit $2,400 n/a
e) Above 250kW – per kW $5 n/a
7 Service Panel Upgrade $118 $154 $36 30%
8 Water Heater Change-Out (same location) $90 $131 $41 46% 9 Water Heater Change-Out (new location) $118 $158 $40 34% 10 Line Repair - Sewer / Water / Gas $118 $154 $36 31%
11 Line Repair / Re-pipe varies $192 n/a
Activity Description
Attachment 3
City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Activity Description Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project 12 Re-Roof
a) Up to 2,000 SF (roof area) $189 $231 $42 22%
b) Each Add'l 1,000 SF or fraction thereof $77 n/a
13 Demolition $157 $154 ($3) -2%
14 Temporary Power Pole $118 $115 ($3) -3%
15 Swimming Pool/Spa
a) Swimming Pool / Spa $942 n/a
b) Detached Spa / Water Feature $327 n/a
c) Gunite Alteration $385 n/a
d) Equipment Change-out Only (e.g., pump) $231 n/a
16 Patio
a) Patio without M,E,P
i) Up to 200 SF varies $289 n/a
ii) Greater than 200 SF varies $375 n/a
b) Patio with M,E,P
i) Up to 200 SF varies $500 n/a
ii) Greater than 200 SF varies $577 n/a
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5 $337 n/a
b) Each additional $63 n/a
City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Activity Description Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project 18 Signs
a) Wall Sign $102 $164 $62 61%
b) Wall Sign Illuminated $122 $192 $70 57%
c) Monument Sign varies $250 n/a
d) Monument Sign Illuminated varies $308 n/a
19 Storage Racks
a) Storage Racks - First 100 LF $423 n/a
b) Storage Racks - Each Additional 100 LF $16 n/a
City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Activity Description Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project Comparison to Previously Issued Sample Permits
1 Bathroom Remodel - Minor $966 $785 ($180) -19% $10,000 Construction Valuation 2 Kitchen and Bathroom Remodel $2,097 $1,948 ($150) -7% $46,000 Construction Valuation 3 New Multi-Family Residential $31,988 $59,244 $27,256 85% $2,190,000 Construction Valuation, 19 Units 4 New Single-Family Residential $7,451 $7,987 $537 7% $332,588 Construction Valuation, 2,000 sq ft SFR with 500 sq ft garage and 200 sq ft patio
4 400 sq ft Residential Alteration $1,825 $3,005 $1,180 65% 5 500 sq ft Residential Addition $2,663 $3,251 $589 22% $74,165 Construction Valuation * Current fees vary based on project valuation.

Grover Beach City CouncilFebruary 28, 2022

Grover Beach City Council
February 28, 2022