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HomeMy WebLinkAboutStaff Report 7347 City of Palo Alto (ID # 7347) Finance Committee Staff Report Report Type: Action Items Meeting Date: 11/15/2016 City of Palo Alto Page 1 Summary Title: Development Services Cost of Services Study Title: Development Services Cost of Services Study Including Fiscal Year 2017 Fee Proposals From: City Manager Lead Department: Development Services Department Recommendation Staff recommends that the Finance Committee recommend that the City Council adopt an ordinance amending to Development Services Municipal Fees as described in Attachment A, based on the completion of a Cost of Services Study (Attachment B) and adjusted by the annual inflator applied to Municipal Fees from Fiscal Year 2016 to Fiscal Year 2017. Executive Summary The Development Services Department (DSD) undertook a Cost of Services Study in 2015 to evaluate development related service fees incurred by applicants seeking a construction related permit. These fees had not been reevaluated for many years, and the resulting recommendations -- if approved -- would increase fee revenues and lower General Fund subsidies consistent with the Cost Recovery Policy adopted by the City Council in May 2015. The proposed changes would amend the fee schedule to reflect current International Code Council (ICC) unit fee schedule structures and the City’s Green Building and Energy Ordinances by eliminating some fees, proposing new fees, consolidating or expanding others, and adjusting certain fees to a single flat-fee per permit. The City Council has the discretion to determine the level of cost recovery for each of these fees. However, under State law, fees cannot be set above the cost of service. The consultant report is discussed in detail below, and the recommended fee changes (Attachment A) and the full text of the consultant report (Attachment B) are attached. This study was completed based on Fy2016 data, therefore an annual inflation value of 5.5%, as recommended by the Office of Management and Budget for all Citywide fees in Fiscal Year 2017, is not included in the fees detailed in Attachment A but staff does recommend that this increase be applied to all Development Services related fees in order to capture their cost in FY 2017 and included as part of the final ordinance action for City Council consideration. City of Palo Alto Page 2 Background In July 2010, the City Manager launched the comprehensive “Development Center Blueprint” (Blueprint) project to restructure and adopt more holistic approaches to integrated development review, permitting services, and staff coordination in order to improve organizational efficiencies and minimize unnecessary costs and delays to customers. Since the inception of the Blueprint, DSD has implemented new technologies, acquired additional space, upgraded the existing space, and consolidated into a central department, that consists of Building (formerly within the Planning department), Planning, Public Works, and Fire Prevention divisions. Development Services is now a “one-stop” shop, located in a leased space across from City Hall. Design development projects now have a single point of contact that facilitates the customers’ experience throughout the permitting and construction process. As part of the Fiscal Year 2014 Adopted Budget, and in efforts to better align the budget with the current operational structure, the City Council created the Development Services Department. Development Services embodies all development-related activities, including staff allocations, resources, and associated service fees across multiple departments. The operating budget currently relies on development review fees, permitting fees, and a subsidy from the General Fund. Though the fees have been adjusted annually for inflation factors, it has been at least five years since the fee schedule and structure were last subject to a full evaluation. The Development Services Department is made up of key representatives from four different departments including the Building, Planning, Public Works, and Fire divisions. These representatives are physically stationed at the Development Center (285 Hamilton Avenue) or elsewhere in the City, and provide development-related services to applicants seeking a construction-related permit. In the current budget structure, representatives are allocated proportionally to Development Services based on their time involved in the review process. Approximately 80 employees are fully or fractionally budgeted to the department, resulting in a total of 40 FTE. For example, Development Services has watershed protection representatives in the Public Works department and transportation planners in the Planning department that review building permits. In addition to personnel costs, Development Services has specific overhead and indirect charges such as the rent, administrative functions, and city support services like Administrative Services, City Attorney, and Human Resources that must also be accounted for. As a department that operates based on fee revenues, the incoming fees must offset all expenses which include City of Palo Alto Page 3 personnel, overhead, and indirect charges. On May 18, 2015 the City Council adopted the User Fee Recovery Level Policy (CMR 5735) that suggests levels of cost recovery (high, medium, and low) based upon policy considerations. As referenced in the table below, activities in which participants receive most or all of the benefit from the service provided (i.e. issuance of building permits), or which are regulatory in nature, fall within the “high” cost recovery level group. The City retained the services of Capital Accounting Partners (CAP) to complete a cost of services study to identify the total cost of providing services for which the City charges fees, Phase I of which is included as Attachment D. CAP has prepared hundreds of cost allocation plans for cities, counties and special districts throughout California, Texas, Washington and more. Some of their clients include San Diego, Glendale, Los Gatos, Santa Barbara, Burbank and Sacramento. Dan Edds is a project manager with CAP and has more than 15 years of experience consulting within the public sector. His operational improvement work has involved problem solving and process improvement opportunities for core business processes. CAP uses an activity-based costing model to calculate the cost of a specific service (detailed further in Attachment D), which identifies activities in an organization and assigns the cost of each activity with resources to all services according to the consumption by each. The model assigns direct and indirect costs to each fee, and therefore, calculates the cost of each fee at full cost recovery. As discussed below, Phase I of the study includes recommendations for the Department’s flat fees only. Discussion Fees and Fee Structure: Development Services fees are structured in two ways: flat or project valuation-based. Based on estimated FY 2016 revenues, approximately 75%, or $8.6 million, of departmental revenue is derived from project valuation-based fees. Major project valuation-based fees include the Building Permit and Plan Check fees. Industry practice correlates the valuation of a job to its complexity, in the aggregate, and as such fees are calculated based on a percentage of a projects valuation. Currently, the department uses the construction value for labor and materials of the permitted work as the basis for determining the total Building Permit fee. An additional Plan Check fee is assessed on top of the Building Permit, which is based on a percentage of the total Permit fee. The Plan Check fee is intended to recover costs associated with the Building, Fire & Life Safety, Zoning, and Public Works review of applicant plan submittals. In contrast, flat rate fees are fees costed based on time and materials and activity levels. These fees comprise the remaining Development Services revenue. The following represents the projected breakdown of FY 2016 revenues evaluated as part of the fee study, at current fee levels: City of Palo Alto Page 4 FY 2016 Development Services Projected Revenue Fee Study Project Steps and Process: CAP was tasked to prepare a detailed cost analysis of its Development Services user fees with the objective of ensuring that the Development Services Department is fully accounting for all costs and recovering adequate revenues to cover expenses. Based on the current organizational structure, CAP developed a costing model to analyze the total cost of fee generating services and recommend adjustments necessary to reach full recovery. As the study progressed, it was determined that additional data points were necessary to recommend adjustments for valuation-based fee activities. Therefore, the report includes only a high-level assessment of aggregated building permit and plan check activities. Staff is currently in the process of implementing new data collection fields in the permit system and is expanding the existing study to include a survey of other comparable City valuation tables and alternative permit fee structures for what are currently valuation-based fees. The study conducted by CAP for all Non-Valuation-based fees, or “flat rate” fees as referenced earlier in this report, utilized an activity-based costing model to calculate the full cost of providing specific services. This methodology identifies activities in an organization and assigns the cost of each activity with resources to all services according to the consumption by each. The model assigns direct and indirect costs to each fee, where all proposed fees have been calculated at full recovery. A summary of how CAP builds cost structures follows: 1. Direct Costs Through meetings with staff, CAP identified all direct staff time spent on fee-related activities or services, where direct time is indicative of workers who are directly involved with activities of a specific fee or service. Average salaries and the City Standard productive rate of 1,600 hours/year were used for these calculations. Additionally, CAP identified other operational costs that are directly attributed to certain services, such as the Department’s use of on-call consultants for inspections in the Building and Fire divisions. City of Palo Alto Page 5 2. Indirect Costs (citywide administration) These costs include processes that support, but do not directly apply to any specific activity or fee, such as the Citywide and Departmental Overhead. The Citywide overhead costs are allocated to departments based on the City’s Cost Allocation Plan. These represent expenses of supporting departments including the offices of the City Manager, City Attorney, City Auditor, City Clerk, Administrative Services, Human Resources, Information Technology, and Facilities Maintenance. 3. Overhead (departmental administration) Department Overhead is represented in two aspects: 1) Development Services as a whole; and 2) Divisional Overhead. Development Services overhead includes the salaries of the Director, the Director’s Administrative Assistant, and the Senior Management Analyst, as well as rent, and other supplies commonly used by all divisions of the department (Building, Planning, Public Works, and Fire Prevention). These are not assigned to any particular service, but are allocated to all fees since these professionals support all the activities of the department as a whole. The Divisional Overhead represents costs associated with managers, supervisors, and support staff and common purpose operational costs of the Public Works, Planning, and Fire Departments. For example, direct staff is allocated as a percentage of an FTE to Development Services based upon activity levels for Public Works, while divisional overhead which reflects the Public Works administrative costs such as budget, contract, and executive leadership costs are calculated as a rate that is applied to the salaries allocated to Development services and executed through a year-end adjustment. The rate assumes that the same level of administrative support provided to the Public Works Department is provided to the Public Works division within Development Services. These are not assigned to any particular service, but are allocated to all fees in the respective division. 4. Reserve A reserve fund provides a mechanism to finance future unanticipated events and other identified or planned needs of the department. For purposes of the calculation, the reserve amount is allocated to all fees, similar to Overhead. As part of the study, the consultant recommended that the City set a specific reserve policy, however included an optional common practice to build 6-12 months of operating expenses over a three year period. The original consultant study incorporates a $2.3 million reserve within the cost structure of the department, where results show the full cost of fees with and without a reserve. However, due to the recommended significant changes to move closer towards cost recovery, and the delay necessary to adjust valuation-based fees, staff does not recommend the establishment of a reserve at this time. As such, the proposed fees presented in Attachment A do not include any assumption for reserve costs. Projections: The study indicates a total projected General Fund subsidy in FY 2016 of $1,787,985, excluding City of Palo Alto Page 6 impacts of one-time activities, such as deferred revenue for large projects and expense savings. Once adjusted for one-time revenues, the net general fund subsidy in FY 2016 is approximately $294,000. Drivers of Cost Recovery Variances: Staff believes the following to be key drivers for cost recovery variances within the Public Works, Planning, and Fire Prevention divisions: 1. Length of time since last comprehensive Fee Study. While fees have been adjusted annually for inflation factors, it has been at least five years since the fee schedule and structure were last subject to a full evaluation. 2. Fee levels in Planning, Public Works, and Fire have historically been set below full cost recovery. 3. As part of the creation of Development Services, the cost structure for Planning, Public Works, and Fire divisions has significantly changed. For example, divisions are now responsible for overhead allocations such as rent, Development Services managerial staff, and other commonly used operating expenses (e.g. scanning services, office supplies, etc.). Findings & Recommendations: Modifications to flat fees, representing approximately 25% or $2.7 million of departmental revenues, are representative of current resources, activities, and activity levels, as well as changes to California Building and Fire Codes, and/or state mandates. Recommended modifications to fees included re-naming fees, altering tiered fees and triggers, removing, and creating new fees. The proposed fees, including a description of changes where applicable, are included as Attachment A (excluding the recommended 5.5% increase to align with FY 2017 costs). Fire Prevention The largest impact of the Fee Study is anticipated in the Fire Prevention Division. Fire Prevention fees have historically been set below cost recovery, or were provided at no cost, and a complete fee study or evaluation has not been completed in at least five years. Further, as part of creating Development Services, all Fire Prevention staff and associated costs were moved to Development Services offices resulting in the need for additional space. Moving Fire Prevention entirely out of the Fire Department and into Development Services means that this division is now subject to a different cost structure that includes overhead allocations such as rent, Development Services managerial staff, and other commonly used operating expenses (e.g. scanning services, office supplies, etc.). All fees in Fire Prevention were calculated according to the consultant’s activity-based model, where fees have been proposed at full cost based on current activities, activity levels, and City of Palo Alto Page 7 proposed resources. These proposed fees are included in the fee study and are proposed to be increased as recommended by CAP. Public Works Public Works, like Planning, has a host of fees. However, many of their fees can be applied to both development and non-development-related work. The differentiating factor is that development-related work is entirely the result of private development. For example, a commercial developer has to apply for a street work permit to work in the right-of-way. That is entirely due to the impacts associated with their project. That work is driven by private interests and it has been the direction from Council to ensure that those fees are set at full cost recovery. Those fees are collected by and reside in Development Services as do the subsequent direct, indirect and overhead Public Works costs associated with providing those services. For purposes of this study, private development work is separate and distinct from non- development related work. Therefore, those services and fees are provided by Public Works as a whole, and the fees are set by Public Works as a whole through the Public Works departmental municipal fee schedule. Public Works, with direction from the City Council, decides how close to full cost recovery they should set those fees. The CAP study did include analysis of the Public Works Department, however, subsequent to the kick-off of the consultant study, updated analysis on staff allocations, time estimates, and fee volumes were obtained and staff was unable to incorporate this more current data into the consultant’s final results. Therefore, Public Works municipal fee proposals included as part of the development of the Adopted Fiscal Year 2017 Municipal Fee Schedule are reflective of a full cost recovery model, however, were not reflective of the specific methodologies and assumptions used in the CAP study. The FY 2017 Adopted Fees utilized the Questica Calculator launched by the Office of Management and Budget as opposed to those fees recommended in the CAP study. The Adopted amendments to Public Works’ fees in the Development Services Department represent significant recommended increases from the 2016 fees, and are expected to bring the Public Works fees much closer to cost recovery. As part of the FY 2018 budget process, the Office of Management and Budget, Development Services and Public Works will review these fees and ensure they are at full cost recovery and/or bring forward recommended adjustments to the fees and appropriate based on FY 2017 actual activity levels and estimated FY 2018 costs. Building Non-valuation fees were updated to reflect current ICC unit fee schedule structures, per California State code. Similar to Fire Prevention, a complete fee study or evaluation has not been completed in the last five years, and all fees are proposed at full cost according to the consultant’s activity based model and current activities, activity levels, and resources. The most significant changes recommended within the Building division are a result of restructuring Mechanical, Plumbing, and Electric Permit fees. These fees are charged in conjunction with the Building Permit and generally charge a Base Fee (representing administrative costs to process) and new or remodeled supplemental fee (based on square City of Palo Alto Page 8 footage and representative of inspection costs). As a result of the study, current processing and inspection times have both decreased. At full cost, the base fee is proposed to decrease to $82, from $92, and the square footage fee to decrease to $0.02, from $0.11 per square foot. Mechanical, Plumbing, and Electric fees can also be charged as stand-alone permits. These fees are structured as a Base fee (representing administrative costs to process) plus a supplemental permit fee (representing inspection costs). The base fee is proposed to decrease to $82 from $92 as stated above, where the unit of measure for the supplemental permit is proposed to change from “each” to “per permit”. The current unit of measure is reflective of time estimates for each incremental measure of an activity, such as the inspection of each individual light fixture or switch at $0.50/each. Determining the incremental unit of time is incredibly difficult, hard to justify, and is no longer a method promoted by ICC. As such, Development Services has revised these fees on a per permit basis, using time estimates of an average project (5,000 sq. ft.). In the case of the light fixture, the permit would be issued at a total cost of $82 for the Base Fee, representing administrative processing costs, plus $68 for the inspection of any number of light fixtures. Green Building Development Services continues to expand and develop the Green Building program in efforts to follow the City Council’s lead and maintain a leadership role in environmental sustainability. Fees were updated and new fees implemented to comply with State mandates, such as a Landscape review and permit management, as well as the current Green Building and Energy Ordinance. The cost structure of these fees includes consulting services associated with the integration and management of sustainable building practices and policies, Landscape review and permit management, as well as staff training, quality control, reporting, and informational outreach to the community. Use & Occupancy Use & Occupancy fees were included in the study; however, staff does not propose to adjust these fees at this time. These fees will be studied separately with the integration of the Business Registry fee where staff anticipates that drivers to calculate cost, such as activities and resources, will change as the program is developed. Next Steps: Development Services strives to operate as a revenue-supported department within the General Fund with the ultimate goal of being an enterprise fund. The ultimate goal of Development Services is to reach full cost recovery in all divisions and the adoption of the Fees outlined in Attachment A represents the next step towards this goal of full cost recovery. The department will continue to track revenues and expenditures at a divisional level through Fiscal Year 2017 in order to analyze their cost-recovery performance and will work collaboratively with the Office of Management and Budget, and the City Attorney’s Office to identify and define a reserve policy that is appropriate and specific to the Development City of Palo Alto Page 9 Services. Staff anticipates returning to City Council with iterative recommendations, including adjustments to valuation-based fees and the inclusion of reserve costs, through subsequent budget processes. Resource Impact The actions recommended in this report would increase the estimated revenue generated by the Development Service Department flat fee activities. Given the changing economic environment and the unknown potential impacts of the increases on activity levels (estimated to be minor), no adjustment to the budget is assumed. Revenue collections will be monitored and factored into the annual development of the budget as data is availabe and adjustments are found to be necessary. Environmental Review Adoption of an ordinance amending Development Services Municipal Fees is not a project for the purposes of the California Environmental Quality Act (CEQA) and therefore no environmental review is necessary. Attachments: Attachment A_Municipal Fee Proposals (PDF) Attachment B_CAP Cost of Services Study (PDF) FY 2016 Fee Proposed Fee Total Surcharge/(Subsidy)Notes Administration Business Registry Business Registry Fee $50.00 per business $50.00 per business No Change Business Registry fees studied separately Building Building Permit Fees A. $1.00 - $1,000.00 $69.20 base fee B. $1,000.01 - $2,000.00 $69.20 for the first $1,000.00 plus $5.47 for each additional $100.00 or fraction thereof, to and including $2,000.00 C. $2,000.01 - $25,000.00 $123.91 for the first $2,000.00 plus $25.03 for each additional $1,000.00 or fraction thereof, to and including $25,000.00 D. $25,000.01 - $50,000.00 $699.59 for the first $25,000.00 plus $18.58 for each additional $1,000.00 or fraction thereof, to and including $50,000.00 E. $50,000.01 - $100,000.00 $1,163.98 for the first $50,000.00 plus $12.50 for each additional $1,000.00 or fraction thereof, to and including $100,000.00 F. $100,000.01 - $500,000.00 $1,789.20 for the first $100,000.00 plus $10.03 for each additional $1,000.00 or fraction thereof, to and including $500,000.00 G. $500,000.01 - $1,000,000.00 $5,800.59 for the first $500,000.00 plus $8.52 for each additional $1,000.00 or fraction thereof, to and including $1,000,000.00 H. $1,000,000.01 and Up $10,058.55 for the first $1,000,000.00 plus $6.72 for each additional $1,000.00 or fraction thereof If valuation exceeds $5,000,000.00, an alternative fee arrangement may be established by the Chief Building Official to achieve full cost recovery I. Building Demolition Permit $320.00 (does not include C&D fees)$386 ($66) J. Commercial Interior Non-Structural Demolition Permit $194.00 (does not include C&D fees)$175 $19 Construction & Demolition Commercial and Multi-Family Projects greater than or equal to $25,000.00 in Valuation1 $238.00 per permit $369 ($131) Single Family and Two Family Projects greater than $25,000.00 and less than $75,000.00 in Valuations1 $80.00 per permit $154 ($74) Single Family and Two Family Projects greater than $75,000.00 in Valuation1 $212.00 per permit $225 ($13) Electrical Permits Base Fee $92.00 per permit $82 $10 New or Remodeled Square Footage $0.11 per square foot $0.02 $0.09 Air Conditioners $29.00 per unit $81 ($52) Air Cooled or Oil Cooled Lighting and/or Power Transformer Each KVA shall be considered as one horsepower and charged for as per motor schedule Delete Not actively charged Conditional Utility Agreement $252.00 each $237 $15 Busway, Power Duct, or Floor Duct Per Foot $0.50 each $68 Each Additional Meter $5.00 each $68 Fixtures, Switches, and Outlets $1.00 each $68 Lighting, Power and/or Control Panel Board, Switchboard Cabinet or Panel $5.00 each $68 Motor $23.00 each $68 Motor Generator $3.00 per KVA $68 Range, Electric Clothes Dryer, or Water Heater $5.00 each $68 Special Circuit (Not Listed Herein)$5.00 each $68 Service Conductor/Switch - Greater than 800 ampre $40.00 each $243 ($203) Service Conductor/Switch - Less than 200 ampre $18.00 each $122 ($104) Service Conductor/Switch - Less than 800 ampre $29.00 each $162 ($133) Temporary Power Pole $56.00 each $68 ($12) Temporary Wiring for Construction $56.00 each $68 ($12) Electrical Permits - Electrical Vehicle Charging Stations Commercial (Level 1 and 2)$370.00 $382 ($12) plus $92.50 for each additional station $74 $18 Commercial (Level 3 and 4)$560.00 $464 $96 plus $140.00 for each additional station $91 $49 Residential (All Types)$160.00 per station Delete Residential (Level 1 and 2)$168 Add Residential (Level 3)$236 Add DEVELOPMENT SERVICES No change to Valuation Table DSD to complete separate study Restructured to a single flat-fee per permit Converted to a multi-level fee. Attachment A FY 2016 Fee Proposed Fee Total Surcharge/(Subsidy)Notes Electrical Permits - Photovoltaic Systems Residential System $311.00 each Delete Residential Systems (less than 10kW)$81 Add Residential Systems (greater than 10kW)$304 Add Commercial System (less than 10 kW)$565.00 each $537 $28 Commercial System (10kW - 49kW)$850.00 each $805 $45 Commercial System (greater than 49kW)$900.00 each $873 $27 General & Miscellaneous Fees Address Change $224.00 single address; $356 ($132) $112.00 each additional address $171 ($59) All Other Publications $16.00 each No Change Construction/Maintenance Vehicles $76.00 per space per week No Change Electric Service and Safety Inspection $84.00 per hour $151 ($67) Extension of Building Permit or Building Permit Application $56.00 per application $86 ($30) Inspections and Investigations - Outside Normal Business Hours Note: Inspections and investigations outside normal business hours (2- hour minimum).$202.00 per 1.5x OT hour; $365 ($163) $226.00 per 2.0x OT hour $486 ($260) Inspections and Investigations - Unclassified Note: Inspections and investigations for which no fee is specifically indicated (2-hour minimum).$163.00 per hour $228 ($65) Reactivation of Expired Building Permit $168.00 per permit plus Plan Check Fees as applicable $189 ($21) Reactivation of Expired Building Permit - All Others 50% of original Building Permit Fee not to exceed the full cost to perform remaining inspections as determined by the Chief Building Official No Change Reactivation of Expired Building Permit - Final Inspection Only $375.00 or 50% of original Building Permit Fee, whichever is less $253 $122 Real Property Research Fee (1-hour minimum)$127.00 per hour $243 ($116) Records Retention $4.00 per plan sheet $6 ($2) Reinspection Fee - Multi-Family Residential and Non- Residential $308.00 each $281 $27 Reinspection Fee - Single Family Residential $84.00 each secondary inspection type;$220 ($136) $308.00 each primary inspection type $281 $27 Request for Release of Building Plans $45.00 each $76 ($31) Residential Inspection GuidelinesNote: Available free online $33.00 each No Change Green Building Residential - Single Family and Two Family New Construction1 Note: New construction plus additions greater than 1,250 sq. ft. and rebuilds.$677.00 per review Delete New Single Family $1,373 Add Residential - Existing Home Renovations, Rebuilds, and/or Additions Note: Any existing home renovation, rebuilds, and/or additions greater than 250 sq. ft. and less than 1,250 sq. ft. and/or greater than $100,000.00 valuation. $56.00 per review Delete Residential - Multi-Family Renovations or Alterations Note: Renovations or alterations greater than 50% of the existing unit sq. ft. and that include replacement or alteration of at least of the following: HVAC system, building envelope, hot water system, or lighting system. $1,190.00 per review Delete Alterations and additions for single and multifamily < 1,000 sq ft and increases conditioned space $1,097 Add Alterations and additions for single and multifamily > 1,000 sq ft $1,232 Add Residential - Multi-Family New Construction of Three or More Units (attached)$1,190.00 (1-10 units); $1,388.00 (11-24 units); $1,687.00 (25 units or more)Delete Multi Family New Construction of 3 or More (attached) Units $1,508 Add Multi Family New Construction of < 4 $1,238 Add Non-Residential - New Construction1 Note: New construction plus additions greater than 1,000 sq. ft. and rebuilds.$1,495.00 per review Delete New commercial 1000 - 25,000 SF $1,778 Add New commercial 25,001-50,000 SF $2,048 Add New commercial >50,000 SF $2,183 Add Non-Residential - Tenant Improvements, Renovations, or Alterations (greater than 5,000 sq. ft) Note: Any existing tenant improvement, renovation, rebuilds, and/or additions greater than 5,000 sq. ft. that include replacement or alteration of at least two of the following: HVAC system, building envelope, hot water system, or lighting system. $976.00 per review Delete Tenant improvements, renovations, or alterations > 5,000 sq ft Note: includes replacement or alteration of at least two of the following: HVAC system, building envelope, hot water system, or lighting system and project value greater than $200,000.$1,508 Add Tenant improvements, renovations or alterations > $200,000 in valuation (and not triggered by a Calgreen Tier) $1,238 Add Non-Residential - Tenant Improvements, Renovations, or Alterations (greater than $100,000 valuation) Note: Any existing tenant improvement, renovation, or alterations greater than $100,000.00 in valuation and/or landscape renovations 21,000 sq. ft. $357.00 per review Delete If the project is over $100,000 Energy Star is required after 12 months of occupancy $698 Add Landscape Plan Review - Single Family Residential $894 NEW Landscape Plan Review - Non-Residential & Multi-Family $1,453 NEW Landscape Inspection $218 NEW Converted to a multi-level fee. Green Building Fees have been updated in accordance with the current Green Building and Energy Ordinance. Necessary to provide services and compliance with the Emergency Building Standards for Outdoor Potable Water FY 2016 Fee Proposed Fee Total Surcharge/(Subsidy)Notes Mechanical Permits Base Fee $92.00 per permit $82 $10 New or Remodeled Square Footage $0.11 per square foot $0.02 $0.09 Flue $5.00 each Delete Furnace and Flue $28.00 each Delete Furance, Flue, and Associated Ducts $163 Add Boiler (Certified Design)$28.00 each Delete Boilers, Compressors, and Absoprtion Systems: For the installation or relocation of each boiler or compresor up to 30 hp, or each absopration system up to and including 1,000,000 Btu/h $109 Add For the installation or relocation of each boiler or compressor exceeding 30 hp, or each absorption system exceeding 1,000,000 Btu/h $163 Add Air Conditioner or Heat Pump $28.00 each Delete Duct Outlet $0.50 each Delete Air Handlers up to and including 10,000 cfm $54 Add Exhaust Hood - Kitchen or Industrial $28.00 each Delete Vent Fan (Bath, Dryer, Residential Kitchen)$11.00 each Delete Ventilation and Exhaust $54 Add Fire Damper $5.00 each Delete Miscellaneous For each appliance or piece of equipment regulated by this code, but not classed in other appliance categories, or for which no other fee is listed $54 Add Process Piping System $28.00 each $54 ($26) Process Piping System - Hazardous $56.00 each $130 ($74) Swimming Pool Heater $28.00 each $65 ($37) Evaporative Cooler $28.00 each Delete Not actively charged Plan Review Fees Additional Plan Review Note: Required by changes, additions, or revisions to plans including Alternative Means and Methods (2- hour minimum). For Elective (3rd party) and over-the-counter reviews (half hour minimum).$191.00 per hour $201 ($10) Certified Access Specialist (CASp) Review/Consultation Actual cost of CASp Consultant plus 15%$262 Building Plan Check 80% of Building Permit fee Elective Plan Check 35% of Building Plan Check fee Fire and Life Safety Plan Check 45% of Building Permit fee Public Works Plan Check 12% of Building Permit fee Zoning Plan Check 30% of Building Permit fee Plumbing Permits Base Fee $92.00 per permit $82 $10 New or Remodeled Square Footage $0.11 per square foot $0.02 $0.09 Plumbing Fixtures $3.00 each Delete Plumbing Fixtures: For each plumbing fixture on one trap or a set of fixtures on one trap (including water, drainage piping, and backflow protection therefore)$81 Add Commercial/Industrial Sewer $28.00 each Delete Residential Sewer $11.00 each Delete Plumbing Fixtures: For each building sewer $130 Add Rain Water System $5.00 each Delete Rain Water Systems $81 Add Water Heater $5.00 each Delete Water Heater, Vent, or Other $97 Add Gas Outlet $5.00 each Delete Radiant Heat Piping System $28.00 each Delete Gas Piping System $195 Add Industrial Waste System $28.00 each Delete Industrial Waste Pretreatment Interceptor (including trap and vent, except kitchen-type grease interceptors functioninga fixture traps)$195 Add Water Piping System or Repair $5.00 each Delete Water Piping Installation, alteration or repair of water piping, water treatment equipment or both.$97 Add Solar Hot Water System Note: Does not include Plan Check fee.$224.00 each $195 $29 Storm Drain System $28.00 each $195 ($167) Swimming Pool $28.00 each $65 ($37) Atmospheric-type Vaccume Breakers $97 New Backflow protective device other than atmospheric-type $195 New Medical Gas Piping Systems $195 New Plumbing Permits - Graywater Systems Clotheswasher System $56.00 each $81 ($25) Complex System $88.00 plus plan review at cost $195 ($107) Simple System $61.00 plus plan review at cost $81 ($20) Restructured to a single flat-fee per permit and re- named to be consistent with ICC permit fee tables Reflective of curent ICC tables and activities for which no other fee currently exists. Plumbing Fees have been updated to reflect current ICC table 114.1 unit fee schedule structure, per California state plumbing code. Mechanical Fees have been updated to reflect current ICC table 114.1 unit fee schedule structure, per California state mechanical code. Restructured to a single flat-fee per permit and re- named to be consistent with ICC permit fee tables No Change to Plan Check Permit Fees FY 2016 Fee Proposed Fee Total Surcharge/(Subsidy)Notes SB 1473 Fee A. $1.00 - $25,000.00 Permit Valuation $1.00 per valuation increment B. $25,001.00 - $50,000.00 Permit Valuation $2.00 per valuation increment C. $50,001.00 - $75,000.00 Permit Valuation $3.00 per valuation increment D. $75,001.00 - $100,000.00 Permit Valuation $4.00 per valuation increment E. Each $25,000.00 Increment or Fraction Thereof Above $100,000.00 Add $1.00 per valuation increment F. Minimum $1.00 minimum Strong Motion Instrument Program Commercial $28.00 per $100,000.00 permit valuation ($0.50 minimum) Residential $13.00 per $100,000.00 permit valuation ($0.50 minimum) Use & Occupancy Permits Certificate of Use and Occupancy $287.00 each Certificate of Use and Occupancy - Replacement $123.00 each SB 1186 Mandated FeeNote: Does not include fees collected by the Fire Department.$1.00 each No Change State mandated Temporary Occupancy Permit - Multi-Family Residential, Non-Residential, and Other Commercial $896.00 each $602 $294 Temporary Occupancy Permit - Single Family Residential and Commercial Tenant Improvement less than 10,000 sq. ft.$375.00 each $445 ($70) Fire Prevention Compliance Fees Emergency Response Fee - Hazmat (PAMC 17.24.050)Up to $1,212.00 for each incident up to 100% cost recovery No Change Installation or Closure Without Approved Plans and/or Permits $275.00 - $813.00 average fee range No Change Documents Emergency Planning Guide $253.00 each No Change Long-term Offsite Document Storage $0.25 per page No Change Microfilm Copy/Print $3.25 per blueprint page; $0.30 per specification/ calculation page No Change Photographs $30.00 first print; $0.55 each additional print No Change Hazardous Materials Classification Permits Compressed Gas $139.00 annually $350 ($211) Corrosives $139.00 annually $350 ($211) Cryogenic Fluid $139.00 annually $350 ($211) Flammable and Combustible Liquids $139.00 annually $350 ($211) Flammable Gas $139.00 annually $350 ($211) Flammable Solids $139.00 annually $350 ($211) Health Hazard (Liquids & Solids)$139.00 annually $350 ($211) Liquefied Petroleum Gases $139.00 annually $350 ($211) Organic Coatings $175.00 annually $350 ($211) Organic Peroxides $139.00 annually $350 ($211) Ovens - Industrial Baking or Drying $102.00 annually $350 ($211) Oxidizers (Liquids & Solids)$139.00 annually $350 ($211) Oxidizing Gas $139.00 annually $350 ($211) Pyrophoric Gas $139.00 annually $350 ($211) Pyrophoric Materials (Liquids & Solids)$139.00 annually $350 ($211) Pyrotechnical Special Effects Material $29.00 annually $350 ($211) Radioactive Materials $139.00 annually $350 ($211) Refrigeration Equipment $175.00 annually $350 ($211) Spraying/Dipping $175.00 annually $350 ($211) Toxic, Highly Toxic, Moderately Toxic, Health Hazard Gas Note: Includes pesticides, fumigants, and etiologic agents.$139.00 annually $350 ($211) Toxic, Highly Toxic, Moderately Toxic, Health Hazard Materials $139.00 annually $350 ($211) Unstable Reactive Gas $139.00 annually $350 ($211) Unstable Reactive Materials (Liquids & Solids)$139.00 annually $350 ($211) Water Reactive Materials (Liquids & Solids)$139.00 annually $350 ($211) Other Hazardous Materials - Unclassified Note: Inspections and investigations for which no fee is specifically indicated (1-hour maximum).$350 NEW General category to include other hazardous materials not listed above Tire Recapping/Tire Storage $575.00 annually $1,396 ($821) No Change These will be studied separately, with the integration of the Business Registry fee. No Change State mandated No Change State mandated FY 2016 Fee Proposed Fee Total Surcharge/(Subsidy)Notes Hazardous Materials Storage Permits Additional Approvals for Hazardous Materials Storage Permit Note: Additional approval for permit to construct, temporary closure, permanent closure, otherwise modify a hazardous materials storage facility. See CEQA for additional fees.$356.00 per occurrence, plus $758 ($402) $159.00 per hour for time above two hours $496 ($140) Business Plan (HMBP)$256.00 per location annually $496 ($240) Late Fee for Hazardous Materials Storage Permit 25% of total Hazerdous Material permit fee No Change Level I Facility (Includes 1 hr of Inspection Time) Note: Minimal storage as defined by having no hazardous materials over CFC permit amounts as specified in CFC section 105. $264.00 annually per location $350 ($86) Level II Facility (Includes 2 hrs of Inspection Time) Note: Quantities exceeding CFC permit threshold, but less than 50 gal., 500lbs or 200 cu. ft. Category also includes dry cleaning, fixed medical gas, auto or aircraft repair, and service stations. $404.00 annually per location plus other hazardous materials classification permit if applicable $700 ($296) Level III Facility (Includes 4 hours of Inspection Time) Note: Quantities exceed 50 gal. 500lbs, or 200 cu. ft. and not categorized as Level II.$729.00 annually per location plus other hazardous materials classification permit if applicable $1,399 ($670) Petroleum Aboveground Storage Tank (Includes 2hrs of Inspection Time)$593.00 annually $700 ($107) Provisional/6 Month (Includes 2 hrs of Inspection Time)$186.00 plus other hazardous materials classification permit fees if applicable $700 ($514) Inspection Fees Additional Inspection or Resinspection Fee $323.00 for up to 2 hours resinspection, plus $698 ($375) $159.00 per hour (during business hours)$349 ($190) After Hours Inspection Fee Note: Fee for before or after normal business hours; weekends and holidays included. Fee is to be paid in advance of inspection. $165.00 per hour; 4 hour minimum $523 ($358) Care Facility Note: Includes community, child day care and residential care for the elderly (CFC 111.4). Excludes residential elderly care facilities with six or fewer persons.$175.00 annually Delete Not actively charged Care Facility Inspection Including Fire Clearance $73.00 for facilities with 7-14 clients; $349 ($276) $140.00 for facilities with more than 14 clients $698 ($558) Christmas Tree Lot/Pumpkin Patch $175.00 each $349 ($174) $713.00 annually for up to 4 hours; plus $1,454 ($741) $159.00 for each additional hour $349 ($190) Outside Cooking Booths $198.00 each $523 ($325) Standby Fire Watch (Per Person)$159.00 per hour $349 ($190) Use and Occupancy Fire Inspection $148.00 per inspection No Change To be studied separately, with the integration of the Business Registry fee As-Built Plan Check and Additional Work $698 New Implemented to recover costs for activity in which no other permit currently exists Consultations Additional Hours Over Plan Review/Inspection $155.00 each $276 ($121)Changing to a Per Hour fee Alternate Means and Methods Application (2 hr Maximum)$356.00 per application $657 ($301) Appeals to Decisions $159.00 per hour $349 ($190) Consultation Fee $166.00 per hour $349 ($183) Hazardous Materials Data Entry Fee $77.00 per hour; 1 hour minimum Delete Not actively charged Hydrant Flow Fee $165.00 per occurrence $349 ($184) Prior Fee Range was 7- 25 clients & 25+ High Rise Building - Certificate of Compliance Note: Certificate of compliance inspection for each high rise building which is required by state law to be inspected and certified annually as meeting minimum compliance with applicable state of California fire and life safety standards for existing high rise buildings (CFC 111.4.3). FY 2016 Fee Proposed Fee Total Surcharge/(Subsidy)Notes Life Safety & Fire Protection Automatic Fire Sprinkler Installation/Modification: 1-19 Sprinkler Heads $356.00 $698 ($342) 19+ Sprinkler Heads (Includes Hydrostatic Test), plus additional per head fee $1,541 plus $1.80 per head $3 ($2) Express Fire Protection Plan Check Fee $163.00 per occurrence No Change Fire Alarm System Installation and Modification $356.00 plus $974 ($618) $2.00 a device or contact point $21 ($19) Fire and Life Safety Plan Check - Commercial Note: Includes one inspection and reinspection.The Fire and Life Safety Plan Review Fee is 45% of the Building Plan Check Fee and is collected by the Building Division at the time an application of a Building Permit is submitted No Change Fire Protection and Fire Access Plan Review for New Single Family Dwellings or Additions $100.00 each $800 ($700) Underground Fire Service Line Note: Includes 4 hrs of Inspection & 1 hr of Plan Check $356.00 per occurrence $1,672 ($1,316) Previously included one inspection and one reinspection Hydrant/Appliance Installation or Modification $261.00 Delete plus $59.00 per hydrant $174 ($115) Other Automatic Fire Extinguishing System Note: Includes hood and duct, FM 200, Inergen, and C02. If a system has a release panel, Fire Alarm fees apply as well.$356.00 plus $7.25 per nozzle $974 ($618) Site Disaster Planning $166.00 per hour $349 ($183) Standpipe System - Wet, Dry, or Combination $208.00 per riser $698 ($490) Temporary Certificate of Occupancy $356.00 per occurrence No Change To be studied separately, with the integration of the Business Registry fee. Verification of Fire Protection System Maintenance and Certification $89.00 annually $78 $11 Food truck permits $174 New Implemented to recover costs for activity in which no other permit currently exists Multifamily dwellings, hotels & motels 4-50 units $349 New 51-100 units $698 New Greater than 100 units $1,047 New Fire Prevention Inspection of Private Schools $698 New Specific Hazard Permits Aerosol Products $102.00 annually $436 ($334) Amusement Buildings $410.00 each $0 Delete Not actively charged Automobile Wrecking Yard or Junk Yard $179.00 annually $0 Delete Not actively charged Bowling Alley and Pin Refinishing Involving the use of Flammable Liquids $179.00 each $1,018 ($839) Candles and Open Flames in Assembly Areas $142.00 annually $349 ($207) Carnivals and Fairs $179.00 each $1,454 ($1,275) Cellulose Nitrate Storage/Nitrate Film $102.00 annually $102 $0 Combustible Fiber/Material Storage $179.00 annually Delete Not actively charged Confined Space $148.00 annually Delete Not actively charged Dust Producing Devices $126.00 annually Delete Not actively charged Excavate within 10 ft. of Flammable or Combustible Pipeline $88.00 each Delete Not actively charged Explosive or Blasting Agents $102.00 annually Delete Not actively charged Fireworks Display $565.00 each Delete Not actively charged High-piled Combustible Storage $102.00 annually Delete Not actively charged Hot Work (Welding) Operations $179.00 annually $349 ($170)Changing to a one-time fee Liquid or Gas-Fueled Powered Equipment/Generator $88.00 each $349 ($261) Liquid or Gas-Fueled Vehicles or Equipment in Assembly Buildings $103.00 each Delete Not actively charged Magnesium Working $103.00 annually Delete Not actively charged Malls - Covered $103.00 annually $698 ($595) Occupant Load Increase - Temporary Assembly $236.00 each $349 ($113) Open Burning $236.00 each $349 ($113) Open Flame/Flame Producing Devices $88.00 each $349 ($261) Operate a Tank Vehicle to Transport Flammable/Combustible Liquids $102.00 annually $494 ($392)Changing to a per-vehicle fee Parade Float $115.00 per hour $350 ($211) Place of Assembly $236.00 per occurrence $700 ($464) Place of Public Assembly - Temporary $236.00 each $349 ($113) Special Events Permit $349 New Implemented to recover costs for activity in which no other permit currently exists Tent or Air Supported Structure Note: Tent or air-supported structure having an area in excess of 200 sq. ft. or canopies in excess of 400 sq. ft. Fee includes a public assembly permit of $125.00 for all tents. $290.00 each $741 ($451) Restructuring to a two-tier fee Restructuring to one per- device fee to be charged in conjunction with the Underground Fire Service Line fee. New Fee and Fee Ranges implemented per State mandate to inspect these facilities Capital Accounting Partners Page 1 Report – Development Services Fee Study June 2016 CITY OF PALO ALTO Development Services Department CAPITAL ACCOUNTING PARTNERS, LLC Daniel B Edds, MBA, PMP 3570 Buena Vista Dr. Sacramento, Ca 95864 916.670.0001 danedds@mycapartner.com Attachment B Capital Accounting Partners Page 2 Contents Development Services Department ........................................................................................................................... 3 Introduction and Scope ................................................................................................................................... 3 Summary of Costing Methodologies ............................................................................................................... 3 Assuring Quality Results .................................................................................................................................. 6 Quantitative ............................................................................................................................................. 6 Qualitative ................................................................................................................................................ 6 Summary of Results ................................................................................................................................................ 8 General Observations of Cost Recovery and Pricing ....................................................................................... 8 Valuation Based Fees ............................................................................................................................... 8 Modifications to the Fee Schedule ........................................................................................................... 9 Results ............................................................................................................................................................. 9 Projecting Revenues ................................................................................................................................. 9 Challenges to Accurately Projecting Revenues .......................................................................................10 Reasons Revenues Can Fail to Meet Expenses .......................................................................................10 Summary of Results by Division or Work Unit ...............................................................................................11 Why Differences in Recovery Levels? .....................................................................................................11 Observations and Recommendations ......................................................................................................................13 General Observations and Recommendations .......................................................................................13 What is Not Covered in this Analysis ......................................................................................................13 Assessing Valuation Based Fees .............................................................................................................13 Adjusting the Fee Schedule ....................................................................................................................13 Building Reserves ...................................................................................................................................14 Development Services Fee Table ……………………………………………………………………………………………………………… 15 Capital Accounting Partners Page 3 Development Services Department The City’s Development Services Department is comprised of four divisions or functions: 1. Building; 2. Fire prevention; 3. Planning; and 4. Public works. Together, they form a valuable resource for home owners, businesses, contractors, developers, and citizens to build safe buildings that comply with the code requirements of the City. The long term objective of the Department is to become an enterprise fund. Financially, this means that fees for its various services must be sufficient to recover the cost of the Department. Introduction and Scope As part of its effort to manage its financial resources wisely, the City of Palo Alto engaged Capital Accounting Partners to prepare a detailed cost analysis of its Development Services user fees. The City's objectives for the study were to ensure that the Development Services Department is fully accounting for all of its costs and recovering adequate revenues to cover its expenses. The scope of this study included the following:  Review and update the fee schedule;  Calculate the total cost of fee generating services;  Calculate the cost of plan check and inspection services from valuation based fees;  Analyze cost recovery level;  Develop a cost model based on the current organizational structure;  Reviewing the results with staff; and  Provide recommendations or methodologies on how to adjust fees annually. Summary of Costing Methodologies Driver Based Costing Models Developing driver based costing models is a detailed and robust method of calculating the cost of a specific service. It is based on the principles of activity based costing so it seeks to understand cost at an operational level. This means it relies on understanding the time staff invests in core business processes to provide fee and non-fee services. This provides the ability to understand staff time and cost as each Capital Accounting Partners Page 4 staff position participates in providing fee services. Graphically, the following figure illustrates this methodology. Hypothetical Illustration of a Driver Based Costing Model Contributing Staff Process Steps Fee Project Managers Permit Intake Plan Reviewer Building Inspector Chief Building Official Plan Review Inspection 7500 SF SFR Zoning Code Review Project Steps and Process Step 1: Collect Data – This first step involves discussions with staff to identify those positions within the department that provide and support direct services. It also involves collecting departmental budget and expenditure data, identifying the salary and benefits for each position, and identifying non-personnel expenditures, as well as any departmental and City wide overhead. Specifically, the steps involve the following:  Identifying staff positions – This includes identifying both position titles and names.  Calculating the number of productive hours – For each position, vacation time, sick leave, paid holidays, professional development (training), routine staff meetings, and daily work breaks are deducted from the standard 2,080 annual hours. The result is a range of hours available for each position on an annual basis. This range is typically 1,500 to 1,600 hours. Factors that influence this range are length of service with the jurisdiction and local policies for holiday and personal leave time. However, based on previous work with the City where the calculated number of productive hours was almost exactly 1600 hours, and at the request of the Office of Management and Finance, we set all positions at 1600 productive hours.  Identifying and allocating non-personnel costs – Costs for materials and supplies are allocated to the salary and benefits for each position. Capital Accounting Partners Page 5  Assigning any other expenses that are budgeted in other areas – There are often expenses that should be included with the total cost of services. Examples of such costs might include amortized capital expenses for vehicles and technology.  Identifying core business processes or activities – This step also involves discussions with staff to understand, at an operational level, the work of the operating unit. Core business processes used to provide services are identified and then defined by the tasks that are involved. Processes are also organized by direct and indirect categories:  Direct processes and activities – Those processes that directly contribute to the processing of an application or permit are first identified. Examples of a direct activity are building inspection, application intake, and pre-application review.  Indirect processes and activities – Those processes that support, but do not directly apply to the processing of a specific application or permit. An example of an indirect activity is customer service or staff training to maintain certifications. Step 2: Building cost structures – This second step involves significant interaction with staff and the development of time estimates for both direct and indirect processes in each department. Specifically, this step is at the core of the analysis. There are four processes that comprise this step:  Gathering time estimates for direct processes – By interviewing staff in individual and group meetings, an estimate of time was assigned to each service by the process that is indicated. For the most part, the processes included three primary steps:  Permit intake;  Plan review; and  Construction inspections. In this analysis, staff time is estimated and assigned to each step. The sum of all the process steps is the total time that is required to provide that specific service.  Assigning indirect and annual process time – An annual time estimate is gathered from staff for those indirect or support processes in which they are involved. These may include activities such as program administration, customer service, and department administration. These costs are allocated to all services proportionately to all services provided by the department.  Calculating fully loaded hourly rates and the cost of service – Once the total time for each direct and indirect service is estimated, the cost of service is calculated by using the fully loaded hourly rates for each staff member or position that is involved with the service. The fully loaded hourly rate for each employee is based on the employee's salary and benefit costs plus a share of non- personnel and City overhead costs divided by the employee's available work hours (i.e. 2,080 hours minus all leave hours). Thus, the direct and indirect cost by activity also includes departmental and citywide overhead as well as non-labor costs. The source of City indirect costs and non-personnel costs is from the annual budget or cost allocation that has been established by the City.  Gathering activity or volume data – A critical element in the analysis is the number of times a given service is provided on an annual basis. This is critical data for three reasons:  It allows a calculated projection of current revenue based on current prices. This is compared with actual revenue to see if there is a close match as the data should match. Capital Accounting Partners Page 6  It allows for a calculated projection of revenue at full cost. This is compared to actual expenditures to see if there is a close match as the data should match.  It allows for a calculation of total hours consumed. Hours consumed must closely match actual hours available. If any of the three calculations do not approximate actual numbers, then time estimates and/or volume data need to be re-evaluated. These are critical quality checks for costing accuracy. Step 3: Calculating the full cost of services – This third step calculates the full cost of service for each direct service in the department. In the previous step, the cost of service was calculated for each direct and indirect service. In this step, the cost layers are brought together to establish the full cost of service for a specific direct service, program, or activity. As previously mentioned the cost of each direct service is calculated. To determine the full cost of service, the cost of indirect services is allocated to each direct service. The indirect services costs are allocated to each direct service based on each direct services proportion of labor spent processing each permit and application. By summing the direct and allocated indirect costs and multiplying that by the activity data, a total cost of service is calculated for both an individual service and the operating unit as a whole. Step 4: Set fees Based on any new, existing, or revised cost recovery policies, the recommended fees can be established. The recommended fees will be established based on City staff recommendations and Council discussion in the future. The fee analyses in this report are based on full cost recovery. Assuring Quality Results In our analysis we utilize both quantitative and qualitative tests for quality. Quantitative Our process incorporates substantial input from both individuals and groups. Our belief is that we get the best data from group interviews. For example, in determining how much time is required for any specific type of building inspection, we want to hear the perspective of an inspector, of the inspector supervisor, and the counter tech or project manager. Each will have a perspective. Each will contribute value to the estimate. When all perspectives agree, we gave have a good sense of confidence in our results. Qualitative We also utilize four qualitative measure of quality data. When each of these measures match and there are no major disagreements with the qualitative assessment, we have significant confidence in our results. These qualitative measures are: Quantitative Analysis Targeted Margin of Error 1) Budgeted expenses entering the cost models must equal total expenses accounted for in the costing model. 0% 2) Projected revenue from fees must closely match actual revenue from fees. + or – 5%-10% Capital Accounting Partners Page 7 3) Available staff time must be fully accounted for in the costing models. 0% 4) Total revenues from fees and contributions from the general fund or other sources must match total expenses. 0% Capital Accounting Partners Page 8 Summary of Results General Observations of Cost Recovery and Pricing In general, our results suggest that on average, Development Services has a level of cost recovery that almost covers its budgeted costs. However, our results also show some services are over recovering costs while other services are significantly under recovering cost. From our experience, this is fairly normal. One important result of a fee study is the “right sizing” of fees and a rebalancing of fees. The State of California requires that fees be in proportion to costs. For example, plumbing fees cannot be priced below cost while mechanical fees are price above cost. Similarly, green building fees cannot be priced below cost but new construction fees cannot be priced above cost to compensate for the loss of revenues. Therefore, establishing the full cost, and setting the price at or as near full cost is an important result of a fee study. Valuation Based Fees The Department recovers a substantial portion of its cost from its valuation based fees. These fees are generally for construction projects where the fee is based on a multiplier of construction value. Currently, the City is recovering about the correct amount from these fees. However, year over year, recovery from these fees may be a little over or a little under full cost. Expenses can be relatively constant but building activity can be volatile. As building activity heats up, revenues may exceed expenses. As building activity cools down, revenues may come short of expenses. Graphically, this relationship may appear this way. Currently, the City uses construction value to determine value as opposed to an independent assessment of value such as the International Code Council (ICC) valuation tables. Our recommendation to the City, and one that has been adopted by the Department, is to move towards using the ICC tables to determine value. This provides an independent assessment of valuation that is not tied to construction. Using construction value to calculate building fees means that Department revenues may move up or down depending upon market forces of supply and demand. A tight labor market will be higher labor costs for construction and City revenues will go up. Conversely, an Capital Accounting Partners Page 9 Projected Revenue at Full Cost Current Revenue Difference $ 2,500 $ 750 ($1,750) $ 500 $ 750 $250 $ 10,000 $ 7,000 ($3,000) $ 12,500 $ 3,750 ($8,750) $ 2,500 $ 1,250 ($1,250) $ 28,000 $ 13,500 ($14,500) oversupply of wood products may mean that construction costs go down and the City fees will go down with accordingly. The classic example of the two approaches can be seen when two houses with the exact floor plans are constructed. They both are the same size, they both have the same number of bathrooms, outlets, electrical panels, and sinks. However, one builder utilizes the cheapest materials and the homeowner wants the cheapest fixtures. The other builder utilizes the best materials and the home owner wants the finest fixtures available. The two homes will have very different construction values but the time and effort to review the plans and conduct all the inspections will be the same. To move to the ICC valuation of building, and to assure it will recover its cost, the City will need to start collecting three additional sources of data within its permitting system: 1.Building square footage; 2.Building type of construction; and 3.Building occupancy type. Without these additional data, it will be impossible to determine the correct multiplier that will result in full cost recovery. Therefore, we recommend the City begin collecting these data and when there are 6 months of data then calculate the correct multiplier. Modifications to the Fee Schedule Another result of a fee study is bringing the schedule of fees up to current code. As part of this study, we modified the schedule of fees to best reflect the California Building Standards Code. In some cases, this required little modification. In others, fees were dropped, fees were added, or some fees were simply renamed. However, in consultation with staff, it is our view that the schedule of fees reflected in our model brings the City’s fees into alignment with the California Building Standards Code. Results Projecting Revenues The math involved in projecting revenues is basic: Annual number of times a fee is charged X full cost = annual revenue. Hypothetical Example of how Revenue is Projected Fee Description Annual Activity Full cost Current Price Fee 1 10 $ 250 $ 75 Fee 2 5 $ 100 $ 150 Fee 3 20 $ 500 $ 350 Fee 4 50 $ 250 $ 75 Fee 5 25 $ 100 $ 50 Capital Accounting Partners Page 10 In this example, revenues from current fee levels is $13,500 and while these same services priced at full cost will generate $28,000 or $14,500 more. Challenges to Accurately Projecting Revenues Projecting future revenues should be simple. However, there are several challenges to projecting revenues accurately. Among these are: 1. Errors in the annual activity data; 2. Changes in fee descriptions; 3. New fees that are being from existing fees; 4. Fees where the work is being done but there is no fee to collect; and 5. Differences in timing between permitting systems and financial systems. Fire Prevention Fire Prevention is a classic example of how challenging projecting revenues can be. Frequently, Fire Prevention will be tasked for making inspections, but decisions by the Council prohibit or restrict the charging of full cost. Many councils will reduce or even eliminate some fees for non-profits, social service agencies, religious institutions, or operations catering to children. Public Works and Planning The Development Services Department is being charged for Planning and Public Works staff. These staff are built into the Departments budget in the normal budget cycle. The challenge for the Department is that these costs can be difficult to manage. The fees for Planning and Public Works are set by Council. The budgets for Planning and Public Works are based upon an assumed level of activity in the spring before the activity is actually realized. So if the actual activity is greater than projected activity, revenues higher than cost flow to the Department. However, if actual activity is lower than projected activity, then the Department has costs that it cannot recover. Reasons Revenues Can Fail to Meet Expenses There are several reasons why the Department might fail to meet its expenses. Among these are: 1. The Department is charged with inspection activity but it cannot charge for the service; 2. The Department has budgeted expenses but activity levels are lower than projected; 3. Former estimates required for plan review and inspection are not accurate; and 4. Productive hourly rates assumed in the calculations are not accurate. Capital Accounting Partners Page 11 Fee Type Projected Fee Revenues at Full Cost Projected Revenues at Current Prices Difference Surplus / Subsidy Valuation Bldg Permit & Plan Check $ 8,490,666 $ 8,599,967 $ 109,301 1% Non-Valuation Building Total 1,819,529$ 1,836,334$ $16,804 1% Construction & Demolition 149,930$ 124,042$ ($25,888)-17% Mechanical 166,768$ 387,519$ $220,751 132% Plumbing 222,406$ 358,690$ $136,284 61% Electrical 399,632$ 646,484$ $246,852 62% Green Building 675,347$ 187,421$ ($487,926)-72% Use and Occupancy 205,447$ 132,178$ ($73,269)-36% Fire Prevention Total 1,925,540$ 602,020$ ($1,323,520)-69% Public Works Total 860,363$ 269,792$ ($590,571)-69% Total Resources Consumed $ 13,096,098 $ 11,308,113 $ (1,787,985)-14% Summary of Results by Division or Work Unit The following graphic outlines various levels of recovery for each of the major work units within the Development Services Department. It shows, for example, that the Building function is subsidizing Fire Prevention, Planning, and Public Works. It should be noted however, that these data are based on current activity levels and the normal year to year changes to these activity levels can change these results. Project Revenues Based on Current Activity Levels Why Differences in Recovery Levels? There can be a many reasons why there are differences in cost recovery levels. Our observation is that the Department is under-recovering its fees. Much of this can be corrected by a rebalancing of fees. In other words, each division should be generating enough revenue to recover its costs. From our observations, the following are some reasons why each work group is either over recovering or under recovering its expenses. Building Observations The data suggests that Building Division is financially supporting the Department. There can be several reasons for this:  Activity levels are escalating faster than staffing (expenses) can be added. This has the input of showing that revenues are exceeding expenses.  Reliance on construction value vs an independent calculation such as the ICC valuation table. As building activity increases, basic supply and demand rules will push construction value higher. This will have the impact of increasing revenues to the City without incurring additional expenses. Capital Accounting Partners Page 12  Estimates of time to provide inspection and plan review services are incorrect. We see this in the current rates for mechanical, electrical, and plumbing fees for new construction. The current price is $.11/SF. Based on our analysis and in discussions with inspectors, the actual calculated cost is $.02/SF. Fire Prevention Observations Under recovering costs for Fire Prevention services is fairly common in the State of California. Sometimes this is by design but of often is it is not. From our observation there are three reasons why the City is under recovering costs of Fire Prevention: 1. Previous estimates of how much time is required for inspection and plan review time is different than actual. 2. Previous estimates of productive hourly rates are different and have not been updated until now. 3. The work unit is making inspections and providing a services but either the fee is not being charged or there is no fee. If the City were to decide that full cost recovery is in its best interest, then the fees the department collects, based on our calculations, should fully recover the cost of this function. Capital Accounting Partners Page 13 Observations and Recommendations General Observations and Recommendations As stated earlier, we observe that the Department is nearly recovering its expenses. However, “right sizing” its fees and adjusting its fees so that each division is recovering its costs is an important result of a fee study. We also observe that there are no built in costs to build reserves. We generally recommend reserves for building departments to be targeted at 6-12 months of operating expenses. For the Department, this would be a range of $6,500,000 - $13,000,000. What is Not Covered in this Analysis We are frequently asked “did you look at efficiency”. The simple answer is no, this was not within the scope of the project. However, we would add that with experience, certifications, and qualifications that we hold in the disciplines of process management and the application of lean thinking within the public sector we are very sensitive to this question. We would also add, that from our experience in providing these services, that seldom do they generate short term cost savings. The benefit they do bring in the short term is improvements in customer service. Plan review is completed faster. In the long term, they can reduce the escalation of costs. We are also frequently asked about work load demands. Again, this was outside project scope. However, we understand that the City is an ISO Class 1 accredited City. Only one of four in the State of California and one of 9 in the country. This is a prestigious award. From discussions with leadership, maintaining this certification may be a challenge going forward. Additional resources may be required to maintain the staffing to workload levels required by ISO. Assessing Valuation Based Fees As stated previously, the current methodology of assessing value, from which new construction building permits are based, is to use construction value. In addition, several other fees are derived from the calculation of permit value. From our observation, a better approach is to base value off an independent calculation of value such as the International Code Council (ICC) Valuation Table. This reduces fluctuations in revenues (up or down) to the City due to local supply & demand pressures, pricing and selection of internal fixtures, and temporary swings in commodities. However, moving toward this method will require additional data to be gathered on building permits. This will include data on the square footage of buildings, occupancy type, and building construction type. Without these data it will be impossible to accurately calculate what the multiplier needs to be to generate an appropriate level of cost recovery. We understand that this will be the objective of phase two of the user fee study. Adjusting the Fee Schedule A standard recommendation of ours is that fees be adjusted annually. We also recommend a complete review of costs for fee services every three to five years. With the annual update of fees, we recommend using a simple CPI type increase that is attached to the City’s labor cost. For example, if the Capital Accounting Partners Page 14 labor cost for the City goes up by 2% then adjust each fee by 2%. This is the simplest and most common method of adjusting fees annually. It is our observation that the regulatory requirements change enough within a three to five years that a comprehensive review of costs is then warranted. We understand that the City’s policy is to adjust fees annually based on changes to salaries and benefits. We would affirm this practice and find that those cities that do this, maintain better cost recovery levels over the long term. Building Reserves We regularly recommend 6-12 months of operating expenses as a reserve. We understand from staff that this will be a discussion for a later time. We would affirm this plan but also recommend that a reserve policy be set into place. This policy might target: Specific reserves (such as 12 months of operating expenses); An understanding of how the reserve will be managed; and How will a reserve be defined and realized? Capital Accounting Partners Page 15 DEVELOPMENT SERVICES FEE TABLE The following table details the individual unit costs of each fee in the Department and provides annual revenue impacts for each fee and all fees collectively. Palo Alto Building Dept Building Fees Service # If Any Fee Name Unit/Notes Actual Work Volume Bldg Time Fire Time Planning Time PW Time Direct Unit Cost Indirect Unit Allocated Costs Other external costs Total Cost Assigned Current Fee / Revenue Unit Surcharge or (Subsidy) Unit Cost SummaryUnit Time Assignments BUILDING FEES 1,165 Business Registry Fee per business -$ 50.00$ $50 -$ Building New Construction -$ All Valuation Based Building Fees Combined (total annual Calculations)5,973,018$ 2,517,648$ $8,490,666 8,599,967.00$ $109,301 -$ 1,217 I. Building Demolition Permit 177 1.17 0.333 234$ $152 $386 320.00$ ($66) 1,218 J. Commercial Interior Non-Structural Demolition Permit 39 0.33 0.333 106$ $69 $175 194.00$ $19 -$ 1,207 Additional Plan Review per hour 117 1 122$ $79 $201 191.00$ ($10) 1,202 Building Plan Check per hour -$ -$ 1,208 Certified Access Specialist (CASp) Review/Consultation Hourly 1 159$ $103 $262 -$ ($262) 1,203 -$ 1,204 Address change - single address 1 0.25 216$ $140 $356 224.00$ ($132) 1,206 Address change - each additional address 0.42 0.167 104$ $67 $171 112.00$ ($59) 1,205 -$ -$ Construction & Demolition -$ 1,198 Commercial and Multi-Family Projects greater than or equal to $25,000.00 in Valuation per permit 89 0.334 1.000 224$ $145 $369 238.00$ ($131) 1,200 Single Family and Two Family Projects greater than $25,000.00 and less than $75,000.00 in Valuations per permit 18 0.334 0.250 93$ $61 $154 80.00$ ($74) 1,199 Single Family and Two Family Projects greater than $75,000.00 in Valuation per permit 71 0.334 0.500 137$ $89 $225 212.00$ ($13) -$ -$ ELECTRICAL PERMITS 1,228 Air Conditioners per unit 39 0.5 49$ $32 $81 29.00$ ($52) 1,230 Air Cooled or Oil Cooled Lighting and/or Power Transformer per permit 0.50 49$ $32 $81 -$ ($81) 1,226 Base Fee per permit 1,696 0.33 50$ $32 $82 92.00$ $10 1,240 Busway, Power Duct install, repair or replace per permit 20 0.42 41$ $27 $68 0.50$ ($67) 1,229 per permit 0.42 41$ $27 $68 252.00$ $184 1,249 Each Additional section of meter per permit 2 0.42 41$ $27 $68 5.00$ ($63) 1,234 Fixtures, Switches, and Outlets per permit 1,633 0.42 41$ $27 $68 1.00$ ($67) 1,241 Lighting, Power and/or Control Panel Board, Switchboard Cabinet or Panel per permit 43 0.42 41$ $27 $68 5.00$ ($63) 1,236 Motor per permit 13 0.42 41$ $27 $68 23.00$ ($45) 1,235 Motor Generator per permit 40 0.42 41$ $27 $68 3.00$ ($65) 1,227 New or Remodeled Square Footage Per SqFt 3,723,840 0.00012 $0.01 $0.01 $0.02 0.11$ $0.09 1,237 Range, Electric Clothes Dryer, or Water Heater per permit 2 0.42 41$ $27 $68 5.00$ ($63) -$ 1,248 Service Conductor/Switch - Greater than 800 ampre per permit 2 1.50 148$ $96 $243 40.00$ ($203) 1,246 Service Conductor/Switch - Less than 200 ampre per permit 128 0.75 74$ $48 $122 18.00$ ($104) 1,247 Service Conductor/Switch - Less than 800 ampre per permit 11 1.00 98$ $64 $162 29.00$ ($133) 1,238 Special Circuit (Not Listed Herein)per permit 26 0.42 41$ $27 $68 5.00$ ($63) 1,250 Temporary Power Pole per permit 149 0.42 41$ $27 $68 56.00$ ($12) 1,251 Temporary Wiring for Construction per permit 0.42 41$ $27 $68 56.00$ ($12) -$ Electrical Permits - Electrical Vehicle Charging Stations -$ Capital Accounting Partners Page 1 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name Unit/Notes Actual Work Volume Bldg Time Fire Time Planning Time PW Time Direct Unit Cost Indirect Unit Allocated Costs Other external costs Total Cost Assigned Current Fee / Revenue Unit Surcharge or (Subsidy) Unit Cost SummaryUnit Time Assignments 1,232 Commercial (Level 1 and 2)17 2.00 232$ $150 $382 370.00$ ($12) 1,233 Commercial (Level 1 and 2) - each additional station 79 0.42 45$ $29 $74 92.50$ $18 1,233 Commercial (Level 3 and 4)1 2.50 281$ $182 $464 560.00$ $96 1,234 Commercial (Level 3 and 4) - each additional station 0.50 55$ $36 $91 140.00$ $49 1,231 Residential (level 1 & 2)per station 57 0.92 102$ $66 $168 160.00$ ($8) Residential (level 3)1.33375 143$ $93 $236 ($236) Electrical Permits - Photovoltaic Systems -$ Residential System (less than 10 kw)127 0.5 49$ $32 $81 ($81) 1,242 Residential System (greater than 10 kw)each 1.875 185$ $120 $304 311.00$ $7 1,243 Commercial System (less than 10 kW)each 2.833333333 326$ $211 $537 565.00$ $28 1,244 Commercial System (10kW - 49kW)each 3 4.25 489$ $317 $805 850.00$ $45 1,245 Commercial System (greater than 49kW)each 1 4.666666667 530$ $343 $873 900.00$ $27 MECHANICAL PERMITS Swimming Pool Heather 23 0.40 39$ $26 $65 28.00$ ($37) 1,254 Admin base fee 1,021 0.334 50$ $32 $82 92.00$ $10 Mechanical new or remodel cost/SF Per SqFt 2,632,100 0.00012 $0.012 $0.008 $0.02 0.11$ $0 1a -$ 28.00$ $28 1b Furnaces 98 1.002 99$ $64 $163 92.00$ ($71) 1c 0.002 0$ $0 $0 ($0) 1d -$ 2 Appliance vents: installation, relocation or replacement of…0.335333 33$ $21 $54 28.00$ ($26) 3 Repairs, alteration or addition of each heating appliance… 0.335333 33$ $21 $54 28.00$ ($26) Boilers, Compressors, and Absorption Systems:-$ 4a Up to and including 3 HP, absorption system up to and including 100,000 Btu/h 0.67 66$ $43 $109 5.00$ ($104) 4b Up to and including 15HP, absorption system exceeding 100,000 Btu/h and including 500,000 Btu/h 86 0.67 66$ $43 $109 28.00$ ($81) 4c Up to and including 15-30HP, absorption system exceeding 500,000 Btu/h and including 1,000,000 Btu/h 0.67 66$ $43 $109 0.11$ ($108) 4d Up to and including 30-50HP, absorption system exceeding 1,000,000 Btu/h and including 1,750,000 Btu/h 1.00 99$ $64 $163 28.00$ ($135) 4e Greater than50HP, absorption system exceeding 1,750,000 Btu/h 1.00 99$ $64 $163 56.00$ ($107) 5 Air handlers up to and including 10,000 cf per cfm…0.34 33$ $21 $54 28.00$ ($26) Ventilation and exhaust:-$ 7a Each ventilation FAC connect to a single duct 76 0.34 33$ $21 $54 11.00$ ($43) 7b Each ventilation system that is not a portion of a heating or air- conditioning system …0.34 33$ $21 $54 ($54) 7c Installation of each hood that is served by mechanical exhaust, including the ducts of such hood 2 0.34 33$ $21 $54 28.00$ ($26) Miscellaneous -$ 9 Each appliance or piece of equipment regulated by this code, but not classed in other appliance categories for which no other fee is listed in this table 0.34 33$ $21 $54 ($54) Full Gas Piping -$ 10a Each gas piping system of 1-5 outlets 4 0.60 59$ $38 $98 28.00$ ($70) 10b Each additional gas piping system per outlet 0.33 33$ $21 $54 ($54) Process Piping -$ 11a Each hazardous process piping system 1-4 outlets 0.34 33$ $21 $54 28.00$ ($26) 11b Each hazardous process piping system >5 outlets 0.33 33$ $21 $54 28.00$ ($26) 11c Each nonhazardous process piping system of 1-4 outlets 0.80 79$ $51 $130 56.00$ ($74) Capital Accounting Partners Page 2 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name Unit/Notes Actual Work Volume Bldg Time Fire Time Planning Time PW Time Direct Unit Cost Indirect Unit Allocated Costs Other external costs Total Cost Assigned Current Fee / Revenue Unit Surcharge or (Subsidy) Unit Cost SummaryUnit Time Assignments 11d Each NPP piping system of >5 outlets, per outlet 0.80 79$ $51 $130 5.00$ ($125) PLUMBING PERMITS - GRAY WATER SYSTEMS 1,266 Admin base fee 1,310 0.334 50$ $32 $82 92.00$ $10 1 For each plumbing fixture on one trap or set of fixtures..0.5 49$ $32 $81 3.00$ ($78) 2 For each building sewer and each trailer park sewer 15 0.802 79$ $51 $130 28.00$ ($102) 3 Rainwater system - per drain (inside building)66 0.5 49$ $32 $81 5.00$ ($76) 4 For each private sewage disposal system 120 0.802 79$ $51 $130 11.00$ ($119) 6 For each water heater, vent, or both 56 0.6 59$ $38 $97 5.00$ ($92) 7 For each gas piping system of one to five outlets 142 1.2 118$ $77 $195 28.00$ ($167) 8 For each additional gas piping system outlet, per outlet 0.3 30$ $19 $49 5.00$ ($44) 9 Industrial waste pretreatment interceptor, including trap and vent, X kitchen-type grease interceptors 1.2 118$ $77 $195 11.00$ ($184) 10 Installation, alteration or repair of water piping, water treatment equip or both 1 0.6 59$ $38 $97 5.00$ ($92) 11 Repair or alteration of drainage or vent piping, each fixture 16 0.5 49$ $32 $81 28.00$ ($53) 12 Lawn sprinkler system on one meter including backflow protection devices 0.5 49$ $32 $81 28.00$ ($53) 13A Atmospheric-type vacuum breakers not referenced above (1-5)0.6 59$ $38 $97 5.00$ ($92) 13B Atmospheric-type vacuum breakers not referenced above (>5)0.5 49$ $32 $81 5.00$ ($76) 14 Backflow protective device other than atmospheric-type (any size)78 1.2 118$ $77 $195 5.00$ ($190) Plumbing Permits - Graywater Systems -$ 1,271 Clothes washer System 0.5 49$ $32 $81 56.00$ ($25) 1,273 Complex System 1 1.2 118$ $77 $195 88.00$ ($107) 1,272 Simple System 3 0.5 49$ $32 $81 61.00$ ($20) 16 Installation and testing for a reclaimed water system 1.2 118$ $77 $195 -$ ($195) 17 Annual cross-connection testing of reclaimed water system…2.4 236$ $153 $390 ($390) 18 Each medical gas piping system 1-5 outlets 1.2 118$ $77 $195 ($195) Additional medical gas inlet(s)0.25 25$ $16 $41 -$ ($41) Electrical new or remodel cost/SF 2,127,236 0.00012 0.012$ 0.008$ 0.02$ 0.11$ $0 Solar hot water system 1.2 118.187$ 76.594$ 194.78$ 224.00$ $29 1,190 Storm drain system 1.2 118$ $77 $195 28.00$ ($167) 1,191 Swimming pool 0.4 39$ $26 $65 28.00$ ($37) Use & occupancy Permits 1,187 Certificate of Use and Occupancy each 155 2.5 456$ $296 $752 287.00$ ($465) 1,188 Certificate of Use and Occupancy - Replacement each 0.5 94$ $61 $155 123.00$ ($32) 1,189 -$ 1,186 Temporary Occupancy Permit - Multi-Family Residential, Non- Residential, and Other Commercial each 33 2.3 365$ $237 $602 896.00$ $294 1,185 Temporary Occupancy Permit - Single Family Residential and Commercial Tenant Improvement less than 10,000 sq. ft.each 155 1.7 270$ $175 $445 375.00$ ($70) -$ FIRE FEES Hazardous Materials Classification Permits -$ 1,367 Compressed Gas annually 28 1 229$ $121 $350 139.00$ ($211) 1,363 Corrosives annually 54 1 229$ $121 $350 139.00$ ($211) 1,364 Cryogenic Fluid annually 42 1 229$ $121 $350 139.00$ ($211) 1,365 Flammable and Combustible Liquids annually 172 1 229$ $121 $350 139.00$ ($211) 1,368 Flammable Gas annually 28 1 229$ $121 $350 139.00$ ($211) 1,366 Flammable Solids annually 1 229$ $121 $350 139.00$ ($211) 1,373 Health Hazard (Liquids & Solids)annually 33 1 229$ $121 $350 139.00$ ($211) Capital Accounting Partners Page 3 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name Unit/Notes Actual Work Volume Bldg Time Fire Time Planning Time PW Time Direct Unit Cost Indirect Unit Allocated Costs Other external costs Total Cost Assigned Current Fee / Revenue Unit Surcharge or (Subsidy) Unit Cost SummaryUnit Time Assignments 1,381 Liquefied Petroleum Gases annually 10 1 229$ $121 $350 139.00$ ($211) 1,354 Organic Coatings annually 1 229$ $121 $350 175.00$ ($175) 1,374 Organic Peroxides annually 1 1 229$ $121 $350 139.00$ ($211) 1,355 Ovens - Industrial Baking or Drying annually 4 1 229$ $121 $350 102.00$ ($248) 1,375 Oxidizers (Liquids & Solids)annually 16 1 229$ $121 $350 139.00$ ($211) 1,369 Oxidizing Gas annually 34 1 229$ $121 $350 139.00$ ($211) 1,356 Parade Float per hour 1 229$ $121 $350 115.00$ ($235) 1,357 Place of Public Assembly per occurrence 2 457$ $242 $700 236.00$ ($464) 1,370 Pyrophoric Gas annually 1 1 229$ $121 $350 139.00$ ($211) 1,376 Pyrophoric Materials (Liquids & Solids)annually 4 1 229$ $121 $350 139.00$ ($211) 1,358 Pyrotechnical Special Effects Material annually 1 229$ $121 $350 29.00$ ($321) 1,377 Radioactive Materials annually 28 1 229$ $121 $350 139.00$ ($211) 1,359 Refrigeration Equipment annually 1 229$ $121 $350 175.00$ ($175) 1,360 Spraying/Dipping annually 17 1 229$ $121 $350 175.00$ ($175) 1,361 Tent or air-supported structure having an area in excess of 200 square feet; or canopies in excess of 400 square feet (includes a public assembly permit of $125.00 for all tents)each 2.167 485$ $257 $741 290.00$ ($451) 1,362 Tire Recapping/Tire Storage annually 4 913$ $483 $1,396 575.00$ ($821) 1,371 Toxic, Highly Toxic, Moderately Toxic, Health Hazard Gas annually 11 1 229$ $121 $350 139.00$ ($211) 1,378 Toxic, Highly Toxic, Moderately Toxic, Health Hazard Materials annually 38 1 229$ $121 $350 139.00$ ($211) 1,372 Unstable Reactive Gas annually 1 1 229$ $121 $350 139.00$ ($211) 1,379 Unstable Reactive Materials (Liquids & Solids)annually 1 229$ $121 $350 139.00$ ($211) 1,380 Water Reactive Materials (Liquids & Solids)annually 1 229$ $121 $350 139.00$ ($211) 1 229$ $121 $350 ($350) Hazardouis Materials County Reimbursement -$ 348,000.00$ $348,000 Hazardous Materials Storage Permits -$ 1,311 Additional Approvals for Hazardous Materials Storage Permit (first 2 hours)2.167 496$ $262 $758 356.00$ ($402) 1,312 Additional Approvals for Hazardous Materials Storage Permit (per hour for time above 2 hours)1.417 324$ $172 $496 159.00$ ($337) 1,308 Business Plan (HMBP)annually 234 1.417 324$ $172 $496 256.00$ ($240) 1,312 Late Fee for Hazardous Materials Storage Permit -$ -$ 1,305 Level I Facility 81 1 229$ $121 $350 264.00$ ($86) 1,306 Level II Facility 119 2 457$ $242 $700 404.00$ ($296) 1,307 Level III Facility 191 4 915$ $484 $1,399 729.00$ ($670) 1,309 Petroleum Aboveground Storage Tank annually 26 2 457$ $242 $700 593.00$ ($107) 1,310 Provisional (6 Month)2 457$ $242 $700 186.00$ ($514) -$ -$ Fire Inspection Fees -$ 1,313 Additional Resinspection Fee (up to 2 hours during normal business hours)150 2 456$ $242 $698 323.00$ ($375) 1,313 Additional Resinspection Fee (each additional hour)1 228$ $121 $349 159.00$ ($190) 1,314 After Hours Inspection Fee 1.5 342$ $181 $523 165.00$ ($358) Capital Accounting Partners Page 4 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name Unit/Notes Actual Work Volume Bldg Time Fire Time Planning Time PW Time Direct Unit Cost Indirect Unit Allocated Costs Other external costs Total Cost Assigned Current Fee / Revenue Unit Surcharge or (Subsidy) Unit Cost SummaryUnit Time Assignments 1,316 Care Facility annually -$ 175.00$ $175 1,317 Care Facility Inspection Including Fire Clearance (greater than 25 2 456$ $242 $698 73.00$ ($625) Care Facility Inspection Including Fire Clearance (7-25 clients)1 228$ $121 $349 140.00$ ($209) 1,315 Christmas Tree Lot/Pumpkin Patch each 1 228$ $121 $349 175.00$ ($174) 1,321 High Rise Building - Certificate of Compliance (annually up to 4 4.167 951$ $503 $1,454 713.00$ ($741) 1,322 High Rise Building - Certificate of Compliance (each additional hour))1 228$ $121 $349 159.00$ ($190) 1,318 Outside Cooking Booths each 1.5 342$ $181 $523 198.00$ ($325) 1,320 Standby Fire Watch or After Hours at Fire or Incident Scene per hour 1 228$ $121 $349 159.00$ ($190) 1,319 Use and Occupancy Fire Inspection per inspection 155 1 228$ $121 $349 148.00$ ($201) As-Built Plan Check and Additional Work each 75 2 456$ $242 $698 ($698) -$ Investigations & Consultations -$ 1,325 Additional Hours Over Plan Review/Inspection each 1 181$ $96 $276 155.00$ ($121) 1,323 Alternate Means and Methods Application per application 75 2 429$ $227 $657 356.00$ ($301) 1,324 Appeals to Decisions per hour 1 228$ $121 $349 159.00$ ($190) 1,322 Consultation Fee per hour 475 1 228$ $121 $349 166.00$ ($183) 1,328 Hazardous Materials Data Entry Fee per hour -$ 77.00$ $77 1,327 Hydrant Flow Fee per occurrence 75 1 228$ $121 $349 165.00$ ($184) 1,326 Site Disaster Planning per hour 1 228$ $121 $349 166.00$ ($183) -$ -$ Life Safety & Fire Protection 1294A Automatic Fire Sprinkler Installation/Modification > 19 heads 4.417 1,008$ $534 $1,541 356.00$ ($1,185) 1,295 Automatic Fire Sprinkler Installation/Modification (plus per head)0.01 2$ $1 $3.49 1.80$ ($2) 1,301 Express Fire Protection Plan Check Fee 50% of usual fee -$ 163.00$ $163 1,296 Fire Alarm System Installation and Modification 3 637$ $337 $974 356.00$ ($618) 1,297 Fire Alarm System Installation and Modification (plus a device or contact point)0.060 14$ $7 $20.94 2.00$ ($19) 1,303 Fire Protection and Fire Access Plan Review for New Single Family Dwellings or Additions each 2.5 523$ $277 $800 100.00$ ($700) 1,298 Hydrant Installation/Modification - Private 0.5 114$ $60 $174 261.00$ $87 1,295 Other Automatic Fire Extinguishing System 3 637$ $337 $974 356.00$ ($618) 1,297 Standpipe System - Wet, Dry, or Combination 25 2 456$ $242 $698 208.00$ ($490) 1,300 Temporary Certificate of Occupancy per occurrence 2.167 494$ $262 $756 356.00$ ($400) 1,299 Underground Fire Service Line per 200LF of pipe (inspection, reinspection - 150 5 1,093$ $579 $1,672 356.00$ ($1,316) 1,304 Verification of Fire Protection System Maintenance and Certification annually 0.3 51$ $27 $78 89.00$ $11 Food truck permits 0.5 114$ $60 $174 ($174) Multifamily dwellings, hotels & motels -$ 4-50 units 1 228$ $121 $349 ($349) 51-100 units 2 456$ $242 $698 Greater than 100 units 3 684$ $362 $1,047 ($1,047) Fire Prevention Inspection of Private Schools 2 456$ $242 $698 ($698) 1294B Automatic Fire Sprinkler Installation/Modification > 19 heads 2 456$ $242 $698 ($698) Specific Hazard Permits -$ 1,329 Aerosol Products annually 1.25 285$ $151 $436 102.00$ ($334) 1,330 Amusement Buildings Delete -$ 410.00$ $410 Capital Accounting Partners Page 5 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name Unit/Notes Actual Work Volume Bldg Time Fire Time Planning Time PW Time Direct Unit Cost Indirect Unit Allocated Costs Other external costs Total Cost Assigned Current Fee / Revenue Unit Surcharge or (Subsidy) Unit Cost SummaryUnit Time Assignments 1,331 Automobile Wrecking Yard or Junk Yard Delete -$ 179.00$ $179 1,332 Bowling Alley and Pin Refinishing Involving the use of Flammable each 2.917 666$ $352 $1,018 179.00$ ($839) 1,333 Candles and Open Flames in Assembly Areas annually 1 228$ $121 $349 142.00$ ($207) 1,334 Carnivals and Fairs each 4.167 951$ $503 $1,454 179.00$ ($1,275) 1,335 Cellulose Nitrate Storage/Nitrate Film annually 0.292 67$ $35 $102 102.00$ $0 1,337 Combustible Fiber/Material Storage Delete -$ 179.00$ $179 1,336 Confined Space annually -$ 148.00$ $148 1,338 Hot Work permit fee (one time permit)One time 1 228$ $121 $349 126.00$ ($223) 1,339 Hot Work permit fee (monthly permit)Monthy -$ 88.00$ $88 1,340 -$ 102.00$ $102 1,341 Fireworks Display Delete 3.167 723$ $383 565.00$ $565 1,342 High-piled Combustible Storage Delete -$ 102.00$ $102 1,343 Hot Work (Welding) Operations Delete -$ 179.00$ $179 1,349 Liquid or Gas-Fueled Powered Equipment each 1 228$ $121 $349 88.00$ ($261) 1,344 Liquid or Gas-Fueled Vehicles or Equipment in Assembly Buildings each -$ 103.00$ $103 1,350 Magnesium Working annually -$ 103.00$ $103 1,345 Malls - Covered annually 2 456$ $242 $698 103.00$ ($595) 1,351 Occupant Load Increase - Temporary Public Assembly each 1 228$ $121 $349 236.00$ ($113) 1,352 Open Burning each 1 228$ $121 $349 236.00$ ($113) 1,348 Open Flame/Flame Producing Devices each 1 228$ $121 $349 88.00$ ($261) 1,353 Operate a Tank Vehicle to Transport Flammable/Combustible annually 1.417 323$ $171 $494 102.00$ ($392) 1,347 Place of Public Assembly - Temporary each 1 228$ $121 $349 236.00$ ($113) 1,346 Temporary Kiosks -$ -$ -$ Fire Miscellaneous Fees -$ TCO fee for Vendors/Stock occupancy (Requires at least one additional inspection)250 3.5 752$ $398 $1,150 ($1,150) 1,288 Emergency Response Fee - Hazmat (PAMC 17.24.050)Per hour 1 228$ $121 $349 -$ ($349) 1,289 Installation or Closure Without Approved Plans and/or Permits Fine -$ -$ Fire plans revision 76 -$ Building General & Miscellaneous Fees -$ 1,176 All Other Publications each -$ 16.00$ $16 1,201 Construction/Maintenance Vehicles -$ 76.00$ $76 1,172 Electric Service and Safety Inspection per hour 1 98$ $52 $151 84.00$ ($67) 1,181 Extension of Building Permit or Building Permit Application per application 31 0.33 56$ $30 $86 56.00$ ($30) 1,174 Inspections and Investigations - Outside Normal Business Hours (1.5xOThour)1 1.5 238$ $126 $365 202.00$ ($163) 1,175 Inspections and Investigations - Outside Normal Business Hours (2.0xOThour)52 2 318$ $168 $486 226.00$ ($260) 1,173 Inspections and Investigations - Unclassified per hour 1 159$ $84 $243 163.00$ ($80) 1,184 Reactivation of Expired Building Permit - All Others 19 0.75 149$ $79 $228 ($228) 1,183 Reactivation of Expired Building Permit - Final Inspection Only 16 1.1 165$ $88 $253 375.00$ $122 1,182 Reactivation of Expired Building Permit Application 16 0.7 124$ $65 $189 168.00$ ($21) 1,178 Real Property Research Fee (1-hour minimum)per hour 1.0 159$ $84 $243 127.00$ ($116) 1,177 Records Retention per plan sheet 20,234 0.0 4$ $2 $6 4.00$ ($2) 1,180 Reinspection Fee - Multi-Family Residential and Non-Residential each 2 1.2 184$ $97 $281 308.00$ $27 1,179 Reinspection Fee - Single Family Residential (each secondary inspection type)14 0.9 144$ $76 220$ 84.00$ ($136) Capital Accounting Partners Page 6 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name Unit/Notes Actual Work Volume Bldg Time Fire Time Planning Time PW Time Direct Unit Cost Indirect Unit Allocated Costs Other external costs Total Cost Assigned Current Fee / Revenue Unit Surcharge or (Subsidy) Unit Cost SummaryUnit Time Assignments 1,180 Reinspection Fee - Single Family Residential (each primary inspection type)1.2 184$ $97 281$ 308.00$ $27 1,171 Request for Release of Building Plans each 0.3 50$ $26 $76 45.00$ ($31) 1,175 Residential Inspection Guidelines each -$ 33.00$ $33 Conditional Utility Agreement 187 0.98 155$ $82 $237 252.00$ $15 Emergency Responder Radio Coverage (testing) fee.25 2 409$ $216 $625 ($625) GREEN BUILDING FEES Bldg Alterations and additions for single and multifamily < 1,000 sq ft and increases conditioned space Residential 99 3.70 495$ $602 $1,097 677.00$ ($420) Bldg Alterations and additions for single and multifamily > 1,000 sq ft Residential 166 4.20 556$ $676 $1,232 173.00$ ($1,059) Bldg Multi Family New Construction of 3 or More (attached) Units 4 5.10 681$ $827 $1,508 668.00$ ($840) Bldg Multi Family New Construction of < 4 Residential 4.10 559$ $679 $1,238 1,388.00$ $150 Bldg New Single family Residential 7 4.60 620$ $753 $1,373 1,687.00$ $314 Bldg Tenant improvements, renovations, or alterations > 5,000 sq ft that includes replacement or alteration of at least two of the following: HVAC system, building envelope, hot water system, or lighting system and project value greater than $200,000.Non-Residential 34 5.10 681$ $827 $1,508 942.00$ ($566) Bldg C. Tenant improvements, renovations or alterations > $200,000 in valuation (and not triggered by a Calgreen Tier) Non-Residential 42 4.10 559$ $679 $1,238 354.00$ ($884) Bldg If the project is over $100,000 Energy Star is required after 12 months of occupancy Non-Residential 2.10 315$ $383 $698 976.00$ $278 Bldg New commercial 1000 - 25,000 SF Non-Residential 21 6.10 803$ $975 $1,778 1,443.00$ ($335) Bldg New commercial 25,001-50,000 SF Non-Residential 7.10 924$ $1,123 $2,048 ($2,048) Bldg New commercial >50,000 SF Non-Residential 7.60 985$ $1,197 $2,183 ($2,183) Bldg Landscape Review - plan review Non-Residential 60 3.25 656$ $797 $1,453 ($1,453) Bldg Landscape Review - inspection Non-Residential 60 1.00 98$ $120 $218 ($218) Bldg Landscape Review - plan review SFR 80 2.00 404$ $490 $894 ($894) Bldg Landscape Review - inspection SFR 80 1.00 98$ $120 $218 ($218) Bldg Landscape Review - plan review Multifamily 10 3.25 656$ $797 $1,453 ($1,453) Bldg Landscape Review - inspection Multifamily 10 1.00 98$ $120 $218 ($218) Bldg -$ Fee # 325 Current -$ Capital Accounting Partners Page 7 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name BUILDING FEES 1,165 Business Registry Fee Building New Construction All Valuation Based Building Fees Combined (total annual Calculations) 1,217 I. Building Demolition Permit 1,218 J. Commercial Interior Non-Structural Demolition Permit 1,207 Additional Plan Review 1,202 Building Plan Check 1,208 Certified Access Specialist (CASp) Review/Consultation 1,203 1,204 Address change - single address 1,206 Address change - each additional address 1,205 Construction & Demolition 1,198 Commercial and Multi-Family Projects greater than or equal to $25,000.00 in Valuation 1,200 Single Family and Two Family Projects greater than $25,000.00 and less than $75,000.00 in Valuations 1,199 Single Family and Two Family Projects greater than $75,000.00 in Valuation ELECTRICAL PERMITS 1,228 Air Conditioners 1,230 Air Cooled or Oil Cooled Lighting and/or Power Transformer 1,226 Base Fee 1,240 Busway, Power Duct install, repair or replace 1,229 1,249 Each Additional section of meter 1,234 Fixtures, Switches, and Outlets 1,241 Lighting, Power and/or Control Panel Board, Switchboard Cabinet or Panel 1,236 Motor 1,235 Motor Generator 1,227 New or Remodeled Square Footage 1,237 Range, Electric Clothes Dryer, or Water Heater 1,248 Service Conductor/Switch - Greater than 800 ampre 1,246 Service Conductor/Switch - Less than 200 ampre 1,247 Service Conductor/Switch - Less than 800 ampre 1,238 Special Circuit (Not Listed Herein) 1,250 Temporary Power Pole 1,251 Temporary Wiring for Construction Electrical Permits - Electrical Vehicle Charging Stations Annual Revenue Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy) R e q u i 6 Months Reserve, 3 yr build up Full Cost / Unit With Reserves Annual Cost Calculations w/o Reserves Reserve Requirements BUILDING FEES $ 2,307,699 1,165Business Registry Feeper business -$ 50.00$ $50 -$ $ - -$ -$ $ - $ - Building New Construction -$ -$ $ - $ - 5,973,018$ 2,517,648$ $8,490,666 8,599,967.00$ $109,301 8,490,666$ 8,599,967$ $109,301 $1,496,163 $ 9,986,829.26 $9,986,829 -$ -$ $ - 1,217I. Building Demolition Permit1771.17 0.333 234$ $152 $386 320.00$ ($66)68,288$ $56,640 ($11,648)$68 $ 453.79 $80,321 1,218J. Commercial Interior Non-Structural Demolition Permit390.33 0.333 106$ $69 $175 194.00$ $19 6,833$ $7,566 $733 $31 $ 206.09 $8,037 -$ -$ $ - 1,207Additional Plan Reviewper hour1171 122$ $79 $201 191.00$ ($10)23,497$ $22,347 ($1,150)$35 $ 236.21 $27,637 1,202Building Plan Checkper hour -$ -$ -$ $ - 1,208Certified Access Specialist (CASp) Review/ConsultationHourly1 159$ $103 $262 -$ ($262)-$ $46 $ 308.01 1,203 -$ -$ $ - 1,204Address change - single address10.25 216$ $140 $356 224.00$ ($132)-$ $63 $ 418.65 1,206Address change - each additional address0.420.167 104$ $67 $171 112.00$ ($59)-$ $30 $ 201.53 1,205 -$ -$ $ - -$ -$ $ - Construction & Demolition -$ -$ $ - 1,198per permit890.334 1.000 224$ $145 $369 238.00$ ($131)32,623$ $21,063 ($11,560)$65 $ 433.57 $38,371 1,200per permit180.334 0.250 93$ $61 $154 80.00$ ($74)2,725$ $1,416 ($1,309)$27 $ 181.05 $3,205 1,199per permit710.334 0.500 137$ $89 $225 212.00$ ($13)15,965$ $15,010 ($955)$40 $ 265.23 $18,778 -$ -$ $ - -$ $ - 3,165$ $1,131 ($2,034)$14 $ 95.46 $3,723 -$ $14 $ 95.46 139,694$ $156,032 $16,338 $15 $ 96.88 $164,310 1,353$ $10 ($1,343)$12 $ 79.55 $1,591 -$ $12 $ 79.55 135$ $10 ($125)$12 $ 79.55 $159 110,444$ $1,633 ($108,811)$12 $ 79.55 $129,906 2,908$ $215 ($2,693)$12 $ 79.55 $3,421 879$ $299 ($580)$12 $ 79.55 $1,034 2,705$ $120 ($2,585)$12 $ 79.55 $3,182 72,534$ $409,622 $337,089 $0.003 $ 0.0229 $85,315 135$ $10 ($125)$12 $ 79.55 $159 -$ $ - 487$ $80 ($407)$43 $ 286.38 $573 15,583$ $2,304 ($13,279)$21 $ 143.19 $18,328 1,785$ $319 ($1,466)$29 $ 190.92 $2,100 1,758$ $130 ($1,628)$12 $ 79.55 $2,068 10,077$ $8,344 ($1,733)$12 $ 79.55 $11,853 -$ $12 $ 79.55 -$ $ - -$ $ - Capital Accounting Partners Page 8 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name 1,232 Commercial (Level 1 and 2) 1,233 Commercial (Level 1 and 2) - each additional station 1,233 Commercial (Level 3 and 4) 1,234 Commercial (Level 3 and 4) - each additional station 1,231 Residential (level 1 & 2) Residential (level 3) Electrical Permits - Photovoltaic Systems Residential System (less than 10 kw) 1,242 Residential System (greater than 10 kw) 1,243 Commercial System (less than 10 kW) 1,244 Commercial System (10kW - 49kW) 1,245 Commercial System (greater than 49kW) MECHANICAL PERMITS Swimming Pool Heather 1,254 Admin base fee Mechanical new or remodel cost/SF 1a 1b Furnaces 1c 1d 2 Appliance vents: installation, relocation or replacement of… 3 Repairs, alteration or addition of each heating appliance… Boilers, Compressors, and Absorption Systems: 4a Up to and including 3 HP, absorption system up to and including 100,000 Btu/h 4b Up to and including 15HP, absorption system exceeding 100,000 Btu/h and including 500,000 Btu/h 4c Up to and including 15-30HP, absorption system exceeding 500,000 Btu/h and including 1,000,000 Btu/h 4d Up to and including 30-50HP, absorption system exceeding 1,000,000 Btu/h and including 1,750,000 Btu/h 4e Greater than50HP, absorption system exceeding 1,750,000 Btu/h 5 Air handlers up to and including 10,000 cf per cfm… Ventilation and exhaust: 7a Each ventilation FAC connect to a single duct 7b Each ventilation system that is not a portion of a heating or air- conditioning system … 7c Installation of each hood that is served by mechanical exhaust, including the ducts of such hood Miscellaneous 9 Each appliance or piece of equipment regulated by this code, but not classed in other appliance categories for which no other fee is listed in this table Full Gas Piping 10a Each gas piping system of 1-5 outlets 10b Each additional gas piping system per outlet Process Piping 11a Each hazardous process piping system 1-4 outlets 11b Each hazardous process piping system >5 outlets 11c Each nonhazardous process piping system of 1-4 outlets Annual Revenue Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy) R e q u i 6 Months Reserve, 3 yr build up Full Cost / Unit With Reserves Annual Cost Calculations w/o Reserves Reserve Requirements 6,501$ $6,290 ($211) 5,850$ $7,308 $1,458 $13 $ 87.10 $6,881 464$ $560 $96 $82 $ 545.24 $545 -$ $16 $ 106.78 9,579$ $9,120 ($459)$30 $ 197.66 $11,266 -$ $42 $ 277.29 -$ $ - 10,307$ ($10,307)$14 $ 95.46 $12,123 -$ $39,497 $39,497 $ 304.35 -$ $95 $ 631.53 2,416$ $2,550 $134 $142 $ 947.29 $2,842 873$ $900 $27 $154 $ 1,026.84 $1,027 1,493$ $644 ($849)$11 $ 76.37 $1,756 84,096$ $93,932 $9,836 $15 $ 96.88 $98,915 51,268$ $289,531 $238,263 $0 $ 0.02 $60,303 -$ $ - 15,939$ ($15,939)$29 $ 191.30 $18,748 -$ $ 0.32 -$ $ - -$ $10 $ 64.02 -$ $10 $ 64.02 -$ $ - -$ $19 $ 127.66 9,334$ $2,408 ($6,926)$19 $ 127.66 $10,979 -$ $19 $ 127.66 -$ $29 $ 191.30 -$ $29 $ 191.30 -$ $10 $ 64.02 -$ $ - 4,137$ $836 ($3,301)$10 $ 64.02 $4,866 -$ $10 $ 64.02 109$ $56 ($53)$10 $ 63.96 $128 -$ $ - -$ $10 $ 63.96 -$ $ - 391$ $112 ($279)$17 $ 114.87 $459 -$ $10 $ 63.64 -$ $ - -$ -$ $10 $ 63.64 -$ $23 $ 153.05 Capital Accounting Partners Page 9 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name 11d Each NPP piping system of >5 outlets, per outlet PLUMBING PERMITS - GRAY WATER SYSTEMS 1,266 Admin base fee 1 For each plumbing fixture on one trap or set of fixtures.. 2 For each building sewer and each trailer park sewer 3 Rainwater system - per drain (inside building) 4 For each private sewage disposal system 6 For each water heater, vent, or both 7 For each gas piping system of one to five outlets 8 For each additional gas piping system outlet, per outlet 9 Industrial waste pretreatment interceptor, including trap and vent, X kitchen-type grease interceptors 10 Installation, alteration or repair of water piping, water treatment equip or both 11 Repair or alteration of drainage or vent piping, each fixture 12 Lawn sprinkler system on one meter including backflow protection devices 13A Atmospheric-type vacuum breakers not referenced above (1-5) 13B Atmospheric-type vacuum breakers not referenced above (>5) 14 Backflow protective device other than atmospheric-type (any size) Plumbing Permits - Graywater Systems 1,271 Clothes washer System 1,273 Complex System 1,272 Simple System 16 Installation and testing for a reclaimed water system 17 Annual cross-connection testing of reclaimed water system… 18 Each medical gas piping system 1-5 outlets Additional medical gas inlet(s) Electrical new or remodel cost/SF Solar hot water system 1,190 Storm drain system 1,191 Swimming pool Use & occupancy Permits 1,187 Certificate of Use and Occupancy 1,188 Certificate of Use and Occupancy - Replacement 1,189 1,186 Temporary Occupancy Permit - Multi-Family Residential, Non- Residential, and Other Commercial 1,185 Temporary Occupancy Permit - Single Family Residential and Commercial Tenant Improvement less than 10,000 sq. ft. FIRE FEES Hazardous Materials Classification Permits 1,367 Compressed Gas 1,363 Corrosives 1,364 Cryogenic Fluid 1,365 Flammable and Combustible Liquids 1,368 Flammable Gas 1,366 Flammable Solids 1,373 Health Hazard (Liquids & Solids) Annual Revenue Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy) R e q u i 6 Months Reserve, 3 yr build up Full Cost / Unit With Reserves Annual Cost Calculations w/o Reserves Reserve Requirements -$ $23 $ 153.05 107,900$ $120,520 $12,620 $15 $ 96.88 $126,914 -$ $14 $ 95.46 1,953$ $420 ($1,533)$23 $ 153.12 $2,297 5,356$ $330 ($5,026)$14 $ 95.46 $6,300 15,621$ $1,320 ($14,301)$23 $ 153.12 $18,374 5,454$ $280 ($5,174)$17 $ 114.55 $6,415 27,659$ ($27,659)$34 $ 229.10 $32,533 -$ $710 $710 $ 48.70 -$ $34 $ 229.10 97$ $5 ($92)$17 $ 114.55 $115 1,299$ $448 ($851)$14 $ 95.46 $1,527 -$ $14 $ 95.46 -$ $17 $ 114.55 -$ $14 $ 95.46 15,193$ $390 ($14,803)$34 $ 229.10 $17,870 -$ $ - -$ $14 $ 95.46 195$ $88 ($107)$34 $ 229.10 $229 243$ $183 ($60)$14 $ 95.46 $286 -$ $34 $ 229.10 -$ $69 $ 458.21 -$ $34 $ 229.10 Additional medical gas inlet(s)0.25 25$ $16 $41 -$ ($41)-$ $7 $ 47.73 Electrical new or remodel cost/SF2,127,2360.00012 0.012$ 0.008$ 0.02$ 0.11$ $0 41,435$ $233,996 $192,561 $0 $ 0.02 $48,736 Solar hot water system1.2 118.187$ 76.594$ 194.78$ 224.00$ $29 -$ $34 $ 229.10 1,190Storm drain system1.2 118$ $77 $195 28.00$ ($167)-$ $34 $ 229.10 1,191Swimming pool 0.4 39$ $26 $65 28.00$ ($37)-$ $11 $ 76.37 Use & occupancy Permits 1,187Certificate of Use and Occupancyeach1552.5 456$ $296 $752 287.00$ ($465)116,569$ $44,485 ($72,084)$133 $ 884.58 $137,109 1,188Certificate of Use and Occupancy - Replacementeach0.5 94$ $61 $155 123.00$ ($32)-$ $27 $ 182.64 1,189 -$ -$ $ - 1,186each332.3 365$ $237 $602 896.00$ $294 19,876$ $29,568 $9,692 $106 $ 708.43 $23,378 1,185each1551.7 270$ $175 $445 375.00$ ($70)69,003$ $58,125 ($10,878)$78 $ 523.62 $81,162 -$ -$ $ - FIRE FEES Hazardous Materials Classification Permits -$ -$ 1,367Compressed Gasannually281 229$ $121 $350 139.00$ ($211)9,795$ ($9,795)$62 $ 411.45 $11,521 1,363Corrosivesannually541 229$ $121 $350 139.00$ ($211)18,890$ ($18,890)$62 $ 411.45 $22,219 1,364Cryogenic Fluidannually421 229$ $121 $350 139.00$ ($211)14,692$ ($14,692)$62 $411 $17,281 1,365Flammable and Combustible Liquidsannually1721 229$ $121 $350 139.00$ ($211)60,168$ ($60,168)$62 $411 $70,770 1,368Flammable Gasannually281 229$ $121 $350 139.00$ ($211)9,795$ ($9,795)$62 $411 $11,521 1,366Flammable Solidsannually1 229$ $121 $350 139.00$ ($211)-$ $62 $411 1,373Health Hazard (Liquids & Solids)annually331 229$ $121 $350 139.00$ ($211)11,544$ ($11,544)$62 $ 411.45 $13,578 Capital Accounting Partners Page 10 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name 1,381 Liquefied Petroleum Gases 1,354 Organic Coatings 1,374 Organic Peroxides 1,355 Ovens - Industrial Baking or Drying 1,375 Oxidizers (Liquids & Solids) 1,369 Oxidizing Gas 1,356 Parade Float 1,357 Place of Public Assembly 1,370 Pyrophoric Gas 1,376 Pyrophoric Materials (Liquids & Solids) 1,358 Pyrotechnical Special Effects Material 1,377 Radioactive Materials 1,359 Refrigeration Equipment 1,360 Spraying/Dipping 1,361 Tent or air-supported structure having an area in excess of 200 square feet; or canopies in excess of 400 square feet (includes a public assembly permit of $125.00 for all tents) 1,362 Tire Recapping/Tire Storage 1,371 Toxic, Highly Toxic, Moderately Toxic, Health Hazard Gas 1,378 Toxic, Highly Toxic, Moderately Toxic, Health Hazard Materials 1,372 Unstable Reactive Gas 1,379 Unstable Reactive Materials (Liquids & Solids) 1,380 Water Reactive Materials (Liquids & Solids) Hazardouis Materials County Reimbursement Hazardous Materials Storage Permits 1,311 Additional Approvals for Hazardous Materials Storage Permit (first 2 hours) 1,312 Additional Approvals for Hazardous Materials Storage Permit (per hour for time above 2 hours) 1,308 Business Plan (HMBP) 1,312 Late Fee for Hazardous Materials Storage Permit 1,305 Level I Facility 1,306 Level II Facility 1,307 Level III Facility 1,309 Petroleum Aboveground Storage Tank 1,310 Provisional (6 Month) Fire Inspection Fees 1,313 Additional Resinspection Fee (up to 2 hours during normal business hours) 1,313 Additional Resinspection Fee (each additional hour) 1,314 After Hours Inspection Fee Annual Revenue Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy) R e q u i 6 Months Reserve, 3 yr build up Full Cost / Unit With Reserves Annual Cost Calculations w/o Reserves Reserve Requirements 1,381Liquefied Petroleum Gasesannually101 229$ $121 $350 139.00$ ($211)3,498$ ($3,498)$62 $ 411.45 $4,115 1,354Organic Coatingsannually1 229$ $121 $350 175.00$ ($175)-$ $62 $ 411.45 1,374Organic Peroxidesannually11 229$ $121 $350 139.00$ ($211)350$ ($350)$62 $ 411.45 $411 1,355Ovens - Industrial Baking or Dryingannually41 229$ $121 $350 102.00$ ($248)1,399$ ($1,399)$62 $ 411.45 $1,646 1,375Oxidizers (Liquids & Solids)annually161 229$ $121 $350 139.00$ ($211)5,597$ ($5,597)$62 $ 411.45 $6,583 1,369Oxidizing Gasannually341 229$ $121 $350 139.00$ ($211)11,894$ ($11,894)$62 $411 $13,989 1,356Parade Floatper hour1 229$ $121 $350 115.00$ ($235)-$ $62 $411 1,357Place of Public Assembly per occurrence2 457$ $242 $700 236.00$ ($464)-$ $123 $823 1,370Pyrophoric Gasannually11 229$ $121 $350 139.00$ ($211)350$ ($350)$62 $411 $411 1,376Pyrophoric Materials (Liquids & Solids)annually41 229$ $121 $350 139.00$ ($211)1,399$ ($1,399)$62 $411 $1,646 -$ $62 $411 9,795$ ($9,795)$62 $411 $11,521 -$ $62 $411 5,947$ ($5,947)$62 $411 $6,995 -$ $131 $872 -$ $246 $1,642 1,371Toxic, Highly Toxic, Moderately Toxic, Health Hazard Gasannually111 229$ $121 $350 139.00$ ($211)3,848$ ($3,848)$62 $411 $4,526 13,293$ ($13,293)$62 $411 $15,635 350$ ($350)$62 $411 $411 -$ $62 $411 -$ $62 $411 -$ $62 $411 -$ $348,000 $348,000 -$ -$ $134 $892 -$ $87 $583 115,990$ ($115,990)$87 $583 $136,429 -$ 1,305Level I Facility811 229$ $121 $350 264.00$ ($86)28,335$ ($28,335)$62 $411 $33,328 83,256$ ($83,256)$123 $823 $97,926 267,257$ ($267,257)$247 $1,646 $314,351 18,190$ ($18,190)$123 $823 $21,396 -$ $123 $823 -$ -$ -$ -$ -$ 104,687$ ($104,687)$123 $821 $123,134 -$ $61 $410 -$ $92 $616 Capital Accounting Partners Page 11 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name 1,316 Care Facility 1,317 Care Facility Inspection Including Fire Clearance (greater than 25 Care Facility Inspection Including Fire Clearance (7-25 clients) 1,315 Christmas Tree Lot/Pumpkin Patch 1,321 High Rise Building - Certificate of Compliance (annually up to 4 1,322 High Rise Building - Certificate of Compliance (each additional hour)) 1,318 Outside Cooking Booths 1,320 Standby Fire Watch or After Hours at Fire or Incident Scene 1,319 Use and Occupancy Fire Inspection As-Built Plan Check and Additional Work Investigations & Consultations 1,325 Additional Hours Over Plan Review/Inspection 1,323 Alternate Means and Methods Application 1,324 Appeals to Decisions 1,322 Consultation Fee 1,328 Hazardous Materials Data Entry Fee 1,327 Hydrant Flow Fee 1,326 Site Disaster Planning Life Safety & Fire Protection 1294A Automatic Fire Sprinkler Installation/Modification > 19 heads 1,295 Automatic Fire Sprinkler Installation/Modification (plus per head) 1,301 Express Fire Protection Plan Check Fee 1,296 Fire Alarm System Installation and Modification 1,297 Fire Alarm System Installation and Modification (plus a device or contact point) 1,303 Fire Protection and Fire Access Plan Review for New Single Family Dwellings or Additions 1,298 Hydrant Installation/Modification - Private 1,295 Other Automatic Fire Extinguishing System 1,297 Standpipe System - Wet, Dry, or Combination 1,300 Temporary Certificate of Occupancy 1,299 Underground Fire Service Line 1,304 Verification of Fire Protection System Maintenance and Certification Food truck permits Multifamily dwellings, hotels & motels 4-50 units 51-100 units Greater than 100 units Fire Prevention Inspection of Private Schools 1294B Automatic Fire Sprinkler Installation/Modification > 19 heads Specific Hazard Permits 1,329 Aerosol Products 1,330 Amusement Buildings Annual Revenue Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy) R e q u i 6 Months Reserve, 3 yr build up Full Cost / Unit With Reserves Annual Cost Calculations w/o Reserves Reserve Requirements -$ -$ $123 $821 -$ $61 $410 -$ $61 $410 -$ $256 $1,710 -$ $61 $410 -$ $92 $616 -$ $61 $410 54,088$ $22,940 ($31,148)$61 $410 $63,619 52,344$ ($52,344)$123 $821 $61,567 -$ -$ -$ $49 $325 49,242$ ($49,242)$116 $772 $57,919 -$ $61 $410 165,755$ $78,850 ($86,905)$61 $410 $194,963 -$ 26,172$ ($26,172)$61 $410 $30,784 -$ $61 $410 -$ -$ -$ $272 $1,813 -$ $1 $4 -$ -$ $172 $1,146 -$ $4 $25 -$ $141 $941 -$ $31 $205 -$ $172 $1,146 17,448$ ($17,448)$123 $821 $20,522 -$ $133 $889 250,817$ ($250,817)$295 $1,967 $295,015 -$ $14 $92 -$ $31 $205 -$ -$ $61 $410 -$ $698 -$ $184 $1,231 -$ $123 $821 -$ $123 $821 -$ -$ $77 $513 -$ Capital Accounting Partners Page 12 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name 1,331 Automobile Wrecking Yard or Junk Yard 1,332 Bowling Alley and Pin Refinishing Involving the use of Flammable 1,333 Candles and Open Flames in Assembly Areas 1,334 Carnivals and Fairs 1,335 Cellulose Nitrate Storage/Nitrate Film 1,337 Combustible Fiber/Material Storage 1,336 Confined Space 1,338 Hot Work permit fee (one time permit) 1,339 Hot Work permit fee (monthly permit) 1,340 1,341 Fireworks Display 1,342 High-piled Combustible Storage 1,343 Hot Work (Welding) Operations 1,349 Liquid or Gas-Fueled Powered Equipment 1,344 Liquid or Gas-Fueled Vehicles or Equipment in Assembly Buildings 1,350 Magnesium Working 1,345 Malls - Covered 1,351 Occupant Load Increase - Temporary Public Assembly 1,352 Open Burning 1,348 Open Flame/Flame Producing Devices 1,353 Operate a Tank Vehicle to Transport Flammable/Combustible 1,347 Place of Public Assembly - Temporary 1,346 Temporary Kiosks Fire Miscellaneous Fees TCO fee for Vendors/Stock occupancy (Requires at least one additional inspection) 1,288 Emergency Response Fee - Hazmat (PAMC 17.24.050) 1,289 Installation or Closure Without Approved Plans and/or Permits Fire plans revision Building General & Miscellaneous Fees 1,176 All Other Publications 1,201 Construction/Maintenance Vehicles 1,172 Electric Service and Safety Inspection 1,181 Extension of Building Permit or Building Permit Application 1,174 Inspections and Investigations - Outside Normal Business Hours (1.5xOThour) 1,175 Inspections and Investigations - Outside Normal Business Hours (2.0xOThour) 1,173 Inspections and Investigations - Unclassified 1,184 Reactivation of Expired Building Permit - All Others 1,183 Reactivation of Expired Building Permit - Final Inspection Only 1,182 Reactivation of Expired Building Permit Application 1,178 Real Property Research Fee (1-hour minimum) 1,177 Records Retention 1,180 Reinspection Fee - Multi-Family Residential and Non-Residential 1,179 Reinspection Fee - Single Family Residential (each secondary inspection type) Annual Revenue Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy) R e q u i 6 Months Reserve, 3 yr build up Full Cost / Unit With Reserves Annual Cost Calculations w/o Reserves Reserve Requirements -$ -$ $179 $1,197 -$ $61 $410 -$ $256 $1,710 -$ $18 $120 -$ -$ 1,338Hot Work permit fee (one time permit)One time1 228$ $121 $349 126.00$ ($223)-$ $61 $410 -$ -$ -$ -$ -$ -$ $61 $410 -$ -$ -$ $123 $821 -$ $61 $410 -$ $61 $410 -$ $61 $410 -$ $87 $582 -$ $61 $410 -$ -$ -$ 287,438$ ($287,438)$203 $1,352 $338,088 -$ $61 $410 -$ -$ -$ -$ -$ 1,172Electric Service and Safety Inspectionper hour1 98$ $52 $151 84.00$ ($67)-$ $27 $177 2,656$ $1,736 ($920)$15 $101 $3,124 365$ $202 ($163)$64 $429 $429 25,274$ $11,752 ($13,522)$86 $572 $29,727 -$ $43 $286 4,325$ ($4,325)$40 $268 $5,087 4,049$ $6,000 $1,951 $45 $298 $4,762 3,023$ $2,688 ($335)$33 $222 $3,556 -$ $43 $286 118,656$ $80,936 ($37,720)$1 $7 $139,564 562$ $616 $54 $50 $331 $661 3,086$ $1,176 ($1,910)$220 $3,086 $43,200 Capital Accounting Partners Page 13 of 14 BldCostCalcs Palo Alto Building Dept Building Fees Service # If Any Fee Name 1,180 Reinspection Fee - Single Family Residential (each primary inspection type) 1,171 Request for Release of Building Plans 1,175 Residential Inspection Guidelines Conditional Utility Agreement Emergency Responder Radio Coverage (testing) fee. GREEN BUILDING FEES Bldg Alterations and additions for single and multifamily < 1,000 sq ft and increases conditioned space Bldg Alterations and additions for single and multifamily > 1,000 sq ft Bldg Multi Family New Construction of 3 or More (attached) Units Bldg Multi Family New Construction of < 4 Bldg New Single family Bldg Tenant improvements, renovations, or alterations > 5,000 sq ft that includes replacement or alteration of at least two of the following: HVAC system, building envelope, hot water system, or lighting system and project value greater than $200,000. Bldg C. Tenant improvements, renovations or alterations > $200,000 in valuation (and not triggered by a Calgreen Tier) Bldg If the project is over $100,000 Energy Star is required after 12 months of occupancy Bldg New commercial 1000 - 25,000 SF Bldg New commercial 25,001-50,000 SF Bldg New commercial >50,000 SF Bldg Landscape Review - plan review Bldg Landscape Review - inspection Bldg Landscape Review - plan review Bldg Landscape Review - inspection Bldg Landscape Review - plan review Bldg Landscape Review - inspection Bldg Fee # 325 Annual Revenue Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy) R e q u i 6 Months Reserve, 3 yr build up Full Cost / Unit With Reserves Annual Cost Calculations w/o Reserves Reserve Requirements -$ $50 $331 -$ $13 $90 -$ 44,292$ $47,124 $2,832 $42 $279 $52,097 15,631$ ($15,631)$110 $735 $18,386 108,626$ $67,023 ($41,603)$193 $1,291 $127,767 204,545$ $28,718 ($175,827)$217 $1,449 $240,588 6,032$ $2,672 ($3,360)$266 $1,774 $7,095 -$ $218 $1,456 9,611$ $11,809 $2,198 $242 $1,615 $11,305 51,271$ $32,028 ($19,243)$266 $1,774 $60,305 51,997$ $14,868 ($37,129)$218 $1,456 $61,160 -$ $123 $821 37,336$ $30,303 ($7,033)$313 $2,091 $43,915 -$ $361 $2,409 -$ $385 $2,567 87,160$ ($87,160)$256 $1,709 $102,519 13,091$ ($13,091)$38 $257 $15,397 71,516$ ($71,516)$158 $1,051 $84,118 17,454$ ($17,454)$38 $257 $20,530 14,527$ ($14,527)$256 $1,709 $17,087 2,182$ ($2,182)$38 $257 $2,566 -$ -$ Annual Revenue Impact Revenue at Full Cost of Services Projection of Revenues at Current Fees Annual Surplus (subsidy)With Reserves 13,096,098$ 11,308,113$ ($1,787,985)$15,435,720 Annual Revenue Impacts Capital Accounting Partners Page 14 of 14 BldCostCalcs