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November IZ, 199,
HONORABLE CITf COUNCIL
Palo Alto, California
Full Cost Recovery Program: Ttmpora.n:....P.Lofessi Q.!lA.L11 anner)
Kembers of the Coun~il~
Re.Q.Qrt in Bf'"jef
T~i 5 report recorrrnends CHy Council approval of a budget amendment ordinante
to fl.ln:d the hiring of temporary professiona1 planners, who would assist in
processing Planning Di¥ision app1ications during periods when several major
full cost recovery projects are in process. Use of temporary professional
planners would assure maintenance of current custQrner serv{c:e level s for all
Plannir.g D;~isiDn applicants. funding for the temporary planner(s) would be
fully offset by full cost recovery application fee re\len~es. Without
assistance, normal time lines for pennit processing "ill be diffitult to
achieve and customer service jeopardized. or staff resourcp.s would need to be
shifttd from the Comprehensive Plan update, delaying that project.
Background
In an attachment to a June 2, 1992 report to t~e finance Committee on
appropriate levels of service in the Plann~ng Division (see Attachment 2, frem
CMR:2B3:92 of 6/2/92), the following items were Gis-cussed: 1/ types. of
projects targeted for full cost recovery fees in the FY 1992-93 and 1993-94
budgets; 2) reasons for the full cost recovery fee schedule; and 3) an
explanation of how ~;gh levels of service could be provided through U5e of
s.upplemental professional staff. during periods when major full cost recovery
project applications also were being processed. Th1s attachment further
pointed out that with the forthcoming commitment to update the Comprehensive
Plan, it wDuld no longer be possible to borrow Plan~ing Division staff
assigned other programs, e,g., the Comprehensive Plan, without impacting the
time frame for c.ompleting the Division's major work program.
Current Status of. Full Cost Reco .... ery Prpj.ects
Currently. the Planning Division has received fees frO'll four full cost
recover~ projects: J) the Stanfcrd West project and EIR, 2) t~~ Sand Htll
C~R:SI2:92
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Road e.xtens~on and Shopping Center expansion E"lR, 3) He Tamarack Cou.rt
resident~11 hotel PC lene change project, and 4) a zone change for a hotel (H)
C"verlay for the Creeksfde 111" on £1 Camino Real. In addition, the Planning
Division expects to receive app1ications from two fui1 cost recovery prnjE'cts
in the week of November 9, 1992. lot line adjustment and minor zone changE and
Comprehen:;; \Ie Pl an amendm~nt r~quests for sites at 620-640 Page 101111 R~:lad and
2650 £1 Camino Real.
The Starlford West project and Sand Hill ~oad E1R alone are expected to :'"equire
at least )QO percent of a Senlor Planner's (Planning Division) tfme for the
next year and a half. As i result of this major project being precessed
concurrently .ith the Compreherrsi· .. e Pian, the normal operations of the
Planning Division ~ould othe~ise be severely delayed. The solut;o~ proposed
w1tn the 1993-94 Budget and Fee Schedule, that was endorsed earlier by
Council, ~as to hire temporary professional project planners using !O~ pErcent
cost recovery fees in order to assure ~ontinued high leyels of cJstomer
service for a1l Planning Di~;sion app1ications and related projects.
Rp-colT'ru!nded Budoet and Options for Hir;~Lq lemrarary Planners
Staff estimates that current and expect~d full cost recovery projects being
processed over the next six months will require the h-iri"9 of a minimum of a
three-Quarters time professional planner for this six month time frame, and we
may need to process another Budget Amendme~t Ordi~ance before six months have
expired. {Two planners a1so could be hired whose total time wDulJ equa1 the
equ.;\la.lent !Jf a. three-quarter tiille staff person.} 1'he te(l;,porary planner or
pla~ners will be assigned to the less complicated applications, such as the
Cree.side Inn zone change and the lot line adjustment at 620-640 Page Mil1
Road. and to underfill for planning applications which would normally be the
responsibility of the Senio~ P1an~e( now handl~ng the more demandin9 Stanford
West ind Sand Hill Road projects.
C~rrtnt fees for experi~nced professional planners aV€rdge $60.00 per hour
without benefits. lherefore. funds for such a professional planner(s) for a
sfx month period would amount to $46,800. T~ese funds wou1d be entirely
reimbursed to the C;ty from current and expected full cost recovery projects.
Three options are available for hiring a temporary planner. They are I)
exec.util'l.g a contract with a fjrm (.Ir individu3.l consistent with the City's
request for proposal proceB (RFP). 2) ~:iring professional personnel through a
ti!mpor.ry employment age~cy? or 3) recrL..oitirlg ard hiring a professional
~1~nner ~$ ~ temporary employee. Staff endorses t~e last option because 1)
this ~irlng procedure is most cost effective in terms of fee~ {no overhead).
2) it provides fli!xibility to use such plan~ers only when Planning Division
workload requires supplemental staff in order to maintain high service levels,
and 3) it requires min~ma1 resources ifi hlring and administering such
perso"nt!l.
}~mmjry and ConclYsion
The City Council previously appro ... ed. as part of the Municipal Fee Schedule,
tnt! concept for full cost recovery fees for major pl anning projects. The:
CMR:512:92 11/12/91
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Finance Committee, in its revie_ of the department budg~t~ and the Poiicy and
Sery~ces CDmlittee~ in a d:SCll$~ior1 of the ARB process, 3150 dis-cussed the
importance of maintaining high ser~ice levels in tl,e precessing of all
Phnning DiY~s1(}n applications and re1ated projects. including during periods
when m~j~~ f!o'11 ccst rzcoveij' projects cculd otllerw, se djmini sh staff
resources. Hiring outside professional planning personnel during pericds of
peak workloads has been used effectively by other Bay Area cities jnc1uding
Sunny~ale •• aTnut (reeK, 30u!h San Francisco, Belmont and Los Altos. Such a
process is responsive to application fluctuations, assures continued levels of
c~stomer service and i! cost effective. Staff recomme~ds Council approval of
th~ attacned budget amendme~t ordinance in the amount of $46,800 and C~uncil
authoriZation to hire professional planners on a temporary basis, to work on
bott! full cost recovery pl"ojects and projects that oth~rwise would he deferred
because regu1ar salaried planners are assigned to full cost recovery projects.
Staff expects to return to Council with budget amendment ordinances to fund
supplemental professional personnel during periods when allocation of regular
staff for full cost recovery projects diminish resources fnr other ongoing
projects. Examples of projects which "'ave been publ ;::1y reported as pending
and which would require additional resources include the potentiil Palo Alta
Medical foundatinn relocation to Urban lane and any prnject at one of the two
Hyatt hotel sites on El Camino Real.
BecoIIITIf!ndat1on
Staff reconmends thilt Council approve t!1e attached budget arnendmer1t ordi nallce
in the amount of $46 ,800 to fund the hiring of one or more supplemental
prof~ss1onal planners whil~ Stanford West and other major full cost recovery
projects are being processed by Plann~ng Division staff.
RiZ:~lY ;ubrnitted, ~£ORG~ I~
Assistant Planning Official
\u,~~ J~LEMING r
Interim City Kanager
Attachment: BAO
KENNETH R. SCHREIBER
Di rector of Phnni ng and
Co~unity En~ironment
Attahment 2 from CMR:28l:91
Municipal Fee Schedule. pages 11-15
C~R:512':92 11/12/92
I): I.C!IIrl.'::Oo'1tcost ,cmr PagE: 3
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ORD!NANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AME"'-DING THE BUDGET FOR THE FISCAL YEAR 1992-1993 TO PROVIDE
AN ADDITIONAL APPROPRIATION FO~ THE PLANNING DIVISION OF ~~E
DEPARTMENT OF PLA}'NING AND COMM1..TNITY ENVIRONMENT FOR
THE HIRING OF TEMPORARY PLANNERS
WHEREAS, pursuant to the provisions of sectiop 12 of k~ticle
JII of the Charter of the city of Palo Alto, the council on June
22, 1992 did adopt a budget for fiscal year 1992-1993; and
WHEREAS, the Planning Division regularly provides timely and
responsive permit processing to its customersj ar.d
WHEREAS, several major cost recovery projects are in process;
WHEREAS, use of temporary professional planners ~ould assure
maintenance of current Cl.lstomer service levels for all permit
applioants;
WHEREAS, funding for the temporary planner(s) would be fully
offset by application fee revenues;
NOW~ THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTIO~ The sum of forty six thousand and eight hundred
dollars ($46~800) is hereby appropriated to contr-act Services in
the Planning Division of the Planning and Community Environment
Depa~tment. Application Fee Income is co~respondingly increased
and there is no impact on reserves.
gc:;rI9._~ The Council of the city of Palo Alto hereby fin..!s
that the enactment of this ordinance is ~ot a project under ~he
California Environmental Qua Ii ty Act and, therefore, no environmen
tal i~~act assessment is necessa~y.
SECTION 3.
Municipal Code,
adoption~
As provided in Section 2~D4.J75 of the Palo Alto
this ordinance shall become effective upon
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INTRODUCED AND P~SSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
A'l'TEST:
city Clerk
APPROVED AS TO FORM:
Sr~ Asst. city Attorney
1\PPROVED:
city Manager
Director of Flnance
Director of Planning
and community Environment
A!-'PROVED:
Mayor
,
ATTACHMENT 2
fLANNING PEPARTMENT FEE SCHEDUI/E CHANGES AND EFFECT ON APpr,.I~NTS
In response to city Council dir~ction, statf has adj\J.sted the fee
schedule tor all planning applic~ticns with the overall goal of 70
percent cost recovery. Prior to the 1990-92 budget cycle., the
Planning: Division had recoverE>d fees at approximately 40 percent
cost r~cov~ry, and increased to approximately 49 percent for 1991-
92. Many other jurisdictions in the Bay Area, since the adoption
of Proposition 13., collect fees on a 100 percent cost recovery
basis f04 most, and in some cases all, planninq entitlements.
The strategy used in developing the fee schedule was, rather than
usinq an "'across the board-adjustment, to de.. so with sensitivity
to applications with the least to gain from the entitlement.
Therefore, single family variances, home improvement exceptions,
minor Architectural Review Board (ARS) applications and sign
approvals were adjusted closer to 50 to 60 percent co~t recovery4
These applications are usually for remodeling of single family
residences and s1I1all businesses &.nd. statf believed that they could
least afford the full cost of City processes. Also, substantially
hiqher fees for these types of applications would encourage efforts
to do work without city review and permits. Projects Where the
applicant has relatively more to gain from the entitlement (i.e.,
5ubdivisions, co~ercial variances, conditional use r2rmits, major
ARB) were adjusted at or near 70 to 90 percent recoverY4 For these
types of projects, the rlannin9 fees represent a relatively smaller
proportion of the project costs, and in these instances, it was
felt that the applicants are in need of less subsidy.. In a.ll
cases, the majority of Planning fees are in-line 'With those ot
other jurisdictions (Santa Clara, San Jose, Mountain View and
Fremont) •
The only applications for ~hich staff recommends 100 percent cost
reco"\'ery at this time are:
a) environmental impact reports
bJ zone changes, both planned community and regular
c} comprehensive plan amendments
d) major site and design applications
The6e applications are generally the type where the pcoperty owner
has the most to gain from the entitlement. The reason fo~ this
recommendation is twofold:
1) To keep customer service levels higr~ by allowing division
responsiveness to permit activity, similar to that
currently provided by the Building Division4
CMR:283:92 8
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2)
,
o " To eliminate the internal conflict for staff resources
that now exists. bet\o'een tha t'oolO sides of the Planning
Divisior., Development Monitoring and Special studies.
Fir&t, in order to k~ep customer service levels verl~ high and to
continue to meet current time lines for all applications, there is
a need for flexibility in the number of Development Honi taring
staff, to respond to the application 'Workload. CUrrently as a
result ot 10.., permit activity, Development Monitoring staff are
comprised of fivEi and one-half planners: i~e., one cour.ter
technician t one-half-time single family plan checker, one AP..B
planner, one planner, one senior planner, and the Zoning Adminis
trator~ The Senior ARB planner is currently assigned to large
Planned Community applications, including the pending Stanford
housing project at 600-600 Sand Hill Road. This staff is responsi
ble for processing all planninq entitl~ments through either the
Zoninq Administrator, AP~, Planning Commission and City Council, or
over the counter. Heret~fore, when several large applications have
been received at once, staff have been internally reassigned from
special Studies to nevelopment Monitoring, enlarging the Develop
ment Monitoring 5taff to as high as eight and one-half planners
intermittently over the past four years, at the expense of projects
like the Urban Design Plan and other $pecial studies. with the
upcoming commitment to the Comprehensive Plan, it will not be:
possible to borrow statf without impacting the time frame for
complet-inq that major work proqram.
The other-option .for completing special assignments, utilized
during the R-l Ordinance Amendm~l'lt process, is to let the time
lines lengthen for application processing and/or to require
overtime among staf.! mell1bers. This generally leads to dissatisfac
tion from the development community and general public because the
carryinq oosts for development projects increase with the amount of
time necessary to process the planning entitlements. This
statement is true tor-both the single-family remodeler ami the
m.ajor commercial developer. HOl,.'ever, the state of California
requires only that applications be acted on within six montt.s,
consider-ably longer than our local co~itments to customer service
have allowed. It is 'iriorth noting that tfie Planning Division has
learned the hard ~ay that substantial overtime is not productive
for staff in the long run and results in lover morale, pC'orer
quality customer contact, and higher s-t:aff turn-over.
The Building Divie>ion utilizes an ·outside· plan check firm to
assist in ell.peditinq plan checks when our internal plan check
process queues up. This allows the appli~ant to pay an additional
expediting charge to "get around the queue·. Planning approvals
cannot.be achieved through an outside plan check firm because they
involve public process, however there are outside firms who provide
supplementary staff services to public agencies. These agencies
retain planners who can be hired on a temporary basis, for the
duration of a planninq application~ Contract planners are
CMR:2B3:92 9
effective only ~ith internal management and oversight, b~t it is
yorth noting that two current City staff members ""ere formerly
employees of a firm which performed similar ancillary staff
~unct1ons for the cities of Half Moon Say, Foster City, Los .... ltos
Hills, Belmont, San Mateo., San Carlos, and many others. The
:Planning Division also utiliz.ec ou.tside assistance to clear-up
back~ogged single-family applications during the Urgency Ordinance
deadline period irl 1989-90 ..
With 100 percent CO!lt rscovery for the largest and most cDntrover"·
sial applications, it can be assured that, should the City receive
applications for several large projects beyond current estimates I
outstripping our Development Monitorinq &taff resources, ~e could
use fee revenue to allow the City to contract vith an outside firm
to assist in application processing and keep our customer service
commitlllent "While not affec·::.inq the Comprehensive Plan time lines.
The 100 percent recov~ry scheme is inh~rently -fair" because staff
keep track of their time and only bill for ~hat is dedicated to a
specific application. In this ~ay, ·simple-applications pay less
"While ~complex" projects pay more~
CMR, 283: 92 10
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Mr!.ICATIQN
Architectural Rey;ew
Minor Projo;t
Major Project
Preliminary Review
Change to Approved Project
Signs (new, replacement)
Signs Erected Without Approval
Signs (eKcepCion:'i)
ErLvirQnmentaJ ImMel Asse:;sment (EIA)
Regu!ar
Mitigated Negatiye Declaration
:fnliroomenlal lrol1m.RCWrt (ElEl
1.2LM.~~
Pl.ANNING DEPARTMENT FEES
PLANNING DIVISION
II
199!-92 /lEE
$ 250,00 + Microfilm fee
! ,000,00 + EIA & Microfilm
fee.
75/minor -300lmajor +
Microfilm fee
300lminor -6OO/major +
Microfilm fee
150,00 + Microfilm fee
300,00 + Microfilm fee
300,00 + Microfilm fo<:
300,00
1,250.00
4,000.00 minimum or 50%
of City 005($, whichever
i~ greater, with a
maximum of $20,000.00
300.00
Im·g'! FIill
$ 3 10.00+ Microfilm fcc+
Record Management Pee
'~
1,500.00 + EIA & Microfilm fee. ai',~
+ Record Management p"" V
lOOlminor -5OO/ ... jor + Microfilm
r~ + R.ecord Managemt:nt Fee
.JlOlminor -6OOlm'\ior + Microlilm
fee + Re(Vrd Management Fee
310,00 + Microfilm fee +
Record Mam.gemenl Fee
620.00 + Microfilm fee +
Record Management Pee
620,00 + Microfilm f"" +
Record Management Fee
500.00
1,300.00
4.000.00 depositplu,
100% co.t recovery
500.00 + Microfilm fee +
kecord Management Fee
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PLANNING DEI'ARTMENT (.onllnued)
PLANNING DIVISION
Minor Suhdivision with Planning Direclor Approval
Preliminary Map
Parcel Map
Minor fu!l!division with City Council Approval
Preliminary Map & EtA Pees
Parcel Map
SJ!hdivi~.iQn {Five ~~
All subdivision propOSOi.:~ ~Q~ire EtA applications
variance
Tentative Map 0 -0.99 acre§ .................... .
Tentative Map I . 1.99 acres"""""""".""
Tentative Map 2·2.99 acres .. """" .. "." ....
Tentative Ma., 3 -3.99 acres .................... .
Tentative Map 4 -4.99 a(:re~ ............. " .... ..
Tentative Map 5 -or more acrcs, ................ ..
Final Map" ........... " ".,,,.,,.,, ... ,, .. , .... ".
Residential
Commercial and Manufacturing
1991·92 FEll 1222:2ll'Ell
850.00+E:A & Microfilm fcc, 1,250.00+E1A & Microfilm
(<<9+ Record Management Fee
300,00 + Microfilm fee 500.00 + Microfilm fee +
Record Management Fee
1,700.00+EIA & Microfilm fees 2,500.00 + ErA & Microfilm III
(ees + Rcx:ord M.a.nagement FV
1,700.00 + Microfilm fee 1,700.00 + Microfilm fee +
2,500.00+EIA & Microfilm fee.,
2,500.00+EIA & Microfilm (ees
2,500.00+ EIA & Microfilm fees
2,5()().00+ E1A & Microfilm fees
2,500.00+ ETA & Microfilm fees
2,5oo.00+EiA & Microfilm fees
400.00
675.00 + Microfilm fee
1,125,00 + Microfilm fee
12
Record Management Fee
4,000.00 4-ErA & Microfilm fee.
+ Record Management Fee
4,000.00 + EIA & Microfilm fee,
+ R=rd Management Fee
4,000.00 + EIA & Microfilm fa!
+ Record Management Fee
4,000.00 + EIA & Microfilm fees
+ Record Management Fee •
4,000.00 + RIA & Microfilm fee
+ Record Management Pee
4,000.00 4-E1A & Microfilm fees
+ Record Management Pee
1,700.00 + Microfilm fee +
Record Management Fee
900.00 + Microfilm fee +
Rt'COrd Management F""
1,800.00 + Microfilm f"" +
Record Management Pee
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I'tANNIlVG OIVISI(}N""""T (~OIllI"""d) ~("n_., '
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APPLICA. 7'fON
~1
RegUlar
're"'Pwary
.. Minor
-Afll./Q,.
f.'amiJ
Y Day Care 110
20"_ -me i>I!d u ~fliJ~ ~y C.,.. Cen""
l/egul;"
1'100/)0<1 C""''''.nity Zone Change
lI1illor Change 10 PI;,
nnet} ComrnUqity Zooe ~
Control Distr;ct
13
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35(),~ 1, Microfilm re..,
1,
12
5.00 Ell\. <t Microfilm fee.
l(C,oo ... Microfillll fee
5[iO,~ +Mu,'Ofi1m foe
1(}~'00;'E1' ~. 'r'
T\ ut. IV rCTQfitrn feeS'
~
500,00 + Afiernfilm f.., -I
RO:>;'d "".nag""'eOI Fee 3~~<I ~,AfU,""film roe -I·"·"~eot F..,
I,BOO.~ + E1A J, • , , I.>,:'"
-I-1!CCort) M~~":.. MICrofilm (~
·'"",omen, Fee 100 00 ... '"
I? . ""'e"'l;/", fee + 5~ ~~ M· ... ge""'''' J;;"
II ' MICrOfiI", fee +
1 00 ~d Ma •• gemeol P""
2,700,00"'E1A ~ M:'
""Ofilm f"". J Jlrv.. ""
"'VV·VV of-l~:l; C. S'400'~+E1A 1\""""
-;. R"':,,/'jJ ~ Microfilm roe. '~m""1 J;;"
r. '" ""Ie'on", 0"
2JO'OO+AI?B ~, .. ,
~'''''''rOfilm """
2,000.00 + E1A,AII8.(:
lill\. ~ ... (lSI R"",.,.."", ... R .... ,C"'tilm fOes... "J
6: 000 7:;'td Af'""g~""'nl Pee
' . ... l~$ C"./ R"""",
MiCl'Qfifm fee.
;. lir I\. ~ Afic"'film /' 'r .. '." ... l/"<'lrd M rt-s. , J S50,~ -I-M:' ~""ge"'e";,.;;,,
kCCOTd.t... lCTrJ, It"l fOfos _;_ '~a·.gemen! Fee
3·000.~ -I-IIXI% C
+ fifl\,A.RIJ & •• ~.t R<>:ovo'Y
R<>:Onf •• »",rOfilm r""",~ ""·"'ge"'en, Foe
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PLANNING DEPARTMENT (continued)
PLANNING DIVISION
SUe and Design {contiOLle!!l
Minor Change
Minor Ch"nge -OS ZOJle
Cmnnretlensjye PJ.n~~.ng~
(Outside of Annual Review)
NoncnnfQrmtngj,J.!!t:
Review
Exception
Demolition Permjts fo-LH.i.s1'H'k.B1!ili1i.!w.
~WQQ10~st':rvatjon 7..o0e Exceptioos
~Jll!lent Acreemellt
Documents
Planning Commission AJ;endas
Planning Commission Minutes
Tille \8, PAMC, Zoning
Title 18, PAMC, Zooing. Suppiemen(.
Map Sc..ales -200 scale zone map
400 scale zone map
Complele 400 scale zone map
J ,000 scale lone lTIap
600 scale lOne map
500 scale 1nnc map
aerials
1991-92 eoo Im-g3 Fj!!l
250.00+ARB & Microfilm fee, 550.00 + Microflrn fee +
Record Management Fee
400.00 + ARB & Microfilm fees 550,00 + Micmflm fee +
Record Managemen: Pee
1,8oo,OO+EIII & Microfilm fees 3,000.00 + 100% COS( Recove_
+ BIll & Microfil In fee + W
Record Management Fee
250,00 + Microfilm fee
2,600.00 + Microfilm fee
1.450.00 + Microfilm fee
850,00 + EIA & Microfilm fee
5,800.00
14
15.oo/.nnu.1
25.00/ .. nu.[
20.00
2.oolp'ge
LSO/page
2.00
3.00
2,00
250.00 + Microfilm fee ~.
Record Management Pee
2,600.00 + Microfilm fee +
Record Managemenl Fee
1.450.00 + Microfilm fee +
Record Management Fee
850,00 + EIA & Microfilm fee
Microfilm fee +
Record Mana.gemen( Fee
5,800.00 + 100% Cost ROOOVery.
& Microfilm fee +
Recottl Management Fee
30.00I.nnu.[
50.oolonno.1
24.00
4.00lpage
4.00lpage
4.00/page
30,00
8.00
20.00
4.00
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PLANNING DEPARTMENT (continued)
PLANNING DIVISION
Document, kQDtinuerl)
Compre~ensive Plan
J991-22 fEB
NA
Record Management Fee (Optical disk document retrieval) 0.00
,Encroachment Permit
Con!itructionrrrnffic Control Related
Engineering
Bicycle LociI!:LRmta!
Renm' Fe.
Refulldable Key Deposit
Plu:kinth.rmill..~IOOQJl
Construction/Maintenance Vehicles
Emergency Repair Vehicles
Parking Permits -Business Districts
University Avenue Parking District
All Lots E,cept Lot U
Lot U
Carpool Permit
TRANSPORT A TlON DIVISION
60.00
5.00 per month
5.00
25.00/space
per week
120,00/year
~LQlmru Per YeaI'
$ 65.00 $200.00
37.50 100.00
Quarterly fee Quarterly fee
15
Im·23m
20.00
20.00/per file
Trall'fcrred to Public Work5
5.00 per month
5.00
25.00/space
per week
'20.OOIy=
~LQwwr ~
$ 65,00
37.50
$200.00
100.00
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